SEEK Employment Trends Australia: steady interest rates drive labour demand across property and construction sectors
New job ads in Australia increased by 0.5% from May to June 2014, buoyed by year-on-year growth in the demand for labour across the property and construction sectors, according to SEEK data.
While key economic indicators have fluctuated throughout 2014, new job ads have remained firm. This follows a significant 8.6% spike in new job ads posted to SEEK between September 2013 and January 2014.
“Consumer and business confidence indices wavered as a result of the Federal Budget. However, steady interest rates have helped to encourage stability in business and subsequently employment growth across key industries,” says SEEK Managing Director, Joe Powell.
“The consistent interest rate of 2.5% since August 2013 has underpinned a 10-month growth period across the residential property market; leading to a significant rise in demand for property and construction labour,” says Powell.
According to the Housing Industry Association’s Performance of Construction Index, a seasonally adjusted rise of 5.1 points in June suggests that the Reserve Bank of Australia’s monetary policy is working, and will position the housing construction industry for further growth.
Year-on-year, SEEK new job ads data to June 2014 has shown a 190% increase in demand for architects, a 108% increase for builders, a 94% increase in demand for drafts-people and 63% increase in demand for interior designers.
While overall, new job ad figures have stabilised, there are still significant differences for job ad growth across each state year-on-year to June 2014. New South Wales rose by 14.1%; however, in Western Australia new job ads were down by 1.5% in the same period. This divergence between the markets reflects the transition the Australian economy is going through off the back of the decline in mining investment.
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 2.1% in June. With a steady demand for labour, this means hirers will have access to a larger pool of candidates.
“Overall, it’s great to see that candidates have not been deterred by political rhetoric and economic uncertainty, and are still keen to explore career options,” says Powell.
“For hirers, the healthy supply of candidates makes it an ideal time to strengthen their teams and capitalise on business opportunities stemming from low interest rates,” concludes Powell.
SEEK new job ads
New job ads on SEEK rose 0.5% in June 2014. State-by-state breakdown is:
- New South Wales, 0.5%.
- Victoria, 1.8%.
- Western Australia, 1%.
- Queensland, -0.8%.
- South Australia, -3%.
SEEK Employment Index (SEI)
The SEEK Employment Index fell 2.1% in June 2014. State-by-state breakdown is:
- New South Wales, -7%.
- Victoria, -1.9%.
- Queensland, -3.7%.
- Western Australia, -2.5%.
- South Australia, -3.5%.