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EMPLOYMENT EXPECTATIONS LIFT FOR FIRST TIME IN 3.5 YEARS
Hudson Report shows improving hiring intentions as organisations transform their businesses to meet the market
Sydney, Australia – 15 January 2014 – This quarter’s Hudson Report: Employment Trends1 released today, reveals a lift in hiring intentions among Australian organisations with 23.4% intending to take on more staff next quarter, an increase of 2.5 percentage points (pp). This is the first improvement in hiring expectations since Q3 2010.
Employers expecting to maintain current headcount remained steady at 65.4%, while intentions to decrease headcount dropped 2.6pp to 11.2%.
“We are seeing cautious optimism amongst employers, which is reflected in the lift in employment expectations. However, organisations in Australia are continuing to focus on business transformation and reskilling their workforces to operate most effectively in today’s tougher economic environment and this is driving demand for talent,” said Dean Davidson, EGM of Hudson Recruitment Australia..
When looking at the individual Australian states and territories, some significant state-specific industry fluctuations were revealed. Key findings included:
- Has the strongest intentions to hire for the second consecutive quarter, up 1.5pp to 25.7%
- Intentions to hire in the Government sector rose 10.3pp to 19.4%
- Has seen the most significant lift in hiring expectations, up 7.3pp to 25.5%
- Half (50%) of the Professional Services industry intend to hire in Q1 2014
- Positive hiring intentions for the Construction/Property/Engineering industry increased 20.1pp to 32.8%
- Positive hiring intentions for Resources and Mining increased 7.9pp to 31.0%
- 22.2% of Government employers expect to decrease headcount next quarter, up 9.9pp
- Positive hiring intentions for the state increased slightly, up 0.6pp to 23.9%
- The Financial Services/Insurance industry saw a 12.8pp increase in intentions to hire, to 38.9%
- The Resources and Mining sector also saw intentions to hire improve, up 6.6pp to 15.7%
- Construction/Property/Engineering saw an increase of 14.6pp in the number of employers expecting to maintain headcount numbers, to 66.7%
New South Wales
- As a whole NSW has remained steady, with intentions to hire down 0.3pp to 22.9%, while intentions to maintain headcount rose 2.1pp to 67.8%
- Many NSW industries saw large fluctuations in hiring intentions, particularly Financial Services/Insurance where expectations to hire improved 10.2pp to 27.3%
- Information Technology has the highest proportion of employers expecting to increase headcount in Q1 2014, up 7.1pp to 37.3%
- Followed by Professional Services sector at 31.1%, up 8.0pp
- Expectations to maintain headcount levels in Government and Manufacturing lifted 16.2pp to 64.3% and 10.2pp to 76.9% respectively
- Has seen the biggest rise in intentions to decrease headcount, up 6.7pp to 20.7%, the highest of all states and territories
- Hiring expectations for the Government dropped 5.1pp to 11.7%
- Has the lowest expectations to increase headcount, although positive hiring intentions have improved by 5.5pp to 21.7%
- Intentions to hire in Government rose 13.0pp to 23.9%
- Intentions to decrease headcounts in Manufacturing dropped significantly, down 24.1pp to 37.0%
Nationally, Professional Services has the highest positive hiring intention of all industries, up 6.6pp to 37.7%, followed by Information Technology, down 0.4pp to 35.6%. Manufacturing has the weakest hiring outlook with 10.8% of organisations expecting to hire.
“It is encouraging to see improvements in the overall hiring outlook, and particularly for Victoria and Queensland, which have seen the biggest improvements,” said Davidson. “Technology innovation, which helps businesses improve their consumer engagement models, is key to business transformation so it’s no surprise that IT is a profession that regularly tops our results tables. Project managers, business architects, developers of web-based technologies or have specialist security skills are in high demand.”
“The Queensland Government is also undergoing significant transformation and is focusing on building those necessary project manager and program director competencies, and solid leadership capabilities, into their ranks,” added Davidson.
“Right now Australian organisations are primarily focused on getting the right skills in place for the environment.”
1 Hudson surveyed 2,600 Australian employers about their hiring intentions January to March 2014
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The Hudson Report: Employment Trends 2013 has changed its reporting approach to achieve greater transparency and consistency across markets. This makes it simpler to compare results and geographical variations. From now on, Hudson will report on three findings: the percentage of employers intending to increase staffing levels, those intending to maintain them and those intending to decrease headcount. ‘Hiring expectations' refers to the proportion of employers intending to hire more employees during the forthcoming quarter. Hudson will no longer use the 'net effect' figure.
Hudson is a global talent solutions company with expertise in leadership and specialised recruitment, contracting solutions, recruitment process outsourcing, talent management, outplacement and eDiscovery. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. With more than 2,000 people in 20 countries, and relationships with millions of specialised professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com.
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