Jobs Are Plentiful, But Earnings Not Keeping Pace With Inflation

The Westpac McDermott Miller Employment Confidence Index rose 6.6 points in the March quarter to a level of 113.5. This is the highest reading for the index since June 2019.

Michael Gordon, Acting Chief Economist for Westpac, noted that the rise in employment confidence continues to be led by the perception that jobs are plentiful right now. “Employers have been desperately seeking workers over the last year or so, and even with the Omicron variant looming large this year, job advertisements have risen to new highs,” noted Mr Gordon.

There was also a moderate lift in both reported and expected earnings growth in the March quarter. However, both of these measures remain below their pre-pandemic levels.

The rise in employment confidence comes at the same time as a sharp drop in consumer confidence, noted Mr Gordon. “These results highlight how inflation has become the major concern for households. The tight jobs market means that workers have greater options and more power to negotiate a pay rise. But with the cost of living rising even faster, many households feel that they’re struggling to get ahead.”

“Confidence amongst employees working in the public sector has risen considerably this quarter, up 12.9 points to 128.1. In contrast, private sector employees have seen a much smaller rise in confidence (106.0, an increase of 4.0 points from December 2021),” observed Imogen Rendall, Market Research Director of McDermott Miller Limited.

“Private sector employees remain concerned about their personal job security over the coming year as well as future job opportunities, while public sector employees are buoyant with a very positive view of both their current employment conditions and their expectations for the future,” commented Ms Rendall.

A full description of the background and specifications of the survey are attached. The survey was conducted over 1-17 March 2022, with a sample size of 1,559. An index number over 100 indicates that optimists outnumber pessimists. The margin of error of the survey is 2.5%.

Acknowledgement

The Westpac McDermott Miller Employment Confidence Index is owned by McDermott Miller Limited. Westpac McDermott Miller should be acknowledged as the source when citing the Employment Confidence Survey and Index. Graphs supplied may be reproduced by the news media provided the Westpac McDermott Miller logo remains inset.

© Scoop Media