The Australian job market dropped slightly in October with the IT sector remaining stagnant, according to the latest results from the Olivier Job Index.
Overall, job ads were down by 1.67 per cent in October, falling after September’s 3.58 per cent rise, reflecting a sense of cautiousness in the market. But the IT sector only experienced a slight drop of 0.78 per cent, on par with last month’s result.
Olivier Group director, Bob Olivier, said despite the overall gain of 4.32 per cent over the last three months, the recent interest rate rises may have taken the edge off Australia’s employment growth.
“From week one in October to week four we never got back to where we were in September,” Olivier said.
He said the focus of attention on the interest rate rise, and then the proceeding talk about how much it may raise by and whether there will be another before Christmas, injected further caution in the market.
While the interest rate rises have contributed to a slight wane in confidence in the IT sector, Olivier said it’s being affected more by the lack of business investment.
“The sector is awaiting a pick up in business investment,” Olivier said, adding that the 4.54 per cent decrease in job ads over the past six months reflects the stagnant mood of the IT market.
“IT is not a big retreating market, but at the moment it’s not going anywhere, more waiting for things to change,” Olivier said.
“I think the general market in the first quarter of next year should be quite strong, and I think IT will pick up in the second quarter, but I don’t think it’s going to lead or drive anything.”