Employment market softening but showing no sign of impending recession

The Australian employment market eased further in October according to the latest data from SEEK Intelligence. Despite much speculation however, there were no signs of an abrupt response to the deepening global financial crisis that might signify a developing recession.

The SEEK Employment Index
Nationally the SEEK Employment Index (SEI), which measures the ratio of new job ads on seek.com.au to job applications via the site, fell by 4% in seasonally adjusted terms, suggesting jobseekers may have witnessed increased competition for fewer available jobs.

However, despite the global financial crisis deepening, this rate was consistent with the average rate of decline seen since December 2007 (4.5%).

New South Wales is driving the softening, experiencing the greatest fall in the index at -8.8%. Against the trend, Western Australia recorded an increase of 0.3% as new ads have continued to increase while growth in applications has been modest.

Job Advertisements
The number of new jobs advertised nationally fell in October by 5%, continuing the trend observed to date in 2008.

The decline in new job ads has been most pronounced in the mainland eastern seaboard states, particularly NSW where new job ads fell by 10.1% in October. By contrast, new job ads rose marginally in Western Australia in October, up 0.1%, and are 10.8% higher year on year.

Job Applications
Total applications placed with SEEK in response to advertised positions decreased slightly by 1% nationally in October, following a 3.7% rise in September.

South Australia and the ACT were the only states to experience an increase in job application numbers in October, up 3.3% and 3.5% respectively. Queensland experienced the greatest drop in numbers at -1.5%.

Commenting on the results, Joe Powell, Managing Director of SEEK Employment said:

ìWhile the employment market is still softening it is not currently occurring at a rate any sharper than weíve seen so far in 2008. In the context of the global financial crisis, this is an encouraging result.

ìPutting it all into perspective, we need to remember that the tightness of the employment market in 2007 was something not seen for 30 years. To a certain extent the softening we are now experiencing is the inevitable slowdown from a three decade high.î