New research from the International Workplace Group (IWG) underscores the powerful role of hybrid work in unlocking both workforce potential and productivity. The report reveals that 44% of former part-time workers are considering rejoining the workforce thanks to flexible working options.

Hybrid and flexible work arrangements are now deeply embedded in Australia’s employment landscape, with 98% of organisations offering some form of flexible working and about 60% of workers having access to hybrid work. IWG’s findings also show that nearly one in four white-collar workers would actively seek hybrid-friendly roles if required to return to the office full-time, highlighting the growing importance of flexibility in drawing and retaining talent.

Australia’s part-time workforce has continued to expand, increasing by 6,300 people in September 2025 alone to reach 4.56 million or 30.9% of the total workforce. This group represents a critical segment of the labour market, especially given that flexible and part-time work is a major factor in workforce participation for women and older Australians.

According to the IWG report, nearly half (49%) of part-time workers say they would consider leaving work altogether if they are denied flexible working, while a third (31%) who are now required to commute to the office every working day are already looking for new roles.

Meanwhile, 63% are ready to increase their working hours if given greater flexibility, 57% say working from flexible workspaces would make returning to the office more appealing, and 55% of former part-time workers would return to employment if they have flexibility in their working patterns. For older workers, part-time work allows them to stay engaged in the workforce and delay their retirement. The Workplace Gender Equality Agency notes that flexible work arrangements support women’s long-term career engagement and extend workforce participation among mature workers.

However, the rising cost of commuting remains a significant barrier with 41% of former part-time workers feeling disincentivised about returning to work, while 44% of current part-timers find commuting increasingly difficult to justify financially. With most workers still relying on private vehicles, the fuel and parking costs add to the burden, influencing their decision to work closer to home.

According to IWG’s Australian Hybrid Workers Survey, 70% of hybrid workers say the flexible model helps them manage cost-of-living challenges with substantially lower commuting costs.

"High commuting costs combined with limited flexibility are a challenge for many part-time workers,” says Mark Dixon, CEO of International Workplace Group.

“By offering greater flexibility over how and where work is done, businesses can not only retain these valuable team members but also attract talented individuals back into the workforce. Given that part-time workers represent a significant proportion of the labour market, their impact on overall productivity is substantial.”

Image source: IWG

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