Hudson: Hiring intentions fall again

Find below the latest quarterly Hudson Hiring Intentions survey which shows ongoing labour market weakness.

KEY FINDINGS

• Hiring intentions have hit the lowest level since Q3 2009, down 1.6pp to 20.8%
• Number of employers looking to decrease headcount dropped 0.4pp vs last quarter
• Information Technology has the highest level of intentions to hire of all industries, up 3.3pp to 36.0%
• Professional Services has the second highest level of intentions to hire, down 3.1pp to 31.1%
• Three out of four employers in Financial Services/Insurance industry are keeping headcount steady, with positive hiring intentions dropping 8.0pp
• South Australia has the highest proportion of employers expecting to increase headcount at 24.2%
• Queensland has the highest proportion of employers expecting to decrease headcount at 18.2%
• Information, Communications & Technology has the highest proportion of employers expecting to increase their contracting headcount at 24.1%

COMMENTARY FROM HUDSON

• This quarter’s results highlight downward pressure on hiring expectations with the number of employers expecting to increase headcount dropping 1.6 percentage points (pp) to 20.9%, the lowest level since Q3 2009.The findings indicate businesses are taking a cautious approach to recruitment, but there are signs that suggest this may change. With the long lead up to the Federal Election many organisations have waited to see what would happen before making firm recruitment commitments. Interest rate cuts have stimulated the housing market, while the falling Australian dollar is easing pressures in other markets. These influencing factors add to the likelihood of an improvement in the recruitment outlook over the next year.Organisations will want to reduce the cost of recruitment to drive efficiencies, while not cutting value. And it’s not easy for businesses to find the right blend of skills and people, and to retain them. In some cases innovative and flexible methods of recruitment process outsourcing can be a cost-effective method of meeting the challenges of the market.

  Individuals, who can help transform businesses, lift productivity and open up revenue streams to compete more effectively, remain in high demand. So, while employers may not be growing their overall workforces they are looking for the right people to transform their businesses and ensure they are well positioned.