The employment landscape in Australia has experienced significant fluctuations in recent times, primarily influenced by various economic factors and unforeseen events such as COVID-19. We believe that as part of the working class, it’s important to stay informed about the latest employment updates to understand the current state of the Australian job market and potential opportunities. In this blog post, we will focus on two essential aspects of the employment update: the unemployment rate and employment insights, offering a comprehensive view of the current job market.
Why Focus On the Unemployment Rate?
The unemployment rate is an indicator that measures the percentage of the labour force that is unemployed and actively seeking employment. This metric is regularly tracked by government agencies and serves as a barometer of the overall health of the Australian job market. During periods of economic stability and growth, the unemployment rate tends to be lower, indicating a robust job market with enough opportunities for job seekers. On the other hand, during economic downturns or times of uncertainty, the unemployment rate often rises as businesses may reduce hiring or implement cost-cutting measures.
The Current Unemployment Insights in Australia
According to the Australian Bureau of Statistics, the unemployment rate in the country was at 3.5% as of June 2023. The total number of unemployed people decreased from 507,100 in May to 505,500 in June (that’s a 1,600 decrease). The youth unemployment rate also decreased to 7%. The underemployment rate remained at 6.4% while the employment-to-population ratio remained at 64.5%.
Why Focus On Employment Insights?
Employment insights provide valuable data and analysis based on job listings and candidate activity in the job market. Platforms like SEEK, one of Australia’s leading online job portals, offer employment insights that offer a glimpse into job trends, the demand for specific skills, and industries experiencing growth or decline. For job seekers, employment insights can be a powerful tool in understanding which industries and roles are in demand. By aligning their skills and qualifications with the needs of the job market, job seekers can enhance their chances of securing relevant and fulfilling employment.
The Current Employment Insights in Australia
According to Kendra Banks, the managing director of SEEK, job ads have been moderating in recent months, and in June, they further softened with a 2.3% decline compared to the previous month. The economic climate and financial year-end likely played significant roles in impacting employers’ willingness to hire during this period.
Additionally, there has been a healthy growth in the number of applications per job ad, almost matching the levels seen in June 2019. This suggests a rising interest among candidates, partly attributed to the decreasing job ad volumes. Here are a few insights from SEEK, as of July 2023.
National Insights
According to SEEK, job advertisements experienced a 2.3% month-on-month decline, marking a significant 22.1% decrease compared to the same period last year, which coincided with the decline from the peak of ad volumes. This marks the fifth consecutive month of decreasing job ads, with a notable 7.5% drop since January. However, despite the recent declines, job ads remain at a promising 18.2% higher than the levels observed in June 2019.
State and Territory Insights
Nationally, the decline in job ads was primarily driven by the largest states along the eastern seaboard. New South Wales experienced a notable drop of 3.0%, while Queensland saw a decline of 3.4%, and Victoria decreased by 1.7%.
Industry Insights
In June, job ads experienced a decline across almost all industries, with only four exceptions. The industries that saw growth in job ads were Government & Defence (5.8%), Farming, Animals & Conservation (0.9%), Sport & Recreation (0.8%), and Community Services & Development (0.3%).
The Hospitality & Tourism industry faced the most significant decline in job ads, showing a decrease of 5.7%. It was followed by Manufacturing, Transport & Logistics, which dropped by 4.6%, and Healthcare & Medical, which experienced a decline of 2.7%.
Conclusion
Keeping up to date with employment updates is important for anyone navigating the job market in Australia. The unemployment rate serves as a vital indicator of the overall health of the economy, reflecting the availability of job opportunities for job seekers. As of June 2023, the unemployment rate in Australia stood at 3.5%, with some positive signs of improvement.