Employment Market Cools as North Queensland Faces Challenges and Opportunities

Townsville, QLD — As the Australian employment market continues to cool, TP Human Capital's latest report highlights significant trends and emerging challenges, particularly in the North Queensland region. According to data from SEEK's Employment Report, job advertisements have decreased nationwide, with North Queensland experiencing a notable drop. This trend reflects broader economic pressures, including rising living costs and higher interest rates, which are impacting both businesses and job seekers.

Key Insights from the Report

• National Trends: Job advertisements across Australia have decreased by 17.1% over the past year. This decline is consistent across all states and territories, indicating a widespread cooling of the employment market.
• Townsville Specifics: In the Townsville region, job advertisements have decreased by 11%, with the total number of jobs falling to 129,100 in May 2024—a decrease of 2,400 jobs or 1.8% over the year. The unemployment rate in Townsville has risen to 4.0%, an increase of 1.5 percentage points.
• Sector Performance: Despite the overall decline, some sectors have seen an increase in job ads, including Government and Defence (+1.8%), Mining Resources and Energy (+1.4%), Consulting and Strategy (+1.3%), and Human Resources and Recruitment (+1.2%). However, Hospitality and Tourism (-8.1%) and Advertising Arts and Media (-6.3%) have experienced the largest drops.

Economic Pressures

Clayton Cook, Director of TP Human Capital, explained that the cooling employment market is largely due to increased costs of living—such as insurance, groceries, electricity, and interest rates—which reduce disposable income for consumers. Businesses, facing higher wages and interest rates, are also less confident in their growth and investment prospects.

Economist Colin Dwyer added, “Even though some sectors are struggling, Townsville’s economy is performing better than before COVID-19, partly due to a diversified project pipeline that TP Human Capital has been monitoring for a long time.”

The latest data from Macrobusiness supports this outlook, highlighting a crash in another Australian employment indicator. The index saw a significant decline, further illustrating the broader economic slowdown affecting job markets nationwide.

Future Outlook

Despite current challenges, Townsville is poised for significant growth. With over 1,700 jobs currently available and billions of dollars in projects approved, the region is expected to see rapid job creation and higher net migration in the coming years. However, this growth coincides with a severe shortage of new housing supply, further complicated by escalating construction costs and a scarcity of building trades.

Cook emphasized, “Strategic measures, including more efficient approvals and innovative housing solutions, are essential to sustain growth and dwelling affordability in the Townsville region. We regularly hear examples of construction trade people being poached for public sector projects, which leaves a gap in the residential construction workforce, drives wages higher, and delays projects.”

Recent reports from Macrobusiness on the ongoing housing crisis indicate that there is no end in sight, with continued increases in housing demand outstripping supply. This exacerbates affordability issues and highlights the urgent need for policy interventions

Furthermore, the Recruitment, Consulting & Staffing Association (RCSA) has noted a strong demand for skilled workers in Queensland, particularly in mining and resources. Companies are adapting their recruitment strategies to hire and train unskilled or semi-skilled candidates, addressing the skill shortages by focusing on those willing to develop their skills (Perth IRP).

Conclusion

The TP Human Capital report underscores the complex interplay between economic pressures and regional growth opportunities. As the North Queensland employment experts, TP Human Capital continues to monitor these trends closely, advocating for strategic measures to address the challenges and maximize the region's potential.

For more information and expert insights on the North Queensland employment market, visit TP Human Capital.

Source: SEEK Employment Report - June 2024. ABS,? Read more at HCAMag.