There are signs the pace of decline in the Australian labour market is slowing, according to the SEEK indicators for April.
The slower rate of decline in new job ads was evident across all states – led by New South Wales and Victoria.
It was still too early to say whether the trend was a harbinger of an improving situation, says SEEK Employment managing director Joe Powell. “However these results do parallel some signs of better trends in the global economy, including better than expected employment figures in the US.”
He says the SEEK Employment Index, which measures the ratio of new job applications to existing job applications listed on SEEK, fell by a seasonally adjusted 4.4% in April, suggesting greater competition for jobs. However it also reflected the slowing in the rate of reduction of new job ads.
Powell says the employment index was one of the first indicators in Australia of a slowing economy. “So we’ll certainly be paying close attention to the results over the next few months, he says.
He says the index also shows continuing evidence of reduced job mobility on the part of existing workers, who seem reluctant to change jobs in a difficult climate.
Meanwhile the number of new job advertisements fell by a seasonally adjusted 5.5% for April – compared to an average of -8.5% over the past six months.
The rate of decline in New South Wales and Victoria (-1.8% and -3.6% respectively) was the smallest seen since July 2008.
Another survey released yesterday shows that expectations for employment growth have dropped to a record low. Dun & Bradstreet’s Business Expectations Survey shows expectations for employment growth in the September quarter dropped to its lowest level in the survey’s 20-year history.
Some 36% of the 400 firms surveyed expected a reduction in employment growth in the September quarter, while only 8% said they were expecting an increase in employment growth.
The survey also found that a net 28% of firms expect to cut back on staff, and a net 14% anticipate a decrease in capital investment.
Related story:
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
