More than 50per cent of workers are struggling for economic survival, a study has found.
And with the global financial crisis set to bite harder, that percentage is expected to rise.
The findings are part of a University of Sydney study, Australia at Work, which is tracking 8000 workers over five years.
The 2008 survey, taken before the financial crisis began to kick in, found 56per cent were struggling to make ends meet.
This was an increase of 4 per cent from the previous year.
Rising costs of groceries and petrol are the main reason more families are under pressure, the study says.
About 85per cent of workers were in debt, including owing money on credit cards and mortgages, with one in five struggling to make repayments on time.
Researcher John Buchanan said the trend was likely to increase as the economic crisis worsened.
''Four per cent [increase] may not sound like a lot to the layperson, but if you are looking at labour statistics ... it's pretty big,'' Dr Buchanan said. Australian workers are also clocking some of the longest hours in the developed world, the study shows.
About one in five Australians works more than 50 hours a week.
Full-time employees worked an average of 44 hours and one in three wanted to work less, while one in five part-time workers said they wanted to work more hours.
The study showed workplace standards had deteriorated.
One in three workers held a job that did not give them the full protection of labour laws, including redundancy entitlements. And less than one-quarter reported having a collective enterprise agreement.
Dr Buchanan said the Federal Government should put the findings at the forefront of its industrial relations reforms.
''As we move into a new labour law regime these are the issues that deserve more attention than they're currently getting,'' he said.
Unions agreed, saying there was an urgent need for the Government to dismantle the previous government's WorkChoices regime.
ACTU secretary Jeff Lawrence said, ''This report shows working Australians and their families are feeling the pinch and need tougher safeguards to protect their jobs and incomes in the face of a possible downturn.
''Getting rid of WorkChoices and restoring collective bargaining rights will protect incomes and jobs for working Australians.''
But Opposition employment spokesman Michael Keenan said debate must be about how to protect Australian jobs and promote employment.
The Rudd Government failed to talk about jobs because it knew its policies were going to drive up unemployment, he said.
''The Opposition calls on Julia Gillard to model the effects her workplace relations changes will have on the labour market,'' Mr Keenan said.
''The Government consistently says the world has changed.
''Their employment policies must change also to take account of this and to protect Australians from the worst employment outcome of all losing your job or being unable to find work.'' AAP