ManpowerGroup Employment Outlook Survey Reveals New Wave of Uncertainty Hits Aussie Employers
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ManpowerGroup Employment Outlook Survey Reveals New Wave of Uncertainty Hits Aussie Employers
Australian employers are paring back their growth plans for the year’s end, with hiring expectations dropping for the first time this year, according to the latest ManpowerGroup Employment Outlook Survey released today.
The survey of over 2,200 Australian employers indicates hiring pace may soften over the next three months. The seasonally adjusted Net Employment Outlook is at +19%, a five percentage point drop from the last quarter’s seasonally adjusted outlook. The number of employers planning to increase hiring has remained steady (at 27 percent), but the number of employers planning to decrease headcount has increased to seven per cent (up from six percent in Q3).
According to Lincoln Crawley, Managing Director of ManpowerGroup Australia & New Zealand, while hiring optimism has been tempered, the results are still strong overall.
“At the time of the survey, a looming election and talk of a double dip recession in the US may have affected employer confidence. However, the overall employment picture is still strong, especially compared to a year ago when the Net Employment Outlook was at +8% - it’s now 11 points higher,” said Mr Crawley.
The survey results were mixed across both industry sectors and geographies. Employers in the Transport & Utilities sector anticipated the most turbulence, with their Outlook dropping 19 percentage points to +15%, compared to +34% last quarter.
Both the Manufacturing sector (+11%, down from +18% last quarter) and Mining & Construction sector (+25%, down from +31% in Q3) have also seen reductions in employer hiring optimism looking towards the end of the year.
“After building inventory during the recovery, it’s not surprising to see these sectors paring back their investments at this time,” Mr Crawley said.
A similar trend is being played out regionally. Employers in both Queensland and Western Australia are reporting a reduction in employment expectations (QLD at +17%, down from +25% in Q3; WA at +32%, down from +37% last quarter).
“The results suggest that uncertainty around the mining tax has impacted the employers in the sector and the states in which they’re based. But it must be remembered that while hiring intentions have fallen, they’re coming off a remarkably high base. And the latest economic figures prove that whatever concerns they’ve experienced, resources companies are still driving much of the nation’s growth,” said Mr Crawley.
ManpowerGroup believes the real threat to growth isn’t a drop in demand but a shortage of skills. Its recent global Talent Shortage Survey found that in Australia, skilled trades – on which the resources sector relies heavily - are the nation’s number one area of skills shortage.
“We need a more detailed understanding of which skills and competencies are needed, then a national program for developing them. Strategic skilled migration is also crucial for ensuring we have the right skills, in the right place, at the right time,” he said.
Keeping skilled workers is the other big challenge. Right Management, a ManpowerGroup, recently released research that found when resources sector employees are made redundant, half of them leave the sector altogether
According to Rosemarie Dentesano, Talent Management practice leader at Right Management, “A large investment goes into attracting people to work in mining and resources and then training them in such a specialised area. So, it’s crucial that they don’t let the people they do have walk away from the industry.
“Employers need to invest both time and resources in improving engagement and retention, but they also need to become more sophisticated in the way they redeploy skilled workers. Ideally, when they finish one project, they should move seamlessly to another.”
Across the states and territories, Tasmanian employers have indicated their strongest hiring intentions since 2006, rising 15 percentage points both year-over-year and quarter-over-quarter to +23%.
Employment Outlook for Australian industry:
Sector | Q4 2010 | Q3 2010 | Q4 2009 |
|---|
Finance, Insurance & Real Estate | +28% | +27% | +8% |
Manufacturing | +11% | +18% | +3% |
Mining & Construction | +25% | +31% | +11% |
Public Admin/Education | +20% | +20% | +3% |
Services | +26% | +26% | +12% |
Transportation & Utilities | +15% | +34% | +10% |
Wholesale Trade & Retail Trade | +12% | +16% | +8% |
Employment Outlook for Australian regions:
Region | Q4 2010 | Q3 2010 | Q4 2009 |
|---|
South Australia | +19% | +15% | +4% |
Queensland | +17% | +25% | +7% |
Tasmania | +23% | +8% | +8% |
Victoria | +18% | +22% | +5% |
Northern Territory | +22% | +20% | +16% |
Western Australia | +32% | +37% | +4% |
New South Wales | +20% | +21% | +10% |
-End-
For further information and to arrange an interview please contact:
Kaley Payne, Buchan Consulting, +61 2 9237 2807, 0405 368 617 or kpayne@bcg.com.au
Belinda Thomson, Buchan Consulting, +61 2 9237 2800, 0421 193 668 or bthomson@bcg.com.au
Note to Editors
Commentary is based on seasonally adjusted data where available. Full survey results for each of the 36 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the ManpowerGroup Press Room at www.Manpower.com/meos. In addition, all tables and graphs from the full report are available to be downloaded for use in publication or broadcast from the ManpowerGroup Web site at http://www.Manpower.com/library.
A copy of the Q4 2010 ManpowerGroup Employment Outlook Survey Australian report can be downloaded from http://www.Manpower.com.au/research/studies.aspx
About the Survey
The ManpowerGroup Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the most extensive forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus. The Survey has been running for more than 47 years and is one of the most trusted surveys of employment activity in the world. The ManpowerGroup Employment Outlook Survey is based on interviews with over 61,000 public and private employers worldwide and is considered a highly respected economic indicator.
The ManpowerGroup Employment Outlook Survey is currently available for 36 countries and territories: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Costa Rica, Czech Republic, France, Germany, Greece, Guatemala, Hong Kong, Hungary, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Panama, Peru, Poland, Romania, Singapore, Spain, South Africa, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. The program began in the United States and Canada in 1962, and the United Kingdom was added in 1966. Mexico and Ireland launched the survey in 2002, and 13 additional countries were added to the program in 2003. New Zealand joined the program in 2004, China, India, Switzerland and Taiwan were added in 2005, and Argentina, Peru, Costa Rica and South Africa joined in 2006. Colombia, the Czech Republic, Greece, Guatemala, Poland and Romania joined in 2008, Hungary and Brazil were added in 2009, and Panama joined in 2010. For more information, visit the ManpowerGroup. Web site at www.Manpower.com and enter the Research Centre, or contact Bruce Bock, Sr. Global Communications Manager at bruce.bock@Manpower.com
About ManpowerGroup.
ManpowerGroup. (NYSE: MAN) is a world leader in innovative workforce solutions; creating and delivering services that enable its clients to win in the changing world of work. With over 60 years’ experience, ManpowerGroup offers employers a range of services and solutions for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. ManpowerGroup's worldwide network of nearly 4,000 offices in 82 countries and territories enables the company to meet the needs of 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of ManpowerGroup’s work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. ManpowerGroup. operates under five brands: ManpowerGroup, Experis, Elan, Jefferson Wells and Right Management. More information about ManpowerGroup. is available at www.Manpower.com.