Job Vacancies on the Rise: What It Means for Small Business
Job vacancies in Australia rose by 4.2% in November 2024, marking the first increase since May 2022, according to the Australian Bureau of Statistics (ABS). The total number of vacancies reached 344,000, up by 14,000 from August, but still 10.3% lower than November 2023 and 27.4% lower than the historical peak in May 2022.
While vacancies have declined over the past two and a half years, they remain 51.3% higher than pre-pandemic levels, reflecting sustained labour market tightness. Notably, vacancies accounted for 2.1% of jobs in November 2024, compared to 1.6% before COVID-19.
Key Insights for SMEs
The increase in job vacancies was felt across 14 of the 18 industries, with significant growth in customer-facing sectors like Arts and recreation services (+28.5%) and Accommodation and food services (+20.1%). However, some sectors saw declines, including Construction (-11.5%) and Education and training (-9.5%).
For small and medium-sized businesses (SMEs), this means navigating a competitive hiring environment, especially in industries experiencing rapid growth or chronic skill shortages. Industries like Health care, Arts, and Accommodation remain hotspots for hiring, while sectors like Manufacturing, which saw a 36.9% annual drop in vacancies, may face different challenges.
Regional Highlights
Job vacancies rose in most states and territories, with South Australia (+17.7%) and Queensland (+13.8%) leading the way. However, slight declines were recorded in Victoria (-2.2%) and Western Australia (-0.1%), indicating localised variations in demand.
What This Means for Business Owners
For SMEs, the rising job vacancies signal ongoing challenges in attracting and retaining talent. Competing in this environment may require offering more competitive salaries, flexible work arrangements, or professional development opportunities. Businesses in growth sectors should prepare for heightened competition, while those in declining industries may need to reassess workforce strategies to remain resilient.
The labour market remains a dynamic landscape, offering both opportunities and challenges for Australian businesses. Staying informed about industry trends and regional hiring data can help SMEs make strategic decisions in 2025.
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