Demand for Australian real estate workers is starting to fall

Mark Wilson/Getty ImagesMark Wilson/Getty Images
  • Job ads placed on SEEK’s Australian platform rose by 16.2% in the year to March.
  • Job advertisements are falling on an annualised basis across an increasing number of industries, especially in media, real estate and finance.
  • Australia’s jobs report for March will be released later today.

Australia has added jobs in each of the past 17 months, the longest stretch on record.

In just the past 12 months alone, employment has surged by over 420,000, near the highest level on record over a comparable period.

Given the trends in job advertisements, a lead indicator for employment growth, it looks like there may be further gains to come.

According to SEEK’s latest Employment Report, job advertisements placed on its platform surged by 16.2% in the year to March, led by strong worker demand across most individual sectors.

The year-on-year percentage growth in advertisements by individual sector is shown in the chart below.

Source: SEEK

“The sectors that experienced the largest growth are mining, resources and energy — up 35% compared to twelve months ago — and science and technology which saw an increase of 20% over the same period,” said Kendra Banks, Managing Director of SEEK Australia and New Zealand.

However, while total growth in advertisements points to strong hiring in the period ahead, Banks cautions that positing are now starting to fall in a growing number of industries, something that she says “could be an early warning sign of a number of sectors cooling down”.

“Once again, the sector that saw the most significant decrease in job ads this month was advertising, arts and media with a drop of 20% from a year earlier,” she says.

“Real Estate also saw a decrease in job ads of 12% when compared with this time last year.”

Banks says weaker demand for real estate workers likely reflects cooling housing market conditions and tighter lending restrictions implemented by financial regulators.

Australia’s March jobs report will be released later today.

Mirroring recent strength in advertisements, employment is expected to increase by 20,000, seeing Australia’s unemployment rate drop to 5.5%.

This chart explains why Australian unemployment hasn’t fallen much despite booming jobs growth

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