From February to August this year, COVID-19 has severely impacted the employment rate across many industries in Australia. In fact, there were 523,200 fewer jobs in August 2020 than there were in February 2020.
Over the quarter of February-May, almost half a million jobs were lost in just three industries (arts, hospitality and transport), which is 56% of all jobs lost in that period. We covered this and more in our May report here.
However, these industries and more are beginning to show signs of recovery in the quarter of May-August. Not every industry has suffered during COVID-19 with some industries and jobs thriving, and some expected to continue growing in a post-COVID world.
The worst affected industries in the past 6 months
| Total employed persons by industry | August 2020 | February 2020 | Difference | % Difference |
|---|---|---|---|---|
| Accommodation and Food Services | 760,670 | 930,500 | -169,098 | -18% |
| Manufacturing | 843,910 | 909,646 | -65,737 | -7% |
| Retail Trade | 1,196,674 | 1,261,068 | -64,393 | -5% |
| Other Services | 437,610 | 493,228 | -55,618 | -11% |
| Transport, postal and warehousing | 612,488 | 667,079 | -54,591 | -8% |
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 169,098, losing 18% of its workforce since February 2020. Within this industry, workers in the subcategory of food and beverage services accounted for 91% of those jobs lost, with the remainder working in accommodation.
Why?
- Forced closure of restaurants, cafes and food courts.
- Late implementation of open-air dining into the sector. Only announced in August.
- Significantly less tourism
Manufacturing
There were 65,737 fewer jobs recorded in August 2020 compared to February 2020, which equates to a 7% loss of its workforce. Within this industry, the subcategory of Food Product Manufacturing was the worst hit sector accounting for 82% of the entire industry’s loss of jobs.
Why?
- Large and constant swings in demands of consumer behaviour in regard to food manufacturing during COVID.
Retail Trade
The retail industry saw reductions of 64,393 jobs from February to August 2020, which was 5% of its workforce, with every subcategory within it reporting losses bar e-commerce which saw an increase of 3% or 779 new jobs.
Why?
- According to ABS data, the monthly turnover of all retail trade fell by a record 17.7% in April 2020, due to the effects of the pandemic.
- E-commerce alternatives saw a dramatic increase in demand.
Other Services
The Other Services industry includes a broad range of personal, religious, civic, professional and other interest group services, as well as repairing and/or maintaining equipment and machinery. There were 55,618 fewer jobs in this industry in August compared to February, a difference of 11%. Within this industry, the subcategory of Repair and Maintenance was the worst hit sector with 29,518 jobs lost.
Why?
- Many personal services such as hair, beauty, diet and waste management were not deemed essential during the peak of the pandemic resulting in many store closures.
Transport, Postal and Warehousing
There were 54,519 fewer jobs recorded in August 2020 compared to February 2020, which equates to a 8% loss of its workforce since Covid began. Within this industry, the subcategory of transport support services and air and space transport was the worst hit sector accounting for 80% of the entire industry's loss of jobs.
Why?
- Significantly less business for airlines due to fewer travellers with border closures.
- The Transport Industry was hit hard due to freight transport restrictions within state borders up until August.
- Truckers in victorias required to self-isolate after COVID-19 testing as the state doesn’t have asymptomatic casual testing.
Industries that have thrived in the past 6 months
| Industry | August 2020 | February 2020 | Difference | % Difference |
|---|---|---|---|---|
| Public Administration and Safety | 861,971 | 829,629 | 32,341 | 4% |
| Agriculture, Forestry and Fishing | 359,902 | 337,528 | 22,374 | 7% |
| Wholesale Trade | 402,092 | 385,966 | 16,126 | 4% |
| Electricity, Gas, Water and Waste Services | 151,343 | 136,246 | 15,097 | 11% |
| Education and Training | 1,111,655 | 1,097,580 | 14,075 | 1% |
Source: Finder, ABS. Ranked by highest number of jobs gained
Public Administration and Safety
There were 32,341 more workers in the public administration and safety industry in August than in February 2020, a rise of 4%. Within the industry, the subcategory of public administration has grown the most, accounting for 51% of the entire industry’s growth. Subcategories defence and public order/safety and regulatory services account for 49%.
Why?
- Jobs in public order/safety and regulatory services are increasing due to the public response to the pandemic including mass demonstrations.
- State border closures and COVID testing sites need security and/or safety workers.
- COVID Safe policing in public areas and most businesses.
Agriculture, Forestry and Fishing
The total number of Australians employed in agriculture, forestry, and fishing was 359,902 as of August 2020, which is 7% higher than February 2020 at 337,528. However, agriculture was the only subcategory with significant growth as it increased by 27,959 workers (10%).
Why?
- Increase in jobs in farming due to a rapid increase in demand for produce as panic buying escalated across the country amid the pandemic. A higher increase in demand correlates to higher staff levels.
Wholesale Trade
Wholesale trade saw an increase of 16,126 jobs, which is a rise of 4% of its workforce. The largest increase in employment within that industry was in grocery, liquor and tobacco products.
Why?
- Panic buying caused a large spike in grocery spending, resulting in an increase in demand for wholesale trade workers.
Electricity, Gas, Water and Waste Services
The electricity, gas, water and waste services industry saw an increase in workers from 136,246 in February 2020 to 151,343 in August 2020 – a difference of 15,097 or 11%. Within this industry, electricity supply and water supply saw the biggest increases, accounting for 79% of the entire industry’s jump in employment.
Why?
