Report warns about the impact of widespread job insecurity on retention and performance
Only one in four Australians feel that their jobs are safe from elimination, according to a new report, which urged employers to build confidence in the workforce at the risk of losing them.
Findings from ADP Research showed that 25% of Australians believe that their jobs are safe from being eliminated, higher than the global (22%) and regional (18%) average.
Despite the stronger figure, the report finds that Australia is still falling short as the majority of its workforce remains concerned about long-term job security despite the resilient labour market.
Australia's unemployment rate stayed at 4.4% in June, with the number of employed people even going up to 14.8 million, according to the latest government data.
"Australia's labour market continues to demonstrate resilience, with employment growth remaining steady and unemployment relatively low. Yet our research paints a different picture of how workers are feeling," said Kylie Baullo, General Manager for Australia, New Zealand and Japan at ADP.
"Only one in four Australian workers believe their job is safe from elimination, suggesting many are thinking beyond whether they have a job today to whether their role will still exist in the years ahead."
Job uncertainty in Australia
The findings come in the wake of widespread uncertainty amid AI adoption, as previous research suggested that the technological transformation in workplaces may lead to job losses.
Young people, in particular, are expected to be more affected as entry-level roles are reportedly more likely to be hit by the supposed workforce changes.
The uncertainty is reflected in ADP's findings, where young Australians aged between 18 and 26 years old are the least confident in job security, with only 18% expressing confidence.
Employees aged between 27 and 39 years old are the most confident, with 29% saying their jobs are safe from elimination.
The uncertainty comes despite recent government data showing there is "no evidence" of widespread job market upheaval due to AI.
In fact, the government report noted that jobs for people aged 20 to 24 years old have grown slightly faster than for those aged 25 and over since the introduction of ChatGPT in late 2022.
Risks of job insecurity
The uncertainty felt by many Australians over job security comes with risks, according to the report, particularly on productivity and retention.
ADP reported that workers who feel their jobs are secure are twice as likely to say they have no intention of leaving.
Employees who feel their jobs are secure are also six times more likely to be fully engaged and 3.3 times more likely to report high productivity.
"Job security has become a business issue, not just a workforce sentiment measure," said Dr. Nela Richardson, chief economist at ADP.
"When employees feel confident about their future with an organisation, they are more likely to stay committed, perform at their best and contribute more effectively."
What can HR leaders do?
Both Richardson and Baullo underscored the need to be transparent with and to invest in employees to stamp out uncertainty in the workforce.
"Employers that pair honest communication with meaningful skills investment will be in a much stronger position to build a resilient workforce," Richardson said.
Baullo stressed that employers have an important role in helping employees navigate the ongoing changes in workplaces.
"As AI continues to reshape how work gets done, Australian employers have an opportunity to build confidence by clearly communicating how roles are evolving and investing in the skills employees need to adapt," Baullo said.
"Organisations that prioritise continuous learning and give employees greater visibility into future career opportunities will be better placed to retain talent, improve engagement, and build a more resilient workforce."
