Despite a downward trend for unemployment in the Hunter, continued uncertainty in the economic environment has businesses poised for a hiring slowdown.
It follows the recent release of the Australian Bureau of Statistics’ (ABS) labour force figures.
Data reveals unemployment across the region dropped from 4.7% in April to 4.5% in May in line with decreases observed at national (4.6% to 4.4%) and state (4.5% to 4.3%) levels across the same period.
In the Newcastle and Lake Macquarie statistical area, the number of jobless fell from 4.6% to 4.4% in May and across the rest of the Hunter from 4.7% to 4.6%.
Business Hunter CEO Bob Hawes said the figures were welcome but declining numbers of employment advertisements and increased caution among employers suggested the trend might not be sustainable.
“Job ads in the region, as measured through the Jobs and Skills Australia Internet Vacancy Index, have fallen over the past three months from a high of 5,000 in March to 4,640 in May,” he stated.
“Recruitment firms are noting anecdotally that employers are more cautious about expanding and this aligns with the feedback to the most recent Business NSW Business Conditions Survey.
“That indicated they had hit the brakes on hiring.
“The report showed an alarming 45% of respondents in Newcastle and Lake Macquarie had cut stuff in the three months leading up to May – more than any other region in NSW – and 28% of Hunter businesses had reduced headcount.
“Hiring intentions were also negative.
“At least 38% of businesses in Newcastle and Lake Macquarie and 28% in the valley expect to reduce staff over the next three months, compared with just 14% and 8% respectively planning to take on new employees.
“We’ll see the impact of those decisions in unemployment figures in coming months, unless there is a significant turnaround in ebbing business confidence.”
Mr Hawes said the recent easing of tensions in the Middle East, combined with the federal government’s extension of fuel subsidies, could help offset pessimism in the environment.
“Business confidence is directly related to cost pressures, so any changes government can make to reduce costs will see uplift in business bottom lines and hiring capacity,” he explained.
The ABS figures also recorded a fall in youth unemployment across the region, from 11.3% in April to 10.7% in May, suggesting this sector of the market remains relatively stable despite uncertainty in economic circumstances.
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