Rapidly Rising Job Applications Drive Index Fall

The SEEK Employment Index
A consistent picture of softening employment market conditions continued in July, driven by the rapidly rising number of job applications in response to a modest decrease in new jobs advertised, 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, fell by 4.4% (seasonally adjusted) for the month, to be 27% lower than a year earlier. The majority of this fall has been in the past five months, with the Index down 21.5% over that time.

Based on this monthís data, Australian jobseekers may have witnessed increased competition for the jobs they applied for while businesses may be finding it easier to recruit appropriate staff.

Employment market softening was seen in every state and territory in July and was greatest in South Australia which experienced a significant (9.8%) drop, followed by Western Australia (-6%) and New South Wales (-5.4%).

Job Advertisements
The number of new jobs advertised nationally fell moderately in July by 0.5%. On an annual basis, these new job ads are 4.0% higher compared to the same month last year. Western Australian jobseekers enjoyed the greatest increase in new job ads posted, up 1.5% in July. South Australia (-3.6%), Victoria (-3.1%) and NSW (-3%) experienced the most significant decreases.

Job Applications
Jobseeking activity was on the rise yet again in July with total applications for jobs placed with SEEK in response to advertised positions rising by 4%. Queensland experienced the biggest increase in job applications received for the month, rising 8.3%. Western Australia was the only state to record a drop in application numbers for the month (-1.1%), however applications there have surged by 29.7% since February 2008.

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

ìItís interesting to see a surge in job applications this month in light of ongoing economic uncertainty. Weíre finding that these sorts of market conditions can have a significant impact on a personís job security which in turn drives them to seek out employment with greater long term stability.î

ìMany jobseekers are struggling with the increased cost of living and need to find a better paying role to simply make ends meet. Weíre also hearing about jobseekers looking for work closer to home to counteract rising petrol prices.î

ìHigher job application rates are obviously great news for employers but it remains to be seen what impact this will have on their own staff loyalty.î