Demand for banking and real estate workers in Australia is plummeting

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  • Growth in Australian job advertisements continues to slow.
  • Ads placed on Seek’s platform grew by 8.3% in the year to June, down from the average of 13.9% seen in 2017.
  • Demand for banking and real estate workers has tumbled over the year, fitting with the downturn in the housing market.

While Australian companies are reporting record levels of job vacancies, growth in job advertisements continues to weaken, pointing to a slowdown in hiring in the months ahead.

And in the real estate and finance industry, advertisements are declining sharply, fitting with the downturn underway in Australia’s housing market.

According to Seek’s latest employment report, total advertisements placed on its platform grew by 8.3% in the year to June, continuing to decelerate from the levels seen throughout most of last year.

“While yearly national job ad figures remain positive, it is significantly lower than the national average for the preceding year at 13.9%, marking the first month of non-double-digit year-on-year growth since May 2017,” said Kendra Banks, Managing Director of Seek Australia and New Zealand.

As seen in the chart below from Seek, while a majority of industries have recorded growth in advertisements over the past year — led by mining and those dominated by the public sector — an increasing number are now recording negative annual growth, led by weakening demand for banking and real estate workers.

Advertisements for banking and financial services positions tumbled 16% over the year, while those in real estate fell by 13%.

That’s a clear sign the downturn in Australia’s housing market is having impact on demand for workers, something that appears unlikely to change anytime soon given widespread expectations that housing market conditions are likely to remain soft for the foreseeable future.

Ads for designs and architecture workers also slid by 10% over the year.

At the other end of the spectrum, firmer commodity prices are clearly helping to lift demand for workers, albeit off a low base.

Many industries either within or closely linked to the public sector are also recording strong growth in advertisements.

The data from Seek includes duplicate job advertisements and refreshed job ads, meaning it does not always match the movement in new advertisements placed during a given month.

Australia’s June jobs report will be released later today. In line with the moderation in job advertisements, economists expect a solid 16,500 increase in employment, leaving the unemployment rate steady at 5.4%.

NOW READ: Your 10-second guide to today’s Australian jobs report

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