The number of investment firms has dropped sharply over the past two years as they struggle to keep up with demand for talent and growth in their global business, according to new figures from the Australian Investment Bank.
The figures show the sector is being hit by a lack of supply, with companies being forced to cut staff or leave the industry altogether.
And they suggest some companies have moved away from investing in areas like digital advertising and internet advertising, with a recent report suggesting digital advertising revenues are expected to drop from $5 billion in 2019 to $4.3 billion in 2020.
“The big question is what will the job market look like in a decade?” said the bank’s chief economist, Mark Hildebrand.
In a separate study, the bank also forecast Australia’s gross domestic product (GDP) will grow at its slowest rate in 25 years in 2020, and predicted it would be more than double the size of the US in 2025.
Its forecast is in line with what many economists expect.
But analysts said it was unclear what impact the sector would have on Australia’s growth rate.
Analysts said Australia’s labour market was still strong, with unemployment low and the number of people in work at record highs.
However, it is also experiencing an unemployment crisis, with fewer than a million people in the workforce, and the government’s unemployment target is set to be missed.
It is estimated that there are more than 12 million Australians who have found themselves out of work, meaning there are still a lot of people out there waiting to be paid their wages.
Mr Hildebrands forecast for 2020 will not be a particularly strong year for the sector, with the unemployment rate expected to reach 10 per cent, and he said it would continue to fall over the coming years.
What do you think about the employment figures?
Do you think there will be a rise in job losses at investment companies in the future?
Let us know in the comments below.
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