Employers still uneasy as rate of jobs growth slows – IPA Recruitment

The pace of employment growth slowed during November, with the latest monthly data from IPA, one of Australia’s largest recruitment firms, showing job vacancies increased 3.4 per cent compared to 6.2 per cent in October. Notwithstanding, November recorded the highest volume of job vacancies in 12 months. On a state basis, job vacancies rose in all states except Queensland.

After four consecutive months of growth, national job ads posted by IPA decreased 23.7 per cent in November. On a state basis, all states recorded decreases.

Rabieh Krayem, CEO of IPA, said the jobs growth was mostly in temporary and casual roles, reflecting the typical seasonal trend where employers hire more casual positions rather than add permanent labour costs to the bottom line as end of year activity slows.

“While the job vacancy figures indicate the labour market continues to improve, there’s still a degree of unease among employers,” Krayem said. “Many are wondering if we’re through the worst, or will we see another dip?”

“The decrease in jobs ads can be attributed to still relatively weak conditions in permanent recruitment. Businesses are reluctant to put on full time staff at this time of year, but rather wait until the New Year to increase permanent head count,” Krayem said.

Krayem said recruitment firms like IPA had grown a large candidate database over the past few months to tap into instead of placing jobs ads.

“In July there was an average of 16 people applying for each job ad, which fell to 12 in November. Many employees are also sitting tight in their current role and willing to ride out what’s left of the year,” Krayem said.

IPA data revealed demand for labour grew in sectors including retail and hospitality, with mining experiencing a big boost thanks to positive growth in the coal sector.

“January and February is typically a very telling time to get a barometer of employer and employee intentions. There’s always a lot of movement in these months given workers return from holidays keen to change jobs and businesses ramp up for the year,” Krayem said.