The Recruitment, Consulting and Staffing Association (RCSA) has released its quarterly Jobs Report, which indicates Australia’s job market could potentially be starting to fold under external pressures.
RCSA’s latest Jobs Report data has revealed a modest decline in Australia’s job index by 0.6 per cent.
Worth noting is that this is insignificant in comparison to New Zealand, where job postings have plummeted 10.8 per cent in the last three months.
RCSA CEO Charles Cameron explained he has witnessed members of the RCSA tighten their belts under concerns of long-term sustainability within the market.
Venture capital funding drying up: RSCA chief
“Our members are telling us Venture Capital firms and private equity investors have been tightening their belts and funding is being withdrawn from projects without long-term commercial value,” he said.
“Unfortunately, we are seeing a lot of contracts aren’t being renewed.”
The RCSA’s Jobs Report tracks Australian and New Zealand job opportunities and trends by industry, occupation, and employment type. It’s the peak body for recruitment, staffing, and workforce solutions industry-wide across Australia and New Zealand.
“Australia is holding firm, but the quarterly retraction suggests market confidence is waning,” Mr Cameron said.
“What happens in the next three months will be a critical indicator as to whether job demand in Australia is on the same trajectory as what we are seeing over the ditch.”
Healthcare demand hit, but still higher over 2022
The data revealed there was a drop in healthcare demand for the quarter with a sharp decline of 10 per cent in the last three months, but it’s still 7.1 per cent higher than in June 2022.
Positions for health, education and community professionals also declined, with roles in manufacturing at an 8.8 per cent decline.
Continuing on the downward slope are roles in technology, down 2.3 per cent in its fourth consecutive quarterly decline. Year-on-year demand has spiralled down by 25.4 per cent in the technology sector.
While permanent job opportunities have risen slightly, the demand for flexible workers has fallen 5 per cent, despite employers’ tendency to favour a flexible workforce in uncertain economic times.
Mr Cameron suggested that skills shortages could be a factor in bucking this trend.
“A lack of talent can motivate employers to lock in permanent staff,” he explained.
It’s not all bad
Despite rising concerns among June’s job data, the RCSA findings highlight Australia continues to remain resilient with the National Index 22.3 per cent higher than two years ago.
“The figures are promising but the slight drop does indicate that successive interest rate rises are finally starting to impact employment,” Mr Cameron said.
Meanwhile, there are some positive signs across other sectors, including education, accommodation and Food Services, which the RCSA said remained strong.
Education was the fastest-growing sector with demand up 18.3 per cent over 12 months, while opportunities for sales staff and service and community workers have been pouring in.
The cumulative rise seen in sales staff was the highest across all occupation types, at an increase of 26.7 per cent.
While more data would need to be ascertained to see a clear trend, the RCSA has suggested it could show the start of an impending wave of unemployment, potentially enforcing lower inflationary measures.
Changes to the minimum wage could alter the job market landscape
With an increase to the minimum wage this month from July 1, more than two million, or one in four workers could see their pay packets increase by 5.75 per cent a week.
The now higher costs for businesses could ultimately lead to more reluctance to bring on new employees for long-term work.