Download Media Kit
View Hudson Report
02 8908 520602 8908 5206
NSW EMPLOYMENT EXPECTATIONS AT 21-MONTH HIGH WHILE NATIONAL OUTLOOK HOLDS STEADY
Hudson Report shows significant improvements in the employment outlook for NSW while overall national hiring intentions remain unchanged for Q2 2014
Sydney, Australia – 25 March 2014 – This quarter’s Hudson Report: Employment Trends released today shows that hiring intentions among Australian organisations remains steady at a national level, with 23.3% intending to take on more staff next quarter, down 0.1 percentage points (pp). However, there has been movement at a state level, the most significant being a 5.0pp increase in intentions to hire in NSW, giving it the strongest employment outlook of all states, and its highest level since Q3 2012 with 27.9% expecting to hire.
“We are seeing the Australian economy go through a shift from being natural resources-driven to one that is more balanced; a move away from the two-speed economy,” said Dean Davidson, Executive General Manager, Hudson Australia. “An improved hiring outlook for NSW gives confidence because its economy is broad-based, with a balanced range of industries and professions. Often a strong employment outlook for NSW is a good indicator for the direction the national economy might take.
“The improvement in NSW’s employment outlook is being driven by hiring expectations in the Professional Services, Information Technology and Financial Services industries, which is typical of an active balanced economy,” said Davidson. “With NSW’s strengthening economic growth we’ve seen a sizeable employment increase in professional service businesses, while organisations continue to drive and leverage operational efficiencies via IT infrastructure enhancements and IT outsourcing.”
“There has been little change in the hiring expectations for South Australia and Victoria,” said Davidson. “In these regions we’re generally seeing some increased confidence and signs that businesses are starting to think about hiring, though not yet sufficient to influence overall hiring expectations. Right now, employers are opting for temporary staff or fixed term contractors, rather than increasing permanent headcount.
Over the last 12 months intentions to hold headcounts steady have been at their highest levels ever recorded in WA by The Hudson Report. Across mining, energy, engineering and contracting, employers have had less appetite to actively recruit for new positions or replace vacant roles immediately, as they watch and wait for the next signal from the market. Intentions to hold headcounts steady have also been high in Queensland over the last two years, where employers mirror these cautious recruitment sentiments.
“We’ve seen a significant swing towards maintaining headcount in the ACT and we suspect the introduction of the Australian Public Service Commission’s interim recruitment arrangements in November 2013 have had a significant impact here. Government agencies are ensuring there are no displaced employees within the agency or on the redeployment register suitable for a vacancy before seeking the APS Commissioner’s approval to recruit.”
Industries and professions
By industry, Professional Services has the highest positive hiring intentions, up 3.2pp to 40.9%. IT is second at 33.5%, while Financial Services/Insurance has the third strongest employment outlook, up 3.6pp to 29.2%. Government has the lowest intention to hire at 14.6%, and the highest intention to maintain headcounts, up 4.3pp to 70.8%. Resources and Mining now has the highest expectation to decrease headcounts, up 9.5pp to 20.9%.
It terms of professions, Legal has the best employment outlook with 39.6% intending to hire. The Public Sector saw the biggest improvement in intentions to hire, up 7.0pp to 23.2%, followed by Accounting & Finance up 4.5pp to 20.1% and Human Resources up 3.3pp to 20.0%. “I’m encouraged to see the lift in hiring intentions for Human Resources. Investment in HR happens when organisations are looking to get more active with their talent, and it’s a good lead indicator of positive intent,” said Davidson.
“That said, it’s fair to say sentiment is still cautious in the Australian labour market as a whole, which these findings and economic data support. The move to a more balanced economy isn’t painless, and we’ve seen some organisations hurt while they go through the business transformation process to equip themselves for success in today’s tougher operational environment. This is the hard part of business transformation, but it’s important that Australia becomes more competitive, and strategic talent management is an essential part of that journey.
“Developing a workforce with the right capabilities, skills, behavioural and motivational fit, has a material impact on productivity and is essential for the business transformations we are going through to be successful.”
1 Hudson surveyed 2,887 Australian employers about their hiring intentions January to March 2014
Please contact us for more information, print-ready graphs or to arrange an interview.
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.
This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions' that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; risks related to fluctuations in the company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the company at any time; competition in the company's markets; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's ability to implement cost reduction initiatives effectively, including the recently announced restructuring program; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; risks in collecting the company's accounts receivable; the negative cash flows and operating losses that the company has experienced from time to time in the past may reoccur in the future; restrictions on the company's operating flexibility due to the terms of its credit facilities; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to our dependence on uninterrupted service to clients; the company's exposure to employment-related claims from both clients and employers and limits on related insurance coverage; volatility of the company's stock price; the impact of government regulations; and restrictions imposed by blocking arrangements. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.