The Labour Market Update for June 2024 indicates emerging signs of softening in Australia’s labour market. While employers are finding it easier to fill vacancies, persistent low fill rates for roles requiring Certificate III/IV qualifications suggest ongoing skills shortages.
Employment growth remained strong, driven by working-age population growth, with forecasts predicting the unemployment rate will rise to 4.5% by mid-2025. Recruitment rates have decreased across most states, with Victoria showing the lowest rate and Western Australia and Queensland the highest. Although recruitment difficulty has lessened since 2022, regional areas continue to face higher challenges.
Key signs of what's to come include a drop in job advertisements, signalling reduced demand for labour. In addition, while the job market isn't as tight as it was, employers in specific fields are still searching to find the right talent, especially in skilled professions.
In Focus: Examining fill rates and hourly earnings of occupations
This quarter, we dig deeper into how hourly earnings correlate with job fill rates. Managers and Professionals represent the majority of 4-digit occupations with high hourly earnings and low fill rates. This includes Finance Managers, General Managers, ICT Managers, Policy and Planning Managers and Production Managers.
For more detailed analysis of these trends, read the full report.
