Gradual Labour Market Tightening Continues

Despite a month on month increase of 0.9% in the number of job applications posted during June, Australiaís labour market continues to tighten, according to SEEK Employment Index data released today.

The number of new jobs advertised in June increased across Australia by 3.1% (seasonally adjusted), although there were significant variances between states. WA continued to post the strongest growth at 4.5%, followed by Queensland (2.9%) and New South Wales (2.7%). Demand for labour remained flat in South Australia (0.1%) and Victoria (-0.1%).

Job applicant activity also increased during June. Growth in the number of job applications posted for new positions was also strong in South Australia (7.09%) indicating that competition for new positions intensified in this area.

Nationally, the number of job applications received via the SEEK website now stands 21.8% higher than it was 12 months ago. This trend has, however, been overshadowed by a 35% increase in new job ads posted over the same time period.

Looking at job market demand and supply in tandem, the SEEK Employment Index, which measures the ratio of new job ads to applications for those jobs, rebounded from its fall in May. The Index increased by 1.3 points in June, and now stands at 106.6, indicating that it was relatively harder for employers to fill positions in June than it was in May.

Commenting on the results, SEEK Joint CEO Paul Bassat said: ìThe end of the financial year is traditionally busy, but it was not enough to deter employers from advertising new positions, and job seekers from posting applications.

ìThere is no doubt that it remains a job seekersí market, but there are large numbers of people who are clearly looking for a new position.

ìThe degree of difficulty employers experience in recruiting employees varies considerably across states and across industries. For example, private practice solicitors, nurses and radiologists are always in high demand and Western Australia in general is experiencing a significant labour shortage.

ìOur advice to employers is that they should tailor their recruitment strategy to the realities of the market. This includes providing specific information about the positions you advertise that differentiates the position you are offering to candidates and allowing a longer period to fill positionsî, he said.

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said that SEEKís data confirms trends that have been evident for some time.

ìThere has been no real break for three years in the strong increase in the demand for labour. While this continues to outpace growth in the supply of labour, as measured by job applications, further upward movements in interest rates seem inevitableî, he said.

To view the SEEK report, please click here

www.seek.com.au