Despite a downward trend for unemployment in the Hunter, continued uncertainty in the economic environment has businesses poised for a hiring slowdown.<\/p>\n
It follows the recent release of the Australian Bureau of Statistics\u2019 (ABS) labour force figures.<\/p>\n
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.<\/p>\n
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%.<\/p>\n
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.<\/p>\n
\u201cJob 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,\u201d he stated.<\/p>\n
\u201cRecruitment 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.<\/p>\n
\u201cThat indicated they had hit the brakes on hiring.<\/p>\n
\u201cThe report showed an alarming 45% of respondents in Newcastle and Lake Macquarie had cut stuff in the three months leading up to May \u2013 more than any other region in NSW \u2013 and 28% of Hunter businesses had reduced headcount.<\/p>\n
\u201cHiring intentions were also negative.<\/p>\n
\u201cAt 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.<\/p>\n
\u201cWe\u2019ll see the impact of those decisions in unemployment figures in coming months, unless there is a significant turnaround in ebbing business confidence.\u201d<\/p>\n
Mr Hawes said the recent easing of tensions in the Middle East, combined with the federal government\u2019s extension of fuel subsidies, could help offset pessimism in the environment.<\/p>\n
\u201cBusiness 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,\u201d he explained.<\/p>\n
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.<\/p>\n
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