Australia’s two-speed economy is driving huge differences in hiring expectations as mining demand and record terms of trade continue to significantly benefit the resources, professional services and IT industries, according to Hudson’s latest ‘Employment Expectations’ report.
The report was based on a survey of 3,840 employers across Australia in late August and found that employer sentiment dropped 5.5 per cent year-on-year to its lowest level since the October-to-December 2009 quarter.
According to Hudson, sentiment across Australian employers slipped 2.8 per percentage points over the last quarter to net 27.9 per cent, its lower level in two years.
Despite this drop, the professional services sector remained steady, recording the second highest level of confidence by industry (behind the resources sector) with sentiment up 0.5 per cent over the quarter to net 50.8 per cent, the report stated.
Hudson chief executive officer Australia/New Zealand Mark Steyn said that although employer sentiment was weak in some sectors, industries involving resources, professional services or IT remained strong.
"With sharp falls in stock exchanges around the world, growing concern over Europe’s sovereign debt crises and worsening economic news from the US, it is unsurprising that confidence in trade-based industries slipped over the quarter," said Hudson Australia/New Zealand chief executive officer Mark Steyn.
Western Australia led the national employer sentiment, which rose 7 percentage points over the quarter to net 57 per cent. Meanwhile, Victoria was Australia’s least confident state, slipping 4.6 percentage points to net 20.4 per cent over the June quarter, the report stated.
"This environment creates particular challenges for hiring managers," Steyn said.
"Today’s uncertain economic environment means passive job seekers are perhaps less inclined to contemplate a career move."
Steyn said clearly communicating the benefits of an organisation beyond salary, to both passive and active job seekers, remained pivotal to maintaining a strong talent base for the future.
