Is the job market stabilising?

After years of unease and confusion, the job market may finally be returning to normal.

The SEEK Employment Report for May revealed that job advertisements are decreasing and applications rising, highlighting a slow return to normalcy.

“The market continues to show signs of stabilising after periods of rapid growth and decline shaped the labour market last year,” said SEEK ANZ managing director Kendra Banks.

Job advertisements decreased by 0.8 per cent on the platform in May, 22 per cent lower than in May 2022. Meanwhile, job applications saw a 4.8 per cent increase from April, just 1 per cent lower than in May 2019.

As far as specific industries go, there were dramatic differences in job ads. Leading an increase in advertisements was science and technology, rising 7 per cent in May. Trailing was sport and recreation, at 6 per cent.

On the other hand, other industries saw a decrease in job ads, highlighting more workers entering positions. Design and architecture saw the biggest decrease, down 5 per cent, followed by banking and financial services, and consulting and strategy, down 6 per cent each.

SEEK noted that the larger industries such as trades and services, manufacturing, transport and logistics, and retail and consumer products, all saw a decrease, falling 1.7 per cent, 2.3 per cent, and 3.1 per cent, respectively.

Healthcare and medical was the largest industry to see an increase in job ads, climbing 0.6 per cent from April. This is reportedly due to an increase in demand for physiotherapists, rehabilitation workers, and psychologists.

Ms Banks continued: “Job ads dropped only marginally in May, with incremental decreases for most industries, and small increases in some others. Demand for healthcare and medical and accounting and construction workers rose against the trend.”

“While job ad volumes have dropped since their peak last year, they remain higher than their pre-COVID levels, showing that hirers are still looking for workers, despite a reasonably tough economic outlook.”

She concluded: “Unemployment remains low, but candidate activity continues to rise, with applications per job ad increasing in 10 of the past 12 months, indicating that Australians are open to change. Application levels are now almost at their pre-COVID levels, after nearly two and a half years of talent shortages.”

State by state in Australia saw different results in job ad percentages. NSW, for example, saw a decrease of 1.6 per cent, and Queensland dropped 1.3 per cent.

However, other states saw an increase, with the Northern Territory leading, climbing 4.8 per cent. Victoria remained the same.

Most states recorded a growth in job applications, with NSW and Victoria both rising by 5 per cent and Queensland by 6 per cent.