September – Latest Employment and Market Insights

Dramatic drop in part-time work for women

HR Leader reported that the Workplace Gender Equality Agency (WGEA) has released a report regarding the positive impacts of flexible work for women.

According to the report, flexible workplace practices have had the impact of increasing full time participation in employment for women, with fewer women needing to work part time due to flexible arrangements.

Bankwest Curtin Economics Centre (BCEC) director and author of the report, Professor Alan Duncan said this was driven by “technological advancements, changing workforce demographics and the impact of COVID-19”. He also noted that this trend notably impacted women, while patterns of work for men remained mostly constant over the same period.

Flexible arrangements are shown to have a positive impact on gender equality, access to broader talent pools, retention and closing the gender pay gap, which should reinforce to employers the importance of protecting and promoting their flexible working options.

Redundancy Trends and Future Workforce Needs

Also from AHRI, data from their recent Work Outlook Report highlights a marked shift in redundancy intentions within the public sector. For the September quarter, 60% of public sector employers are forecasting job cuts, a significant increase from 31% in June. In contrast, redundancy figures in the private sector have remained stable at 21%.

Despite this, recruitment intentions are notably high in the public sector, with 88% of employers planning to hire, compared to 62% in the private sector.

AHRI Chief Executive Sarah McCann-Bartlett suggests that these trends might reflect a broader shift towards genuine restructuring rather than just cost-cutting.

“This increase in redundancy figures could be more about realigning skill sets as organisations integrate digitisation, automation, and AI to boost productivity and growth,” McCann-Bartlett explained. “Rather than merely cutting costs, these redundancies may be part of a strategic shift to prepare for future demands.”

According to McCann-Bartlett, this realignment is likely to lead to higher-quality jobs in Australian workplaces, with the overall impact potentially increasing employment levels. This aligns with the trends observed in official data.

Prices still on the rise – ABS

Inflation or ‘rising prices’ went up by 3.5% in the year to July, according to new figures from the Australian Bureau of Statistics (ABS).

Inflation slowed slightly from the 3.8% figure for the 12 months to June. This means prices are still increasing, but at a slower rate than they previously were. Fruit and vegetables saw one of the biggest increases, with prices up 7.5% in July 2024 compared to July 2023.

According to the ABS, the total cost of housing – including electricity, rent and house prices – increased by 4% for the same period. The RBA’s target range for inflation is 2-3%.

Hiring advice: Time to rethink your mandatory education criteria?

Research published by McKinsey suggests that hiring practices that value skills are 5 times more predictive of performance than those that prioritise education, and twice as predictive than work experience.

McKinsey’s research suggested that a skills-based approach to hiring resulted in the attraction of a broader talent pool and a significant increase in the number of applications received for each job posting.

Skills-based hiring was also shown to support retention, reinforced by data that showed workers without degrees are likely to remain in their role 34% longer than employees with a degree.

91% of Australians want more support for neurodiverse employees

A recent survey conducted by DXC Technology reveals that over 60% of neurodivergent individuals would hesitate to disclose their neurodivergence to potential employers for fear it could affect their career progression. In response, 91% of Australians believe that organisations need to do more to support long-term employment for neurodivergent people.

Despite some progress in awareness and policy, only 41% of neurotypical Australians feel confident in their ability to support their neurodivergent colleagues effectively. This lack of support is reflected in high turnover rates, with neurodivergent employees remaining in their roles for less than half the time compared to their neurotypical counterparts.

On a brighter note, the survey also highlighted that 97% of neurodivergent individuals reported that small, thoughtful gestures—such as flexible work arrangements and sensory-friendly workspaces—significantly improved their job satisfaction and overall experience.

5 things employers should know about the updates to Migration Act

Recent amendments to the Migration Act have introduced new regulations for engaging migrant workers, offering enhanced flexibility for sponsored migrants wishing to leave their employers. These changes affect temporary visa holders, skilled migrants, and business sponsors. The Australian Human Resource Institute provided insights into some of the changes, here are 5 we thought employers should be aware of:

1. Enhanced Flexibility for Migrant Workers:  Migrants working on Temporary Skill Shortage (subclass 482), Temporary Work (Skilled) (subclass 457), and Skilled Employer Sponsored Regional (subclass 494) visas now have up to 180 days (within a 365-day visa period) to find a new sponsor or apply for another visa after leaving their job. This change aims to reduce the “golden handcuffs” effect, giving employees more leverage and flexibility in their employment.
2. Restrictions on ‘Visa Hopping’ for students: The new regulations prevent Visitor (subclass 600) and Temporary Graduate (subclass 485) visa holders from applying for Student (subclass 500) visas while still in Australia. This shift aims to streamline the migration system and encourage more individuals to transition to employer-sponsored visas.
3. Increase in Migrant Income Threshold: The Temporary Skilled Migration Income Threshold (TSMIT) has been raised from $70,000 to $73,150. This adjustment ensures that skilled migrants are fairly compensated and aligns with current wage growth and living costs.
4. Introduction of the Workplace Justice Visa: A new Workplace Justice Visa (subclass 408) has been introduced as of 24 July 2024. This visa allows migrant workers to stay in Australia for up to 12 months to pursue an active workplace claim, provided they have no other legal means to remain. While its uptake might be limited, it offers a crucial option for those needing to address workplace exploitation.
5. Working Holiday/Work and Holiday Visas age cap lifted: The Working Holiday Visa (subclass 417) now allows UK citizens up to 35 years old to apply and eliminates the need for specified work in regional areas for second or third-year visas. Additionally, citizens from the Philippines aged 18-30 can now apply for the Work and Holiday Visa (subclass 462), allowing them to stay in Australia for up to a year to work, study, and travel.