The demand for labour in the Australian economy as a whole sharply worsened from around April 2019.
The Reserve Bank swung into action with three historic, record interest rates cuts. The official interest rate was 1.5% in May 2019 and then reduced by 0.25% in June and then again by the same amount in July.
The 1% official interest rate played its part in putting a floor under the demand for labour. However, uncharacteristically, the demand for employee solicitors (as measured by the number of job advertisements) deteriorated far worse than job ads for the economy as a whole.
By October 2019 there were 12% fewer job ads for solicitors compared to the same month in the previous year. This compared to an 8% reduction for all occupations aggregated.
Then the RBA went ‘crazy’ with another 0.25% cut in October 2019.
The latest job ad figures show that the demand for solicitors by December 2019 was 3% lower than one year ago. While this is still a negative result for a 12 month period, it is a huge improvement from October 2019. Even more significant is that it is now much better than the overall economy which has 9% fewer job ads compared to December 2019.