Australia's Job Market Hits Record High: What It Means for Job Seekers

Australia's job market is witnessing unprecedented competition, with more Australians than ever vying for available positions. This surge is attributed to individuals re-entering the workforce or taking on second jobs in response to the soaring cost of living, as reported by the country's largest online employment marketplace.

Record-breaking applications per job ad have been observed, surpassing even the peak levels recorded during the Covid pandemic in 2020. The latest SEEK data reveals a 2.1% increase in applications per job ad in May compared to the previous month, and a significant 16.4% rise from the same period last year.

Dr. Blair Chapman, SEEK's senior economist, explains that this new record stems from an expanded candidate pool, not from candidates applying to more roles. "Over the past couple of years, there's been a noticeable trend of Australians either taking on second jobs or re-entering the workforce, likely driven by increased living costs," Dr. Chapman noted. This has led to extremely strong competition for most available roles.

Despite a 5.3% decline in job ads in June compared to last year, the job market has shown signs of stability. "The year-on-year decline in ad volume has been hovering around 5.5% over the past quarter, indicating the most stable job ad figures we've seen in some time," Dr. Chapman added.

Regional variations are evident, with the Northern Territory being the only region to record month-on-month job ad growth (up 3.7%). Conversely, the ACT experienced the largest drop (down 7.8%), primarily due to reduced demand in the 'information & communication technology' and 'healthcare & medical' sectors.

The construction sector, however, has seen the most increased demand for workers across the country on a month-on-month basis. Meanwhile, advertised salary growth has slowed to its lowest since 2021, though it still outpaces price growth. Dr. Chapman highlighted that the recent increase in the National Minimum Wage and modern award wage rates by 3.5% from July 1 is expected to bolster advertised salary growth in the near term.