Western Australia (WA) experienced a 4 percent increase in job vacancies over the year leading up to November 2023, marking a significant contrast to the national trend, which saw a decline of 5 percent. According to data from the Australian Bureau of Statistics, WA stands out as the only region in Australia with more employment opportunities compared to a year earlier, presenting a positive outlook for job seekers as the state approaches 2026.
Public Sector Demand Drives Job Growth
The data highlights a continuing dominance of public sector demand in the job market. Private sector job openings saw a slight decrease of 0.5 percent over the three months leading to November, while government-backed vacancies increased by 1.8 percent. This trend suggests that government employment is a significant driver of job growth in WA.
Harry Ottley, an economist at the Commonwealth Bank, noted that the country’s labour market is gradually softening from previously tight conditions. “Strong labour demand in Australia has driven strong employment gains in recent years,” he stated. “This has kept the labour market much tighter than peer economies.”
Ottley pointed out that much of the job growth is concentrated in the taxpayer-funded care economy. He emphasized that a primary uncertainty facing the broader labour market is how growth in non-market employment will unfold after recent slowdowns. “Vacancies suggest that there is still plenty of demand for labour in non-market sectors,” he added.
Unemployment Trends and Economic Implications
The unemployment rate in Australia has remained relatively low since the post-pandemic stimulus period, currently standing at 4.3 percent. In WA, the unemployment rate is slightly higher at 4.6 percent. This figure remains crucial as the Reserve Bank prepares for its upcoming meeting in February, with financial markets anticipating a 25 percent likelihood of an interest rate hike.
Economists from ANZ, including Aaron Luk and Adelaide Timbrell, have maintained their forecast that the Reserve Bank will hold the cash rate at 3.6 percent for an extended period. They acknowledge, however, that the risks of a rate increase in early 2026 have grown, suggesting that if a hike occurs, it is more likely to happen in the first half of the year.
In a somewhat positive turn for borrowers, core inflation for the year ending November was reported at 3.2 percent, slightly below expectations. Nevertheless, strong household spending data released shortly thereafter may compel the central bank to adopt a more cautious stance.
As WA navigates these economic changes, the rise in job vacancies offers a glimmer of hope for job seekers, indicating resilience in the state’s labour market amid broader national challenges.
