Job Vacancies Rise for First Time Since 2022

Pedestrians move along George Street in the CBD in Sydney, Australia, on Nov. 8, 2021. Lisa Maree Williams/Getty Images

New data from the Australian Bureau of Statistics reveals a significant increase in job vacancies in November 2024, highlighting persistent challenges in the labour market.

There were 344,000 job vacancies, a rise of 14,000 from August, reflecting a 4.2 percent increase—the first rise since May 2022, when vacancies hit a historic peak.

Despite the increase, vacancies remain 39,000 lower than the same period last year and 130,000 below the record highs of May 2022.

Bjorn Jarvis, head of labour statistics at the ABS, noted that job vacancies are still 51.3 percent higher than pre-pandemic levels, underscoring ongoing labour shortages.

There are around 117,000 more openings compared to before COVID, he noted.

Arts, Hospitality, and Recreation Lead Job Vacancy Growth

Customer-facing sectors saw the most significant rises in job vacancies.

Arts and recreation services saw a 28.5 percent increase, while accommodation and food services grew by 20.1 percent.

In contrast, sectors like construction and education saw declines in vacancies, with construction dropping by 11.5 percent and education falling by 9.5 percent.

Manufacturing experienced the largest annual drop in vacancies, falling 36.9 percent, while rental, hiring, and real estate services saw the largest annual increase at 27.1 percent.

Overall, most industries are still reporting more vacancies than before the pandemic, particularly in arts and recreation, accommodation, food services, healthcare, and social assistance.

Regional Job Shortages: States Hit Unevenly

Job vacancies grew in most states, with South Australia seeing the largest increase at 17.7 percent, followed by Queensland at 13.8 percent.

However, Victoria and Western Australia experienced slight declines, with job vacancies falling by 2.2 percent and 0.1 percent, respectively.

Worker Shortages Continue Despite Migration Surge

Despite record migration intakes, critics argue that the government’s strategy to address worker shortages has been ineffective.

Saxon Davidson, a research fellow at the Institute of Public Affairs (IPA), pointed out that job vacancies remain well above pre-pandemic levels.

He also highlighted that job vacancies are higher in all states and territories compared to pre-pandemic levels.

“Average job vacancy numbers under the Albanese government are more than double that of the pre-pandemic average under the previous Coalition government,” he added.

High Taxes Preventing Pensioners, Veterans, and Students Joining Workforce

Davidson argued that the focus on migration has failed to solve the underlying issues causing the labour market imbalance.

He suggested reforms to reduce tax barriers for pensioners, veterans, and students as a more effective solution to the crisis.

Currently, these groups face high effective marginal tax rates, discouraging them from entering the workforce.

For example, pensioners and veterans face a 66 percent effective tax rate if earning over $226 a week, while students face a 76 percent rate if they earn over $288 a week.

In contrast, Davidson said that New Zealand’s more lenient tax policies for pensioners have helped avoid a worker shortage crisis.

He suggested that adopting similar policies in Australia could lead to 520,000 additional workers entering the labour force.

“The Australian economy is missing out on the skills and experience that hundreds of thousands of Australians have to offer because of regressive tax policies keeping them out of the workforce,” he said.