Telstra is axing hundreds of jobs as the country’s biggest telco looks to cut costs. But many employers are facing worker shortages with the jobless rate falling even further, which likely means more interest rate rises.
In a surprising turn of events, the Australian job market has been hit by an unexpected worker shortage, despite a decrease in the unemployment rate. As per recent data from the Australian Bureau of Statistics (ABS), the unemployment rate fell to 3.6% in May 2023, nearing the 48-year low of 3.4% recorded in October 2022.
The fall in unemployment signifies an increasingly tight labour market, characterized by high job vacancies and ongoing labour shortages. In July alone, there were fewer unemployed people (474,000) than there were job vacancies (480,000 in May), making it evident that staffing shortages are becoming a major issue for Australian employers.
According to a report by the Global Herald, Telstra, the country’s largest telecommunications company, is cutting hundreds of jobs to reduce costs. However, the company is struggling with worker shortages, a problem that many other employers are also facing.
Interestingly, while the overall unemployment rate is decreasing, the number of Australians losing their jobs appears to be on the rise. ABS data showed that around 4,000 Australians lost their jobs in April 2023, which resulted in 18,000 people becoming unemployed. Despite this increase, the unemployment rate remains relatively low compared to levels seen in 2022.
Moreover, more than 14 million Australians are currently employed, a record number for the country. Additionally, 66.9% of Australians aged over 15 are either working or actively seeking employment, another record-setting statistic.
However, the worker shortage crisis is expected to worsen as employers fear it’s “getting worse,” according to HC Magazine. The rapid drop in the unemployment rate has resulted in a workforce shortage that has moved from “bad to worse.”
Despite the lower unemployment rates, the current situation has led to a unique scenario where Australia now has more available jobs than unemployed people. As such, the staffing crisis is putting additional pressure on businesses struggling to find employees.
As Australia grapples with these staffing issues, it’s clear that solutions need to be found to balance the job market and address the worker shortage.
Sources: Global Herald, ABC News, The Guardian, Reuters, Bloomberg, CNBC, HC Magazine, Financial Times, Yahoo Finance.
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