How cost-of-living is impacting the career goals of Aussies

If you’ve found yourself ditching the morning coffee to cut back on expenses, you’re not alone. More Aussies are feeling the impact of the cost-of-living crisis and having to adjust their career goals as a result.

According to The Choosi Cost of Career Report 2024 the average cost of education and training comes to a whopping $17,418, causing many to question whether tertiary education is worth the investment.

Faced with rising HECS or HELP debts, close to three in five Australians believe education debt negatively impacts their home ownership ambitions and future plans.

If you’re wondering how you can achieve your career goals without breaking the bank, you’ve come to the right place. Discover how the cost-of-living crisis is impacting career goals and how you can make informed decisions to avoid hidden costs on your journey to job satisfaction.

Australia's cost-of-living crisis at a glance

The cost-of-living refers to how much money it takes to afford life’s necessities. From essential goods and groceries to housing, utilities, healthcare, and petrol, these costs all add up to create a squeeze on your personal finances.

The Consumer Price Index (CPI) is often used to assess changes in the cost-of-living. Though the Reserve Bank aims to keep CPI inflation between 2% and 3% per year, the Australian Bureau of Statistics reports that the CPI rose 3.6% over the twelve months to the March 2024 quarter. Significant price increases were experienced in rents (2.1%), secondary education (6.1%), and tertiary education (6.5%).

As a result, further education is a choice many Aussies are now struggling to afford. Compounding the issue is Australia’s rising unemployment rate, climbing to 4.1% in April 2024.

What's holding us back from our career goals?

For most, the significant financial costs of pursuing an education and various training can hold us back from achieving our career goals.

For those who have taken out HECS or HELP debt, Choosi’s Cost of Career Report 2024 shows that almost two in three have had to cut back spending or saving in at least one way, with 29% forsaking travel, 22% foregoing social activities and dining out, and 26% dipping into personal savings or investments.

But these are just the start of the challenges holding Aussies back from their career goals amidst the cost-of-living crisis. Here’s what we found in the Cost of Career Report 2024:

• Burnout: With over 57% engaged in casual or part-time work while studying simply to manage living expenses, Australians are experiencing burnout on a widespread scale. In fact, three in ten believe career or study has a negative impact on their mental health.
• Workplace costs: The cost of a career doesn’t end once your education is completed. Once you’ve entered the workforce, you can expect to outlay costs for travel, clothing, footwear, and professional development courses. Such an expense can be unattainable, with nine in ten believing their employer should subsidise or pay for professional development opportunities and workplace costs.
• Obligation: When it comes to achieving career goals, 49% instead choose to study or work out of obligation rather than enjoyment or a passion for their field. With the cost-of-living so high, many are having to put their career goals on hold for a job that pays the bills.
• Education debt: One in four have more than $30,000 in educational debt, causing many Australians to delay pursuing their dream career in favour of paying off these debts.

Real-world perspectives on the cost-of-living crisis

Data obtained from the third annual Australian Youth Barometer (a survey run by Monash University of 571 Australians aged 18 and 24) revealed 90% have experienced financial difficulties in the last year, with one in five even experiencing food insecurity.

With housing availability and affordability, a primary concern, 35% believed their education had not properly prepared them for their future.

As a 20-year-old student expressed, “I’m just worried that it’ll be harder for me to get a job from my course or whatever, or that if stuff like cost of living and everything keeps going up, no matter if I get a job, I wouldn’t be able to, like, stay on top of that, as well.”

Financial security is something young people now desire, with a 24-year-old explaining, “Financial independence is a kind of a healthy thing. I think that knowing that you could afford your rent, knowing that you can afford food…knowing that you have a roof over your head is something that I measure for healthiness.”

The cost-of-living crisis is also impacting those in the workforce, particularly in hospitality. As one bar operator explained, with people spending less and not ordering as much due to mounting expenses, revenue is down, and staff aren’t able to receive as many hours as they want.

As Ben Neumann explained to the ABC, “[The cost-of-living crisis] has limited the amount of shifts we have for casual staff…shifts might be a bit shorter, we might close early on a certain day, we might not be able to keep an extra one or two [staff] on that we otherwise might, or when people were out and spending more.”

Neumann added, “I can see there’s a lot of people out there looking for more part-time work and more work in the gig economy, and I see that perhaps there won’t be anything in the near future in terms of being able to give people the number of shifts they need.”

Expert tips for reaching your career goals in the cost-of-living crisis

To help you reach your career goals and combat the growing costs, career coach Leah Lambart shares her top tips for finding higher job satisfaction and career fulfilment.

• Consider your career options without a degree: If you’re weighing up the cost of education against other expenses, it’s important to consider your long-term options. For those who choose not to complete a degree in favour of prioritising other living expenses, consider whether you’ll be satisfied doing your current type of work and whether it will allow you to meet your long-term financial goals.
• Do the necessary research: Rather than ‘falling into’ a career or being guided by family expectations, do your own research and assess your personal career goals. By pursuing a professional pathway that you’re passionate about, you can avoid career changes later in life and unlock higher job satisfaction.
• Figure out your ideal salary: While it’s important to pursue a job you care about, this career path needs to offer a liveable salary. Make sure to consider the job security of the career path you’re considering and whether it offers the earning potential you need to live the life you want.
• Map out the hidden costs: When considering a career path, research any hidden costs that may be involved. For example, in a role that is people-facing, such as sales, there may be a requirement to spend a significant portion of your wage on clothes or a vehicle to present yourself in a certain way. Likewise, a role that requires significant commute time will really eat up a portion of your wage in transport costs. It pays to speak with people working in the industry to understand these expectations and what sort of hidden costs may be involved.

When it comes to achieving your career goals amidst the cost-of-living crisis, you don’t need to sacrifice your education or further training altogether. With careful planning and research, you can decide what career to pursue to ensure it aligns with your values, desired salary, and lifestyle.

With an increasingly competitive workforce and job scarcity, taking out income protection insurance may give you peace of mind. If you’re unable to work due to illness or injury, income protection insurance may offer financial security and protection against the unexpected. Compare a range of policies with Choosi today.