Finance, Insurance and Real Estate Lead Job Possibilities in Australia

by Ray Clancy on March 16, 2015

in Australia, General Information, Money, Business and Finance

People looking for jobs in Australia might find fewer opportunities in the coming months as the latest hiring intentions survey shows many have no plans to increase their workforce.

The latest outlook survey covering the second quarter of 2015 from Manpower suggests that employer intentions remain little changed in comparison for forecasts reported three months ago and at the same time last year.

moneyAUSTRALIAThe survey, which asks the hiring intentions of over 1,500 employers in Australia for the coming quarter, found that while 21% plan to increase hiring, the vast majority, 67%, will make no change to their hiring plan and 11% plan to decrease hiring.

According to Lincoln Crawley, managing director of the Manpower Group Australia the stable employment outlook reflects the mixed economic and market signals affecting business confidence.

‘Low growth, falling wages and lower consumer confidence coupled with uncertainty about Federal Government leadership is causing many Australian employers to throttle down their hiring plans for the second quarter or stop them altogether,’ he said.

‘There are some bright spots. However, we’re not seeing clear signs that hiring activity will gain any additional traction in the next three months, and employers are expecting to contend with another year of certain uncertainty in Australia,’ he added.

Employers in the finance, insurance and real estate sectors reported the strongest outlook and opportunities for job seekers are favourable in the services industry which reported the strongest quarter on quarter increase of all industry sectors. Manufacturing is also showing encouraging signs of improvement, with a 2% increase quarter on quarter and a 7% increase year on year.

Public administration, wholesale trade and retail trade and transportation and utilities employers reported the weakest outlook quarter on quarter, with a slight decrease of 5%, 4% and 2% respectively. The wholesale trade and retail trade and transportation and utilities sectors also saw a considerable decrease of 10% year on year.

‘Finance, real estate and insurance remains one of the best performing sectors. The Financial Services Inquiry and recommendations that were handed down earlier this year have put a spotlight on insurance, financial advice and superannuation. We’re seeing larger companies beef up their risk and compliance teams due to the increased focus on the sector,’ explained Crawley.

‘Low interest rates and continued high demand have caused a boom in the Sydney and Melbourne housing markets driving work there. State government is also seeing a return to hiring in some of the larger states,’ he added.

Comparing regions, employers in Victoria and South Australia reported the most positive increase to hiring in quarter two, reporting a modest and slight increase of 7% and 4% respectively.

The ACT market remains volatile, with employers reporting the weakest outlook of -5%, a decrease of six points quarter on quarter and 21 points year on year. Tasmanian employers reported the largest drop quarter by quarter, with a moderate decrease of 9%. Similarly,
employers in Queensland also reported a moderate quarterly slide of 6%.

Meanwhile, hiring activity in the Northern Territory, Western Australia and New South Wales is expected to see little change from the previous quarter, with employers reporting outlook growth of 15%, 5% and 1% respectively.

‘New South Wales is experiencing growth in construction and infrastructure project work and we expect to see demand for all roles in the state increase as employers compete for the best people. Also, the change of government in Victoria, and the announcement of spending on transport infrastructure is giving buoyancy to the market there,’ Crawley said.

He pointed out that Australia is facing a rising unemployment malaise, with a fluctuating unemployment rate currently sitting around 6.4%. Youth unemployment is double that at 13.2% last month and unemployment is even high for those with tertiary education.

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