Finance sector leads job recovery for Aussies

Published on December 31, 2021 06:23 PM AEDT

Finance sector leads job recovery for Aussies — Image source: © Igorzoiko | Megapixl.com

Highlights

The last two years have changed the way economic sectors create jobs in Australia.
While manufacturing jobs have fallen, finance, and health sectors have emerged as top job creators.

The employment scenario in Australia seems to be changing. More jobs in the finance sector alongside the heath sector that toed charts due to the pandemic, have driven staff demand.

How has the employment spread changed?

The data from Australian Bureau of Statistics (ABS) shows a 13% growth in number of people working in finance since late 2019. However, there has been a substantial fall employment in sectors like manufacturing and information technology.

In November 2019, when the coronavirus pandemic began, Australia’s jobless or unemployment rate was at around 5%. Employment crashed further with nationwide lockdowns. Even in 2021, people in NSW, Victoria and the ACT dropped out of the workforce because of the COVID-19 lockdowns.

However, in last three months the jobs market is rebounding back, with unemployment rate reaching 4.6%, though businesses in hospitality sector were still struggling to get staff.

As tracked by the ABS, employment has grown in the last two years in 11 of 19 sectors in the economy, with finance leading the board.

Also read - Australia sees a sharp rebound in payroll jobs in November

How has the job scenario in finance sector changed?

The surge in finance jobs is evenly split amongst those that got employed in financial institutions and those in the superannuation and insurance sectors. Even real estate sector which has close links to finance sector has expanded throughout COVID-19.

According to the Angela Knox, an associate professor at the University of Sydney business school, the rise in finance-related jobs can be attributed to the low interest rates, which encouraged people into property investment encouraged investors to reassess investment options.

Bottom-line

In the last two years, manufacturing has shed thousands of jobs, while finance and healthcare sector has emerged as a major job creator.

Sukriti Nair

Author

Sukriti Nair - Junior Analyst
204 Posts
Sukriti has a keen interest financial research and analysis, financial markets and global financial developments. She has content writing experience in Finance and Economics. Her industrial and internship exposure includes Infrastructure, Pharmaceuti...

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