Contact: Katy Knowles
Hudson
02 8233 2360
katy.knowles@hudson.com

Contact: Abigail Koch
Hill & Knowlton
02 9286 1227/0401 597 284
akoch@hillandknowlton.com.au

Media Release

Embargoed until 12.01am AEST 29 June 201
 

EMPLOYER CONFIDENCE REMAINS STRONG DESPITE SOFTENING SENTIMENT: POSITIVE EMPLOYMENT EXPECTATIONS ACROSS ALL INDUSTRIE

Sydney, Australia – 29 June 2011 – Employer confidence remains upbeat despite a drop in sentiment over the July – September 2011 quarter across most of Australia, according to Hudson’s new Employment Expectations report, reflecting the views of 4,852 Australia-wide employers surveyed in late May.

Just under a third of Australian employers are set to grow staff numbers during the quarter, with net 30.8% expecting to increase the number of permanent employees and 53.8% intending to hold headcount steady. This result is 2.1 percentage points (pp) lower than the results recorded during the last quarter and a 4.2 pp fall in sentiment year-on-year.

“Results show that all industries have positive employment expectations for the next quarter as they look to strengthen their workforce and position themselves for future growth, said Mark Steyn, CEO Hudson Australia/New Zealand.

“However, there are marked differences across industries, with employers in resources and construction well placed to battle for the best talent while those in trade-based industries are challenged to manage costs.

“The job market is buoyant in certain sectors, which works in favour of employees, as employers face increased competition for the most talented candidates, forcing some companies to raise salaries and offer more appealing contract opportunities in order to attract
and retain the most skilled employees,” commented Steyn.

Employer confidence in Western Australia has bucked the general trend and is the only State to have rising sentiment, with a strong net 50% of employers planning to increase permanent staff levels during the next quarter. This is a rise of 2.6pp compared to that reported last quarter. “Western Australia has the highest level of employer confidence nationally boosted by the growing demand for qualified employees within the resources industry,” said Steyn.

Positive sentiment in Queensland following last summer’s natural disasters remains largely unchanged with only a fractional 0.3pp decline in employer confidence since last quarter’s results. For the July – September 2011 quarter net 37.3% of employers are intending to
increase headcount. “Demand for Queensland’s natural resources ensured that labour requirements within the mining industry remained mostly unaffected and production levels were quickly restored following the cyclone and floods,” said Steyn.

Resources remain the most confident industry nationally with net 59% of employers planning to increase permanent headcount over the next quarter; this is a rise of 3.3pp compared to the previous three month period. “The resources industry is set to spend $83.3 billion over the next financial year on new infrastructure and equipment, putting increasing pressure on an already skill short sector. The Federal Government has recently announced a suite of regional migration initiatives to tackle this shortage as employers continue to broaden their skills search overseas,” commented Steyn.

The sustained demand for resources is driving positive employer sentiment within the construction/engineering industries. Despite a fractional decrease of 2.1pp than that recorded during the last quarter, demand for resource-associated engineering and infrastructure has contributed to net 43.5% of employers within these industries expecting to increase permanent employee numbers over the next quarter.

Employer sentiment varies considerably across the different industries. Employer confidence in professional services remains strong with a fractional rise in sentiment of 0.9pp than that recorded during the last quarter. Net 50.3% of employers expect to increase employee
numbers as the trend for organisations to outsource projects and functions, rather than employ permanent members of staff continues. Yet for the fourth consecutive quarter employers within the financial services industry reported a drop in confidence from the March 2010 quarter high, with sentiment decreasing 7.0pp and net 26.6% of employers expecting to increase permanent headcount over the coming three months.

The survey shows that employer confidence within the wholesale/distribution industry has risen most dramatically compared to last quarter’s results. Employer sentiment rose 7.2pp, with net 29.6% of employers intending to take on more staff over the coming three months.

This is the highest level of confidence the wholesale/distribution industry has felt since the quarter July – September 2008.

Steyn commented, “According to the RBA, the impact of the mining boom, soaring commodity prices and growth in the investment industry are positively impacting employment in utilities, transport & business services, whereas the persistently high Australian dollar and subdued consumer sentiment is leaving trade-exposed industries facing tougher conditions.

“Most notably it is industries that are pegged to foreign consumption, namely resources, professional services and wholesale/distribution, that are faring well and seeing increasing employer confidence.

“We are technically at full employment with an unemployment rate at a record low of 4.9%. This coupled with a strong Australian dollar and a burgeoning skills shortage, is putting increasing pressure on businesses to identify and retain the best talent,” said Steyn.

“Australian businesses need to ensure they have robust selection procedures and talent management programmes in place to stand out from their competitors and attract and retain the most talented candidates.”

- ENDS -

Editor Note
Please contact us for more information and print-ready graphs or to arrange an interview.

The Hudson Report is an established and highly reputable publication, based on in-depth and nationwide research. Released quarterly, the report uncovers and analyses the hiring expectations of Australian employers over the forthcoming quarter and provides insights into
a range of human resource issues currently impacting business and the broader Australian economy.

In its tenth year of quarterly publication, the Hudson Report combines robust data on employment expectations with economic commentary and extensive market insights gleaned from Hudson’s conversations with employers nationwide. Hudson Report: HR Insights is used by employers throughout Australia to stay abreast of contemporary human resources issues and best practice. Hudson Report: Employment Expectations is a leading economic indicator and a trusted source of information on issues and trends affecting the Australian
labour market. It is used by Australia’s wider business community to assist in long-term strategic planning.

Results for this issue of the Hudson Report were gathered through interviews with 5,072 employers across Australia, conducted by Hudson recruitment, talent management and managed services professionals. Participants are surveyed from 19 core industry groups, aligned with the Australian Bureau of Statistics industry classifications. Copies of the Hudson Report are available at www.au.hudson.com

About Hudson
Hudson (NASDAQ: HHGP) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total project solutions, Hudson helps clients achieve greater organisational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 2,000 professionals serving clients and candidates in approximately 20 countries