Job advertisements fall 10% as employers hang back

Tuesday, 14 January 2020

Job advertisements are at their lowest level in four years, Trade Me says, but it doesn't have to be bad news for job-hunters.

Spokesman Jeremy Wade said 2019 had been a tough year for the job market.

The year ended with listings on the site down 10.6 per cent on the year before. Twenty-four of the 26 job sectors on Trade Me had a dip in vacancies. The construction and roading sector had 22 per cent fewer jobs advertised.

Only government and council, and executive and general management were advertising more positions.

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Auckland had the biggest drop in listings, down 16.5 per cent. Canterbury was next, down 14.2 per cent.

Wade said there was always going to be a slowdown after the strong growth experienced in 2017 and 2018.

He said, a couple of months ago, listings were near record lows. They had bounced back a bit by the end of the year.

Twenty-four of the 26 job sectors on Trade Me had a dip in vacancies. The construction and roading sector had 22 per cent fewer jobs advertised.

'Businesses weighing up whether to replace someone or hire someone new have to think about how confident they are about their ability to earn more money in the year ahead.'

He said, if the Government was to make some decisions on big infrastructure projects in the next couple of months, things could pick up further.

But he said that seemed unlikely and that, combined with the upcoming election, meant it was doubtful there would be a rebound in job ads.

'While the Government announced a big infrastructure package late last year, specifics are needed quickly in order to settle the nerves we're seeing in that sector. The general election being on the horizon is another complicating factor, spending and decisions can become delayed while the election result is determined.'

Wade said employers who were advertising were receiving 18 per cent more applicants than the year before.

Wellington employers were paying the most, on average.

'Employers in the capital are willing to pay more than their Auckland counterparts with the average pay in Wellington City at $72,649 compared to Auckland City at $71,465.

'Roles in IT continue to dominate the highest paying jobs advertised on Trade Me Jobs with IT project managers earning the most at $142,868.'

Wade said changes to the minimum wage will also have an impact on the job market in 2020. 'The Government's announcement in December that the minimum wage will rise from $17.70 to $18.90 an hour in April will lift the average wage and come as welcome news for many employees.

'While the last couple of minimum wage increases have not significantly impacted the propensity to hire, this year may be different as employers contend with rising costs and low business confidence.'

But he said job hunters should not be discouraged.

There were still talent shortages in many sectors, he said. 'Just because there's 10 per cent fewer jobs doesn't mean the chances of getting a job are down 10 per cent. Even if unemployment increases, there will still be talent shortages.'