Australians are ‘job hugging’ but risk falling behind as skills and AI readiness gaps widen
Australian employees are clinging to job security while quietly feeling the strain, according to new research from ELMO Software. The latest ELMO Employee Sentiment Index (ESI), covering July to September 2025, reveals only 18% are considering a career move (down from 23% last quarter), despite 40% reporting burnout and nearly three in 10 (29%) taking on extra responsibilities at work.
This sense of caution reflects the “job hugging” trend, where employees are choosing stability over change. Yet beneath that stability lies a growing concern: skills stagnation. One in five workers (21%), or around 2.24 million Australians, say they haven’t received any form of training in the past year.
ELMO Software CEO Joseph Lyons said the data reflects a workforce regaining its footing after years of disruption, but one at risk of standing still.
“After a period of uncertainty, employees are choosing security. But stability without growth can quickly turn into stagnation. To build future-ready organisations, we need to help people learn, adapt and grow.”
While four in five employees (79%) report receiving some training in the past 12 months, much of it remains short-term or compliance-driven, such as general awareness sessions (40%) or role-specific technical training (38%).
While three-quarters (76%) said they trust the training and support they’re receiving is relevant to their future career, fewer than three in ten (29%) have pursued learning focused on future roles or progression. This suggests confidence in organisational support, but reluctance to act. To bridge this gap, organisations need to make career pathways clearer and foster psychological safety around career movement.
Overall, 43% say their learning was entirely employer-provided, while 16% say it was self-initiated or self-funded. This figure jumps to 42% for digital or technology training, showing workers are self-motivating in areas where demand for skills is highest.
That gap has real consequences for retention. Three in five employees (61%) say they’d consider leaving their employer if their career growth or skills development stalled, including one in five (21%) who say they “definitely would.”
Confidence without capability: the AI readiness divide
Artificial Intelligence (AI) remains a defining theme. Three in ten (30%) employees believe their role could be replaced by automation or AI within five years. Yet, while 84% of employees feel their skills keep pace with their industry, fewer than three in five (58%) feel prepared for the impact of AI and new technologies.
Only one in five (20%) feel adequately supported by their employer with AI-related training. Generational gaps are also evident: 68% of Gen Z, and 74% of Gen Y employees report insufficient AI training support, highlighting the challenge for employers trying to future-proof their talent pipelines.
Overall, more than 4 in ten (44%) employees believe Australian employers aren’t doing enough to reskill or upskill the national workforce. As Australia continues to grapple with a productivity slowdown, Lyons said the findings point to a critical moment for business leaders.
“Employees recognise AI will transform their roles, but many don’t feel equipped to keep up. Bridging that gap is essential for Australia’s productivity, competitiveness and confidence,” Lyons said.
“AI is changing how we work, but it doesn’t change the value of people. Technology can’t replace creativity, critical thinking or compassion, but it can amplify them. The future of work will depend on keeping the human in the loop: designing workplaces where people and technology learn from each other,” Lyons added.
Despite signs of stagnation, employee sentiment is trending upwards overall, with job and economic confidence improving since early 2025 and perceptions of fairness and recognition also lifting.
