The wave of redundancies in banking and corporate sectors is more than an economic disruption, it signals deeper changes in how work is structured and delivered. Employers are reducing costs to combat inflation by turning to automation and offshoring. This is pushing younger workers, especially recent graduates, out of traditional career pathways. Older professionals are also affected, but younger Australians are feeling the impact earlier. Many are turning to casual jobs that do not pay enough to support independent living.
Until recently, roles in banking, law, IT, accounting and sales were seen as dependable starting points for stable careers. These opportunities are now disappearing. Rising wages, regulatory costs and energy prices are putting pressure on businesses in many sectors. As a result, companies are reviewing their operations, opting for leaner staffing levels and increased reliance on technology. One human resources group reports that one in four employers have already made jobs redundant this quarter. Forecasts suggest the situation could worsen by the December quarter.
While AI is often blamed for job losses, most employers are still relying on traditional cost-cutting strategies. Australia’s recent decline in productivity is now reversing, primarily because businesses are aggressively reducing expenses. Much of this pressure is falling on younger workers, especially as new workplace laws increase overheads. Meanwhile, banks and other companies are shifting customer service functions offshore to countries with lower wage costs, avoiding Australia’s high labour expenses.
This financial pressure is paired with a broader issue. Many young people are finishing their education without the skills needed for today’s fast-changing job market. There is growing demand in trades and specialised technical roles, but education providers have not yet adapted to reflect these industry changes. If AI adoption continues rapidly, large sections of the workforce, especially mid-skilled and middle-income earners, might see their roles replaced before they can transition.
The government and education sectors are facing challenges of their own. Budget constraints may force reforms across public sector workplaces that mirror the private sector's focus on efficiency and lower spending. At present, market pressures are prioritising profit over employees. However, the wider social and economic impacts of letting go of a generation’s job security are becoming increasingly apparent.
