Job ads plateau, but applications rise

Further signs that the Australian economy may be slowing are evident in the latest employment data from SEEK Ltd, with the SEEK Employment Index falling in March as the number of new job ads remained steady and activity by jobseekers increased.

The SEEK Employment Index (SEI), which measures the ratio of new job ads to job applications, fell by 2.8% (seasonally adjusted) last month, meaning that it became
relatively easier for employers to fill positions.

Employment market softening was greatest in the three eastern seaboard states of New South Wales, Victoria and
Queensland where the Index fell by 2.9%, 3.6% and 3.4% respectively.

Over the past year the decline in the SEI has been most pronounced in New South Wales, where a decline of 9.8% has been experienced.

Job Advertisements
The number of new jobs advertised held steady this month, and remains 23.9% higher than in March last year.

Across the states, NSW and Victoria experienced falls in the number of new jobs advertised in March (1.5% and 1.9% respectively) while job advertisements posted rose in South Australia (1.4%) and Western Australia (2.4%).

Job Applications
Total applications placed with SEEK in response to advertised positions rose by 2.8% in March following last monthís downturn, possibly as more people had more time to apply for jobs due to Easter. The number of job applications submitted in March was 13.1% higher than a year ago.

Commenting on the results, SEEK Sales Director Joe Powell said: ìMarch was an unusual month for jobseeking activity due to Easter falling early this year, and weíre cautious about jumping to conclusions about the employment
market based on one monthís data. Our experience year on year is that Easter impacts recruitment activity as many businesses are focussed on getting through their workload in fewer working days, leaving less time for recruiting new staff.

ìMeanwhile, a few days off work gives employees the chance to reflect on their happiness at work and assess their options.

ìItís also worth noting that NSW, the state that had one of the quieter job activity months in March, is also home to a fair chunk of Australiaís banking and finance sector. With global uncertainty around the flow-on effects of the subprime mortgage crisis, it would not surprise me if employers in these areas were reluctant to recruit at the moment.

ìAcross the quarter, job advertisement numbers in Australia are still up, so we donít think itís all doom and gloom just yet. Nonetheless, we will be looking at next monthís figures with interestî, he said.

Professor Peter Sheehan of the Centre for Strategic Economic Studies said: ìThe full extent of any slowdown, and its impact across the regions of Australia, will be affected by many national and international factors, the upshot of which remains uncertain.î