iscover
In the face of full-time employment falling nationally, the head of Employment Hero has suggested that worker intentions are making “even small cracks in the labour market feel a lot bigger”.
Last week, the Australian Bureau of Statistics (ABS) reported a fall in employment numbers. ABS head of labour statistics Sean Crick said: “Employment fell by 5,000 people, and the number of unemployed fell by 1,000 people in August.
“This meant that the unemployment rate remained steady at 4.2 per cent whilst the participation rate fell by 0.1 percentage points to 66.8 per cent.”
Additionally, the ABS noted that full-time employment numbers dropped by 41,000 people, and part-time employment rose by 36,000 people.
“Hours worked fell 0.4 per cent in August, supported by fewer people working full-time hours this month,” Crick said.
Reflecting on the data from the ABS, Employment Hero chief executive Ben Thompson (pictured) said that although unemployment is “flat” this month, even a modest drop in jobs will “ratchet up the caution” that is already rippling through Australian workplaces.
What’s striking, Thompson said, is that Employment Hero’s Annual Jobs Report showed a softening in employment numbers, given that – according to the provider – more than one in two (57 per cent) workers are “job-hugging”, or prioritising job stability over career-moving opportunities.
In other words, Thompson said: “Many are bracing themselves, not advancing, and that makes even small cracks in the labour market feel a lot bigger.”
It’s important to note, he went on, that the fall in employment was led by full-time jobs, while part-time actually saw a hiring surge.
“This is a trend we’ve been seeing pretty consistently over the past year,” he said.
“Financial strain has business owners leaning on flexible hiring, while workers are picking up multiple gigs to keep up with the cost of living.”
“Our data shows one in three Australians are poly-employed, which rises to 56 per cent for under-25s.”
The good news, Thompson concluded, “is that Australians continue to be resilient and resourceful in the face of a tough economy, and I don’t see that changing anytime soon”.
Martin Herbst, the chief executive of JobAdder, supported this, noting that the latest employment data points to a cooling jobs market, “that could reshape behaviour on both sides of the hiring desk”.
“Job seekers are likely to be more cautious about switching jobs and tend to stay longer in their current roles. This will likely compound the trends we’re already seeing where recruiters are dealing with larger candidate pools, with applications up 42 per cent year-on-year, but for fewer open roles,” he said.
“If the trend continues, we can expect slower wage growth, longer hiring cycles and an employers’ market with limited candidate leverage.”
Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
