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The Australian job market, once buoyant, is now showing signs of cooling. Recent data from the Australian Bureau of Statistics (ABS) and Employment Hero reveals a mixed picture.
Ben Thompson, Chief Economist at Employment Hero, commented, “The latest ABS labour force data shows the unemployment rate has remained at 4.1%, reflecting job market instability. In parallel, Employment Hero data shows employment growth slowed to 4.8% year-on-year in October 2024, down from 8.3% in October 2023. This combination of a stable unemployment rate and a slower employment growth rate suggests a softening demand for hiring, as businesses appear more cautious about expansion in response to economic pressures.”
A notable trend is the decline in hours worked, particularly in casual roles and sectors like retail. “We’ve observed a 6.0% year-on-year drop in hours worked, especially in casual roles (-25.4%) and sectors like retail (-10.4%). This drop may be linked to rising wage pressures and early preparation for Black Friday and year-end sales, where we anticipate a boost in hours worked. South Australia experienced the most significant decrease, with hours worked down by 9.6%, primarily due to fewer casual hours,” explained Thompson.
Small and medium-sized enterprises (SMEs) are facing significant challenges. “For SMEs, they are navigating a complex environment balancing operational needs with the rising cost of doing business. Many small businesses are struggling to grow sustainably, highlighting the pressure of an evolving labour market and the impact it has on job stability,” Thompson added.
As the Australian economy continues to adjust to these shifting conditions, businesses must adapt their workforce strategies to ensure both employee satisfaction and long-term business success.
The post A Mixed Bag or a Slowdown? The Latest Job Market Trends appeared first on Small Business Connections.
