Australia’s troubled job market is in for more pain, according to an article by Colin Brinsden in the Sydney Morning Herald. The land down under has advertised for 20% less jobs in the past year, with a seasonally-adjusted dip of 1.5% in September alone.
David de Garis, Senior Economist for National Bank Australia, commented:
This further deterioration in classified advertising of skilled vacancies in September is another reminder that employers have continued to cut back on recruitment […] Relatively flat profits, rising nominal wage costs and weaker underlying productivity is a recipe for further soft labour market outcomes in the months ahead.
According to Brinsden, unemployment is also rising, ticking up from 4.9% in April to 5.3% in August. He quoted Treasurer Wayne Swan, who said the data was no surprise given a recent spate of natural disasters. He added that the ongoing European debt crisis also threatens future job growth:
It’s very important that the Europeans get their act together […] There’s no doubt political inaction lies at the core of this challenge in both Europe and the United States.
Hiring of expat workers has become difficult across a number of countries in recent years as governments battle persistent unemployment. The Australian economy has been more resilient than many, partly as a result of its close trading ties with China.
In other countries the landscape is considerable bleaker (in Spain unemployment tops 20%, with youth unemployment nearly twice as high). Hence, in a relative sense, Australia may still be a destination to watch for expat job-seekers.