Archived News 2007

4 May 2007

Restless Employees Took Action in April

The SEEK Employment Index
Australian workers spent April dusting off their resumes and applying for jobs in droves, according to the latest employment data from SEEK.

The SEEK Employment Index (EI) fell by 0.5% (seasonally adjusted) following a strong upward trend over the past 12 months.  A fall in the index is usually attributable to a weakening in the labour market, but in this case it was due to a strong increase in job market supply, as measured by job applications submitted via SEEK.

Job Advertisements
During April, job ads posted maintained an upward trend increasing by 0.5% (seasonally adjusted), and building on the 10.6% growth achieved in the previous two months.  Over the year to April, new jobs have now increased by 36.5%.

Job Applications
There was a substantial increase in job seeking activity in April with a 3.5% jump in job applications (seasonally adjusted).  This is the largest monthly increase since January 2006, and the rate of activity is now 13.9% higher than a year earlier.

Contrasting cases are to be found in Queensland and Western Australia, which have experienced similar increases in demand for labour over the past year.  During the last 12 months job application numbers have increased by 27.9% in Queensland, but remained static in the West. 

South Australia has experienced the strongest growth in job applications (40.2%) in the past 12 months, compared to jobs growth of just 26.1%.  These factors combine to create a stronger and far more competitive market in which to find a new job which is good news for the South Australian economy.

Commenting on the results, SEEK Sales Director Joe Powell said that an increase in job seeking activity is always a double edged sword for employers.

“Our data show that large numbers of people returned from the Easter break looking for a new position, and with unemployment at a 30 year low, it’s likely that many of them already have a job.

“Companies that are recruiting stand to benefit if experienced and skilled individuals are on the move, but at the same time this presents a considerable business risk for the organisations they are leaving.

”The media is filled with stories right now about the booming job market and this helps encourage those who are unhappy or even just curious, to see what else is out there for them. 

“Companies need to have strategies in place to manage the reality of a labour market that is likely to remain tight for some time to come”, he said.

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said: “Combined with the lower than expected increase in the CPI for the March quarter, the growth in labour supply will help contain the imbalances building up in the economy. Nonetheless, a monetary policy remains inevitable, it is just a question of when”, he said.

For further information or to arrange an interview please contact:

SEEK TOP & BOTTOM 5

About SEEK
seek.com.au currently hosts about two thirds of all online ads, equating to approximately 60% of all Internet and newspaper job ads in Australia.  In any given month, over 120,000 job advertisements are posted on the SEEK website and over 2 million jobseekers lodge over 1 million job applications.

About the SEEK Employment Index
Developed in consultation with Victoria University’s Centre of Strategic Economic Studies, the SEEK Employment Index is the first Australian aggregate indicator to measure the interaction between labour market supply and labour market demand.  Specifically, the SEEK Employment Index (SEEK EI) represents the relationship between demand for workers and jobseeker activity. When the Index increases, it demonstrates a ‘tightening’ employment market; where advertisers find it harder to fill roles ie: demand outweighs supply. This is favourable for jobseekers, as job opportunities are greater and competition between applicants is reduced. Inversely, as the Index falls, it demonstrates a ‘softening’ employment market ie: supply outweighs demand and advertisers find it easier to fill roles.  In this instance, jobseekers need to compete for the available jobs. 

For further explanation on the applications of use please refer to the SEEK Employment Index launch document available at www.seek.com.au/intelligence

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5 April 2007

Skills shortages emerging in a tight employment market

The SEEK Employment Index Indicator
The tightening of the national employment market gathered pace in March as the number of new jobs being advertised continued to grow while job seeker activity was static, according to the latest employment data from SEEK.

During March, the SEEK Employment Index (EI) increased by 2.1% (seasonally adjusted) to a new two-year high. A 5.9% increase since December accounts for most of its 8.1% gain during the past 12 months and highlights that it is becoming ever more difficult for employers to fill vacant positions.

Job Advertisements
During March, job ads posted maintained an upward trend increasing by 6.7% to their highest level since the beginning of the year.
 
Queensland (8.0%) and Victoria (6.2%) were the stand-out states in terms of job ad growth. South Australia, Western Australia and NSW achieved more moderate increases of (5.1%), (4.8%) and (3.3%) respectively. 

The number of job ads listed rose in every state, and on a national basis they have increased 40.8% since March 2006. 

Commenting on the results, SEEK Sales Director Joe Powell said that evidence of a skills shortage continues to emerge. “In much of Australia employment supply and demand are both strong, but there appears to be a disconnect between the kind of jobs that people are competing strongly for and the range of jobs on offer.

“For example, in Queensland, job seeker activity is skewed towards positions in hospitality and tourism, with three of the top five most competitive jobs falling within this industry sector. Meanwhile, employers are struggling to fill positions in industries spanning banking and financial services, education and training, legal, primary industry and consulting and corporate strategy.

“Queensland’s strong image as a holiday and conference destination may be hindering its ability to attract the skilled professionals its diverse economy now needs.

