Hiring optimism down in all sectors bar manufacturing

Hiring optimism in Australia is expected to weaken in Q4 this year, falling to a Net Employment Outlook of +3% from +6% in Q3, the latest Manpower Employment Outlook Survey shows.

Manpower says the fall is in line with a year of tough economic conditions and political uncertainty, and is the weakest forecast reported by Australian employers in more than four years.

The survey, which gauges the hiring intentions of more than 1500 employers in Australia for the coming quarter, found 17% plan to increase their hiring, 14% plan to decrease and 69% will make no changes to their hiring plans. The resulting Net Employment Outlook of +3% reflects the downcast employer sentiment in Australia.

“This year has been a tough one for business, with the uncertainty around the election putting an added strain on the market,” said Lincoln Crawley, managing director, ManpowerGroup Australia and New Zealand.

“The falling Australian dollar and interest rate cuts in the past few months have taken longer than hoped to lift business confidence, with indicators in August hitting a four-year low. The latest survey results paint a stark picture of the fragmented market, with results across nearly all industry sectors and regions falling. This contraction has been acutely felt in the resource, manufacturing, retail and finance sectors.”

Among the sectors, Mining and Construction has dropped four percentage points, to a disappointing -6%. The Transport and Utilities sector took the largest hit, falling nine percentage points to a Net Employment Outlook of +5%.

On the flip side, employers in the Manufacturing sector expect a rise, reporting a Net Employment Outlook of +1% for Q4, up two percentage points from last quarter.

“In this environment it’s critical for all organisations to have a well-thought-out flexible workforce strategy,” Crawley said.

“It can be tough to make talent your priority when cost cutting is widespread; however, it’s vital that organisations increase their focus on improving workforce productivity and effectiveness. To maximise existing talent, business leaders should be reviewing employee development schemes, upskilling and looking for opportunities to leverage training initiatives.

“Job seekers should take heart that projects and developments which were put on hold until after the election will likely start to get moving again.

“Employers should take some time to understand exactly what their talent needs will be, not just now, but three and five years down the track. Every talent strategy should be closely aligned to business aims and opportunities for future growth.”