The Q2 2015 Hudson Report: Employment Trends has revealed a broadly positive outlook for the jobs market, with net intentions to hire remaining strong into the second quarter of the year.
Despite a slight dip from Q1 2015, the Hudson Report shows net hiring intentions remain at their highest level
since 2012.
According to Hudson, a net 17.1 per cent of employers are looking to increase permanent staffing levels between April and June this year, compared to 18.7 per cent in Q1and well up from just 11.2 per cent a year ago.
Moreover, while there has been a fall in sentiment in some locations, the report shows that net hiring intentions are still positive across all states.
While the official unemployment rate has crept up recently and economic conditions remain challenging, Hudson research reveals a transition in the labour market, with weaker employment conditions in mining and resourcing offset by more positive conditions in industries such as professional services, IT and financial services.
Hudson Australia executive general manager, Dean Davidson, said employers in Victoria are leading the positive hiring intentions for permanent staff, with a net 21.9 per cent looking to increase headcount in Q2 2015, a significant jump compared to this time last year.
“Confidence is clearly retuning to the Victorian market, likely aided by the settling of the state government and its clear policy setting and delivery mode. While we’re yet to see this confidence translate into real jobs activity, we are cautiously optimistic that the outlook has improved,” Davidson said.
Meanwhile, NSW remains strong, largely as a result of growth in property and construction as well as ongoing change and transformation projects in financial services and legal, which continue to perform strongly. In NSW, a net 19.7 per cent of employers intend to increase staffing levels in Q2 2015.
According to Hudson, resource states continue to face ongoing challenges.
“Various locations across Australia are still managing slowdowns in sectors such as mining and resources, and manufacturing,” Davidson said.
Indeed, the challenge for traditionally resource driven states is clear, with Queensland and South Australia showing the weakest hiring intentions. A net 12.2 per cent of employers are looking to hire in Q2 2015 in Queensland and 10.3 per cent in South Australia.
In South Australia, where the official unemployment rate is the highest in the nation at 6.9 per cent, a number of high profile redundancy announcements in Q1have taken their toll on business confidence.
Queensland has been hit by record low crude oil prices, driving some wide-spread redundancies. Davidson said information technology remains the leading source of contracting employment in Australia and an increasingly important component of business growth.
"Despite the doom and gloom, employers remain quietly confident," he said. While contradictory economic indicators continue to dominate headlines, Davidson said he expects demand for specialised skillsets and roles that support future growth will continue to rise.