Demand for labour slows in eastern states

The SEEK Employment Index
A slowing of demand for labour in the Eastern states of Australia is evident in the latest employment data from SEEK Ltd, with the SEEK Employment Index softening in April as the number of new job ads decreased and activity by jobseekers rose.

The SEEK Employment Index (SEI), which measures the ratio of new job ads to job applications, fell by 3.3% (seasonally adjusted) last month, indicating that Australian employers are finding it easier to fill positions while jobseekers are facing greater competition for roles.

South Australia experienced the greatest softening of the SEI, decreasing 7% followed closely by New South Wales which recorded a 6.7% drop.

Job Advertisements
The number of new jobs advertised decreased this month by 1.6%, but remains 18.5% higher than in April last year.

Demand for labour remains strongest in Western Australia where job ads placed rose by 2.7% to be 36.8% higher year on year, as the state continues to enjoy the spoils of the mining boom.

Across the other states, NSW (-4.4%) and the ACT (-3.5%) experienced the greatest falls in the number of new jobs advertised in April while job advertisements posted increased marginally in Victoria and Queensland (0.2% and 0.8% respectively).

Job Applications
Total applications placed with SEEK in response to advertised positions rose in all states in April and increased by 1.7% nationally. South Australia experienced the highest increase by far with 7% followed by Western Australia with 3.9% and NSW 2.3%.

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

ìItís going to be very interesting to observe next weekís federal budget announcement, and the subsequent policies and impact on the employment market and economy more generally. It could be that some employers are waiting to see how they will be affected by the Rudd Governmentís first budget before investing in recruiting new staff.î

ìSouth Australia saw the most extreme results this month with the SEI softening by 7% while job applications rose 7.1%. It could be that local issues such as the closure of the Mitsubishi plant in Adelaide and the subsequent impact on their employees and suppliers, has resulted in a sudden leap in job applications there.î

According to Professor Peter Sheehan of the Centre for Strategic Economic Studies, Australia is facing an unusual economic situation at present:

ìPolicy makers face a difficult challenge in dealing effectively with a slowing economy, a resources boom and high inflation. The good news for homeowners is that further increases in interest rates seem unlikely in the short term based on the current economic climate.î