Which industries have weathered the storm during COVID-19?

If you wish you could restart the clock on 2020, you’re not alone. It’s been a tough year for many of us, with COVID-19 impacting our lives, the economy, and the way we work.

There have also been huge impacts to the job market, but job ads are slowly returning in some areas and there are roles and industries that are in demand.

Now, as we pass the halfway point of this year, let’s look at which industries have managed to perform well during the pandemic and what’s next for the job market.

What’s the next phase?

Australia’s economy is moving into a recovery phase, says Ivan Colhoun, Global Head of Research, MarketsCorporate & Institutional Banking at National Australia Bank.

“The economy was hit very hard by COVID-19 is March and April, but things began to improve later in May,” he says.

“Some sectors have reopened, which is creating more activity in the economy. We can also see recovery through mobility search data” says Colhoun, meaning more people are drawing on their transferable skills to look for jobs in industries outside of their traditional industry.

Which industries were hit the hardest?

Despite the signs of recovery, some industries will be slower to recover than others as they have been more exposed to COVID-19 restrictions, Colhoun says.

“No one was going to the cinema, for example. Heritage activities like museums were hard hit because of social distancing,” he says.

Hospitality and retail sectors were also hit hard, with many restaurants, bars and retail stores having to close or reduce opening hours due to lockdown restrictions.

Limitations on travel and a reduction in commuting have also had an impact. “Rail transport spending is down 84% because more people are working from home. Air and transport spending is down 83% and accommodation is down 75%,” Colhoun says.

Which industries have performed well?

Some industries have weathered the economic storm. With more people requiring technology to work from home, Colhoun says internet publishing and broadcasting has been among the strongest performers. This may be due to more people signing up to streaming services or updating computer software during the COVID-19 lockdown. Streaming giant Netflix, for example, more than doubled the number of global subscribers it had expected over the three months to end of April.

“The building cleaning industry has also been strong, especially with the increased focus on sanitation,” he says. Without a COVID-19 vaccine, this trend looks set to continue.

“Online gambling has also performed quite well, along with food retailing, because people have not been able to eat out at restaurants.”

What’s next for the job market?

Colhoun predicts the industries worst affected by the COVID-19 lockdown restrictions may see the sharpest spike in job ads as the economy continues to recover.

“When you look the industries where job ads have been weakest, it's in the sectors that have been completely closed down, which is a lot of service industries,” he says.

“When an industry has effectively been shut down, when it reopens, there will obviously be more activity.”

There are signs the economy is entering a recovery phase, but there’s still a long way to go. And with some parts of the country under renewed lockdown restrictions, recovery will play out differently across the states and territories. We’ll keep you posted on how the job market moves – you can also keep an eye on the industries that are hiring now and roles where job ads are rising