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As Jobs Grow, Australian Employers Need to Do More Screening

Man doing a criminal background checkAustralian companies would need to conduct more background and police checks for employment purposes since jobs rose to 12.4 million in November based on data from the Australian Bureau of Statistics (ABS).

The ABS said that 61,600 individuals landed jobs during the month, which was far higher than economists’ expectations of 19,000. The employment growth also represented the biggest increase since October 2015.

Regional Employment Increase

Victoria recorded the highest growth in jobs with 32,900 new workers, followed 28,500 jobs in New South Wales and 8,500 employees in Western Australia, according to the ABS. In terms of full-time workers, the figure rose to 8.5 million after the addition of almost 42,000 jobs. Part-time employees increased to nearly 4 million after 19,700 Australians signed up for short-term employment.

A lower underutilisation rate in the workforce at 13.7 per cent also indicated that wages could increase in early 2018. However, the underemployment rate would need to trend lower to support salary growth, according to Ivan Colhoun, National Australia Bank chief markets’ economist.

Rate of Joblessness

The jobless rate could be construed as a minor setback for the Australian labour force. Unemployment remained at 5.4 per cent in November, despite the huge increase in jobs. An increase in workforce participation, however, mainly caused the steady jobless rate.

More Australians that looked for jobs caused the participation rate to rise to its highest level since September 2011, up 0.3 percentage points to 65.5 per cent. Western Australia led the biggest participation rate increase, followed by New South Wales, Victoria and South Australia.

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While job growth bodes well for many unemployed Australians, it indicates a more stringent process for employers to screen applicants and make sure that they only hire the right person for the position.

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