AKG said Australia’s retail sector is failing to convert youth entry-level jobs into stable work, with 79% of young casual or part-time workers wanting more hours or a path to full-time roles.
The report ties that gap to a mismatch between employers and workers: 62% of employers cite lack of commitment, while 35% of young jobseekers face transport barriers and 32% struggle with mental health, isolation or confidence.
Retail’s heavy use of casual staffing amplifies the problem, AKG said, because variable rosters, short shifts and late-notice scheduling can make capable first-time workers look disengaged and leave them stuck in fragmented roles.
The sector remains a crucial gateway despite those strains, accounting for 14% of youth job placements nationally and more than 20% in regional areas including Cairns and the Darling Downs.
AKG urged retailers to offer earlier roster visibility, stronger onboarding and clearer progression from casual to permanent jobs, arguing retention support after hiring is as important as recruitment.
With junior wages gone, will retailers offer stable careers or just stop hiring young people?
Beyond better pay, what will it take to fix the 'aspiration gap' for Australia's struggling young workers?
Is the 'bad attitude' of young workers a myth created by a retail sector that refuses to adapt?
Youth Underemployment in Australia 2026: Breaking the Cycle of Precarious Work in the Retail Sector
Overview
Youth employment in Australia faces significant challenges, especially due to underemployment and the widespread use of casual contracts in the retail sector. This casualization makes it hard for young people to move into stable, long-term careers. The report highlights that deeper collaboration between employers and employment service providers is needed to create clearer pathways from casual work to permanent roles. By implementing paid work trials linked to mentoring programs and providing transport support during onboarding, young workers can gain valuable experience and smoother transitions. These steps help bridge the gap between entry-level jobs and sustainable career progression for Australia's youth.