Australian Economic Recovery Witnesses Robust Demand in Essential Services Sectors

Summary

• While the government is trying to revive the economy, there are changes in the job market with few sectors hiring more amid the unprecedented crisis.
• Food retailing and delivery services experienced unprecedented demand for employees, primarily on account of panic buying at the onset of the pandemic.
• There is a growing demand for health professionals in Australian hospitals and for those who can take care of older adults in the aged care sector.
• In the age of digitalisation, the IT sector is hiring more for the roles of software engineers, business and system analysts, developers, programmers and project managers. 

The path to economic recovery is not an easy one for Australia or for any country for that matter. As there is no treatment available for coronavirus infection, people need to follow social distancing and strict hygiene norms. Meanwhile, the governments and industries are leaving no stone unturned in their efforts towards recovering from the crisis. 

Also read: Australian Economy: RBA toes the line, keep the rates unchanged at an all-time low

The macro-event, COVID-19, has shaken the job market and hiring trend. As the Australian economy recovers from the pandemic, ASX-listed HR tech firms are witnessing strong demand in the essential services sectors. A new trend has been noticed as employees don't necessarily want to return to their previous industry. In fact, they are seeking jobs in the pandemic and recession-proof sectors.

In a disruptive year for all, many industries have been badly hit by the pandemic-induced restrictions like hospitality, tourism and arts. Multiple jobs have been lost in these sectors, and the remaining are also at the risk. Recently, Victoria's tourism industry urged for a cash injection of AUD 1.3 billion to recover from the triple whammy of bushfires and two lockdowns in the state. Studies also suggested that 165,000 Victorian tourism jobs could be at risk in the next one year.

That said, there are sectors which are still hiring, such as healthcare, technology and food retailing. Due to the prolonged crisis, consumers’ buying behaviour has changed. The focus has been more on essential services, which led to growth in the essential services sectors.

Must read: How is the buying pattern changing during the COVID-19 pandemic?

Let's take a look at few essential services that are growing during the ongoing global virus crisis:

Food Retailing and Delivery Services

At the beginning of the lockdown, people panicked due to enormous uncertainties, and Aussies resorted to panic-buying like never before. Everyone wanted to store enough food until they figured out what exactly was happening. Panic buying resulted in empty supermarket shelves.

Supermarkets in Australia hired thousands of new staff to meet the booming demand for retail. Warehouses and transport and logistics companies went on a hiring spree to cope with increased workloads.

Restaurants also faced enormous challenges due to social distancing norms. They even tried dine-out when the economy was trying to bounce back. In such a scenario, the number of takeaway food providers increased as people preferred taking their food as a takeaway, and this has been a boon for delivery services, such as UberEats and DoorDash which also include cab services.

According to the Australian Food and Grocery Council, the government's new manufacturing strategy, which recognises food manufacturing as one of the country's six National Manufacturing Priorities, will boost jobs, propel exports, and revitalise the industry's stagnant capital investment environment.

Healthcare Sector

During any pandemic, the healthcare sector comes at the centre of the crisis, as when people fall sick, they need more care. Regardless of whether there is an epidemic or not, people falling ill need access to qualified professionals who can help. After coronavirus and its economic impacts will subside, the healthcare and social assistance industry is likely to emerge as stable career choices. In general, such jobs are always considered stable as to whether there is a pandemic or no pandemic, recession or no recession; people are going to fall sick and need these services. Also, the government provides funding and support to keep these jobs going.

During the pandemic, several Australian hospitals advertised expressions of interest to build a pool of applicants who can offer essential support at short notice across the health system. The pandemic is only going to increase healthcare-related jobs. Moreover, there has been a growing demand for professionals who can take care of older adults in the aged care sector.

Technical Sector

The technical sector emerged as the saviour during the pandemic. People became dependent on digital tools for daily work like never before. Since the onset of the pandemic and imposition of lockdowns across the globe, wherever possible, people are working from home, attending their meetings virtually, pursuing their education online and opting for digital tools for other day-to-day activities.

Good Read: Employees Willing to Continue Work from Home and it Has its Advantages Too

Due to the massive dependence on IT services, software engineers, business and system analysts, developers, programmers, and project managers are in high demand.

Whether pandemic or not, essential services like healthcare, food, IT and cleaning are unlikely to go out of demand. It can be said that these are few careers that are immune to the pandemic and economic downturn to a great extent, and this is what the job seekers are going to consider in the future.

Good read: How Has COVID-19 Impacted Brands? Are People Adopting Quality-Conscious Behaviour?