SEEK Employment Trends Australia: job market shows resilience following Federal Budget announcement
Softening consumer confidence following the 2014–2015 Federal Budget has not stalled recruitment, with only a modest 1% month-on-month fall in new job ads in May 2014, according to SEEK data.
New job ads sit 7.4% higher than in May 2013; however, the strong growth seen between October 2013 and January 2014 has now slowed.
“Following a strong start to 2014, the labour market’s resilience has seen only a slight decline in new job ads in May, suggesting that the Federal Budget has, as yet, had a minimal impact on recruitment plans,” says SEEK Managing Director, Joe Powell.
The drop in new job ad volume was noted across all major states, aside from South Australia, which rose 1.5%. New South Wales dipped 0.3%, Queensland 0.7%, Western Australia by 1.1% and Victoria 1.8%.
In New South Wales, the minor decline in new job ads is expected to have little impact in hiring confidence, given the state has seen a 12% year-on-year growth in the demand for labour to May 2014.
The industries in New South Wales, which have seen notable increases in new job ads year-on-year, include construction, which is up 35%; design and architecture, up 34%; farming and conservation, up 27%; and community services, up 19%.
Powell went on to say, “it will be important that the government maintains a commitment to creating an environment of investment beyond the mining sector. Assuring projects, such as the $50 billion infrastructure investment over a seven-year program, is just one of the initiatives that will promote job creation across the country”.
The SEEK Employment Index, which measures the ratio of new job ads placed with SEEK to the number of applications for those jobs, fell by 1.4% in May. The decline in the index signals that job-seekers have remained confident and active in applying for new roles, in spite of recent reports that consumer confidence has declined.