While some employers are cutting jobs, Melbourne-based owner of Flipped hair salon, Cristina Tatasciore, is having to work extra hours because she cannot find skilled workers.
It hasn't been easy at all – it's been quite a struggle, she told the ABC.
We have a lot of people within the industry that also feel the same.
They don't feel like they're finding staff … and if they do, they're not up to a standard that we kind of need them.
Bureau of Statistics datareleased on Thursdayshowed 4,300 people lost their jobs in April and the national unemployment rate rose from 3.5 to 3.7 per cent.
Economists say it looks increasingly likely that Australia's labour market is nearing a turning point, from which employment conditions may start to weaken in the coming months.
But some think the Reserve Bank will still want to lift interest rates a little higher to ensure its clamp-down on economic activity will definitely squeeze inflation out of the economy in coming years.
Those higher interest rates could drive further job losses and higher unemployment over the next year or two, makingthe job search more competitive for people already looking for work.
Jobseekers can still struggle in a 'tight'labour market
MsTatasciore saidher industry would really appreciate it ifmore skilled workers could come to Australiabecause it was still struggling with asevere shortage of staff.
I know a lot of people within my industry want that again, she said.
Cristina Tatasciore says her industry would benefit from more skilled workers coming to Australia.(ABC News: Pat Rocca)
But as economists note that a recent surge in immigration will eventually help to alleviate some labour shortages, some jobseekers say they are still struggling to find work in these relatively tight labour market conditions.
Graham Rowe says he has applied forhundreds of jobs online over the past few months but he has had nosuccess.
He said he has broad management experience, but at 64 no employer will hire himand he has had to turn to Uber driving to pay his bills.
It's very depressing when you're pouring all your energy into something, he told the ABC.
And particularly if there's a job that you thought, 'Wow, I'd really enjoy that. I'd be good at that.' And you hear nothing back.
He saidhe did not see Uber driving as his forever job and wouldcontinue hunting for a permanent role, but he believed employers would not take him on because they thought he wouldretire in three years.
I just can't get through that door, he said.
There's a perception that you're too old, you won't have new ideas,and we'll find someone —whether they'll be cheaper or whether they're just younger, more enthusiastic, bringing in new ideas.
But he acknowledgedyoung workers were also struggling to find well-paid jobs, and it would get harder as the unemployment rate tickedup.
Graham Rowe says he has applied for hundreds of jobs in the past few months.(ABC News: Sean Warren)
Bureau of Statistics data showed the number of officially unemployed people increased by 18,000 last month.
Full-time employment fellby 27,100 people, andpart-time employment jumped by 22,800.
We're all being guided to lower our expectations on what we will be paid, what will be offered as benefits, in any new employment — and that's a bitter pill to swallow, Mr Rowe said.
He urges employers to think differently about older workers. He saidhaving diversity could add value to a team.
I think companies are perhaps missing out on something by not taking in all the experience that's available to them, he said.
Job vacancies past their peak
Economists say the number of job vacancies andadvertisements hasbeen declining since the middle of last year, which is another sign labour markets are not as tight as they once were.
In the middle of 2022, there was almostone unemployed person per vacant job, but now there is roughly one unemployed person for every 0.85vacancies.
However, they are bothstill close to their historical highs, which shows there is still strong demand for workers in large parts of the country.
Seek chief economist Matt Cowgill saidthere were still 33 per cent more job ads compared to February 2020.
But that number will likely keep declining this year.
The Reserve Bank expects us to be at a 4 per cent unemployment rate at the end of this year compared to 3.7 per cent now, he told the ABC.
That is quite a slowdown and we expect that to be accompanied by a further fall in job ads.
Seekchief economist Matt Cowgill says the unemployment rate is forecast to keep rising this year.(ABC News: Pat Rocca)
We expect, unfortunately, some people are likely to lose their jobs.
And that's largely a consequence of interest rates going up …to bring inflation under control. A really unfortunate side effect is that some people will be thrown out of work, he said.
Commonwealth Bank economist Stephen Wu saidlabour demand, while still elevated, was now clearly cooling.
Several measures of online job advertisements have declined in recent months, and the number of applicants per job ad has increased, he said on Thursday.
Today’s data, which showed the unemployment rate lifting to 3.7 per cent,adds further evidence to our view that we are past the peak tightness in the labour market.
Cooling household spending and strong labour supply growth will likely put further pressure on the unemployment rate over the period ahead, he said.
https://www.abc.net.au/news/2023-05-19/unemployment-rate-increases-april-past-peak-tightness/102364084
