This quarter’s Hudson Report: Employment Trends[1] points to a strong outlook for the jobs market for 2015, with employer intentions to hire reaching their highest level since Q2 2012. The surge of confidence is reflective of the structural transformation underway in the Australian workforce, and the subsequent skillset changes that are necessary to compete in a post-GFC world.

According to Hudson, net hiring intentions for Q1 2015 recorded their largest quarterly rise since Q1 2010, with a net 18.7% of employers looking to increase permanent staffing levels in the first three months of the year, up 5.6 percentage points (pp) on last quarter.

“Despite lukewarm economic conditions and recently released weak GDP figures, Australian employers are optimistic about the year ahead. While the outlook is buoyant, the thirst for talent is centered on specific sectors and role families that support business transformation. These often newly created roles are critical to future success and profitability and as such may be less impacted by broader economic trends in the months ahead,” said Dean Davidson, Executive General Manager, Hudson Australia.

Transformation in QLD and NSW drive national momentum

The strong Queensland result is heavily influenced by the public sector. With a government in pre-election mode, there is a considered push to deliver upon the current transformation programs of work and front-line projects.  A net 20.4% of employers in Queensland are looking to increase headcount, an uplift of 1.9pp.

“The public sector continues to drive permanent and contracting growth as government look to bring in talent with the relevant skills and experience from the commercial sector,” said Mr Davidson.

NSW has also seen a wave of confidence with a net 19.4% of employers planning to hire early next year, an increase 9.4pp, largely driven by change and transformation in the financial services sector. According to the report, a net 36.9% of hiring managers plan to increase their financial services headcount in Q1 2015, surging 16.8pp for the quarter.

“Financial services teams have recognised that the landscape has permanently changed and are driving significant transformation projects. Those professionals with exposure to agile environments are highly sought after as are compliance and risk professionals who can help organisations navigate the plethora of regulatory change on the horizon.”

The legal profession has been a dominant force in NSW as well as nationally with a net of 36.9% of hiring managers looking to increase headcount in Q1 2015. There is strong demand for mid-level lawyers in private practice with organisations backfilling roles that were deliberately left unfilled from past years.

ACT shrugs off budget uncertainty

Employers in the ACT have a renewed sense of confidence with net permanent hiring intentions surging 19.2pp to 14.5%.

“The uncertainty created by the mid-year federal budget fuelled weak hiring intentions in the nation’s capital earlier this year. However the delay in implementation has seen employers shrug off the negativity, with growth coming through, not just in government, but also the ACT’s commercial market,” said Mr Davidson.

ICT drives contract growth

A net 14% of employers are intending to increase their contracting/temporary workforce in Q1 2015, up 3.2pp on Q4 2014 and 9.4pp compared to one year ago. The ICT profession is leading contracting hiring intentions significantly, with a net 23.7% of businesses looking to hire in Q1 2015.

“ICT is fast becoming the dominant force behind the contracting market in Australia. We have seen demand for strong project managers increase over the past 18 months as large transformation projects have reached implementation stage, and we don’t see this changing in the New Year,” Mr Davidson said.

“Businesses are investing in personnel who can really support them to deliver key projects and ICT is becoming an increasingly important component of business growth.”

Employers seeking real contributions to business growth

According to Mr Davidson, one key theme emerging across Australia is an increasing demand for employees who will have a real impact on businesses’ bottom lines.

“We are seeing less demand for reporting and transactional roles and a shift towards roles that underpin future growth opportunities. The business environment remains challenging for most sectors and so businesses are focused on creating positions – and seeking out employees – that are really going to add tangible value.”

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