Data released by Seek shows the number of new job adverts has fallen over the month of July, while the number of Aussies looking for work has increased.

At the same time, data from the ABS has revealed that total job vacancies still remain 57 per cent higher than pre-COVID at 362,500.

However, the tightening job market has not been born by strengthening labour conditions or an increase in labour supply, but instead by new outbreaks of COVID-19 across the major cities.

As such, Seek saw the number of job ads drop by 4.1 per cent, albeit remaining 20.6 per cent above pre-COVID norms.

According to Seek ANZ’s managing director, Kendra Banks, restrictions in the country’s biggest employer, NSW, have put a larger drag on the national figures.

“For example, in the hospitality and tourism industry, job ads fell nationally by 30.7 pre cent in July, following a drop of 63.3 per cent in New South Wales,” she said.

At the same time, job applications grew by 2.6 per cent in July, suggesting Australians are looking to get back to work.

“Despite the increase, applications are still subdued – in comparison to the same month two years ago, current applications per job ad are 33 per cent lower,” Ms Banks continued.

Separate research by ANZ’s head of Australian economics, David Plank, showed consumer confidence was down by 3.1 per cent last week as fresh lockdowns were announced in parts of Queensland and Victoria.

These numbers are being reflected in the jobs market, with consumers becoming hesitant to leave their current positions.

“Job security remains the number one priority for workers, and there is a reluctance to switch roles in the market,” said Ms Banks.

With Sydney facing the longest lockdown, unsurprisingly, the state was the worst performing, seeing a 14.2 per cent reduction in the number of new job adverts.

However, Ms Banks is confident that the pain for businesses and workers could be short-lived.

“Previous lockdowns in Victoria show that job ad volumes can bounce back quickly, and we hope to see a similar response in states facing restrictions at the moment,” she said.

Strangely, Victoria managed to defy lockdowns and was the only state in the country that saw an increase in job ads, which increased by 4.5 per cent in July.

States, including the ACT, Western Australia and Northern Territory, still saw job ads decline despite trading as usual.