Recruitment turnaround in sight: ‘We do appear to be moving closer to a hirer’s market’

The days of the candidate’s market may soon come to an end as the latest data suggests that hirers are slowly gaining the upper hand.

According to the SEEK Employment Report for August, job advertisements in Australia fell by 1.8 per cent in August after a slight rise in July. This, compounded by the fact that applications per job ad increased for the sixth consecutive month, rising 6.5 per cent from the previous month, means we may be approaching a hirer’s market.

Matt Cowgill, SEEK’s senior economist, commented on the data: “After a bump in volumes in July, which saw job ads rise for the first time in six months, ads fell in August by 1.8 per cent.”

“When we remove the peaks and troughs caused by the COVID-19 pandemic, we see historically high volumes of opportunities for workers, matched with proportionately large application levels from candidates. We do appear to be moving closer to a hirer’s market, and yet there is still plenty of choice for workers looking to make a move.”

This is great news for employers; however, it means candidates may be losing their upper hand as recruitment becomes more competitive. Applications per job are reportedly more than double what they were 12 months ago. Meanwhile, job volumes have seen a dramatic decrease, with numbers 20.5 per cent lower than August 2022. However, they’re still 19.7 than August 2019, before COVID-19.

Mr Cowgill continued: “It is an increasingly competitive market for candidates with applications per job ad now more than double the levels recorded this time last year. Roles in all industries are receiving increased interest, with applications per job ad for manufacturing, transport and logistics roles growing by 19.8 per cent over the past quarter.”

Different parts of Australia saw very different trends, however. For instance, Tasmania saw a whopping 10 per cent decrease in job ad volume between July and August. Meanwhile, Victoria rose by 0.4 per cent, and the Northern Territory by 0.7 per cent. NSW and Queensland dropped by 3.6 per cent and 1.2 per cent, respectively.

Similarly, various industries recorded different trends in August. Industries like retail and consumer products, government and defence, and sales saw an increase in job ads by 3.2 per cent, 2.8 per cent, and 2.3 per cent, respectively.

On the other hand, consulting and strategy saw a huge decrease in job ads, falling 10.3 per cent. Following was insurance and superannuation, dropping by 5.1 per cent, and marketing and communications, falling by 4.3 per cent.

“Job ads in retail and consumer products rose by 3.2 per cent month on month. This shows retail businesses across the country have begun preparing for the busy Christmas period, with increasing demand for retail assistants and department/assistant manager roles,” said Mr Cowgill.