91探花

Media contact

Kate Bettes
91探花 Business School
+61407701034
k.bettes@unsw.edu.au

As Victoria and NSW exit听lockdowns, pubs, cafes, and shops are beginning to buzz with life again. Venues across Sydney and听Melbourne are filling back up with customers who have had their听COVID-19听vaccination, and听are eager to get back to normal life.听听鈥

But as the potential casual hours of work flood back onto the market for jobs with employers are having to work hard to find staff.听Callouts听for workers are popping up at furious rates on community social pages, and job openings are sticky鈥搕aped to business听windows, and听posted to job sites.听听

The听SEEK听job site听reported听a 28.5 per cent month-on-month听increase in jobs posted for Hospitality & Tourism, and a 20.6 per cent increase for Retail & Consumer Products in September, with newly free NSW driving many of the advertisements. But Kendra Banks, Managing Director at SEEK ANZ reports that a large gap between those applying and those advertising meant听many hirers are still finding it difficult to recruit.听听

Month-on-month applications per job ad are down slightly by 0.8 per cent听nationally and remain significantly below听pre-pandemic听levels, down by 34.9 percent when comparing September 2021 to September 2019.

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Hospitality and retail are ready to get back to business as usual - but staffing has been an issue for some employers. Photo: Pexels / Kaique

Despite the expected pattern of behaviour emerging, that when听coronavirus听restrictions ease customer-facing roles return quickly to the job advertising site,听Australians听are continuing to act cautiously when considering their next career move, she observes.听听

While this听state of affairs听in the听job market听has led听听to declare that supply gaps and possibly higher wages meant workers were听'well placed'听to bargain, is that enough to lure听Australian听workers back into casual work given the past 20 months?听听in the听last year, potentially making it a less appealing prospect to job seekers.听听

See also:听Topic of contention: Casualisation of the workforce

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Have听Australian听workers been turned off casual contracts?听听

According to听, Senior Lecturer at the School of Economics at the听91探花 Business School, while there are downsides to taking on casual work contracts, there are still clear benefits for both the employers and employees.听听

Casual contracts allow flexibility,听she says.听Casual employment may also benefit certain types of workers. Since casual employment does not provide annual leave or sick leave it provides compensation to reflect these arrangements, termed 'casual loading'. Those seeking higher remuneration for a smaller number of available hours, for example, students and parents with caring responsibilities, might benefit.听听

Employers may favour casual contracts over permanent contracts due to higher uncertainty about future demand and market conditions. As we recover from the recent restrictions, access to flexible low-commitment employment contracts may promote faster recovery."听听

But she also points out that while she suspects we won't be seeing a decline in casual work any time soon, the increase in health risk, uncertainty in hours, and decline in job security that workers have experienced over the past two years might see these employers needing to offer听higher wages and better arrangements to attract workers to take some of these jobs.听听

An increase in remuneration or improvement in听working arrangements听would provide compensation for the increase in higher job insecurity in casual jobs.

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Hospitality, retail workers among those rocked by uncertainty听听

Sectors such as hospitality and retail were hard hit by multiple听lockdowns, affecting businesses across听Australia. But now, there is a massive demand for听staffing. And according to Dr Dechter, demand and supply dynamics will be听鈥撎齛nd are听鈥撎齬eflected in job听vacancies听and job conditions in sectors such as hospitality.听听

We need to take into account that some people who were in these jobs a few months ago or a year and a half ago, may have found other types of employment and are not eager to go back to the hospitality sector with uncertain hours and higher health risk,听she says.听听

Employers will have to find workers in the pool of those who are unemployed and looking for a job. Currently, the unemployment rate is relatively low and if the recovery continues, it will be more difficult for the hospitality sector to attract workers.听听

But Dr Dechter also acknowledges that casual work is often the realm of听younger, less experienced or less skilled workers"听for whom flexible employment remains the preferred option while they study or acquire skills needed to more desirable jobs, and who are often more affected by unemployment rates and job transitions.听听

See also:听听听

'The great resignation': Is this part of a wider trend of workplace dissatisfaction?听听

In听听and听,听employees 听and switching careers, or听,听in听droves. It's听a trend听economists听and commentators are calling听'the great resignation'.听, in the US, 48 percent of听Americans听in the workforce are actively looking for听new jobs, and听resignation rates were at听.听听

Burnout, uncertainty,听mental health,听workplace culture, employer-to-employee treatment during the听pandemic, and shift in prioritisation have all been cited as reasons behind this shift in job mindset.

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The upheaval caused by the pandemic has workers asking themselves: what do they really want? Photo: Tim Mossholder / Unsplash

In addition, in Australia, casual workers accounted for two-thirds of those who lost their job at the beginning of the听pandemic ().听The job security found in听full-time听and听hybrid听work听is another possible reason for workers not wanting to return to casual work.听听

According to Dr Dechter, the听pandemic听has marked an increasing gap in benefits for workers wanting a听work-life balance.听听

Some workers have had the opportunity to establish new more flexible working arrangements, specifically,听remote work, which can be considered as an improvement in conditions [meaning it] will remain an option for a large fraction of workers,听she explains.听听

On the other hand, workers in some industries have seen their working conditions worsen, due to the increasing health risk and employment uncertainty. Workers'听compensation in industries such as hospitality will have to catch up to keep their jobs attractive.听听

So, is this dissatisfaction a factor in employers'听difficulty in taking on casual hires right now, and what does it mean for employers who can't overcome it to hire staff or increase听retention听rates?听听

If there is a significant change in sentiment and workers will be more reluctant to take on low-security jobs,听says Dr Dechter.听Firms that cannot offer better听working arrangements听or higher compensation will struggle to hire skilled workers and might be forced to exit the market.听听

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