Unemployment rates in Australia this spring have fallen to a low of 5.5%, the lowest in four years.
While this is overall positive news, there are still aspects of the unemployment rate that are cause for concern.
Here are some of the ways that falling unemployment rates may affect the way you hire (both positively and negatively).
Underemployment has risen: Your employees may be in jobs they are overqualified for, or only working part time jobs, when they really want full time work. This could mean a lack of motivation or engagement amongst your staff. Be sure to keep them developing and challenged.
Suitable labour: It may be harder to find the right staff for your positions, as they are all employed elsewhere.
Wages: With fewer people looking for work, it often comes down to offering higher wages to entice new staff. However, there are reports that businesses are growing wages at a very slow rate.
Spending: With more people in work and earning, and potentially higher wages, people have more money to spend, which will go back into the businesses, and in turn, will provide more money to go into wages for more staff.
While falling unemployment rates means businesses are running more productively and people can spend more money, it is important to be aware of the underemployment rates as well. Keep your staff feeling engaged and looking for ways to expand the roles of your current staff, and underemployment will hopefully fall alongside the unemployment figures.