The Current Employment Market in Australia

While Australia is not technically in recession, we are undoubtedly seeing signs of an economy that lacks confidence and is unsure of what's next.  Similar to the 1991 recession - yes the one Keating said we needed to have; we are seeing an increased need for outplacement services, higher number of applicants for reduced numbers of jobs and a tendency for organisations to hire casual or contract workers rather than permanent employees.  In many instances this is due to head count freezes being in place.

Recent releases by Fairfax MyCareer forecast unemployment rates to reach a peak level of 7.2% by February 2010. So, how does this compare to historical figures? 

According to unemployment statistics quoted in a discussion papers released December 2000 by Australian National University (Professor Bob Gregory) the unemployment rates in 1991 sat at 11.6%; so surely an unemployment rate forecast of 7.2% would have been seen as a distant dream! 

So how did we cope then and what was the market place like for job seekers and employers trying to fill vacancies?   It was tough, there were more casual and contract roles and less permanent vacancies.  Applicants competed for any employment opportunity, many were over qualified but desperate for work.  Those that were employed were sitting tight and not actively seeking new employment opportunities.  It took longer to sift through applications to find the right person for the right job and pity the poor fools who asked for phone response rather than written application - switch boards were jammed and customers simply couldn't get through.

Without doubt some industries have been hit hard by the global economic circumstances whilst others remain in a recession proof cocoon.  Without doubt some of Australia's skill-shortage issues have self corrected for the time being and the Department of Immigration has removed several job categories from the MODAL listing. 

Does this make finding the right people for roles easier?  Perhaps in some aspects - there are certainly more applying for roles but greater quantity does not guarantee greater quality and quite possibly the person you really need may not be looking because they are too afraid to move!

Pam Dew is the national manager of Bridge Consulting and provides regular insights on market trends within the HR/recruitment industry.

To contact Pam, call 03 9864 6000 or email pdew@bridgeconsulting.com.au

Back to top