Time for a pay rise? The Australian job market looks promising in 2022
23 February 2022 Sharyn Waterworth
While many experts and recruitment agencies (us included) were bracing for the Great Resignationto hit Australia, something else is afoot in the Australian job market in 2022: labour and skill shortages are offering candidates more negotiating power should they choose to swap companies in search of a pay rise, promotion or new opportunity.
For employers, this might be a cause for concern as they scramble to fulfil job vacanciesrequiring highly sought after skill sets. But for candidates, it presents an exciting opportunity.
After years of stagnant wage growth due to the pandemic, many are hungry for a salary increase. In fact, six in 10prospective job seekers said they were primarily motivated to leave because they hadn’t seen a pay rise since the start of the pandemic.
So, what does this mean for your next career move? While your current employer may be unlikely to hand out a pay rise in the current climate, it does mean you have more negotiating power when applying elsewhere.
According to LinkedIn’s figures, the current number of applications per job is down 63% compared to the same period last year. With a significantly smaller candidate pool, candidates can leverage negotiating power to ask for things they might not normally.
For instance, if working from home is important to you and your current employer is transitioning staff back to the office, you could negotiate working remotely (or at least on a part-time basis). If you believe you deserve a salary increase and your current employer isn’t willing, now is a great time to search for it elsewhere.