Australian Labour Market Ends 2007 on a Strong Note

The SEEK Employment Index
After a year of steady tightening, the Australian labour market ended 2007 on another strong note according to the latest employment data from SEEK. In a year that saw the resource and mining booms in Queensland and Western Australia take centre stage, employers were forced to rethink their recruitment and retention strategies in the face of a tight employment market.

The SEEK Employment Index, which measures the ratio of new job ads to job applications, fell by 2.9%for the month as recruitment activity slowed in the lead up to Christmas. However the Index maintained a 7.7% increase in the second half of 2007, indicating that it has become considerably more difficult for employers to fill vacant positions.

Job Advertisements
Demand for labour continued to grow in December with the number of new jobs advertised increasing by 0.9% (seasonally adjusted) from November. During 2007, new job ads rose by 35.5%, with a particularly strong rise of 22.9% from June to December.

Both during December and throughout the year, the growth in new job ads was particularly strong in Western Australia and Queensland, as resources development continues to drive the Australian economy. NSW experienced the lowest annual growth in new job ads at 20%.

Job Applications
Jobseeking activity decreased slightly again in December, with the number of job applications falling by 0.9% on a national basis. Jobseekers in Western Australia were the most active, posting a 4.2% increase in job applications.

Commenting on the results, SEEK Sales Director Joe Powell said:

ìNSW experienced the lowest annual growth in new job ads posted during 2007. At first glance it might seem that the state is lagging behind its counterparts, however on closer examination, it probably means that NSW is actually enjoying a more stable employment market where employers are having more success in filling positions.

ìWA and QLD provided the major talking points of 2007. Galloping demand for skilled positions relating to the mining sector, and a considerable lag in supply served as a handbrake on Australiaís economic growth and is an area we need to continue to watch in 2008.

ìJanuary is traditionally a peak period for jobseeker activity and active recruiters will benefit from first move advantage. Targeting this group as part of your recruitment strategy for 2008 is a vital first step,î he said.

Professor Peter Sheehan of the Centre for Strategic Economic Studies said: ìWithout rising inflation, it is clear that in 2008 the economy will not be able to handle a continuation of the pace of growth of labour demand evident in 2007, with the supply of labour now rising less rapidly than demand.

ìBoth monetary and fiscal measures may be necessary to curtail demand growth, although the need for policy measures may be moderated by interest rate rises emerging from global trends and by the growing possibility of recession in the USA.î