Surge in Job Ads and Applications Indicates Strengthening Economic Growth

Australiaís employment market experienced strong growth in August according to the SEEK Employment Index released today, providing new evidence that growth in the Australian economy is beginning to accelerate.

The number of new job ads posted in August surged by 10.5% (seasonally adjusted)to be 44.3% higher than in August 2004. But this rapid growth in the demand for labour continues to be matched by an increase in the supply of labour, reflected by the rising number of job applicants. Job applications jumped by 13.5% (seasonally adjusted) in August 2005, 42.8% higher than in August 2004, suggesting that inflationary pressures remain contained.

In August, the SEEK Applications per Ad Indicator rose by 4.3% on the back of a 2.4% increase in July 05. In the year to August 05, there were strong gains in Queensland (13.8%) and NSW (6.4%), indicating that competition for jobs in those states has increased. Highlighting an underlying skills shortage, Western Australia experienced the greatest decline in the number of applications per job with a
decrease of 10.3% since August 04.

Looking at data across the past 12 months, there has been a marked geographical shift in the distribution of new job ads, with NSWís national share decreasing from 45.3% in August 04 to 41.8% in August 05. Most of NSWís decline has shifted to Queensland, whose share has increased from 15.7% in August 04 to 18.1% in August 05.

Developed in consultation with Victoria Universityís Centre for Strategic Economic Studies (CSES), the SEEK Employment Index (SEEK EI) is the first Australian aggregate indicator to directly compare labour market supply with labour market demand. SEEK CEO Paul Bassat said that the index for August shows demand and supply in the labour market are both growing strongly.

ìThe ABS reported last week that employment growth in August was the strongest it has been in Australia in the past decade and this is supported by our data. There has been strong growth in the number of new job ads in all States and territories, but we have also seen the strongest monthly rise on record in the number of job applications received per ad since we started recording in October 2001. ìThe SEEK Applications per Ad indicator rose by 4.3% in August, indicating that employers in most states should have found it somewhat easier to fill vacant positions in August than in Julyî, he said.

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies, said that there have been differing views about whether the economy was slowing, or whether growth would pick up in response to rising terms of trade, the recent tax cuts and continuing easy access to credit.

ìThe SEEK Employment indicators provide strong evidence that the economy is strengthening. The possibility that a pick-up in growth will lead to higher interest rates will be tempered by the strong growth in the supply of labour. Stronger job demand is giving rise to increased supply, and this will help the economy to continue growing without undue inflationary pressures. ìWell over one million applications for jobs were made through SEEK in August 2005 and the ease of online job application may be one factor leading to the increased responsiveness of supply to growth in job vacanciesî, Professor Peter Sheehan said.

For further information or to arrange an interview please contact:

Paul Bassat
Chief Executive Officer
SEEK Limited
Tel: (03) 9510 7200

Anne Wickham
Reputation
Tel: 02 8252 7002
Mobile: 0419 185 664
awickham@reputation.net.au