Australians ‘Job Hugging’ Risk Falling Behind in AI Skills Gap
▼ Summary
– Australian employees are prioritizing job security with only 18% considering a career move, despite 40% reporting burnout and 29% taking on extra responsibilities.
– A significant skills stagnation concern exists, as 21% of workers haven’t received any training in the past year, risking future organizational readiness.
– While 79% of employees received some training, it’s often short-term or compliance-driven, and only 29% have pursued learning focused on future career progression.
– Employees show a readiness gap in AI, with 30% fearing role replacement within five years but only 58% feeling prepared, and generational groups report insufficient AI training support.
– Overall employee sentiment is improving with rising job and economic confidence, but 61% would consider leaving if career growth stalls, highlighting retention risks.
A significant number of Australian professionals are opting for job security over career progression, a trend that could leave them unprepared for the rapid integration of artificial intelligence in the workplace. Recent data from the ELMO Employee Sentiment Index reveals that while overall employee confidence is rising, a reluctance to change roles and a shortage of meaningful skills development are creating a concerning gap in future-readiness.
The research indicates that just 18% of workers are considering a career move, a notable drop from the previous quarter. This “job hugging” phenomenon sees employees prioritizing stability, even as 40% report experiencing burnout and 29% have taken on increased responsibilities. Underneath this cautious approach lies a deeper issue: skills stagnation. Approximately 2.24 million Australians, or one in five workers, confirm they have not participated in any form of training over the past year.
Joseph Lyons, CEO of ELMO Software, observes that the workforce is stabilizing after a period of significant disruption but warns that stability without growth can quickly lead to stagnation. He emphasizes that building organizations capable of meeting future challenges requires a commitment to helping employees learn, adapt, and develop their capabilities.
Although 79% of employees report receiving some training in the last twelve months, much of this development is short-term or compliance-oriented. General awareness sessions account for 40% of training, while role-specific technical training makes up 38%. While 76% of workers trust that the training provided is relevant to their career, fewer than 29% have pursued learning specifically aimed at future roles or advancement. This suggests a confidence in organizational support that isn’t matched by proactive career movement, pointing to a need for clearer career pathways and a more supportive environment for professional growth.
When it comes to who drives learning, 43% of employees state their training was entirely employer-provided. In contrast, 16% say they initiated or funded their own development. This figure rises sharply to 42% for digital or technology-related training, indicating that workers are taking personal initiative in areas where skill demand is highest. The consequences of ignoring skills development are real for retention; 61% of employees would contemplate leaving their employer if their career growth or skills development stalled, with 21% stating they would definitely do so.
The readiness gap for artificial intelligence presents a particularly urgent challenge. Three in ten employees believe their role could be replaced by automation or AI within five years. A disconnect exists between perceived capability and actual preparedness: while 84% feel their skills keep pace with their industry, only 58% feel equipped for the impact of AI and new technologies. Just 20% feel they receive adequate AI-related training support from their employer.
Generational disparities are also evident. A striking 68% of Gen Z and 74% of Gen Y employees report insufficient AI training support, underscoring the difficulty employers face in future-proofing their talent. Overall, 44% of Australian workers believe employers are not doing enough to reskill or upskill the national workforce. As the country contends with a productivity slowdown, these findings signal a critical juncture for business leaders.
Lyons notes that employees recognize AI will transform their roles, but many do not feel prepared to keep up. Bridging this gap is vital for Australia’s productivity, competitiveness, and overall confidence. He adds that while AI is transforming how we work, it doesn’t diminish the value of human qualities. Technology cannot replace creativity, critical thinking, or compassion, but it can amplify them. The future of work will hinge on keeping people central, designing workplaces where humans and technology learn from one another.
Despite these challenges, the broader employee sentiment is improving. Job and economic confidence have been rising since early 2025, and perceptions of fairness and recognition in the workplace are also on an upward trend.
(Source: ITWire Australia)
