Job vacancies remain high despite fifth quarter of decline

The news: Demand for workers has dropped for the fifth straight quarter, according to ABS data, but job vacancies are still roughly 72% higher than before the pandemic.

The numbers: There were 390,000 job vacancies in August, 38,000 fewer than in May, and the proportion of businesses seeking workers fell to its lowest lever since November 2021. Financial services and insurance recorded the biggest drop (-15%) in August, and is the only industry to have fewer vacancies than in February 2020. The largest increase in available jobs by industry was in retail (+19%), while other customer-facing industries such as arts, recreation services and hospitality also recorded increases as labour shortages linger in many parts of the country.

The context: Australia's jobs market has remained resilient despite rising costs and a high interest rate environment as the RBA tries to tame inflation. Labour shortages in multiple industries are still yet to fully recover from the pandemic period, and the federal government recently released an employment white paper vowing to increase workforce participation and target full employment to boost productivity.

What they said: “While (worker demand and unemployment) are no longer at historical levels, both are still showing that the labour market is tighter than it was before the COVID-19 pandemic," ABS labour statistics head Kate Lamb said in a media release.