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Monday, July 4, 2022

Australia is yet to experience great resignations, but there has been an uptick

The past year has been full of suggestions that countries such as Australia are experiencing a “great resignation” as workers previously loyal to their employers quit their jobs and look elsewhere.

Last year, newspaper articles aside, there was little evidence for this in Australia, although there was substantial evidence in the United States where the term came from.

In the US, the so-called “leaving rate” hit a record high in 2021, while in Australia the proportion of workers who changed jobs fell to its lowest point in half a century.

Writing in November, University of Melbourne economists Mark Wooden and Peter Gahn pointed out that in the US, COVID had made public-facing jobs unsafe, which may have contributed to people leaving these roles.

Rates were not increased in US finance or information technology jobs.

Read more: Australia’s ‘great resignation’ is a myth – we are changing jobs less often

In Australia, where border closures, mask mandates and vaccination mandates made public-facing jobs safer, job-switching continued its long-term decline.

So far. The annual February Mobility Survey published by the Bureau of Statistics in May shows an increase in the proportion of workers switching from a record low of 7.5% to 9.5%.

One way to look at the uptick is that Australia has the highest switching rate since 2012. If the records go back only to 2012, we can say that Australia had the highest switching rate on record.

But here’s the thing. US records only go back to December 2000. If they go further back, US exit rates could be seen on a similar long-term slide as Australia’s. We just don’t know.

In the case of Australia, recent job mobility rates over the past decade or two have been exceptionally low compared to historical job mobility levels. We all know that the same thing happens in America.

In the late 1980s, nearly one in five Australian workers changed jobs in a single year. These days, even after the latest uptick, it’s one in ten.

The uptick from a typical historical low could be little more than a rebound due to the lockdown and border closures.

Read more: Despite record vacancies, Australians shouldn’t expect big pay hikes anytime soon

We can be sure that the increase in job changes is not due to an increase in layoffs. Australia’s layoff rate (the number of people laid off in a year as a proportion of the number planned at the start of that year) fell to a 50-year low in February.

Another thing we do know is that there are more job vacancies (and more job vacancies per unemployed person) in Australia than ever before.

There were 423,500 unfinished jobs in February, and 563,300 unemployed, meaning there were only 1.3 unemployed people pursuing each vacant job, the slowest ratio on record since 1980.

More job vacancies than ever before for every unemployed person

Australia Is Yet To Experience Great Resignations, But There Has Been An Uptick
seasonally adjusted.
ABS Labor Force, Job Vacancies

This is likely to mean that more people will be motivated to change jobs soon.

They may even be doing so, which means the uptick will continue when the figures are updated next February. watch this space.

Read more: An additional 60,600 Australians found work in May. This is why wages are not increasing much

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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