Job market sees oversupply of financial advisers
There seems to be a slight oversupply of investment professionals including financial advisers and brokers, while the demand for accountants has more than doubled in the Australian jobs market.
This is according to the latest Clarius Skills Index, which measures the supply and demand of skilled labour representing 2.6 million Australian workers.
According to the index, the demand for investment advisers, financial brokers and dealers remained "balanced" in the June quarter, with a slight oversupply of 300 professionals.
On the other hand, the demand for accountants, auditors and company secretaires has hit a two-year high and has more than doubled since the March quarter.
The June quarter index showed demand for these professionals was "very high", with a shortage of 3,800 professionals - more than double the 1,500 shortage recorded in the March quarter.
Given the subdued economic climate, the demand for financial managers has been negative, and many investment and retail banks are reducing headcount to compensate for the lower demands, according to the executive general manager of accounting and finance specialists for Lloyd Morgan, Paul Barbaro.
"While the Australian banking sector has performed well, it's still heavily reliant on international trends and therefore subject to significant pressure," he said.
"For the Australian banking community to start hiring middle and back office professionals, or 'non-revenue' generating roles, there will need to be a significant upturn in economic conditions."
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
