Key Points:

  • Australian job vacancies fell 3.5% in the September quarter, the eighth consecutive quarterly decline. 
  • Job creation is heavily concentrated in government-aligned industries, particularly healthcare & social assistance. 
  • Around 6.6% of workers — or around 986,000 people — have two or more jobs, up from 6.5% in the June quarter. 

The number of Australian job vacancies fell 3.5% to 337,700 in the September quarter, and they have declined by 17.8% over the past year.

That decline left Australia’s job vacancy rate at 2.1% in the September quarter, still well above the 1.4% average rate from 2010 to 2019. Labour demand continues to normalise, but gradually, which has helped the nation absorb the impacts of cost–of–living pressures and other economic challenges. 

Line graph titled “Australian job vacancy rate.” With an x-axis ranging from 0 to 4%, Australia’s job vacancy rate eased to 2.1% in the September quarter, still well above the 1.4% average from 2010 to 2019.
Line graph titled “Australian job vacancy rate.” With an x-axis ranging from 0 to 4%, Australia’s job vacancy rate eased to 2.1% in the September quarter, still well above the 1.4% average from 2010 to 2019.

Australia’s job vacancy rate fell in 10 of the 19 industry categories in the September quarter. Some prominent industries bucked the national trend, with the vacancy rate in education and construction increasing. The most significant declines came from accommodation & food services, where the vacancy rate eased from 3.5% in the June quarter to 2.8% in the September quarter, along with the retail sector (at 1.7%, down from 2.1%). 

The vacancy rate is highest in the mining sector, at 3.5% of industry jobs, owing to the remote geographical location of many of these roles. More problematic vacancies are those in utilities (3.1%), professional services (2.9%) and accommodation & food services (2.8%), with businesses in these industries often operating below ideal staffing capacity.

Bar graph titled “Australian job vacancy rate by industry.” WIth a y–axis ranging from 0 to 4%, Australia’s job vacancy rate in the September quarter was highest in mining and electricity, gas, water & waste services. 
Bar graph titled “Australian job vacancy rate by industry.” WIth a y–axis ranging from 0 to 4%, Australia’s job vacancy rate in the September quarter was highest in mining and electricity, gas, water & waste services. 

Government–aligned industries driving jobs growth

Australia’s labour market continues to be driven by government spending. This was readily apparent in the latest GDP figures and also clear in the latest job market trends.

Over the past year, government–aligned industries, such as healthcare & social assistance, education and public administration & safety, accounted for more than 80% of all job growth.

Healthcare & social assistance by itself accounts for 57% of job growth, reflecting the ongoing expansion of the National Disability Insurance Scheme (NDIS) and the impacts of Australia’s ageing population, which is creating tremendous demand for doctors, nurses and aged care workers.

Bar and line graph titled “Australian jobs growth.” WIth a y–axis ranging from –6 to 9%, Australian job growth has been dominated over the past year by government–aligned industries, such as healthcare & social assistance, education and public administration & safety. 
Bar and line graph titled “Australian jobs growth.” WIth a y–axis ranging from –6 to 9%, Australian job growth has been dominated over the past year by government–aligned industries, such as healthcare & social assistance, education and public administration & safety. 

This trend highlights the growing gulf between Australia’s public and private sectors. Government spending drives the former, often insulating them from market conditions. Even private operators in these industries, such as private schools, receive considerable government money. Meanwhile, the private sector feels the full force of economic headwinds. If federal and state governments were to curtail spending next year, then, in all likelihood, the Australian labour market would grind to a halt.

Multiple job holders rise

In Australia, 6.6% of workers — around 986,000 people — have two or more jobs. While that number is slightly below its peak of 6.7% in the June quarter last year, it remains well above the 5-6% range common in the first two decades of this century.

Cost–of–living pressures continue to make things difficult for Australian households, creating the need for extra work to manage mortgages, rents, electricity and food costs. People will continue to seek more hours — either in an existing job or via an additional job — to deal with these cost pressures.

Line graph titled “Multiple job holders in Australia.” WIth a y–axis ranging from 3 to 7%, the share of Australian workers with multiple jobs increased to 6.6% in the September quarter, remaining well above its historical average.
Line graph titled “Multiple job holders in Australia.” WIth a y–axis ranging from 3 to 7%, the share of Australian workers with multiple jobs increased to 6.6% in the September quarter, remaining well above its historical average.

Multiple job holders are most common in administrative & support services and agriculture, forestry & fishing (8.9%% of workers for both industries), ahead of arts & recreation (8.4%) and healthcare & social assistance (7.7%).

The average person with multiple jobs works around 39 hours a week, compared to almost 35 hours a week for those with a single job. Men with multiple jobs work on average 44 hours a week — with one of those roles typically full–time — compared to almost 35 hours a week for women. 

Assessment and implications

The latest labour force figures show that while the Australian job market is undeniably tight and job creation is strong, some underlying issues remain. The over-reliance on government spending to prop up the economy highlights the growing gap between conditions in the public and private sectors.

Nevertheless, government spending should support employment growth in the near term, particularly with a federal election next year. Still, a job market where growth is heavily concentrated within a small number of industries is always at risk of a slowdown.