Jobs & Money Detail
Labour market gets stronger
The Australian labour market strengthened in 2006, with an increase in job seeking and the number of new positions being advertised, says SEEK Employment Index, writes Patricia Curmi
This follows encouraging data from the Australian Bureau of Statistics (ABS) that indicates unemployment fell to five per cent (seasonally adjusted) in March to match the record lows of mid-2005. Skilled job seekers look set to gain from a tightening market this year.
Developed in consultation with Victoria University's Centre for Strategic Economic Studies, the SEEK Employment Index is an Australian aggregate indicator that directly compares labour market supply with labour market demand. In March, the number of new job ads posted rose by 2.4 per cent (seasonally adjusted), with increases recorded in all states and territories, except the ACT.
Stately growth
Victoria experienced a substantial 5.2 per cent increase, obviously receiving an economic and employment boost from the Commonwealth Games that were held there in March. The number of job seekers all over Australia also increased in March, with an increase of 3.6 per cent in the number of applications posted, and a record 2.09 million unique visitors to the SEEK employment website.
Speaking to online recruitment agency onrec.com, SEEK joint CEO, Paul Bassat, was optimistic the labour market would continue to grow at a steady and sustainable rate for the foreseeable future. "Unemployment is low and the number of jobs on offer continues to grow, but the good news is that labour supply is also strong," he says. "Employers experienced a jump in applications received in March, particularly in Victoria and Queensland where job applications increased by 3.7 per cent and 4 per cent respectively. "Looking at where the hot spots are, job growth over the past year has been most pronounced in Western Australia (66 per cent) and Queensland (67.6 per cent). "They are followed by South Australia with 46.5 per cent growth in the past 12 months and Victoria at 39.1 per cent."
Bassat continues, "It is likely that a high proportion of those applying for jobs are people who are already labour force participants. "Our mobile workforce is a blessing and a curse for Australian employers. There are people out there who are willing to switch organisations for the right job, but the downside is they will be just as willing to switch again."
Labour demand
Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said: "The stronger trends seen in the demand for labour are consistent with other economic indicators that showed stronger growth in retail sales, continuing strong business investment and strong credit growth. "While the overall balance between supply and demand for labour remains sound, except for some particular labour shortages, the labour market is likely to tighten further during 2006. "This could lead to pressure on interest rates if signs of higher inflation emerge. However, with global forces continuing to hold back inflation around the world, low inflation may continue in Australia for some time to come."
Domestic issues
The important role of immigrant workers in the economy was also highlighted by the ABS. Last month it revealed that around 250,000 Australian men were out of work and no longer looking for a job, accounting for 17 per cent of the Australian workforce. By comparison, 78,000 foreign skilled workers have helped to contribute to the country's rising economy, something the Australian government is happy to attribute to increased efforts to lure skilled migrants from overseas. "The government has responded to the shortages by bringing record numbers of skilled immigrants to the country. "The Australian Government made over 97,500 Skilled Visas available for 2005-2006," said Amanda Vandstone, Australia's Immigration Minister.
Australian Government statistics have shown that 89 per cent of Skilled Independent Visa holders gain employment within six months. A total of 18,700 immigrants took advantage of the state-specific and regional migration programmes, with 7,100 settling in the state of Victoria and around 5,000 migrating to South Australia.
The new electronic 457 temporary work visas are also proving popular, with 39,500 skilled workers being approved over the last six months.
The biggest increase when it came to specific skills came in the form of doctors, with 260 relocating to Australia, up 300 per cent on the previous year. The most sought after skilled immigrants by Australian employers are accountants, nurses and trades-people including mechanics, electricians and builders.
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