<?xml version="1.0" encoding="ISO-8859-1"?> <docID>327330</docID> <postdate>2024-08-22 09:09:53</postdate> <headline>Hiring boom to endure in construction and human services</headline> <body><p><img class="size-full wp-image-327331" src="https://citynews.com.au/wp-content/uploads/2024/08/20230906001838485644-original-resized.jpg" alt="" width="900" height="601" /></p> <caption>Latest forecasts suggest construction workers are going to remain in high demand. (Bianca De Marchi/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Poppy Johnston</strong> in Canberra</span></p> <p><strong>Jobs growth over coming months is likely to be concentrated in construction and human services as opportunities in white-collar professions dry up.</strong></p> <p>A raft of infrastructure projects and a focus on home-building should keep construction workers in high demand, Deloitte Access Economics observed in its latest jobs market report.</p> <p>The blue collar workforce is expected to expand by two per cent, or 74,300, this financial year, buoyed by a focus on construction, including a government pledge to build 1.2 million new homes.</p> <p>In the same period, the group was forecasting a 0.4 per cent, or 23,599, dip in white collar jobs "as businesses look to kick start activity without increasing headcount".</p> <p>White collar employment growth should return in 2025/26, tipped to rise 1.6 per cent.</p> <p>In line with the ongoing shortage of construction workers and other skilled trades, separate data from Seek shows employers have been enticing workers with higher pay.</p> <p>Advertised salaries for labourers were 22.5 per cent higher in the year to June, with comparable growth logged by electricians, machinery operators, plumbers and painters.</p> <p>The Australian jobs market has proved resilient to souring economic conditions though Deloitte Access Economics partner David Rumbens said evidence of a weak economy was "finally bleeding through".</p> <p>The jobless rate has ticked higher to 4.1 per cent in and employment growth has been driven by the non-market sector, which covers jobs in health and education.</p> <p>"It is clear the resilience of employment growth is being driven by the non-market sector, while private sector hiring is stalling," Mr Rumbens said.</p> <p>In the year to March, non-market sector employment grew by 7.6 per cent, compared to just 0.1 per cent across market sector industries.</p> <p>Mr Rumbens said the labour market lagged broader economic performance by roughly six months.</p> <p>"That means the labour market may continue to get worse with unemployment rising at the same time economic green shoots are appearing elsewhere," he said.</p> <p>The deterioration in economic activity has likely bottomed out, with hints of stabilisation in Westpac and Melbourne Institute's leading index.</p> <p>The collection of leading indicators signalled stronger activity in coming months but sharp falls in commodity prices and the prospect of no interest rate cuts until next year is weighing on the outlook.</p> <p>"All up, growth momentum looks likely to remain bogged down for some time yet," Westpac Economics' head of Australian macro-forecasting Matt Hassan said.</p> </body>