Australia’s nighttime economy is on the rise, with after-dark spending hitting a record $20.9 billion in 2024 according to a report from Deputy.

But while businesses are reaping the benefits, the workers powering this shift-driven economy are facing financial challenges, juggling multiple jobs, and are calling for better pay and conditions.

Brisbane leads the charge in after-dark spending

According to Deputy’s annual Big Shift Report, Brisbane has emerged as the country’s leading city for nighttime economic activity, with spending hitting $6.2 billion, outpacing both Melbourne ($5.1 billion) and Sydney ($3.5 billion). The Sunshine State’s capital saw a 10 per cent increase in after-dark work, fuelled by a combination of housing pressures in other states and more affordable public transport, giving residents extra disposable income.

While Brisbane booms, Sydney is seeing a shift in where the spending happens. Consumers are increasingly choosing to socialise closer to home rather than in the CBD, leading to a rise in nighttime shift work and spending in the suburbs. The share of shift work during evening hours jumped from 12 per cent in 2022 to 16 per cent in 2024.

Deputy’s research suggests the after-dark economy will continue to expand, driven by rising incomes, more relaxed trading regulations, and even climate change, with people choosing to shop and dine in cooler evening hours rather than braving the heat of the day.

Gen Z takes over the shift workforce

For the first time, Gen Z has overtaken Millennials as the dominant generation in shift work, making up nearly half (47 per cent) of all hours worked. However, they’re not sticking around for long. More than a third (35 per cent) of Gen Z shift workers are actively looking for a new job, with poor pay cited as the main reason. Over a fifth (20 per cent) say they struggle to cover living expenses.

Meanwhile, women continue to make up the majority of Australia’s shift workforce but face greater financial insecurity than their male counterparts. They are 5 per cent more likely to struggle with living costs and 9 per cent more likely to have unpredictable work schedules. Rather than switching jobs like Gen Z workers, however, many women are turning to poly-employment, that is, working multiple jobs at once, to make ends meet.

“A fundamental generational shift is underway, with Gen Z redefining the very concept of work value, placing unprecedented emphasis on remuneration,” said Silvija Martincevic, CEO of Deputy. “Employers who cling to outdated notions of workplace priorities will find themselves increasingly alienated from the talent they desperately need to thrive.”

The rise of micro-shifts and the future of gig work

The gig economy is also evolving, with workers moving towards ‘micro-shifts’. These shorter, more flexible work periods allow employees to balance job security with the freedom of gig work. Traditionally, gig work has lacked the protections of shift-based employment, such as predictable pay, benefits, and scheduling rights. The report suggests micro-shifts could bridge that gap, providing workers with stability while still offering businesses a flexible workforce.

“Gig workers lose out on $400 million in superannuation each year in Australia, leaving them financially vulnerable in the long run,” said Martincevic. “The shift towards micro-shifts shows a growing demand for better protections and stability for this unseen workforce.”

Productivity levels in decline

While the shift economy is thriving, overall workforce productivity is slipping. Australia’s average annual productivity growth rate has dropped to 0.9 per cent, down from 1.2 per cent in 2021-22. The shift towards service-based industries, which tend to have lower productivity per worker than capital-intensive sectors like mining and manufacturing, is a key factor in this decline.

Technology could be the key to reversing this trend. The report found that 68 per cent of shift workers believe automation and AI will positively impact their jobs in the next five years, and 78 per cent want their employers to invest in digital tools to improve efficiency.

“If we don’t close the gap in productivity, businesses will continue struggling with retention, rising costs, and stalled growth,” said Dr Shashi Karunanethy, Chief Economist at Geografia, who collaborated on the report. “Investing in AI-driven scheduling, automation, and micro-shifts should be seen as essential to unlocking Australia’s workforce potential.”

So what does it all mean? Australia’s nighttime economy is booming, offering huge opportunities for businesses, but the workforce behind it is at a crossroads. Younger workers are demanding better pay, women are working multiple jobs to stay afloat, and gig workers are shifting towards micro-shifts for stability. As cities across Australia embrace the after-dark economy, how can you business adapt to stay ahead?

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