Job Market Steadies in May

The SEEK Employment Index
The Australian labour market stabilised in May, according to the latest employment data from SEEK Ltd, with a healthy rise in job ads placed and another month of increased job seeking activity.

The SEEK Employment Index (SEI), which measures the ratio of new job ads to job applications, fell by 0.5% (seasonally adjusted) for the month, to be 14.9% lower than a year earlier. While this was the sixth consecutive monthly fall, it was a much smaller decline than the average 3.4% for the previous five months.

There was variation across the country, with South Australia seeing the greatest tightening of the SEI, increasing by 4.1%, while Victoria experienced the biggest softening with a 2.7% drop.

Job Advertisements
The number of new jobs advertised increased nationally in May by 3.5%, the first increase observed so far in 2008, to be 20.2% higher compared to the same period a year ago.

The bulk of the rise occurred in New South Wales, where new job ads jumped by 4.9% to claw back half of the decline of 9.8% that occurred between December 2007 and April 2008.

Job Applications
Strong increases in job applications were the standout feature of the data from May. Total applications placed with SEEK in response to advertised positions rose in all states and increased by 4% nationally to be 35% higher year on year.

South Australia again experienced the highest increase in job applications received for the month with 6.5% followed by the ACT (4.8%) and Victoria (4.5%).

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

ìThe big story this month is around the surge in job application numbers and what implications this has for employers and the economy. We currently have an entire generation of workers who have only ever known a booming employment market For a long time now jobseekers have enjoyed a very strong bargaining position but increased competition for skilled work suggests this may be coming to an end.

ìWe anticipate that employers in many sectors will be pleased to receive more quality candidates for the jobs they advertise. However, it remains to be seen what impact if any this has on the loyalty of their current staff.î