Labour Market Expansion in Balance as Job Application Numbers Increase

A jump in the number of job applications posted during May has outweighed continued growth in new positions being advertised, according to SEEK Employment Index data released today.

The number of job applications for new jobs listed increased across Australia by 3.5% (seasonally adjusted) in May, compared to the previous month. Job seekers in the ACT were the most active, posting 17.4% more job applications, followed by Qld (10.9%), and NSW at 6.34%. In all, job seeking activity is 23.3% higher than it was 12 months ago.

Employment market demand, measured by the number of new positions being advertised, also rose in May, by 2.7% (seasonally adjusted). Jobs growth was strongest in Western Australia and Queensland at 6.2% and 4.7% respectively, followed by South Australia and Victoria which posted 4.0% growth each. NSWís employment market remains steady, with only a 0.7% increase in new positions advertised.

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, decreased by 2.9 points to 104. It is now 0.6 points lower than the same time last year, indicating that it is relatively easier for employers to fill positions.

Commenting on the results, SEEK Joint CEO Paul Bassat said: ìIn most states, the expansion of the labour market remains well balanced, with job applications broadly rising in line with new job ads.

ìCertainly compared to April, job seekers are experiencing greater competition for positions their applying for, and this is good news for employers.

ìIt is also interesting in the context of near-record unemployment levels, because it demonstrates the extent to which people who are already employed are participating in job seeking activity. Employee churn is a significant business risk, but it is also an opportunity for companies who are recognised as employers of choice.î

Paul Bassat added that Western Australia continues to be Australiaís job hot spot. ìEmployers in WA are having a really difficult time recruiting employees. In May, WA experienced the strongest increase in the number of new positions advertised during May, and it was the only state where the number of applications posted fell, by 3.2%.

ìJob applications posted per ad are now 16.6% lower in WA than they were a year ago and if this trend continues it will provide a handbrake on economic growth,î said Mr Bassat.

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said SEEKís data is consistent with ABS National Accounts and Labour Force data released last week, which showed relatively strong economic growth and an improving labour market.

ìSeveral economic indicators have sent conflicting messages in recent months about the state of the labour market in Australia, with several suggesting a softening market. Throughout this period, the SEEK indicators have provided a consistent picture of a strong labour market which has tracked closely with the picture subsequently presented by ABS data.

ìThe business sector can take heart that, WA aside, balance between demand and supply in the market continues to be achieved, which will lessen the likelihood of wage pressureî, he said.