Australian Job Ads Fall, Raising Concerns for Unemployment in 2024

A recent survey by internet employment platform SEEK reveals a concerning decline in Australian job ads in November. The drop of 4.3% last month, combined with a 5.0% decrease in October, raises worries about the potential rapid increase in unemployment in 2024.

According to SEEK, the trend in job ads has been steadily declining by 2.5% each month since September. In November, the most populous states of New South Wales and Victoria were the hardest hit, facing a 7.1% and 6.3% decrease in job ads, respectively. These numbers reflect a significant drop from their peak in May 2022 and now stand at levels seen before the pandemic.

While the labor market has remained tight, with an unemployment rate of 3.7% since June 2022, SEEK suggests that the exceptional tightness has started to ease. Consequently, as the job market cools down in response to below-trend growth, there is a predicted gradual increase in unemployment throughout 2024.

The impact of these declining job ads raises concerns for the future of Australia's labor market and underscores the need for proactive measures to address this issue.