Drops in job ads concentrated in three states: report
Job advertisements in Australia dropped 2.8% in February, according to the latest ANZ-Indeed data, with the tech sector leading the decline in job ads over the past year.
Job ads fell 2.8% month-on-month after a significant upward revision in January to 3.4% month over month from 1.7% month over month, the report revealed.
"This follows a softer than expected labour force survey in January, where hours worked fell 2.5% m/m, employment grew by just 500 and the unemployment rate rose to 4.1%," said Madeline Dunk, ANZ economist, in a statement.
"The downward movement in job ads suggests there is scope for the unemployment rate to rise further, as do recent changes in labour market flows. That said, we think most of the near-term adjustment in the labour market will be via a fall in hours worked rather than employment."
Annually, there was a 12.4% drop year-on-year, according to the report, but the figures remain 37.8% higher than pre-COVID levels in February 2020.
Callam Pickering, Indeed senior economist, said the drop in jobs ads was concentrated in Victoria, South Australia, and Western Australia. Job postings in New South Wales also dropped "modestly" in February.
Over the past year, however, NSW and Victoria accounted for more than three-quarters of the overall decline in job ads, according to Pickering.
By sector, the tech sector was the "biggest source of job ad declines over the past year." It is joined by food preparation and personal care sectors.
"The best performers have been in education and healthcare, particularly for doctors and nurses. Overall, job ads in 92% of occupational groups declined over the past year," Pickering said.
