Job ad plunge hits NSW and Victoria hard as cost of living crisis deepens

The bottom has fallen out of Australia’s job market with SEEK reporting a 5% drop in job ads in October, hitting New South Wales and Victoria hardest.

Australia’s labour market is experiencing a significant downturn, with New South Wales and Victoria bearing the brunt of declining job opportunities.

In October alone, job advertisements plummeted by five per cent according to SEEK, with a worrying year-on-year drop of nearly 20 per cent.

Job ads have been on the decline for the past few months. Picture: SEEK.

This decline is especially notable in the hospitality and tourism sectors, which are typically ramping up for the summer holiday season.

The situation has sparked concern among job seekers.

One Melbourne reddit user expressed their frustration, saying, “Is the job market f**ked right now, or is it me? There are like 200+ applicants to every role!!”

Another added, “I am also experiencing a very rough time finding a job within digital marketing. Glad that it’s not just me. I think we are heading into an economic recession.”

Senior Economist at Seek for Australia and New Zealand, Matt Cowgill, told news.com.au that there has been shift in the employment landscape.

Barista Marcus Harrison at the The Darcy Street Project Epping Community Cafe. Photo: Supplied.

“Pre-pandemic, October would usually be a time where hirers are hiring in abundance for roles within Tourism and Hospitality and Retail, ahead of the busy summer season. Instead what we are seeing is a drop in hiring activity in these industries,” he said.

“Interest rate rises are causing households to tighten their belts and cut back on discretionary spending where they can.

“This affects industries like Hospitality and Tourism and Retail and Consumer Products most directly.”

Job search website Indeed’s senior economist, Callam Pickering, also pointed out the regional impact of this trend.

“Recent weakness in job ads has been concentrated in New South Wales and Victoria, with a more modest subtraction from Queensland,” he said.

National, state and territory and metro/ regional job ad growth/decline comparing October 2023 to: i) September 2023 (m/m), and below ii) October 2022 (y/y). Souce: SEEK.

Victoria, particularly Melbourne, has experienced a dramatic 26.5 per cent decrease in job ads, heavily impacting sectors like construction and industrial.

Despite the downturn, job ads remain 16.6 per cent higher than in the pre-Covid economic climate of October 2019.

However, this offers little solace to job seekers facing a competitive market, as evidenced by a 4.1 per cent rise in applications per job in September – a staggering 81.1 per cent higher than the previous year.

“I apply to new jobs almost every day and I keep getting rejected every time especially during a time when there’s a demand for Christmas casuals,” a Sydney reddit user posted.

“It’s hard to not let this get the best of me but after so many rejections I’ve been feeling discouraged.”

Following this decrease in job ads, experts have forecast an increase in unemployment rates for 2024.

“As job ads fall, there is often a subsequent rise in unemployment, which would be reported by the ABS over the coming months,” Mr Cowgill said.

“Most forecasters, including the Reserve Bank, expect unemployment to rise a little over the next year or so.”

Originally published as Job ad plunge hits NSW and Victoria hard as cost of living crisis deepens