Australian job vacancies decline in November quarter, labour demand remains

Australian job vacancies fall: Australia experienced a modest decline in job vacancies during the November quarter, indicating ongoing demand for workers despite a slight easing in the overall labour market.

Image Credits: Pexels

According to data from the Australian Bureau of Statistics (ABS) released on Wednesday, job vacancies decreased by 0.7 per cent compared to the previous three-month period, which had seen a more substantial 8.2 per cent drop.

The figures revealed a year-on-year decrease of 14.4 per cent, with a seasonally adjusted total of 388,800 vacancies – the lowest since August 2021. Nevertheless, this number remained 70 per cent higher than pre-pandemic levels. 

In the private sector, vacancies dipped by 0.6 per cent, while the public sector experienced a 1.8 per cent decline.

David Taylor, ABS head of labour statistics, highlighted that the ratio of unemployed individuals per job vacancy was 1.5 in November. Although higher than the pandemic low of 1.1, it remained significantly below the pre-pandemic figure of 3.1 in February 2020.

The percentage of businesses reporting at least one vacancy decreased to 19.7 per cent, a notable drop from the peak of 27.7 per cent recorded last year. The robust demand for labour throughout the year has been supported by an influx of skilled migrants and foreign students, contributing to the alleviation of the previously tight labour market.

Despite a rise in employment by 35,600, the jobless rate increased to 3.9 per cent in November, reaching an 18-month high.

The marginal relaxation in the labour market has contributed to curbing wage growth, reducing pressure on the Reserve Bank of Australia (RBA) to implement another interest rate hike. The RBA has already raised rates by 425 basis points, reaching a 12-year high of 4.35 per cent.

(With Reuters Inputs)