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Australian Jobs Market Report – May 2020
We report which industries and jobs have impacted the most during COVID-19
Coronavirus
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From February to May this year, COVID-19 has severely impacted the employment rate across many industries in Australia. A staggering 822,000 jobs have been lost across the country since February, with some industries impacted more than others.
In fact, almost half a million jobs in just three industries (arts, hospitality and transport) have been lost during this period, according to the latest Australian Bureau of Statistics Labour Force Australia data analysed by Finder. That’s 56% of all jobs lost in that period.
However, not every industry has suffered during COVID with some industries and jobs thriving, and some expected to continue growing in a post-COVID world.
The worst affected industries
| Total employed persons by industry | February 2020 | May 2020 | Difference | % Difference |
|---|---|---|---|---|
| Accommodation and Food Services | 930,500 | 654,300 | -276,200 | -30% |
| Transport, postal and warehousing | 666,400 | 571,800 | -94,600 | -14% |
| Arts and Recreation services | 251,900 | 160,100 | -91,800 | -36% |
| Retail Trade | 1,261,400 | 1,182,800 | -78,600 | -6% |
| Health Care and Social Assistance | 1,798,300 | 1,731,200 | -67,100 | -4% |
Source: Finder, ABS. Ranked by highest number of jobs lost
Accommodation and Food Services
This industry has seen the most jobs lost out of all industries, with 276,200, losing 30% of its workforce. Within this industry, workers in the subcategory of food and beverage services accounted for 92% of those jobs lost, with the remainder working in accommodation.
Why?
- Restaurants, cafes and food courts have been forced to close, some remain closed
- Lack of government support for open air dining, support was only announced in August
- Significant reduction in tourism means less business for accommodation services
Transport, Postal and Warehousing
There were 94,600 fewer jobs recorded in May 2020 compared to February 2020, which equates to a 14% loss of its workforce. Within this industry, the subcategory of transport support services and air and space transport was the worst hit sector accounting for
39% of the entire industry's loss of jobs.
Why?
- Fewer travellers mean less business for the air and space transport subcategory
- Freight transport was restricted within state borders until August
- Victorian truckers forced to self-isolate after required COVID-19 testing as the state doesn’t allow asymptomatic casual testing
Arts and Recreation Services
There were 91,800 fewer jobs recorded in May, which equates to a 36% loss of its workforce since February. This is the biggest proportion of any industry in Australia.
Why?
- All community sports activities and competitions were not running for most of February-May. With the COVID-19 safety plan and resumption of sports only announced on July 17.
- Events, festivals, sporting events and mass gatherings were all ruled out due to high risk of COVID transmission
Retail Trade
The retail industry saw a loss of 78,600 jobs from February to May 2020, which was 6% of its workforce, with every subcategory within it reporting losses except e-commerce.
Why?
- Monthly turnover of all retail trade in Australia fell by a record 17.7% in April 2020 according to ABS data, due to social distancing restrictions and isolation
- Closure of many physical stores meant an increase in demand for e-commerce alternatives.
Health Care and Social Assistance
Health care and social assistance saw a loss of 67,100 jobs, dropping by 4% of its workforce.
Why?
- Closure or restriction of many social assistance services such as adult day care centre operations, aged care assistance services, alcoholics anonymous operations, disabilities assistance services, marriage guidance services, welfare counselling services, youth welfare services
Industries that have thrived
| Total employed persons by industry | February 2020 | May 2020 | Difference | % Difference |
|---|---|---|---|---|
| Electricity, Gas, Water and Waste services | 136,100 | 168,500 | 32,400 | 24% |
| Agriculture, Forestry and Fishing | 337,100 | 361,300 | 24,200 | 7% |
| Public Administration and Safety | 828,500 | 846,300 | 17,800 | 2% |
| Rental, Hiring and Real Estate services | 213,700 | 219,900 | 6,200 | 3% |
| Wholesale Trade | 385,700 | 389,300 | 3,600 | 1% |
Source: Finder, ABS. Ranked by highest number of jobs gained
Electricity, Gas, Water and Waste Services
This industry has seen the highest increase in workers from 136,100 in February 2020 to 168,500 in May 2020 – a difference of 32,400 or 24%. Within this industry, electricity supply was the subcategory with the largest increase, accounting for 71% of the entire industry's jump in employment.
Why?
- 46% of the Australian workforce worked from home during the pandemic which has increased utility usage, placing a higher demand for electricity, gas, water and waste services and therefore its workers
Agriculture, Forestry and Fishing
The total number of Australians employed in agriculture, forestry, and fishing was 361,300 as of May 2020, which is 7% higher than February 2020 (337,100). However, agriculture was the only subcategory with significant growth as it increased by 29,300 workers (10%).
Why?
- Agriculture saw an increase in jobs due to many food companies experiencing a rapid increase in demand for produce as panic buying escalated across the country amid the pandemic. This increase in demand resulted in higher staff levels.
Public Administration and Safety
The Coronavirus has not affected this industry as much as some may have expected. There were 17,800 more workers recorded in May than in February this year, an increase of 2%. Within the industry, the subcategories of defence and public order/safety and regulatory services increased the most, accounting for 89% of the entire industry’s growth.
Why?
- Jobs in public order/safety and regulatory services are increasing due to the public response to the pandemic including mass demonstrations
- Border closures and COVID testing sites need security or safety workers
- Public spaces and businesses requiring COVID safe policing of procedures such as social distancing
Rental, Hiring and Real Estate services
The rental, hiring and real estate services saw an increase of 6,200 jobs, jumping by 3% of its workforce. Jobs in the subcategory of property operators and real estate services increased by 7,500 (4%) whereas rental and hiring services saw a loss of 2,100 jobs (-6%).
Why?
