As economic conditions shift and unemployment rises, businesses in Victoria are seeing a growing pool of job applicants for each advertised role. With employers exercising more caution in replacing staff and the increasing number of individuals seeking work, the competition for jobs is becoming fiercer. This trend poses challenges and opportunities for employers and candidates alike. In this blog, we’ll explore why the number of candidates per position is on the rise and what this means for recruitment in Victoria.
Unemployment on the Rise in Victoria
Recent data suggests that unemployment in Victoria is expected to increase in 2024, contributing to the growing number of candidates per job. According to the Australian Bureau of Statistics (ABS), Victoria’s unemployment rate has seen fluctuations, with more individuals entering the job market as businesses streamline operations and adjust to economic pressures.
The unemployment rate in Victoria is currently at 3.9%, but experts anticipate that this could rise due to a mix of factors, including economic uncertainty, inflation, and technological disruption in various industries. With more people looking for work, employers are likely to see a higher number of applications for each job opening, making the hiring process more competitive and complex.
Rising Applications: A National Trend
This trend isn’t confined to Victoria alone. Nationally, applications per job ad rose by 7.7% in March 2024 and are 72.6% higher than a year ago, according to data from SEEK. This surge is especially prominent in sectors such as Education, Healthcare, and Manufacturing, where demand for jobs is outstripping supply. For employers in Victoria, this means that a single job posting can attract upwards of 100 applicants, depending on the industry.
For example:
- Education & Training roles have seen a significant rise in job ad volumes, with a teacher shortage contributing to the competition.
- Healthcare roles, particularly in aged care and mental health, have attracted a growing number of applicants as these sectors expand to meet societal needs.
- Manufacturing and Logistics roles have also experienced a boom, with applications increasing by 12% in these sectors.
Why Are We Seeing More Candidates per Job?
Several factors are driving this trend:
- Economic Caution Among Employers:
Many employers are adopting a more cautious approach to hiring, opting to thoroughly vet candidates and prolonging the hiring process. In times of economic uncertainty, businesses prefer to make sure they are making the right hiring decision, which results in extended recruitment periods and more applicants for each position.
- The influx of Job Seekers:
As unemployment rises, the pool of available candidates grows. This includes not only individuals who have recently lost jobs but also those looking to switch roles due to stagnating wages or the desire for a better work-life balance. Victoria has a large number of job seekers entering the market, particularly in urban centres like Melbourne, further driving up applications for each job.
- Technological Disruption and Automation:
Technology is transforming industries at a rapid pace, leading to shifts in the types of jobs available. Roles that are being automated or phased out in one sector may lead to a greater number of job seekers moving into new industries, creating competition across multiple sectors.
- Increased Flexibility in Job Search:
With the rise of remote and hybrid working models, candidates are no longer restricted to applying for roles within their geographic location. This flexibility allows more candidates to apply for a wider range of jobs, leading to increased applications per role.
The Impact on Employers
For employers, this growing number of applications is a double-edged sword. On one hand, it provides a larger talent pool to choose from, increasing the likelihood of finding the right candidate. On the other hand, managing a higher volume of applications can be time-consuming and may overwhelm internal HR teams.
This is where recruitment agencies like Mornington Recruitment come into play. By offering a comprehensive screening process, including Zoom video-recorded interviews, businesses can save time while still ensuring they are reviewing the top candidates. This level of service is becoming essential for SMEs that need to balance efficiency with thoroughness in their hiring practices.
How Employers Can Adapt
To manage this influx of candidates effectively, employers should consider the following strategies:
- Leverage Recruitment Services: Partnering with a recruitment agency can streamline the hiring process by pre-screening candidates and presenting only the most qualified for final review.
- Utilise Technology: Tools like applicant tracking systems (ATS) can help businesses manage and sort through a high volume of resumes more efficiently.
- Enhance Job Descriptions: Clear and detailed job descriptions can help attract the right candidates and filter out those who may not meet the specific qualifications.
- Emphasise Company Culture: Highlighting the company’s values and culture in job ads can help attract candidates who are a better fit, reducing the number of irrelevant applications.
Conclusion
As the number of job candidates per position continues to grow in Victoria, employers will need to adapt their recruitment strategies to handle this new reality. With unemployment expected to rise and more candidates entering the job market, the competition for roles will intensify. By working with recruitment agencies, leveraging technology, and focusing on efficient screening processes, businesses can stay ahead of the curve and ensure they’re hiring the best talent in a competitive market.