Australia's job market is on fire!
The Australian job market is on fire! It's a boom like no other we've seen in recent years.
From 11.4 million people employed in 2012, we've skyrocketed to a record-breaking 13.7 million in 2023. In addition to the rise in employment, our unemployment rate has dropped dramatically from 6.3% in 2014 to a low of 3.5% at the end of 2022, the lowest it's been in half a century!
Breaking down the unemployment rate by state to a state / territory level:
It's important to note that the natural unemployment rate sits at about 4% to 5%, and anything below this puts a strain on the labour market and increases the demand for higher salaries.
The Australian job market's strength is a significant achievement considering how turbulent it was only three years ago. At the beginning of 2020, Australia's unemployment rate sat at 3.5%. However, with the outbreak of COVID-19 in March 2020, the unemployment rate shot up to 7.5% within just three months.
Fortunately, the Australian government launched a massive financial support program that helped to quickly recover job losses. Within a year, the number of job ads lost was fully regained, and the unemployment rate continued its downward trend, leading to the job market boom we see today.
A closer look at WA...
Every morning since 2008 and up until today, I have recorded the number of job ads posted on SEEK for Perth so I can provide WA job market updates.
As you can see in the graph below, we have had two peaks in the number of job ads posted.
The dips you can see every year occur over Christmas and the summer holidays where the ads start to decline in November and rise again in early January.
However, when COVID-19 hit our shores, job ads posted from Perth decreased by a whopping 63%! But, despite the massive decrease in job ads, Western Australia experienced an amazing recovery.
After this massive drop in job ads, we had an amazing recovery.
So, how is the job market in Perth now?
Job ads posted on SEEK for Perth | Perth job market update 2023
How is the job market in Perth?
Today, the number of job ads posted on SEEK for Perth has regained all the jobs lost and more. Although the number of job ads posted plateaued in 2022 and slightly decreased in 2023, it remains exceptionally high, and employers will continue to struggle to source new employees. This is great news for job hunters and those entering the job market as there will be more opportunities to choose from.
In conclusion, the Australian job market boom is a testament to the country's resilience in the face of adversity. Despite the challenges posed by COVID-19, the Australian government's swift action and support helped the job market recover quickly, leading to record-breaking employment and low unemployment rates. With more opportunities available, job hunters and new entrants to the job market have plenty of options to choose from in the future.
What are your thoughts?
I'd love to have a conversation with you about this topic - please leave a comment below if you have any thoughts or opinions 🙂
Managing Director of 11 Recruitment