Rise of the nocturnal economy: Australian cities take over NY and LA

Deputy’s 2025 Big Shift Report reveals how the nighttime economy, generational changes and the evolution of micro-shifts are shaping the future of hourly work.

Australia’s nocturnal economy is booming, with spending opportunities after dark growing in major capital cities across the country. This trend, along with others, is part of the latest findings released in Deputy’s annual Big Shift Report, which analysed 79.6 million shifts and 548.1 million hours of 704,600 shift workers across hospitality, retail, healthcare, and services.

In 2024, nighttime spending across Australia’s capital cities grew to become a $20.9 billion industry. In fact, Australian cities outperformed major global competitors, like New York and Los Angeles, when it came to the growth of the nighttime economy; highlighting the renewed push by local businesses to engage consumers after dark.

By region, Brisbane emerged as Australia’s top city for nighttime shift work, with spending reaching $6.2 billion and growing 10% in 2024. This surpassed both Melbourne ($5.1 billion) and Sydney ($3.5 billion), making it the fastest-growing city for after-dark economic activity. Brisbane’s growth was likely aided by acute housing pressures in the NSW and VIC capitals, as well as cheaper public transport fares allowing for additional disposable income. 

Meanwhile, Sydney’s nighttime economy continues to evolve, with larger numbers of shift work and spending opportunities arising in the suburbs as consumers leave city centres in favour of socialising closer to home. The share of evening spending increased in Sydney, from 12% of total shift work hours in 2022 to 16% in 2024.

“In the coming years, nighttime economic growth is expected to accelerate across all Australian metropolitan cities. This shift is driven by three factors — changing consumer habits and rising incomes, regulatory shifts, and urban heat and climate change impact,” said Dr Shashi Karunanethy, Chief Economist at Geografia, who collaborated on the report with Deputy.

“As household incomes grow, there is increasing demand for vibrant, late-night retail and hospitality precincts. City governments are recognising this and gradually loosening trading restrictions, particularly in CBDs, to support economic revitalisation and encourage evening commerce. Consumers too are shifting their shopping and dining habits away from daytime heat towards cooler evening hours. These factors are reshaping retail patterns, making twilight trading a key driver of economic activity in Australia’s urban centres,” he concluded. 

Gen Z and Women make up the majority of the shift workforce — but one is more mobile than the other

Generational shifts have seen Gen Z surpass Millennials as the largest demographic of shift workers for the first time since reporting began in 2021. 

Gen Z now make up over half of all shift work hours (47%), compared with 33% of Millennials and 16% of Gen X. Compared to previous generations, Gen Z are less willing to tolerate limited career progression or low pay, switching jobs at a higher rate. Nearly 35% of Gen Z shift workers are actively looking for new roles, with more than three-quarters (78%) saying their paycheck is their biggest motivator, as over a fifth are unable to cover living expenses. 

When it comes to gender, women make up the majority of Australia’s shift workforce but face greater financial insecurity and are more likely to work multiple jobs compared to men. Women are also 5% more likely to struggle with living expenses and 9% more likely to experience unpredictable work schedules. 

However, instead of switching jobs, 58% of women are turning to poly-employment (working multiple jobs simultaneously) to make ends meet. Highlighting an opportunity to improve female labour mobility as poly-employment levels are set to decline in 2025.

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

“Adaptability is also crucial when it comes to supporting female shift workers who often face additional caregiving and domestic responsibilities. While less mobile in the job market than their male counterparts, women are resilient and turn to poly-employment as a means of achieving both reliable income and flexible working conditions. Businesses offering more stable and equitable opportunities for women will help to ensure long-term workforce sustainability," she concluded. 

Gig workers adopt ‘micro-shifts’ to provide greater employment stability 

Gig work — short, freelance or contract-based work — is evolving. Now, gig workers are moving to an employment model focusing on micro-shifts — more personalised and flexible work periods tailored to balance both employee and workplace needs. Micro-shifts are the bridge between gig work and shift work, offering protections and stability of traditional employment while maintaining the flexibility workers demand.

Historically, gig work lacks the safeguards shift-based employment provides — predictable pay, scheduling rights, and access to benefits. Micro-shifts are evolving because of growing regulatory and worker demand to bring the benefits of shift work to roles historically classified as “gig jobs”.

Businesses that recognise this untapped workforce — caregivers, retirees, students — need stability and flexibility will gain a competitive edge in the market. For shift workers, micro-shifts mean choice — the ability to work on their own terms while still having access to the protections and benefits of traditional employment. For businesses, it means a more engaged, productive, and diverse pool of workers to hire from and build their businesses with.

“Gig workers lose out on $400 million in superannuation each year in Australia. This lack of support and long-term stability means these workers face an uncertain financial future. The trend we’re observing in a transition to micro-shifts highlights a need for better protections for this often unseen workforce,” said Martincevic.

Australian productivity levels plummet 

In the last three years, the productivity of Australia’s workforce has declined, with the 20-year average annual productivity growth rate sitting at just 0.9%, down from 1.2% in 2021-22. A key driver of this trend is Australia’s growing reliance on service industries (including shift work), which typically have lower productivity per worker than sectors like mining, manufacturing, and other capital-intensive industries. As we enter the age of AI, the government recognises the potential of emerging technologies and digital platforms to unlock new productivity gains, especially for skill and labour gaps, and slow service sector productivity growth.

In line with this, 68% of shift workers believe automation and AI will positively impact their jobs in the next five years, and a further 78% of them want their employers to invest more in digital tools to help them do their jobs better, such as productivity. Businesses can tackle productivity challenges by restructuring ways of working with smarter job matching and lower hiring costs, AI-powered scheduling and greater micro-shift work opportunities.

“Investing in modern technology and upskilling shift workers shouldn’t be optional given their vast contribution to the economy and our everyday lives. If we don’t close this gap, businesses will continue struggling with retention, rising costs and stalled productivity. Instead, solutions like AI-driven scheduling, automation and micro shifts should be seen as essential to unlocking Australia’s workforce potential,” concluded Karunanethy.

The Big Shift: The Rise of Gen Z and the Night-Time Economy is the new report by the leading scheduling software platform, Deputy, utilising aggregated Deputy customer data. The report features an industry-focused data analysis of Australian shift workers across the hospitality, retail, healthcare and services industry sectors. 

Chief Economist at Geografia, Dr Shashi Karunanethy, analysed 79.6 million shifts and 548.1 million hours of 704,600 shift workers to produce the insights in this report.

Deputy is the world’s leading workforce management platform, revolutionising hourly work for over 1.5 million workers and 375,000 workplaces across over 100 countries. For over 15 years, Deputy has helped businesses to effortlessly navigate and comply with complex labour laws while enhancing employee engagement with predictable, transparent and flexible scheduling, and delivering actionable insights to transform labour efficiency into a competitive advantage. Deputy is more than just a solution – it’s a trusted partner in building workplaces fostering productivity, well-being, and growth. Discover how we are improving the world of work, one shift at a time at www.deputy.com and join the conversation on LinkedIn.