Many Australian workers feel their salaries are failing to keep pace with the rising cost of living, with dissatisfaction particularly high in New South Wales and Victoria, according to a new study by recruitment firm Robert Walters.
The survey of more than 7,750 white-collar professionals found that NSW and Victoria have the highest percentage of workers earning between $100,000 and $150,000, with 30% and 24% in this range. Queensland and Western Australia follow closely, with 37% and 32%, respectively.
However, many feel their wages are insufficient, even among higher earners as 68% of NSW workers claim their pay does not reflect their financial needs. In Victoria, the figure stands at 62%, followed by 60% in Queensland and 49% in WA.
Cost-of-living concerns are widespread, with 90% of NSW workers reporting their pay does not cover daily expenses. Similar concerns were noted in Victoria (84%), Queensland (83%), and WA (80%). According to Robert Walters Australia and New Zealand CEO Shay Peters (pictured above), financial pressures are leading many employees to reassess their career and relocation options.
“Even in states where salaries are higher, such as NSW, the exorbitant cost of living in cities like Sydney is causing significant financial strain for workers,” Peters said.
Only a small proportion of workers believe their pay has increased enough to match inflation. In NSW, just 16% said their wages had kept up with rising costs, compared to 20% in Victoria, 21% in Queensland, and 27% in WA. Despite lower overall salary levels, WA recorded the highest job satisfaction, with 29% of workers considering their pay adequate and 12% saying they are paid generously. This suggests WA’s lower cost of living may be a factor in worker satisfaction.
The study also found that 54% of workers are considering moving to another state for better pay or improved career opportunities.
“The decision of where to live is no longer just a matter of preference; it has become a strategic decision driven by financial pressures. Choosing a place where one can earn a competitive income without spending most of it on daily living expenses will be a pivotal factor in these moves,” Peters said.
Australian Bureau of Statistics data shows WA recorded the fastest population growth rate in 2024 at 2.8%, ahead of Victoria (2.4%), Queensland (2.3%), and NSW (1.7%). Sydney and Melbourne might offer high salaries, but Peters said elevated living costs in these cities are prompting workers to consider cities like Brisbane and Perth.
“With rising financial pressures, people can no longer afford to stay in jobs that don’t offer adequate compensation – if businesses can’t meet these needs, employees will not hesitate to seek opportunities elsewhere,” Peters said.
