Research finds potentially nearly $6.7B lost annually due to unfilled job opportunities in Australia

 

Research finds potentially nearly $6.7B lost annually due to unfilled job opportunities in Australia
▪       In a typical month ‘empty desks’ over a month old represent $561M in potential economic output, or 0.5% of GDP
▪       There are five unemployed people for each vacant job, as workforce participation slips and unemployment rises
▪       However more than one in 10 jobs in Australia remain open for at least three months
 
SYDNEY, Australia – 9th December, 2014 – Indeed, the world's leading job site and global hiring resource, has launched research which reveals the economic cost of unfilled jobs in Australia – a potential loss of nearly $6.7B annually.
 
There are a number of industry sectors in which unfilled jobs have greater impact. These are mining, construction and professional and technical services. In a typical month, unfilled positions in these three industries collectively represent over $221M in lost GDP*. Unfilled roles in mining represent $103M of this.
 
The inability of an individual business to find and recruit the right hire for a role impacts the economy in two major ways. Failure to effectively resource a business slows both productivity and profits, relying on existing workers to cover skill shortages by working more hours under increased pressure. From a jobseeker perspective, the inability to earn an income or spend a salary reduces an individual’s contributions to overall economic growth.
 
The Cebr report, commissioned by Indeed illustrates the importance of building a strategic recruitment function, as the ability to hire the right employee for each role affects Australia’s ability to meet it’s full potential economically.
 
Paul D’Arcy, Senior Vice President of Marketing at Indeed, commented: “The need to fill empty desks is an economic imperative, and the figures in this report should act as a wake-up call to Australians.
 
“For today’s jobseekers, competition is increasing. Unemployment is still low, but it’s been rising over the last twelve months. While it may seem like businesses currently hold all the cards, and shouldn’t have a problem filling vacant roles given the number of people looking for work, our research shows otherwise. Companies can’t always fill roles quickly, suggesting that people with the right skills are difficult to come by.”
 
Empty desks in the context of the current Australian economy
 
While Australia’s labour market is healthy by international standards, unemployment has risen to around 6% during 2014, the highest it’s been for several years. In 2011 there were three unemployed people for every vacant job in Australia, which has since risen to five people in 2014. On top of this, job creation has started to decelerate, in line with slowed economic growth. For those looking for work, this means that the competition for jobs has intensified.
 
In addition, participation rate in the workforce is slipping. Australian workers’ weakening attachment to the labour market means people are stopping applying for roles. This contributes to the finding that more than one in 10 jobs in Australia remain open for at least three months. A large number of unfilled, open roles may well cause problems for the economy in the years ahead.
 
Key findings from the report
 
●     AU$6.7B is the annual potential value of unfilled job opportunities in Australia.
 
●     Unemployment is rising slowly and labour market participation is falling. A large number of unfilled roles may well cause problems for the economy in the years ahead.
 
●     Many businesses have to wait for significant periods of time to find the right person for the job, with 13% of openings in Australia remaining open for at least 3 months.
 
●     For those that can achieve reductions in the time it takes businesses to fill job vacancies, there are clearly significant economic gains to be made and greater amounts of economic potential can be unlocked by better matching the right people to the right job opportunities.
 
●     For the wider economy, the efficient matching of potential employees to businesses through the labor market is key to supporting healthy levels of employment and household incomes, while allowing businesses to reach full productivity.
 
ENDS
 
*GDP: a measure of goods and services produced within an economy and the income generated by that economy
 
About Indeed
More people find jobs on Indeed than anywhere else. Indeed is the #1 job site in the world and allows job seekers to search millions of jobs on the web or mobile in over 50 countries and 28 languages. More than 150 million people each month search for jobs, post resumes, and research companies on Indeed, and Indeed is the #1 source of external hires for thousands of companies (sources: SilkRoad & iCIMS). For more information, visit Indeed.com.
 
About the data
Using Indeed’s job advertisement data, the Centre for Economics and Business Research (Cebr) assessed how long it takes businesses to find suitable candidates. The length of time it takes for a company to fill job vacancies with the right people for the job can be a key determinant of their ability to expand and drive the economy forward. All data is from April 2013 to April 2014 unless otherwise stated.