Global Financial Instability Impacts Local Job Market

The SEEK Employment Index
The stabilisation of Australiaís employment market that occurred in August is no longer evident, as increases in job applications received outweighed the number of new job ads posted in September, according to the latest data from SEEK Intelligence.

Nationally the SEEK Employment Index (SEI), which measures the ratio of new job ads to job applications, resumed the decline seen in the first half of the year, falling by 4% (seasonally adjusted) for the month.

Employment market softening was seen in every state and territory in September, except for the Northern Territory. While the number of job ads placed in Western Australia did not change in September, the Index fell by 4.9% as a result of increased applications received (4.9%). Jobseekers are obviously drawn to the opportunities provided by the resources and mining sector which has played such an important part in the strength of the WA economy.

Across the Eastern States, the ACT experienced the greatest fall in the Index of 10.9%, followed by Victoria (-6.8%), Queensland (-5.4%) and New South Wales (-5.3%).

Job Advertisements
The number of new jobs advertised nationally fell in September by 2.2%. Jobseekers in the Northern Territory enjoyed an increase in new job ads posted, up 5.6% from the month before. Tasmania, (-10.9%), ACT, (-6.6%), NSW, (- 4.3%) and Victoria (- 4.2%) experienced the most significant decreases.

Job Applications
Total applications placed with SEEK in response to advertised positions increased by 1.9% nationally. Tasmania experienced the highest increase by far with 8.8%, followed by Western Australia (4.9%) and the ACT (4.3%). Jobseekers in South Australia found less competition for roles with a drop in application numbers of 1.3%.

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

ìGiven the backdrop of turbulence in global financial markets and the flow on effect to our economy, itís not surprising to see this spill over into the labour market.

ìEmployers and jobseekers alike are understandably nervous given the current environment. Until we see some stability in global financial markets this nervousness is likely to continue and may have a negative impact on the historically low unemployment levels.î