Finance job opportunities drop nearly 10% in wake of Royal Commission
First 5000 | January 24, 2019
The latest Sunsuper Australian Job Index has revealed that over the last 12 months the permanent job market rose 11.4%, whereas contingent (temporary and contract) demand slipped 0.3%.
The weakest performing industry of 2018 was financial and insurance services which saw demand dropping 9.6% year-on-year.
The Sunsuper Australian Job Index is the first and only Australian jobs report to split data between permanent and contingent (i.e. temporary, fixed term contract and casual) job vacancies.
Sunsuper’s Chief Economist Brian Parker said it comes as little surprise that financial services was the worst performing industry in 2018 when it came to employment demand.
“The Royal Commission and its aftermath seems to have an ongoing impact on employment demand and career opportunities in the sector,” said Mr Parker. “The only comfort from these results is that demand started to stabilise in the last quarter of 2018 (growing 1.6%) suggesting that the worst may be over and some rebuilding may occur in the year ahead.”
“Although contingent demand was up 1.3% in the last quarter of 2018, demand was particularly sluggish all of last year slipping 0.3% year-on-year. By comparison, contingent demand rose by more than 6% in 2016 and 2017.
“All the recent momentum has been in the permanent job market, with demand rising 1.7% in the December quarter contributing to an 11.4% rise over the last 12 months.
“Demand for clerical and administrative workers fell 2.4% in 2018 while demand for professionals rose 16.2%, indicating a gradual decline in more process orientated roles and replacement by more senior roles requiring higher skills.
“The standout performer for the year was undoubtedly healthcare and social assistance. Twelve successive monthly rises saw demand expand 34.2%.
“The Queensland market ended the year on a high. After a sluggish start to the year job vacancies rose 6.6% in the December quarter driving the index to a record high. The Queensland market is now more diversified and no longer dependent on tourism and construction.
“One of the more critical trends to observe is the lack of growth in job opportunities in Western Australia in 2018. Demand grew just 2.8%, a disappointing result given two previous years of strong recovery and, at least for the earlier part of the year, a strong mining and resources sector. The US/China trade dispute has damaged confidence in the sector and employment opportunities in Western Australia have suffered as a result. Western Australia has the highest unemployment in the country and these trends suggest another tough year ahead.
For a full copy of the report, visit www.sunsuper.com.au/australianjobindex
