Strong Jobseeking Activity to Start 2008

The SEEK Employment Index
There are early indications that Australia may finally see an easing in employment market conditions during 2008, with strong jobseeking activity evident in January.

The SEEK Employment Index (SEI), which measures the ratio of new job ads to job applications, fell by 3.8% in January, on the back of a 3.2% softening in December 2007.

In the previous ten months to November 2007 the SEI increased by 9.4%, buoyed by 37.4% growth in total job ads posted on SEEK (seasonally adjusted) which was unmatched by job market supply.

But in January, all states and territories experienced a softening of the SEI indicating a reprieve for employers looking to fill roles and greater competition among jobseekers in their respective industries.

Job Advertisements
Demand for labour continued to rise in January with the number of new jobs advertised increasing by 1.0% (seasonally adjusted) compared to an average monthly growth rate of 2.5% during 2007.

SA jobseekers enjoyed the greatest increase in job ads posted last month (up 6.2%) while NSW experienced the greatest decrease (-2.1%).

Job Applications
Jobseeking activity increased in January, with the number of job applications jumping by 4.8%. This figure equals the total growth seen in 2007, and suggests that some balance may finally be returning to Australiaís employment market.

One of the most noticeable trends has been the sustained rise in job applications in Western Australia. Last month applications (seasonally adjusted) stood 15.3% higher than just a few months earlier in September 2007.

Job applicant activity increased in all states with South Australia recording the most significant increase (10.8%) and NSW the smallest (1.5%).

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

ìIn January we witnessed record jobseeking activity, with almost 2.8 million jobseekers or nearly 27% of the total Australia labour force visiting SEEK. This is good news for the economy and for Australian employers who have been struggling to fill positions. While itís too soon to tell if this is a genuine easing of labour market conditions, we have certainly seen many more people than usual return from the Christmas break with a desire to move jobs.î

Professor Peter Sheehan of the Centre for Strategic Economic Studies said: ìIn the coming months, expected interest rate rises, together with continuing uncertainty about the US economy and the sharemarket may start to pull back growth in the demand for labour. This will help to reduce market pressure for wage increases if job market supply continues gathering pace,î he said.