Latest Employment and Market Insights

Significant drop in Jobs in final quarter of 23/24

According to the Recruitment, Consulting and Staffing Association’s recent Jobs Report, the Australian employment market has experienced a significant downturn over the past three months. The latest data reveals a dramatic decline in job postings across most sectors. The National Jobs Index fell by 9.5% in the second quarter of 2024, with a 23.6% decline over the past year.

This decline was anticipated due to a drop in business confidence over the past year and ongoing contraction in consumer confidence. Factors such as the rising cost of living and persistently high interest rates have led to fewer job opportunities.

The most substantial drops in job postings were seen in the Mining, Construction, and Utilities sectors, which recorded a quarterly decline of 20.6%. Similarly, the Professional, Scientific, and technical sector experienced a decline of 19.5%.

Technology Professionals also saw a notable 23.4% drop in job postings, marking a significant change in a field that had previously been robust.

The last quarter also saw a sharp decline in flexible work opportunities, shrinking by 12.7%, while permanent work decreased by 8.7%. This trend continues a longer-term pattern where businesses tend to secure permanent employees in uncertain financial times. Recent industrial relations changes, which have increased the complexity of managing non-permanent employees, may also contribute to this decline.

While most sectors experienced declines, there were some exceptions. The Accommodation and Food Services sector showed a slight recovery, although its year-on-year decline remains at 7.9%. Financial Services was the only sector to report expansion over the past year, with growth of 14.4%.

The Financial Services sector’s resilience reflects increased recruitment activities following a slowdown during the Covid pandemic.

Occupational groups also saw varying impacts. Job opportunities for Service and Community Workers increased by 6.6%, driven by persistent shortages in areas like Child Care and Aged Care. However, Trades and Technicians roles faced the most significant decline, with a 16.1% drop.

The downturn has affected demand for professionals, with notable reductions in job postings for Business Professionals, Executives, and Managers.

Regionally, Western Australia experienced the largest decline in job postings, with an 18.3% drop, linked closely to the downturn in the Mining and Resources sector. In contrast, New South Wales showed resilience with the smallest quarterly decline of 3.4%.

Despite these challenges, unemployment remains relatively stable, rising slightly to 4.1% in June from the historical low of 4.0%. The Australian Jobs Index suggests that unemployment may rise further in the coming months.

In response to the current climate, there is a need to focus on retaining key talent and exploring opportunities in more stable sectors. It is crucial for policymakers and businesses to collaborate in navigating these challenging times and supporting the sectors and regions most affected by the downturn.

Salary growth still strong, but easing:

Advertised salary growth remains robust but is showing signs of moderation. According to Seek’s latest data, the Advertised Salary Index maintained an annualised growth rate of 4.3% in June.

The Index increased by 0.3% since May and by 0.9% over the past quarter. This 4.3% growth rate has been consistent for the past four months.

Although advertised salary growth remains strong, it is easing compared to the rates observed last year. Average advertised salaries are increasing at a higher rate than pre-COVID levels, but the pace has slowed since September of the previous year, when monthly increases were 0.5%.

Despite a decline in job advertisements from historic highs two years ago, strong employment levels are contributing to the continued growth in advertised salaries.

Are you ready to disconnect?

The Fair Work Amendment (Right to Disconnect) Bill 2023 takes effect from August 26, addressing growing concerns about mental health impacts of stress and overwork. The expectation on employees to be accessible and available outside of work hours was linked to increased instances of exhaustion and declining mental health.

The government hopes this legislation will prevent employees from being required to work unpaid overtime. If disputes about the right to disconnect arise and cannot be resolved amicably, both employers and employees can seek resolution through the Fair Work Commission.

Similar regulations have been in place in France since 2016, and other countries including Belgium, Italy and Argentina have followed a similar path.

So what does the Right to Disconnect mean for you?

Some businesses are concerned that the new laws might hinder productivity and communication, particularly in fast-paced or client-facing environments. The legislation allows for exemptions in urgent matters, highlighting the importance of establishing clear guidelines and expectations around after-hours communication.

The new legal right to disconnect allows workers to switch off after hours and choose not to engage with work communications. While it does not prevent employees from working additional hours, it ensures the right to disconnect from ‘unreasonable contact’ outside of designated working hours. The legislation provides guidelines to determine whether contact outside working hours is reasonable, considering factors such as the nature and urgency of the contact, the method of contact, whether the employee is compensated for out-of-hours work, the employee’s responsibility level within the organisation, and personal circumstances.

For instance, it may be reasonable to expect a high-level manager to respond to an urgent email after hours, whereas the same expectation might not apply to an entry-level administration worker.

www.shortlist.net.au