Job advertisements in Australia fell by 5.5% in December 2021 when compared to November 2021, following an upwardly revised 17.2% jump over the previous two months as Covid-19 Delta variant lockdowns eased in the country, according to job ad data from ANZ Bank.

A record gain in the employment figure, up 366,100 in November, was likely a significant factor behind the fall in job ads, ANZ Bank noted, adding that it could not rule out a dampening effect from the Omicron variant.

Job ads are still 4.2% above the pre-Delta-lockdown peak in June 2021 and 36.8% above the pre-Covid-19 level.

The total number of job ads in December 2021 stood at 212,098.

ANZ Senior Economist, Catherine Birch said it is possible that businesses have become more hesitant to hire due to the spread of Omicron and the consequent uncertainty around consumer behaviour and worker availability.

“Looking ahead, we expect the job-switching rate to pick up in 2022,” Birch said. “In November, 5.3% of workers did not expect to be with their current employer/business in 12 months’ time due to changing jobs/seeking other employment, a post-Global Financial Crisis high. This may partly reflect some catch-up from people who delayed job changes during the pandemic.

“But with so much competition for labour and workers feeling secure in their jobs, we should see more people moving to better jobs and asking for larger pay rises in 2022, contributing to stronger wages growth,” Birch added.

ANZ’s data is based on information provided by the operators of the following sites: Seek.com.au and the Department of Education, Skills and Employment’s Australian job search site (Jobsearch.gov.au).

Job ads were also a record 44.2% higher in November 2021 when compared to pre-pandemic levels.

“This reflects the robust recovery in New South Wales, Victoria and the Australian Capital Territory restrictions eased, with newly lodged job ads up 16.9% in NSW, 15.2% in Victoria and 12.5% in the ACT in October, according to the National Skill Commission (NSC), " ANZ Senior Economist, Catherine Birch.

ANZ Bank noted that national employment fell in October against expectations of a rise, but added that this latest job ads data signals a strong rebound is imminent.

The total number of job ads reached 222,093 in November.

“ANZ Job Ads suggests the unemployment rate should drop back below 5% in the near term, and we expect it to fall to around 4% by the end of 2022 and even further in 2023,” Birch said.

ANZ’s data is based on information provided by the operators of the following sites: Seek.com.au and the Department of Education, Skills and Employment’s Australian job search site (Jobsearch.gov.au).