The unemployment rate in Australia today is the lowest it’s been since 1976.
The official unemployment rate in Australia right now is 3.5 per cent. For women, it’s even lower at 3.4 per cent, which is the lowest female unemployment rate since 1974.
In other words, if you want a job today, you can get one.
That might sound ridiculous but it’s true.
There are 494,000 unemployed people and 480,000 job vacancies, meaning there is now almost one job for every person looking for one, according to the Australian Bureau of Statistics.
For some perspective, that number is up from a ratio of 3:1 before the pandemic.
Jobs are important to the overall health of our economy; people need a job to get an income, and an income to live.
Jobs also play a vital role in demand for land and housing.
I wrote in my book Bulletproof Investing that I choose to invest in land, because it’s a finite resource that will increase in value over time, particularly in areas with growing populations.
Population growth drives demand for housing, and no one can live in a town or suburb unless they can get a job nearby.
The Top 5 job industries of employment in Australia are:
If we go a layer deeper and look at the Top 5 industries by growth over the past three years (i.e., since the pandemic) it paints an even more interesting story:
The commonalities are healthcare, professional services and education. Those three industries are not only some of the biggest employers, but also the fastest growing.
So what does it all mean?
Jobs in the health care industry are generally built around hospitals and aged care facilities.
Professional services jobs generally require proximity to central business districts, or business parks. You’ll also find public administration and financial services jobs there, too; both in the Top 5 for growth the last three years.
Education and training jobs generally require proximity to schools, universities and TAFE’s.
Therefore, it’s a safe bet to buy land in areas with proximity to a central business district, hospital, aged care facilities, schools and universities.
If you can find a unicorn with all five, then you’ve hit the jackpot.
There’s also merit in being close to shopping centres, neighbourhood centres and high streets because that’s where most retail jobs are located. While not one of the fastest growing employers in the last three years, the retail industry employs one in 10 Australians.
Construction jobs can be anywhere so proximity to motorways and highways will generally be the pre-requisite for those workers.
While it’s true most population growth occurs in affordable outer city suburbs, if you’re investing in real estate, it’s important the land is near all these types of infrastructure and amenity, particularly as most households have more than one income earner.
Healthcare is the X factor of property investment though.
States and territories that invest heavily in healthcare, with suburbs in good proximity to hospitals and ancillary health services, are going to outperform all others when it comes to population growth and demand from housing.
How can they not when the industry is already Australia’s biggest employer, has added the most jobs in the last 10 years, and second most in the last three years?
