Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 1 July 2016

NSW job vacancies roar to all-time high

Vacancies solid

ABS Job Vacancies were down by 1.9 per cent in the three months to May 2016 on a seasonally adjusted basis to 169,400, although they were up by a solid 8.1 per cent year-on-year. 

Public sector vacancies have increased by 31.2 per cent over the past year to be at their best level since February 2012, signifying that any hiring freeze is now in the past - potentially happy news for the labour force - and housing market - of Canberra.

The annual increase in job vacancies ticked back to 12,100, so a bit of momentum has been lost nationally. 

In trend terms, the good news is that the ratio of unemployed persons to job vacancies is now at its lowest level since November 2012.

Construction set to slow

The most recent detailed labour force has shown a surprising strength in construction employment, driven by the housing boom. 

However, the greatest number of vacancies are now to be found in sectors such as retail trade and healthcare and social assistance.

And when looking at the year-on-year change in job vacancies, construction has sunk to the bottom of the pile.

Therefore other sectors will need to step up to the plate if total employment growth is to remain strong in financial year 2017.

NSW soars to record high

Over the past year New South Wales has accounted more than 100 per cent of the increase in job vacancies, with the total for the state ripping up the charts in jumping by 24.5 per cent to hit the highest level in history for any state or territory.

Commentators have had a nightmare calling this Sydney property market cycle, and so it continues, with the harbour city economy continuing to create jobs at a wholesome pace. 

Elsewhere job vacancies were generally down over the last quarter.

The wrap

A humongous result for New South Wales with the Sydney economy continuing to lead the nation.

Elsewhere, industries other than construction will need to get creating jobs as apartment construction soon begins to decline. 

New home sales have declined in each of the past two months, suggesting that the peak for this sector is set to contract in due course.