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Roll in the New Year: The Australian Job Market in a Snapshot

27 January 2013 No Comment

shopping arcadeAs job postings plummet to a three-year low, joblessness is still expected to be on a downward spin over the coming year. Many factors seem to be playing havoc with the Australian job market and market researchers are hard-pressed to make real sense of it all. The only thing that seems to come with resounding certainty is that the market will improve. Credited with loosening the purse strings for job-seekers is a dropping interest rate that is expected to make hiring a much simpler decision for employers around the country.

A lull in job postings could reflect a greater number of happily-situated employers and employees. An increasing number of entrepreneurs are choosing to use more unconventional workspace solutions such as part time offices (http://www.regus.com.au/products/offices/part-time-offices.aspx) over more traditional business headquarters; meanwhile, cubicles are shrinking to accommodate a wider hiring radius, many are finally letting the worry over this year’s job market relax a bit. Only time will tell the true tale of 2013, but predictions look good. Most aspects of the market are expected to make gains.

Opportunists and investors alike are still wondering what factors will be at play in this year’s market. The most obvious factor remains the enormous boom from the coal mining industry. With companies such as Whitehaven Coal bringing in enormous bids on projects for the coming year, jobs will become abundant as the work reaches a fever pitch. Optimism seems to surround most facets of the economic forecast, with few areas set to maintain grim faces.

A Word of Caution

With record-breaking numbers of trend studies, one observable trend gives hope with a dose of caution. As jobs climb in numbers, it may not be time to let your resume go stale. Many of the added jobs are contracted jobs. The number of employed will skyrocket, but that won’t necessarily be a long-term factor. While it’s entirely possible that these positions might remain available for the long haul, a contracting boom doesn’t have the same market impact as a full-on hiring boom.

Certainty can only be obtained through experience, but on paper, a contracted job is easier to eliminate than a full-time, permanent job position. Of course, we are all aware that nothing in this world is certain. The most stable of jobs can become un-needed or financially cumbersome; however, the job boom is met with some hesitant celebration as it seems a bit uncertain yet.

 Overall Picture for the Year

Comparative figures from previous years suggest serious growth in the job sector. When this year’s prediction is placed alongside last year’s the mere 58,000 jobs in last year’s growth anticipation pales in comparison to 2013s robust 137,000 jobs. While the type and future reliability of the job boom is up for debate, it’s hard to argue with such strong numbers.

The Real Estate Institute of Victoria is anticipating that 2013s housing market and real estate prices will fall victim of the same slump that has hit over the past several years. However, this ho-hum approach is not felt by all. An in-depth look at the market and all of its factors by the Residential Property Prospects, 2012 to 2015 report by well-known economic forecaster, BIS Shrapnel, show that “NSW and the resource-rich states of Queensland, Western Australia and the Northern Territory are already showing signs of recovery.” This comes in a stark contrast against “the rest of the country – Victoria, South Australia, Tasmania and the Australian Capital Territory – will lag behind because of what the report says is an emerging excess of housing.”

In a healing and recovering economy, there are going to be areas that rejuvenate more quickly than others, but the overall sentiment towards this new year are positive and optimistic. Don’t throw caution to the wind, but there might be some room to rest a bit as a brighter future rests on the horizon.

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