- Almost half of the Australian workforce worked from home during the peak of the pandemic increasing utility usage across households and thus a higher demand for its workers.
Education and Training
Education and Training has seen an increase of 14,075 new jobs from 1,097,580 in February 2020 to 1,111,655 in August 2020. Tertiary education saw the largest rise within the industry increasing by 14% over the 6 month period.
Why?
- Most universities have begun allowing on-campus lectures and tutorials in NSW while also accommodating for online alternatives.
- Workers wanting to upskill after losing their job or professional development to keep their job secure.
Year-on-Year
The number of Australians employed was over 12.5 million as at August 2020, 3% lower than August last year, which had over 12.8 million Australians employed. The hospitality industry was hit the hardest with employment dropping by 139,427 when compared to August 2019, a difference of 15% of its workforce. Followed by administrative and support services with a difference of 73,569 over the year and a difference of 16% of its workforce.
The industries that have fallen the most in the past year:
| Industry | August 2020 | August 2019 | Difference | % Difference |
|---|---|---|---|---|
| Accommodation and Food Services | 760,670 | 900,097 | -139,427 | -15% |
| Administrative and Support Services | 400,249 | 473,818 | -73,569 | -16% |
| Other Services | 437,610 | 505,041 | -67,431 | -13% |
| Transport, Postal and Warehousing | 612,488 | 668,207 | -55,718 | -8% |
| Professional, Scientific and Technical Services | 1,118,519 | 1,161,844 | -43,325 | -4% |
Source: Finder, ABS. Ranked by highest number of jobs lost
The industries that have increased the most in the past year:
| Industry | August 2020 | August 2019 | Difference | % Difference |
|---|---|---|---|---|
| Public Administration and Safety | 861,971 | 797,958 | 64,012 | 8% |
| Financial and Insurance Services | 482,423 | 441,502 | 40,922 | 9% |
| Agriculture, Forestry and Fishing | 359,902 | 319,148 | 40,753 | 13% |
| Health Care and Social Assistance | 1,772,373 | 1,742,065 | 30,308 | 2% |
| Rental, Hiring and Real Estate Services | 215,358 | 207,630 | 7,728 | 4% |
Source: Finder, ABS. Ranked by highest number of jobs gained
The past 20 years
- The manufacturing industry saw the biggest reduction in jobs over the past two decades, decreasing by 233,207 workers, 22% fewer jobs than in August 2000.
- Agriculture, forestry and fishing saw the second-highest hit with 72,620 fewer jobs in this industry, a decrease of 17%.
- On the flipside, health care and social assistance saw the highest growth in the past 20 years, with 933,026 more jobs, an increase of 111%.
- While professional, scientific and technical services increased by 533,783 jobs (91%) followed by education and training increasing by 460,609 jobs (71%).
- Mining grew the most by percentage of its workforce which increased by 203% (161,197 jobs)
The industries that have fallen the most in the past 20 years:
| Industry | August 2020 | August 2000 | Difference | % Difference |
|---|---|---|---|---|
| Manufacturing | 843,910 | 1,077,117 | -233,207 | -22% |
| Agriculture, Forestry and Fishing | 359,902 | 432,522 | -72,620 | -17% |
| Information, Media and Telecommunications | 194,203 | 219,200 | -24,997 | -11% |
Source: Finder, ABS. Ranked by highest number of jobs lost
The industries that have increased the most in the past 20 years:
| Industry | August 2020 | August 2000 | Difference | % Difference |
|---|---|---|---|---|
| Health Care and Social Assistance | 1,772,373 | 839,347 | 933,026 | 111% |
| Professional, Scientific and Technical Services | 1,118,519 | 584,737 | 533,783 | 91% |
| Education and Training | 1,111,655 | 651,046 | 460,609 | 71% |
| Construction | 1,152,411 | 697,076 | 455,334 | 65% |
| Public Administration and Safety | 861,971 | 486,630 | 375,341 | 77% |
Source: Finder, ABS. Ranked by highest number of jobs gained
Fred’s forecast: industries likely to succeed post COVID
The following industries are likely to continue growing fost COVID 19:
- Public Administration and Safety: As COVID has changed the face of public safety service, it's expected that they’ll be a lasting effect and continuous investments in this industry.
- Professional, Scientific and Technical Services: Innovations in this sector for work-life and travel during a pandemic (e.g video conferencing) will continue to be useful.
- E-commerce: Consumers are becoming increasingly accustomed to the convenience of online shopping due to it being the only alternative to several closed brick and mortar stores. Innovations in this sector are expected to continuously increase demand for its workers.
Fred Schebesta, Co-founder of Finder:
It’s encouraging to see that some industries are showing signs of recovery, and are starting to re-hire those positions that were lost at the start of the pandemic. There’s also been huge opportunities in some areas that are thriving in the pandemic.
For instance, we've seen a boom in employment for accommodation and food services with 108,299 more jobs in August compared to May, as many restaurants and cafes have reopened.
Growth continues to be shown in e-commerce, it’s the only subcategory in the retail industry that has increased over the past 6 months. I only expect e-commerce to continue to grow as people become more accustomed to the massive convenience of shopping online especially during a era such as this.
The impact of COVID-19 on the economy has caused a tidal wave of damage that we won't stop hearing about any time soon. However, the interest rate set by the Reserve Bank of Australia is still at a record low of 0.25, hopefully this factor coupled with the signs of job recovery in suffering industries encourages some spending and consumer confidence.
Image source: Getty Images