As Australia’s job market shows signs of slowing, with job ads down for the second month in a row, small and medium-sized enterprises (SMEs) may find a silver lining. While fewer job ads might initially seem like a challenge, this shift could offer SMEs a rare opportunity to attract top talent, reduce competition, and focus on employee retention.
Australia’s job market saw a slight 1.1% decline in job ads in November 2024, per SEEK Employment Report, but applications per ad surged by 3.4%, indicating increased job seeker interest despite fewer postings.
With less hiring activity overall, SMEs can leverage their agility, enhance productivity, and invest in their workforce, all while lowering recruitment costs and positioning themselves for long-term growth.
The decline in job ads may seem like a challenge at first, but for SMEs it could actually present a unique opportunity. With fewer job ads circulating, SMEs may face less competition for talent from larger corporations, giving them a better chance to attract top candidates, especially for niche roles critical to their business. Moreover, as the job market tightens, applicants tend to become more selective, resulting in a pool of higher-quality, committed candidates. This also opens the door for SMEs to focus on employee retention, investing in training and development to boost job satisfaction and reduce turnover costs. Additionally, the agility of SMEs allows them to adapt quickly—pivoting strategies, streamlining processes, and implementing new technologies to enhance productivity. The reduction in job ads could also lower recruitment costs, freeing up resources to be reinvested into business growth and innovation. Ultimately, this shift could allow SMEs to not only survive but thrive in a changing job market.
What the data is saying
In November 2024, Australia’s job market showed a slight decline, with job ads down 1.1% from October marking the second consecutive month of minimal drop. However, year-on-year (y/y), the rate of decline slowed to just 8.4%, the smallest decrease in nearly two years. Metro areas took a harder hit, dropping 2.3% quarter-on-quarter (q/q), compared to a gentler 0.8% drop in regional areas. Interestingly, despite these declines, applications per job ad surged by 3.4%, the biggest jump since April—showing that while fewer jobs are being posted, job seekers are more eager than ever.
Across industries, the trend was similar—some sectors showed growth, but overall, the job market is still feeling the effects of the past year. The biggest winner was Consulting & Strategy, which saw job ads jump by 6.7% after a prolonged decline. Community Services & Development also saw a slight 1.6% increase, while Information & Communication Technology (ICT) showed minimal growth (1.6%), although it still lags behind 2019 levels. On the flip side, Retail & Consumer Products and Hospitality & Tourism experienced consecutive drops—3.9% and 4.0%, respectively. However, the latter still saw a solid 8% rise q/q, suggesting seasonal demand. Despite these declines, a few industries saw positive y/y growth, including Consulting & Strategy (up 5.5%) and Real Estate & Property (up 4.9%).
Applications per job ad are also rising across many sectors, with Education & Training (8%), Legal (10%), and Healthcare & Medical (6%) all seeing increases. It’s clear that competition for jobs is heating up as fewer positions are available. While most states and territories saw a dip in job ads, Tasmania bucked the national trend with a strong 5.6% spike—the biggest monthly rise in almost two years. This surge was driven by a booming demand in industries like Community Services & Development, Hospitality & Tourism, and Healthcare & Medical. Meanwhile, job ads in Western Australia and Victoria dropped by 3.2% and 2.3%, respectively. The Australian Capital Territory (2.4%) and South Australia (0.3%) were the only states to see an increase in job ads, offering a silver lining for those regions. When we zoom out, comparing job ads to pre-COVID levels (November 2019), most states and territories are seeing more opportunities. The exceptions are the Australian Capital Territory, which is down by 26.5%, and Victoria and New South Wales, which are also experiencing significant declines of 15.4% and 10.8%, respectively. So while some regions are struggling, many others are seeing a steady recovery.
Hopeful signs emerge
Australia’s job market continues to navigate a turbulent landscape, with certain industries and regions experiencing growth, while others lag behind. While job ads may be on the decline overall, the rise in applications per ad signals that job seekers are more engaged than ever. Industries like consulting, healthcare, and real estate remain resilient, and the steady growth in Tasmania and South Australia offers a glimmer of hope in an otherwise challenging environment. As 2024 wraps up, the job market’s future remains uncertain, but there are clear signs that adaptation and demand are paving the way for a recovery in key areas.
Here are some ways SMEs can thrive in a tighter job market:
Improving Hiring Strategies: In a job market where top talent is becoming more discerning, small businesses need to think outside the box when it comes to hiring. Instead of relying only on traditional job ads, SMEs should focus on proactive recruitment tactics. Building a strong network within their industry, tapping into employee referrals, and attending relevant events are great ways to expand their talent pool. Social platforms like LinkedIn are ideal for reaching passive candidates—those who aren’t actively seeking new roles but are open to opportunities if the right one comes along. These candidates often possess valuable experience and can be more engaged than active job seekers. By nurturing these relationships and making the right offer, SMEs can attract top talent, even in a competitive market.
Investing in Employee Retention: With hiring becoming more costly and competitive, SMEs should shift focus towards retaining the talent they already have. When the hiring landscape slows down, it’s an opportunity to invest in your current team. Whether it’s through training, career development, or simply showing appreciation, creating an environment where employees feel valued goes a long way. Workers who feel supported are more likely to stay loyal, which ultimately saves businesses money on turnover costs. Offering opportunities for professional growth not only strengthens your team but shows employees that you’re committed to their future. In addition to development programs, cultivating a positive company culture—through flexible working options, team-building events, and open communication—can foster loyalty and keep employees motivated. By investing in your existing workforce, SMEs can reduce recruitment costs and avoid the headache of frequent hiring, allowing them to focus on long-term growth.
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