Full-Time Work Is Replacing Casual Jobs, and That Lifts Borrowing Power

Australia added 52,500 full-time jobs in March while part-time roles fell by 30,500. The headline unemployment rate stayed at 4.3%, but the shift underneath tells a different story: the jobs market is becoming more borrower-friendly, even as real wages remain flat.

The numbers

New data from CommBank shows annual wage growth holding steady at 3.1%, with a 0.8% rise over the March quarter. That's still behind inflation at 3.7%, meaning real wages are slightly negative. But employment itself remains resilient, with an estimated 23,000 net jobs added in March despite two RBA rate hikes and ongoing tensions in the Middle East.

The more important shift is the type of work being created. Full-time employment surged by 52,500 positions, while part-time work fell by about 30,500. For borrowers, this matters more than the wage number.

Why full-time status changes your borrowing capacity

Lenders assess applications differently based on employment type. A casual worker earning $85,000 often has worse borrowing capacity than a permanent employee earning $70,000. The reasoning is simple: permanent employment signals income stability, which reduces the lender's risk.

If you've moved from casual to permanent in the past year, or from part-time to full-time, your borrowing position may have improved even if your pay hasn't changed much. This is something lenders see immediately on your payslips and group certificates, but many borrowers don't realise it matters.

Where the jobs are

The growth isn't evenly spread. Healthcare, technology, and professional services continue adding roles, while retail and hospitality have softened. Western Australia leads wage growth at 3.9% for the 15th consecutive month. Victoria and Tasmania are slowest at 3.0%.

For borrowers in high-growth industries, job security is better than the national average suggests. For those in sectors under pressure, the competition for roles is tighter.

What to do with this information

If you've recently moved to permanent or full-time work, make sure any finance application reflects your current status. Lenders check your payslips, and your employment classification can shift which products you qualify for.

If you're planning a major purchase, review your current loan terms while you're at it. Rates have moved twice this year, and a loan that was competitive 12 months ago may not be today. Many borrowers are sitting on rates 0.5% to 1% higher than what's available now, simply because they haven't checked.

If you're in a high-growth sector like healthcare or professional services, your job security is stronger than the headline uncertainty might suggest. That stability is worth factoring into any financial decisions you're weighing up.

This article is general information only and is not financial advice.