Traditional industries dominate Australia’s job market despite AI discourse

In a recent study conducted by Macquarie University, it has been revealed that Australia’s job market remains largely dominated by traditional industries such as mining, construction, retail, and hospitality, despite the global discourse surrounding the burgeoning field of artificial intelligence (AI). This research utilised data from market intelligence firm LinkUp, providing insights into employment trends and industry hiring patterns across the nation.

The analysis shows that, contrary to widespread predictions, there has not been a significant shift towards AI-related job roles within Australia. This finding is particularly striking given the growing emphasis on AI skills in global employment narratives. Professor David Orsmond, a researcher at Macquarie University, commented on the disconnect between expectations and current job market realities. He noted, “There’s a belief that AI-related skills are driving job growth, especially in consulting and IT, and that these technologies are causing disruptions in lower-skilled roles. However, the data show that this shift hasn’t occurred in Australia yet.”

Possibly dispelling the anticipated rapid change, traditional sectors continue to dominate employment statistics. Mining giant Glencore, along with construction firms Downer and Compass, remains at the forefront of hiring. Similarly, retail behemoths such as Coles and Domino’s Pizza, and financial institutions like the Commonwealth Bank of Australia, ANZ, and Macquarie, make up a significant portion of the employment landscape. This data consolidates the understanding that these industries are still the powerhouse of employment opportunities in Australia.

Despite the narrative of advancing technology, only a few tech-focused employers, such as Accenture, have managed to break into the top echelons of employers, appearing among the top 20 in both 2022 and 2023. This suggests that technology’s broader impact on employment sectors could be slower than anticipated.

The report further underscores the robustness of the retail and hospitality sectors amidst economic uncertainties, including rising interest rates. Associate Professor Mauricio Marrone of Macquarie University noted the resilience of these industries, stating, “The strong demand in retail and hospitality, even with rising interest rates, was one of the more surprising findings.” This trend has been attributed to increased discretionary spending, a post-pandemic phenomenon.

Moreover, prominent players in hospitality like Accor Hotels and Marriott, along with retail entities such as Harvey Norman, Just Group, and luxury conglomerate EssilorLuxottica, continue to be significant job providers. This persistent demand in the face of economic pressures suggests that interest rate hikes have not yet significantly curtailed consumer spending, thus maintaining job stability in these sectors.

The findings from Macquarie University highlight a temporary standstill in the anticipated shift towards AI, enforcing the idea that traditional industries, for the time being, continue to be the backbone of Australia’s job market. Such insights offer a grounded perspective on employment trends and may suggest a slower trajectory towards technology-driven employment in the near future.

Source: Noah Wire Services