“In a skills-short environment, organisations that rely on specialist expertise will need to place a greater emphasis on workforce planning, as opposed to traditional recruitment. This might include offering university scholarships, additional incentives for apprenticeships or retention bonuses for valued employees”, he said.

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said: “Divergent economic and labour market conditions in different parts of the country complicate the Reserve Bank’s task in setting national monetary policy. But further upward movements in interest rates seem inevitable as the demand for labour continues to strengthen in the face of limited supply”, he said.

For further information or to arrange an interview please contact:

SEEK TOP & BOTTOM 5

About SEEK
seek.com.au currently hosts about two thirds of all online ads, equating to approximately 60% of all Internet and newspaper job ads in Australia. In any given month, over 120,000 job advertisements are posted on the SEEK website and over 2 million jobseekers lodge over 1 million job applications.

About the SEEK Employment Index
Developed in consultation with Victoria University’s Centre of Strategic Economic Studies, the SEEK Employment Index is the first Australian aggregate indicator to measure the interaction between labour market supply and labour market demand. Specifically, SEEK measures:

The SEEK Employment Index (SEEK EI), represents the relationship between jobseeker activity and the demand for workers.  When the Index increases, it demonstrates a ‘tightening’ employment market; where advertisers find it harder to fill roles ie: demand outweighs supply. This is favourable for jobseekers, as job opportunities are greater and competition between applicants is reduced. Inversely, as the Index falls, it demonstrates a ‘softening’ employment market ie: supply outweighs demand and advertisers find it easier to fill roles.  In this instance, jobseekers need to compete for the available jobs. 

For further explanation on the applications of use please refer to the SEEK Employment Index launch document available at www.seek.com.au/intelligence

6 March 2007

Jobseekers in the Box Seat in a Tight Labour Market

The SEEK Employment Index Indicator
With unemployment continuing at record lows, the economy is experiencing strong demand for labour in a tightening market according to the latest data from SEEK.  During February, the SEEK Employment Index (EI) increased by 3.4% to its highest point in the past two years (seasonally adjusted).  The index is now 5% higher than three months ago and 9.9% higher than February 2006, indicating that it is becoming steadily more difficult for employers to fill vacant positions.

This tightening of the labour market continues to be unevenly distributed across the nation. During the past 12 months, the SEEK EI has grown most rapidly in Western Australia, the ACT and Queensland (20.1%, 21.6% and 10.8% respectively).  It has also increased in the two largest states (Victoria 8.9% and NSW 7.5%), but the SEEK EI fell by 14.8% in South Australia and by 21.2% in Tasmania.

Job Advertisements
During February, job ads posted increased in all states with the exception of ACT; combining to deliver a 3.7% increase in the number of new positions available Australia-wide.
 
New jobs advertised now stand 33.1% higher than in February 2006. 

Commenting on the results, SEEK Sales Director Joe Powell said: “Although the number of jobseekers browsing roles are increasing, people are becoming more selective about the jobs they apply for. 

“After modest changes in the past few months, there was a severe tightening of the market in February and this has placed jobseekers in the box seat for negotiating their employment conditions.

“Queensland employers are doing it particularly tough with a 9.3% jump in new jobs advertised last month, followed by Victoria at 5.3%.  Our advice to employers is to anticipate your labour needs and allow a longer timeframe for attracting your ideal candidate.

“Candidate care is also critically important.  A company that is clear about the role they wish to fill, that communicates well with candidates throughout the process and makes a decision quickly is more appealing to work for”, he said.

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said: “If the demand for labour continues to expand more rapidly than the available supply a further increase in interest rates will become inevitable.  At the same time, recent data from the Australian Bureau of Statistics predicts a very high level of mining investment in 2007-08, suggesting that imbalances between states are likely to increase further in the year ahead.  This only serves to make the Government’s policy challenge even more complex”, he said.

For further information or to arrange an interview please contact:

SEEK TOP & BOTTOM 5

About SEEK
seek.com.au currently hosts about two thirds of all online ads, equating to approximately 60% of all Internet and newspaper job ads in Australia.  In any given month, over 120,000 job advertisements are posted on the SEEK website and over 2 million jobseekers lodge over 1 million job applications.

About the SEEK Employment Index
Developed in consultation with Victoria University’s Centre of Strategic Economic Studies, the SEEK Employment Index is the first Australian aggregate indicator to measure the interaction between labour market supply and labour market demand.  Specifically, SEEK measures:

The SEEK Employment Index (SEEK EI), represents the relationship between jobseeker activity and the demand for workers.  When the Index increases, it demonstrates a ‘tightening’ employment market; where advertisers find it harder to fill roles ie: demand outweighs supply. This is favourable for jobseekers, as job opportunities are greater and competition between applicants is reduced. Inversely, as the Index falls, it demonstrates a ‘softening’ employment market ie: supply outweighs demand and advertisers find it easier to fill roles.  In this instance, jobseekers need to compete for the available jobs. 

