Australia’s job market faces a tough road ahead, with fewer positions being advertised while more job seekers compete for them. According to the latest financial results from employment platform Seek, the situation appears dire for workers as economic pressures intensify.
Seek’s report indicates a clear trend: job listings in Australia have fallen by 11%, while the number of candidates visiting the platform and applying for roles continues to rise. This signals a highly competitive landscape for job seekers in the coming months, a challenge compounded by broader economic conditions.
Declining Job Listings Signal Tougher Times Ahead
Seek’s full-year financial results paint a picture of a contracting job market. Job ads in Australia dropped by 11%, reflecting a slowing labour market. In contrast, the number of applicants per ad surged as more Australians pursue fewer job opportunities. This sharp decline in job listings is concerning, especially for those looking to secure positions in the face of rising economic uncertainty.
Seek’s CEO, Ian Narev, described the outlook for the near term as “tough,” noting that while labour market conditions across the Asia-Pacific region show some stabilisation, employment growth is expected to remain flat or low throughout the next financial year. He also predicted a slight rise in unemployment, with only modest improvements anticipated in the long term. Despite this, Seek remains cautiously optimistic about eventual gains, citing potential benefits from further interest rate cuts by the Reserve Bank of Australia.
Seek’s Financial Performance Amid Market Volatility
Although the drop in job listings may seem grim, Seek has managed to turn a profit. Despite weaker market volumes, the company reported a 1% increase in revenue, totalling $1.1 billion. This was attributed to higher prices for job listings, alongside growth from new products introduced by the platform. Seek’s reported profits rose to $238.3 million, a stark improvement from the previous period, where the business had reported a loss of $59.9 million.
In addition, Seek announced a dividend payout of 22 cents per share, reflecting a 31% increase compared to the prior reporting period. This was particularly significant considering the broader trend of reduced job ads. Seek’s ability to grow its revenue despite these challenges is a testament to its strategic pricing and product diversification.
While Seek’s results highlight a tightening job market, Australia’s overall unemployment figures showed some positive movement. The Australian Bureau of Statistics reported a slight drop in the unemployment rate to 4.2% in July, with 24,500 people finding work. Full-time employment drove much of this growth, with 60,000 new full-time positions created, offsetting a decline in part-time roles.
