COVID-19 had a massive impact on the Perth job market. For example, Mandurah now has the highest unemployment rate in Australia. It stands at 18%, close to one in five are unemployed.
Another way of looking at the job market is to look at the number of job ads posted on Seek in Perth. Every morning since 2008, I go in and log in a spreadsheet how many ads are posted on Seek Perth.
These job ads reflects employers' hiring intentions - how strongly they feel about their business moving forward? When COVID-19 seriously hit Australia, in a span of just five weeks from March 13th to April 20th, The number of job ads posted on Seek Perth dropped 63%. It's a massive drop. Actually it's the same percentage drop we saw during the GFC. It was also 63%, although it took six months to get there during the GFC, it took just five weeks during the COVID-19.
So after this massive drop in job ads, are we now recovering? And if so, what kind of recovery do we have? Do we have a hockey stick kind of recovery, where we go slowly back up or a W where we go up and down and up and down, or a V shaped kind of recovery? Although not many operative V-shaped recovery.
Amazingly, not only have we had a V shaped kind of recovery, but we have also recovered all the job ads lost. In fact, we've done even better. There are now more ads posted on Seek Perth, than when the downturn started on March 13th. Today we have 12,500 job ads posted. This is the same amount we had in the beginning of February. It's actually the highest number of jobs that's posted on Seek Perth since 2014. And that worth to celebrate.
One would expect that these job ads will be filled soon and the unemployment in not only Perth, but also Mandurah should begin to drop again. And that's the good news.
We can thank the Federal Government for keeping the money flowing during this pandemic. They moved very quickly in March and April. We can also think the WA Government for keeping the borders closed. The border closure, had a massive impact on eradicating the community infection and stopping its spread.
I hope you found this valuable and thank you very much for watching and stay safe.