For further explanation on the applications of use please refer to the SEEK Employment Index launch document available at www.seek.com.au/intelligence

7 February 2007

New Year Welcomed by Robust Labour Market

The SEEK Employment Index Indicator

The news is good for jobseekers reluctantly returning to work after the Christmas break. The SEEK Employment Index (EI) increased by almost 1 point in January (0.9%, seasonally adjusted). This reflects a labour market that continues to be tight with demand for labour remaining strong but easing. There was relatively less competition among job seekers for positions during the month.

During January, job ads posted outstripped job seeker applications in Victoria, ACT and Western Australia, indicating that vacant positions are plentiful for qualified job seekers. WA, in particular, continues to be a challenging market for employers with weak competition for job ads posted.

Job Advertisements

In January new job ads posted on SEEK decreased 3.7% since December. Job ad decline was unevenly distributed, with NSW (-5.4%) and Queensland (-6.3%) experiencing relatively larger falls, compared to WA (-1.8%) and Victoria (-2.7%).

However, year on year, job ads increased by 18.9% indicating a solid demand for labour in 2007.

Commenting on the results, SEEK Sales Director Joe Powell said: “January often sets the tone for what employers can expect during the year, and we predict that considerable variations will continue between states during 2007.

“Clearly demand for labour remains very strong, but to take full advantage of the opportunites on offer, job seekers in some industries may need to look further afield than the state they live in.

“Employers, on the other hand, who are having difficulty recruiting suitable employees should consider expanding their recruitment strategies to cover interstate markets.”

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said: “The Australian labour market appears to have opened 2007 on a firm note, 2.5 points higher than at this time last year. Strong demand for skilled workers is continuing across all states but labour market supply remains patchy”, he said.

SEEK TOP & BOTTOM 5

For further information or to arrange an interview please contact:

8 January 2007

December sees softening of the labour market

The SEEK Employment Index

The December SEEK Employment Index (EI) fell by 5.4 points indicating that the Australian labour market continues to soften. Seasonally adjusted figures fell by 9.5 points year on year. This downward trend confirms a softening of the labour market in Australia.  

A fall in the SEEK EI, indicating a softening of the market, means that Australian jobseekers witnessed increasing competition for jobs during the month.

Job Advertisements

In December new job ads posted on SEEK increased by 6.2% month on month, continuing the upward trend recorded over the past four months. Victoria (7.8%) and Western Australia (6.5%) experienced the strongest growth month on month; Queensland (6%) and NSW (5.9%) also recorded increases. The Northern Territory (-4.4%) and Tasmania (-3.4%) went against the national results with month on month ads declining.

Year on year job ads were up by 32.4%, a further indication that online job advertising continues to grow. The highest annual growth was recorded in Western Australia (52.4%) and Queensland (49.3%).

Job Applications

Nationally job applications for new job ads rose sharply in December, increasing by 5.5% month on month and maintaining the upward trend apparent since May 2006. NSW experienced the sharpest month on month increase of 6.7%, followed by Victoria with 5.7%. In contrast Queensland (2.8%), South Australia (2.5%) and Western Australia (0.0%) recorded marginal increases in job applications.

Year on year job applications were 22.9% higher in December, further reflecting the popularity among job seekers to search and applying for jobs online.

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

“The fall in the SEEK EI of 5.4 points during December confirms the trend of a softening of the labour market in Australia. What this means for jobseekers is that as the softening continues, competition for jobs will increase.”

“The softening of the market and therefore increased competition for jobs, is particularly evident in the south eastern states, namely Victoria, NSW and South Australia. This is in contrast to the resource rich states of Western Australia and Queensland which have tightening labour markets and therefore jobseekers are experiencing less competition.”

Professor Peter Sheehan, Director of the Centre for Strategic Economic Studies said:

“Assessing the prospects for 2007, the softening of the EI indicates that the job market in the south eastern states, will remain plentiful but competition will continue to increase. In the resource-rich states of Western Australia and Queensland where demand for employees outweighs supply, the market will continue to tighten to the favour of the jobseekers.“

SEEK TOP & BOTTOM 5

For further information or to arrange an interview please contact:

About the SEEK Employment Index

Developed in consultation with Victoria University’s Centre of Strategic Economic Studies, the SEEK Employment Index is the first Australian aggregate indicator to directly compare labour market supply and labour market demand.  Launched in July 2005 and published monthly, the Index and its supporting indicators are based on the actual number of new job ads and new job applications posted through the SEEK website.

In creating the Employment Index job advertisements are interpreted as the demand for labour in the market and job applications are interpreted as the supply of labour. The varying relationship between these figures is represented by the Employment Index, which increases and decreases.

When the Index increases, it demonstrates a ‘tightening’ employment market; where advertisers find it harder to fill roles ie: demand outweighs supply. This is favourable for jobseekers, as job opportunities are greater and competition between applicants is reduced. Inversely, as the Index falls, it demonstrates a ‘softening’ employment market ie: supply outweighs demand and advertisers find it easier to fill roles.  In this instance, jobseekers need to compete for the available jobs. 

About SEEK

seek.com.au currently hosts about two thirds of all online ads, equating to approximately 60% of all Internet and newspaper job ads in Australia.  In any given month, over 120,000 job advertisements are posted on the SEEK website and over 2 million jobseekers lodge over 1 million job applications.

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