Australian Job Market Recap - 2023

Not surprisingly, 2023 was not a growth year for the job market. Across all sectors, the job market fell by 14.3% nationally compared to 2022.?While January 2023 was the market's peak, it decreased incrementally, with the December quarter seeing the most significant drop over the 12 months.?

?Latest Job Market Report key takeaways -?

Industry trends saw the most significant decrease in needs across health care, 12.8%, and scientific and IT services, a huge 29%. Mining, construction and utilities retracted by only 10.5%, which doesn't look bad until you focus on construction solely, which retracted by a huge 171% compared to 2022.

Unemployment has slipped to 3.9%, a 0.3% increase, but there is talk of 4.5% by mid-year. This rate remains the RBA target level. As a lead indicator, the last quarter's weakness indicates that unemployment will continue to rise in the March quarter.

Victoria's December quarter job postings fell 14.2%, taking our state's annual decline to 16.5%. Compared to NSW, we faired ok with a cumulative decline totalling 25.6% for the populous state. This drop is likely due to the tech hubs being Sydney-based.

For more extensive information and to view the Job Market Report, click on the read more link - Australian Job Market Report.

From a Belkirk perspective, jobs worked in 2023 were only down by 1% from 2022, which is surprising. Applications from advertising, however, for effectively the same number of roles increased by a huge 72% in 2023. It shows employers will have a wider candidate pool as we move through 2024.

At the same time, competition for jobs will be close to its peak for candidates. Salaries will remain the same due to this. Most candidates I am currently representing will move for what they are currently on.?

So it's clear the swing back to an employer's market has been sharp and likely welcomed? There appears to be a lack of resignations, with employees aware that they won't get an increase in salary to move and a need for job security with the cost-of-living increases keeping them in their seats.??

Undoubtedly, growing and maintaining the project pipeline is a focus for businesses. I see that the next challenge for employers will be leading and inspiring unmotivated team members.

What do you think the next six months will bring??

Feel free to let me know if you would like to grab a coffee or chat further about the challenges ahead for your company and role.?