Labour Market Update - Spring has sprung but the economy has yet to blossom
Winter is finally over, and the third quarter of the year has gone by. Before we look forward to the last stretch to Christmas, it’s time to reflect on what’s been happening in the past few months, and the current labour market situation.
It feels like it’s been an up-and-down few months. Spring has sprung, and while there are some signs of a Spring lift, like a boost in the real estate sector and the news that the country may not have technically been in recession after all, the continued high cost of living and economic conditions have tempered any enthusiasm.
And, without wishing to get too political, it’s impossible to ignore the fact that there’s an election coming up - just a couple of weeks away at the time of writing. It does feel like the impending vote has had an impact during the quarter and certainly towards the end of the period it feels like a lot of the country is in a holding pattern, not wanting to make too many big moves before knowing who will be in charge for the next few years.
With that in mind, let’s take a look at some of the statistics for the last few months.
Job ads are up (sort of) but mainly down
Data for job ads over the last quarter reveal a mixed picture. Generally, the number of listings has been trending downwards. This is perhaps a reflection of that holding pattern, with organisations waiting to assess a new government before.
In the last month, things picked up slightly. However, this was mainly due to an increase in roles in the hospitality and tourism sectors - likely a result of businesses looking for staff before the summer rush.
But applications are up (again)
The Seek stats also show the number of applications per job has been rising month on month and are now at record levels. Part of this appears to be an increase in overseas applicants, particularly for entry-level roles.
This is the opposite of last year when there were few applicants for each available role, but a similar trend to the rest of this year which has seen applicant numbers rising month on month.
So what does that mean if your for-purpose organisation is recruiting right now? Well it might mean more choice of applicants, which is a good thing. But it might also mean that you end up with a lot of applications that don’t meet your criteria but still need to be sifted through. As we said in our last labour market update - advertise on reputable job boards (like ours!), make sure your job ads are clear and cover your requirements, consider doing an initial applicant sift using technology to help you and ask for a cover letter to better understand each applicant.
Employment and general confidence is down
The reduction in job listings and increased applicant numbers have combined to give the perception that finding a job is getting harder, reflected in the figures from the latest Westpac McDermott Miller Employment Confidence Index. The index is at its lowest since the end of 2020, with employment confidence dropping among all age groups.
The latest Consumer Confidence Index from Westpac fell by 2.9 points in September to the low level of 80.2. The index measures how happy people are and how confident they are in the economy.
What does that mean for your for-purpose organisation?
If you rely on public donations, then you might be finding it hard to source many donations at the moment. When consumer confidence is low, people tend to rein in their spending.
If your organisation works with people in need, such as food bank services, then you are likely seeing an increase in demand.
When It comes to recruiting, you might find that you are not only getting more applications, but also getting them from a wider range of people as the cost of living means more families need two incomes, or older people stay in work longer because their pension is not enough. Having people from these different backgrounds on your team can be a positive thing. Our blog on hiring people of different ages offers some good tips on recruiting these applicants.
Pay and employment discrepancies have been in focus
Over the last few months, we’ve seen quite a bit in the news about pay and employment discrepancies.
Stats NZ figures released in August for the year to June 2023 quarter showed that all salary and wage rates have increased.
However the figures also showed that the gender pay gap has remained relatively steady. Based on Stats NZ’s data, the National Council of Trade Unions estimates that women begin working for free towards the end of November thanks to the current pay gap. That date moves earlier if you look at Pasifika or Māori women.
Also in August, the Government announced a move that would see organisations having to publicly report their gender pay gap. However, given that the bill around this legislation will not be ready until after the election, whether the policy actually comes to fruition remains to be seen.
The disparity in employment rates and pay for disabled people was also highlighted by the Stats NZ figures, showing that the employment rate (the percentage of the working-age population who are employed) for disabled people was just over 39% compared to 81% for non-disabled people.
For-purpose organisations can help to make a difference to those figures by encouraging diverse hiring and transparent pay. At Do Good Jobs we are committed to #showthesalary which means any role advertised with us needs to include a salary or salary range. We’d also encourage you as employers to consider recruiting from diverse backgrounds when you can, and how you can make your organisation accessible to a wide range of candidates.
Finishing with a buzz…..word
We’ve had the great resignation, quiet quitting, quiet firing and plenty more over the past year. And there are still quite a few of these trends doing the rounds. Here’s a quick catch up on the latest in case you’ve missed them.
Bare Minimum Mondays - a trend from TikTok which encourages people to ease into the week by doing the bare minimum of work required on Mondays. It’s supposed to reduce those feelings of anxiety that grab people on a Sunday afternoon.
Quiet Hiring - The process of giving existing employees more responsibility or additional duties rather than hiring a new person. This can be a great opportunity if the employee is adequately resourced and rewarded for their new duties, but bad if the new work is just heaped on them with no assistance.
Rage Applying - When someone who is frustrated in their job applies for as many new roles as possible at one time. Hopefully no one in your organisation is doing this!