Australian Hiring Intentions Remain Strong Despite Slight Decline in Q1 2024
Announcement posted by BRAW Marketing 15 Dec 2023
Latest ManpowerGroup Employment Outlook Survey - Australia
· Net +29% of Australian employers expect to increase headcount in Q1, 2024.
· Hiring intentions have declined 3 percentage points compared to Q4 2023.
· Q1 hiring intentions have eased in 6 of 8 sectors compared to Q4 2023.
· Hiring intention forecast to increase in the Australian Communication Services sector.
SYDNEY, AUSTRALIA (12 DECEMBER 2023) - Australian employers anticipate a confident, albeit cautious start to 2024, with a net +29% expected to increase headcount during Q1, according to the latest ManpowerGroup Employment Outlook Survey report released today.
Of the 1,020 Australian employers surveyed, 44% reported an intention to increase their headcount during the coming quarter, 14% anticipated a decrease while 38% expect no changes to their headcount numbers. The resulting Net Employment Outlook (NEO) is +29% after seasonal adjustments.
This remains a historically high hiring intention, despite a 3 percentage point decrease from the last quarter and a 4 percentage point decrease since the same quarter last year.
The latest result ranks Australia in the top half of the 42 countries surveyed, 3 percentage points above the global average (+26%).
"It makes sense that employers would enter the new year with a degree of caution, following a challenging 12 month period, which was dominated by market changes, talent shortages and shifting commercial priorities," said ManpowerGroup Australia Managing Director Penny O'Reilly.
"Australian employers absorbed the challenges of 2023 remarkably well. Given ongoing inflation and wage pressures together with a general slowing of the market on the back of consecutive interest rate rises, we would expect to see employers take a more considered approach to their hiring in Q1."
KEY FINDINGS SUMMARY
Hiring intentions decreased in 6 of 8 sectors:
· While hiring intentions across all Australian sectors remain historically high, 6 of the 8 sectors covered in the report recorded a decline in hiring intentions in Q1 2024, compared to Q4 2023.
· Transport, Logistics & Automotive, Financials & Real Estate, and Industrials & Materials all recorded a 9 percentage point decline in hiring intention in Q1 2024 compared to Q4 2023.
· Consumer Goods & Services, Energy & Utilities and Healthcare & Life Sciences recorded quarter on quarter declines of 8 percentage points, 6 percentage points, and 2 percentage points, respectively.
Communication Services is Australia's most competitive sector:
· The Australian Communications Services sector recorded a NEO of +45%. An increase of 19 percentage points compared to the previous quarter and 16 percentage points compared to the same quarter in 2023.
· The hiring intention of Australia's Communication Services sector sits 14 percentage points higher than the sector's global average (+31%).
Hiring intention in Australia's Information Technology sector remains steady:
· The Australian Information Technology sector recorded a NEO of +29%. This result remains unchanged compared to last quarter.
· This result reflects a continued stabilisation of hiring in the Australia Information Technology sector as large technology employers continue to evaluate priority projects in the new year.
Small organisations are the most optimistic:
· Small organisations (10-49 employers) recorded the highest hiring intention with a NEO of +38%.
· This is a 6 percentage point increase compared to last quarter and a 7 percentage point increase on the previous year.
"We expect the challenges experienced by Australian employers during 2023 will continue, at least through the first half of 2024. The fact that Q1 hiring intentions remain historically high suggests leaders are continuing to remain relatively confident and navigate through this period balancing a sense of positivity with a degree of caution," Ms O'Reilly said.
HIRING OUTLOOK IN ASIA PACIFIC
Hiring managers across APAC recorded a slight decline in hiring intentions (+30%), when compared to the previous quarter (-2%), a weakening year-over-year (-10%).
India (+37%) and China (+33%) reported the strongest Outlooks, while Japan (+10%) recorded the most cautious outlook.
To view complete results for the ManpowerGroup Employment Outlook Survey, visit www.manpowergroup.com.au/meos. The next survey will be released in March and will report hiring expectations for the second quarter of 2024.
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ABOUT THE SURVEY
The ManpowerGroup Employment Outlook Survey is the most comprehensive, forward-looking employment survey of its kind, used globally as a key economic indicator. The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.
SURVEY METHODOLOGY
The methodology used to collect the data for the Employment Outlook has been digitised in 41 markets for the Q1 2024 report. Survey responses were collected in October 2023. The question asked and the respondent profile remains unchanged. Size of organisation and sector are standardised across all countries and territories to allow international comparisons.
ABOUT MANPOWERGROUP
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organisations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organisations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills.
Our expert family of brands - Manpower, Experis, and Talent Solutions - creates substantially more value for candidates and clients across more than 70 countries and territories and has done so for 75 years. We are recognised consistently for our diversity - as a best place to work for Women, Inclusion, Equality, and Disability, and in 2023 ManpowerGroup was named one of the World's Most Ethical Companies for the 14th time - all confirming our position as the brand of choice for in-demand talent.