Mining and construction lead the way in employment outlook

Australian hiring expectations have hit a six year high, with most sectors recording a positive employment outlook for 2018; according to the latest report released by global workforce solutions expert, Manpower Group.

The company’s Employment Outlook Survey for the first quarter of 2018 shows an overall Net Employment Outlook (NEO) of 14 per cent, up five percentage points from last year, indicating a strong intention across the board to hire more staff in the New Year.

The mining and construction sector recorded the biggest jump in hiring intentions, with the NEO percentage points increasing by 16 year-on-year to 23 per cent in 2018. The positive outlook for this sector is apparent in the states of Queensland (15 per cent) and Western Australia (nine per cent) where mining and construction play huge roles in the states' economies.

This spike in employment intention comes off the back of ongoing growth in the construction sector and the continued roll-out of massive infrastructure projects around the country such as Melbourne's Metro Rail Project and the West Gate tunnel that will go well into the next decade.

Manpower Group Australia & New Zealand Managing Director, Richard Fischer, believes the latest data signals the underlying strength of the Australian economy.

“The employment outlook in Australia is now the strongest reported in more than six years and is showing no signs of slowing down as a rebound in the Mining and Construction sector adds to an already strong outlook in other key sectors such as Finance,” he says.

Master Builders Australia CEO, Denita Wawn, welcomes the findings from the survey.

“This means that the (building and construction) industry will be able to continue and consolidate its indispensable contribution that it makes in providing training, jobs and prosperity in communities around Australia,” she says.

Other sectors including finance, insurance and real estate recorded jumps of more than five percentage points year-on-year. However, the wholesale and retail sector failed to match the gains of other sectors, maintaining the same nine per cent NEO from 2017.

State-wise, employers in New South Wales reported the strongest NEO at 21 per cent, up 10 percentage points year-on-year. The greatest increases have been recorded in Queensland and Tasmania, both up 11 percentage points since this time last year.

Victoria was the only state that recorded a decline in hiring expectations compared to last year.

“However, all states and territories, sectors and organisation sizes have recorded a positive outlook,” Fischer says.

“This positions Australia well for a strong start to 2018.”

He adds with the strong job market outlook, wages pressure will follow and employers will face a more competitive environment in which to attract and retain the best talent.

“With a low unemployment rate and a strong outlook, the labour market is rapidly approaching the point at which the war for talent will see wages pressure return to the economy,” he says.

“Employers will need to reset their focus in the New Year if they want to attract and retain the very best employees.”

The Manpower Group’s Employment Outlook Survey collects data from nearly 59,000 employers in 43 countries, including over 1500 in Australia.

Across the Asia Pacific region, Taiwan (25 per cent), Japan (24 per cent) and India (22 per cent) are the strongest performers.

The job market is equally strong in the Americas, with the United States recording a sturdy 19 per cent NEO. Brazil experienced the strongest year-on-year gain of 13 percentage points.

In Europe, hiring sentiments are less positive, with most countries recording either declining expectations year-on-year or negligible gains. However, the NEO in Greece has increased by five percentage points since the same period last year.