Wages, Worker Rights and Public Sector Jobs: What the Federal Election Means for Australia’s Job Market 

Australia’s recent federal election is expected to lead to big changes in the way organisations hire and people engage in work across the country.  

The re-elected Labor Government is focusing on better worker protections, higher wages, and growing the public sector, all of which could affect job opportunities and workplace rules.

Recruitment experts Robert Walters explain what these changes might mean for both employers and job seekers.

“We’re entering a pivotal moment in the Australian job market,” said Bernadette Bentley, Head of Federal Government at Robert Walters Australia. “The government’s renewed focus on wage growth, worker protections, and public sector investment is likely to shift candidate expectations and force businesses to rethink how they attract and retain talent in a tightening labour market.”

Wage Growth and Employee Expectations

A proposed minimum wage increase, from $24.10 to $24.68 per hour, signals a government-wide effort to deliver real wage growth above the 2.4% inflation rate. This increase, set to benefit approximately three million workers, demonstrates a targeted approach toward lifting incomes for lower-paid sectors such as retail, cleaning, and early childhood education.

For white-collar workers, these changes could shift expectations in the broader job market, even if they’re not directly impacted by the wage rises.

Bentley said, “As lower-paid sectors see improvements, there may be more pressure on employers across industries, including white-collar professions, to offer competitive wages, flexible working conditions, and better job security to retain top talent. This shift could see workers across all industries have more power and higher expectations.”

The government is also proposing other changes to employment laws, like banning non-compete clauses for lower- and middle-income workers and expanding protections for gig workers.

Public Sector Expansion

The government plans to create 3,400 new jobs within the Australian Public Service (APS) in the coming year, adding to over 40,000 since 2022. Agencies including the National Disability Insurance Agency, the Australian Taxation Office, and the Department of Defence are expected to benefit most from this hiring wave.

For candidates, particularly those in compliance, policy, and technology roles, this presents new avenues for long-term career development. For private sector employers, it may intensify competition for skilled professionals as public sector roles become increasingly attractive.

“We’re seeing a clear increase in candidates expressing interest in public sector roles, not just for job security, but for the opportunity to work on impactful, large-scale initiatives,” said Bentley. “This trend is shifting the talent landscape. Private sector employers will need to rethink their employee benefits, offering greater flexibility, purpose-driven work, and upskilling opportunities to compete with the growing appeal of government roles.”

Strong Job Market, but Economic Uncertainty Calls for Caution

Australia’s unemployment rate is the lowest it’s been in over 50 years, and wages are finally starting to rise after a long period of stagnation. This is great news for job seekers.

However, the government’s high level of planned spending – potentially leading to a $70 billion budget deficit – has raised concerns about how long this momentum can last.

“While job creation and wage increases are promising, economic headwinds remain,” added Bentley. “Businesses should remain agile and flexible, manage their costs carefully, and invest in training their people to stay strong in an uncertain economy and retain talent.”

Housing and Workforce Impacts

The government plans to spend $10 billion to build 100,000 homes for first-home buyers, as part of a bigger goal to build 1.2 million homes by 2029.

For employers, housing affordability remains directly tied to talent attraction and retention. “Affordable living near employment centres is increasingly important for candidate decision-making. If people can afford to live closer to where they work, it’s easier for businesses to attract and keep the right talent,” said Bentley.

Research from Robert Walters survey of over 7,750 people revealed that 56% of Australian’s are considering relocating this year, mainly driven by cost-of-living pressures in major employment hubs like Sydney and Melbourne.

“These housing plans could stop the mass exodus and relocation trend we are already starting to see as well as open up new job opportunities for more Australians and open up a wider talent pool to employers.” added Bentley.

Looking Forward

The re-elected Labor Government’s post-election plans indicate a clear focus on fair pay, long-term public sector investment and helping more people get into work. But how well these plans work will depend on how efficiently they’re put into action – and whether the wider economy can support them.

As these policies begin to take shape, both job seekers and employers will need to adapt. Workers are likely to gain greater bargaining power, while businesses, especially in the private sector, must stay competitive by offering fair pay, meaningful benefits, and flexible working environments.

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