Data reveals staggering decline in financial and insurance job vacancies

The latest data from the Australian Bureau of Statistics (ABS) has revealed that the financial and insurance services sector experienced the most significant decline in job vacancies, contracting by 15 per cent during the three-month period ending in August.

This is also the only industry to now have vacancies lower than they were in February 2020, the ABS said.

According to the ABS methodology, financial and insurance services encompass financial investment advisers and managers, financial brokers, bank workers, accountants, and, as of recently, financial advisers.

Namely, last month, the ABS announced its acknowledgment of the financial advice profession by granting in-principle acceptance to the recommendation put forth by the Financial Advice Association Australia (FAAA) to adopt the protected terms “financial adviser/financial planner” as the primary titles for its occupation unit. Previously, advisers were categorised with the primary designation of “financial investment advisers and managers”.

In proposed changes to the Australian and New Zealand Standard Classification of Occupations (ANZSCO), the ABS also extended its recognition with the introduction of a new classification of paraplanner as an emerging occupation.

“Stakeholder feedback helped identify key areas for improving the occupations in-scope of the financial and insurances focus area and helped to shed light on emerging trends and occupations within the sector,” the ABS said in its proposed changes.

“Industry bodies shared valuable perspectives, offering insights into the changing regulatory landscape, evolving job roles, and the need to address ‘back office’ and ‘stepping-stone’ positions. This knowledge proved instrumental in ensuring ANZSCO’s relevance and responsiveness to the dynamic labour market.”

At the time, the FAAA said the ABS recognition was critical for the financial advice profession.

“Improving the ANZSCO to better reflect the provisions in the Corporations Act and current roles and practices in the profession is critical as its classification of occupations underpins the dataset that informs all government policy decisions including on vital matters such as immigration, education and training, financial literacy, and financial services,” the FAAA said.

Consultation on the complete set of proposed changes will take place in mid-2024, with the ANZSCO update to be finalised in December 2024.