- Interest rate cuts by the Reverse Bank of Australia increasing demand in the property market
- Hiring and rental has decreased due to the significant reduction in travellers
Wholesale Trade
Wholesale trade saw an increase of 3,600 jobs, which is a slight rise of 1% of its workforce. The biggest rise in employment within that industry was in grocery, liquor and tobacco products.
Why?
- Panic buying during this quarter resulted in a significant spike in grocery spending and thus demand for wholesale trade workers
Year-on-Year
The total number of Australians employed was over 12.2 million as at May 2020, 5.4% lower than May 2019, which saw over 12.9 million Australians employed. The hospitality, arts and transport industries show a similar trend to the QoQ figures as they account for 64% of all job losses from May 2019 to May 2020.
The industries that have fallen the most in the past year:
| Total employed persons by industry – top 5 biggest drop in employment | May 2020 | May 2019 | Difference | % Difference |
|---|---|---|---|---|
| Accommodation and Food Services | 654,300 | 925,300 | -271,000 | -29% |
| Retail Trade | 1,182,800 | 1,290,800 | -108,000 | -8% |
| Arts and Recreation Services | 160,100 | 257,000 | -96,900 | -38% |
| Other Services | 442,600 | 523,200 | -80,600 | -15% |
| Transport, Postal and Warehousing | 571,800 | 651,000 | -79,200 | -12% |
| Administrative and Support Services | 392,600 | 465,600 | -73,000 | -16% |
Source: Finder, ABS. Ranked by highest number of jobs lost
The industries that have increased the most in the past year:
| Total employed persons by industry – top 5 biggest increase in employment | May-2020 | May-2000 | Difference | % Difference |
|---|---|---|---|---|
| Mining | 227,300 | 76,500 | 150,800 | 197% |
| Health Care and Social Assistance | 1,731,200 | 841,200 | 890,000 | 106% |
| Electricity, Gas, Water and Waste Services | 168,500 | 82,400 | 86,100 | 104% |
| Professional, Scientific and Technical Services | 1,108,900 | 579,400 | 529,500 | 91% |
| Public Administration and Safety | 846,300 | 475,700 | 370,600 | 78% |
Source: Finder, ABS. Ranked by highest number of jobs gained
The past 20 years
- Only three industries saw declines in their workforce over the past 20 years.
- Manufacturing experienced the biggest reduction in jobs since May 2000, with a 21% decline in employment – that’s 236,600 fewer jobs in May 2020.
- It was followed by agriculture, forestry and fishing with a 16% reduction, losing 66,700 jobs, and information, media and telecommunications with a 15% reduction, which equates to 33,700 less jobs in the industry.
- Health care and social assistance jumped the most by number of jobs, doubling its workforce by 106% (890,000 more jobs).
- While mining grew the most by percentage of its workforce, by 197% (150,800 more jobs)
- Professional, scientific and technical services saw the second largest increase in workers, by 529,500 (91%), followed by construction, which increased by 487,600 (70%).
The industries that have fallen in the past 20 years:
| Total employed persons by industry – biggest drop in employment | May 2020 | May 2000 | Difference | % Difference |
|---|---|---|---|---|
| Manufacturing | 864,700 | 1,101,300 | -236,600 | -21% |
| Agriculture, Forestry and Fishing | 361,300 | 428,000 | -66,700 | -16% |
| Information, Media and Telecommunications | 187,900 | 221,600 | -33,700 | -15% |
Source: Finder, ABS. Ranked by highest number of jobs lost
The industries that have increased the most in the past 20 years:
| Total employed persons by industry – top 5 biggest increase in employment | May-2020 | May-2000 | Difference | % Difference |
|---|---|---|---|---|
| Health Care and Social Assistance | 1,731,20 | 841,200 | 890,000 | 106% |
| Professional, Scientific and Technical Services | 1,108,900 | 579,400 | 529,500 | 91% |
| Construction | 1,179,600 | 692,000 | 487,600 | 70% |
| Education and Training | 1,035,800 | 634,600 | 401,200 | 63% |
| Public Administration and Safety | 846,300 | 475,700 | 370,600 | 78% |
Source: Finder, ABS. Ranked by highest number of jobs gained
Fred’s forecast: industries likely to succeed post COVID
The industries likely to continue to grow following COVID-19 are:
- Public administration and safety: a ‘new normal’ of public order and safety services influenced by the pandemic will have a lasting effect on the industry.
- Professional, scientific and Technical services: work-life and travel has permanently changed due to the pandemic, making demand for technology transformation such as video conferencing systems, increase significantly.
- E-commerce: consumers forced to shop online will be used to the convenience and competition brought on by the pandemic.
Fred Schebesta, Co-founder of Finder:
The pandemic has been tough for many Australians, as we’ve seen over 800,000 jobs lost from February to May this year. Fortunately, not every industry is suffering and there are tremendous opportunities in some areas that are thriving in the pandemic.
For instance, we’ve seen a boom in employment for electricity, gas, water and waste services with 32,400 new jobs. The growth is primarily due to the consumption of these services increasing dramatically during COVID as people stay indoors. However, this growth is expected to ease post-COVID when lockdown restrictions ease.
Another interesting industry is retail. Despite seeing 78,000 jobs lost in that quarter for the whole retail industry, e-commerce is booming. It jumped by 4,900 jobs as online shopping has become a necessary alternative to physical retail shopping. I think e-commerce will continue to grow as people get used to shopping online.
We’re also seeing a higher number of new businesses being registered. Australians are looking for new ways to earn a living and it’s great to see people taking the leap and starting a business or trying something new.
For businesses, it’s a great opportunity to hire new people. There are lots of talented people out there who are very motivated and hungry to level up, find new opportunities that they can excel at and they’re prepared to do something new, which is exciting for businesses.
Image source: Getty Images
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