Job opportunities for Aussies continue to slide, as businesses remain conservative about hiring in the face of economic volatility, geopolitical uncertainty, inflation and high interest rates.
Australia’s Peak Body for Recruitment Consulting and Staffing (RCSA) has released its latest Jobs Report with the data revealing a 4.6% fall in the National Jobs Index over the past three months. While the decline seems significant, Australia is performing far better than its neighbours across the ditch. New Zealand’s Jobs Index plummeted an enormous 17% in the same period.
“There is little doubt that conditions remain tough. Discretionary spending has dipped as people struggle with the cost of living and the financial pressures associated with the high interest rates, says RCSA Head of Advocacy Brooke Lord.
“I think we can expect the jobs market to remain soft until interest rates begin to fall and business confidence picks up.”
RCSA’s Jobs Report also found that demand for workers across both types of employment slumped, but the desire for flexible workers fell considerably more than permanents. The Perm jobs index only dipped 1.4% while flexible work opportunities fell 14.7%.
“This is unusual in the current climate. We usually see employers favour flexible workers when business confidence is down. The data indicates a degree of optimism from employers who remain confident enough to take on permanent staff, despite the economic challenges.
“Another possibility for the weakening in demand for flexible workers could be that recent IR reforms have clouded employer confidence in hiring casually. Prior to the changes employers were prepared to pay more for casual staff for the flexibility, but if that flexibility has eroded, they may decide to put off hiring all together or seek permanent staff to fill gaps.”
The largest decline in job demand over the past three months was in the Public Administration and Health Care sectors. Both saw retractions of more than 10% in offerings.
“These sectors drove a lot of strength in the market post Covid. The dip in demand is not necessarily concerning because it could indicate the market is normalising, says Brooke.
“Our members are telling us that while things are a little tough, the job market seems to be returning to the way it was before the pandemic. It’s in a ‘re-adjustment’ phase. The Covid boom is over.”
While the National Jobs Index dipped, there was an increase in demand for employees across some industries. Retail and Wholesale job ads jumped by 5.9%, demand in Mining, Construction and Utilities rose 3.9% and there was a 4.4% increase in opportunities in the Financial Services Sector.
“The report is not all doom and gloom. Australia still shows resilience in the face of challenging times. There is optimism that things will continue to improve as the year progresses.”
