What Does the 2021 Australian Job Market Hold?
Each year around this time, we look ahead to the coming year and give a snapshot of what the experts are predicting will be the good, bad and ugly professions for the following year. So, as 2021 looms into view, what can we expect the job market to look like in the next 12 months? Well, this year obviously has seen an unprecedented upheaval in all walks of life, not least the job market.
According to The Sydney Morning Herald, more than 130,000 university students will graduate this year into the worst jobs market since the 1990s recession, as economists warn it could take them years to rebound from lower wages.
With thousands of students finishing their final university exams, data collated by SEEK reveals job ads have declined substantially across a range of industries compared to the same time last year. Accounting job ads had declined by almost 44 per cent, legal jobs ads by 43 per cent, IT job ads by 38 per cent, and sales job ads by 30 per cent.
Separate research by Deloitte Access Economics predicts the unemployment will remain high until 2024, rising to 8.3 per cent in 2021-22 before slowly declining to 7.6 per cent in 2022-23, 6.8 per cent in 2023-24 and 6.2 per cent in 2024-25. The rate in 2019-20 was 5.6 per cent.
Department of Education figures show the number of domestic students graduating with bachelor degrees in universities across Australia has increased from about 133,600 in 2015 to almost 139,000 in 2019. Given enrolments have remained steady in recent years, the class of 2020 is also expected to comprise more than 130,000 graduates.
The impact of scarring on graduates – that is the negative impact of entering the workforce during a downturn – has been extensively studied in places such as America and Europe but has drawn little research focus in Australia.
Furthermore, in August 2020, the Reserve Bank of Australia (RBA) forecast its figures for the quarter ending in December 2020: an unemployment rate of about 10 per cent, GDP contraction of around 6 per cent, a decline in household consumption of approximately 7 per cent, and a 17 per cent decline in business investment. And the RBA acknowledged extensive uncertainty on all four indicators.
The shape and size of this shock are expected to change drastically as it evolves. Australia started its COVID-19 experience in March with a nationwide lockdown and a significant investment in cash-stimulus measures. States were expected to have relaxed restrictions by July while economic-stimulus measures would support the transition to a “new normal” by September. However, a breakout of cases in Victoria has provided a harsh reminder that progress toward reopening is fragile and will not be linear. While states are balancing the established plans with new requirements, according to current plans, the cash stimulus will be withdrawn across three phases from September 2020 to March 2021—though because of welfare pay cycles, payments will hit accounts a month later. Each phase of stimulus withdrawal will be a transition point for the economy, changing the distribution of the economic shock
Whether the industry you are working is in growth or decline, it is imperative you have your resume up to date and ready to despatch. Over the past few months, we at Select Resumes have seen a surge in priority orders for cover letters and resumes. This would tend to indicate that employees hurt by the initial wave of COVID are preparing to re-enter the workplace with renewed purpose. As we are open 24/7, 365 days a year, we are happy to help out. However, it reflects the nature of a market that is beginning to have to move quickly for all kinds of reasons.
But our clients could save themselves considerable money by having their documents prepared before they are actually needed. Having a professional cover letter and resume ready to go will give you immense confidence in being proactive to the job market instead of reactive. We will work with you to produce a compelling and persuasive document that accurately reflects your personal qualities, career outlook, experience and qualifications.
Our writers are trained and experienced in a multitude of professions. So whatever 2021 brings, it will pay to have your resume properly prepared and ready for any eventuality. Call us today for an informal chat.