Effect of Australia’s Low Unemployment Rates On Hiring and how EPG Staffing can help
Last month, hiring in Australia picked up, driving the unemployment rate down to its lowest level since the mid-1970s. However, the number of jobs created was well below economist forecasts, indicating that the country’s labour market is still struggling to gain momentum.
Underemployment, which measures the number of employed workers who would like to work more hours, fell to its lowest level since September 2008. This suggests that businesses are starting to increase hours for existing staff rather than hiring new employees.
So what does this mean for the employers who are actively looking for workers to fill open positions?
Increased competition: one of the most immediate effects of low unemployment is increased competition for workers. Finding quality workers may become more complex over the coming months as more businesses are vying for a smaller pool of eligible candidates.
Rising wages: with more businesses competing for workers, wages are likely to increase. This is good news for employees but may pressure employers’ bottom line. This is already starting to happen in some industries, such as construction and mining.
Hiring freezes: some businesses may choose to halt hiring until the labour market improves. This could lead to a decrease in job openings and an increase in unemployment, at least in the short term.