An overview of the current labour market trends is essential for any business and employee. This is because it can provide insights into what businesses need most and whether the market is competitive, letting businesses and candidates figure out how they can fulfil their needs.
Read on to find out what trends are dominating the recruitment market and what you can do to stay afloat.
Unemployment reached its lowest level since 1974, standing at 3.9% in May 2022 — a decrease of 1.2% since May 2021. This decline in unemployment was seen across all states and territories, with the largest falls being seen in Western Australia (from 4.7% to 3.1%), Queensland (5.5% to 4%) and South Australia (5.9% to 4.6%).
Generally, a low unemployment rate can only mean good things for the economy. As more and more people get jobs, the productivity of the nation and the purchasing power of the employed and their families increases. In turn, this cascades into businesses receiving more revenue and can even generate more employment in the long run.
While a decreasing unemployment rate indicates good things for the economy, it can be challenging for businesses with recruitment needs. A low unemployment rate also means an increase in demand for labour. This creates a more competitive environment for both businesses and employees alike.
With a declining unemployment rate, more businesses are actively recruiting new talent. Case in point, the Survey of Employers who have Recently Advertised (SERA) notes that the labour market is tightening. In the year leading up to May 2022, only 58% of advertised vacancies were filled — 2% less than May 2021.
Employers have also attracted fewer applicants at a rate of 11.5 candidates per vacancy, down from 12.7 in May 2021. This may be because there are fewer applicants considered to be suitable. Recruiters have reportedly only found 2 applicants per vacancy eligible in May 2022 compared to 2.8 in May 2021.
For employers, these current labour market trends could mean that finding the right candidate is harder than ever. With fewer candidates applying and even less who are qualified, it may take time to find the perfect candidate.
Additionally, an increase in demand in labour means that employees can easily switch between employers, going wherever there are better benefits and opportunities. This makes it all the more important for employers to establish programs and benefits that can help retain current employees. Employers who fail to consider labour market insights can risk losing employees and an arduous hiring and training process.
The recruitment blaze is hitting more than one industry. In particular, the health care and social assistance industry has seen the highest growth at 179,000 employees. Following this is financial and insurance services (81,100) and professional, scientific and technical services (53,300). However, not all industries are flourishing. Manufacturing saw a decrease by 79,500 employees, while arts and recreation services are down by 25,200.
These current labour market trends mean that employment opportunities are abundant in industries like health care and social assistance, while the manufacturing industry may be more competitive.
Between August 2021 and August 2022, online job ads have seen an increase by 42% or 91,600. Towards the end of August 2022, the total number of job advertisements online hit 309,900.
The current labour market trends in terms of online job ads signal the need to be more compelling online. When paired with statistics on the difficulty to attract the right candidates, this makes it all the more important for recruiters to really up the ante. For candidates, this signals the wide range of job posts available online.
Our labour market insights indicate that recruitment and finding employment are bound to be a challenge. From attracting the right candidates to finding the perfect person for the role — current labour market trends point to difficulties across the board. For businesses, this can cause delays in operations, especially if projects and other tasks cannot be completed until the role is filled.
Without a proper recruitment solution, businesses and candidates alike will spend more time on the job market looking for the perfect candidate or perfect role. This is where recruitment agencies come in.
Recruitment agencies are time-savers for both candidates and businesses alike. For candidates, it can help them find roles that suit their skills and needs — all while helping them train to be more efficient. On the other hand, businesses can benefit by getting candidates who have the skills, expertise and culture-fit necessary for their team. This can save businesses hundreds of hours trying to find the right person.
Check out our blog for more on how recruitment agencies can help.
Founded in 2009 by James Marroun, TLH Recruitment provides clients with a wide range of recruitment and labour-hire solutions. From screening to interviewing, we can help candidates and businesses alike find the best possible outcome for their needs.
Get in touch with TLH Recruitment today to find out how our staffing solutions can help you with your career or your business!
© TLH Group 2021 | Created by Friyay Digital