Aussie jobseekers in for a treat: Vacancies rise 18% despite Omicron

Highlights

• In November 2021, job vacancies rose to 396,000, according to seasonally adjusted data by the Australian Bureau of Statistics (ABS).
• Experts suggested that rising vacancies would give workers a higher bargaining power as there is a lack of labour supply in the market.
• Job advertisements have shown a slowdown in December, partly due to the new Omicron strain and partly due to a high number of jobs being filled in November itself.

Australia’s labour market has seen immense recovery in the period following the removal of delta variant-induced restrictions. One such victory was seen in November, when job vacancies rose to 396,000, according to seasonally adjusted data by the Australian Bureau of Statistics (ABS). The data makes November a month of remarkable triumphs, including an increase in consumer spending and housing activities across the nation.

According to the ABS, job vacancies in November witnessed a spike of 18.5% compared to the last reported data in August 2021. Private sector vacancies took the lead as jobs in the sector saw a rise of 19.4% since August 2021 to 361,700. Meanwhile public sector vacancies rose 9.7% since August 2021 to 34,300 in November 2021. The main factor leading up to the massive uptick in jobs was the lifting of lockdowns that had been implemented in August. Accommodation and food services were at the forefront in terms of rising vacancies, followed closely by administrative services and healthcare services.

ALSO READ: How is Omicron variant emerging as a threat for Australian economy?

Could November highs continue?

The spectacular recovery of the labour market started in November which ultimately led to pundits believing that 2022 would be marked with rising wages and higher unemployment. There was a record high level of job advertisements posted in November, which was followed by 366,100 new jobs being filled in the economy.

Experts suggested that rising vacancies would give workers a higher bargaining power as there is a lack of labour supply in the market. Going by that pattern, the labour market was headed for another year of stellar feats.  However, things have taken a dismal turn as the economy has stepped into the new year, thanks to the Omicron attack. Let us take a closer look.

Job ads slowing down

According to Australia and New Zealand Bank (ANZ), job ads fell 5.5% in December, after rising to record high levels in November. While it is safe to assume that a vast majority of vacancies had been filled in November itself, there is a possibility that the new Omicron strain is playing a part in this slowdown.

Additionally, consumer sentiment has taken a hit, as more and more individuals are hesitating to step out of their homes. As per the latest data, Australia is witnessing a sweeping wave of restrictions self-imposed by a majority of the population, because of which consumer spending has declined in the first week of January.

This cautionary stance has inadvertently rung alarm bells among businesses and experts alike, with the worst-case scenario being a demand-side slump. Declining consumer confidence would be most significantly impactful on business revenues, and in turn, could impede labour market recovery. Overall, experts are of the view that January and February would largely be observational periods, where a lot more would surface about how well the economy is adjusting to the new variant.

Bottom Line

The November data on job vacancies signifies how companies are still seeking workers at a higher rate than pre-pandemic levels. Additionally, experts from ANZ also suggest that the number of listed vacancies filled may have outpaced the new jobs advertised, causing vacancy numbers to dwindle in December. Overall, the rate of job-hopping is largely expected to rise in 2022, as workers are likely to get lured into higher paying jobs.

DO NOT MISS: After a disruptive 2021, what are the economic factors to look at in 2022?