Media Release - 22 June 2008
New research forecasts employers bullish about hiring white-collar professionals despite slowing economy
Skills shortage and talent war continue to drive salary costs upwards
Key Survey Findings:
- 61% of employers plan to increase headcount over next 12 months. Only 6% predict a decrease.
- Wages inflation predicted to continue at 4-6% in 2008 similar to 2000.
- Engineering, legal and accounting are the professions in most urgent need of skilled labour to sustain business growth.
- 33% of hiring managers believe their predicted wages inflation would not be sustainable over the longer-term.
- 53% of employers do not think the wages growth seen over the last 12 months was in line with increased productivity.
- 91% of employers see staff retention as an important focus for the year ahead.
- Employment in QLD and WA is growing at a faster rate than the other states.
Michael Page International, the leading global recruitment consultancy for the professional services sector (white-collar) has today released findings of its annual Salary and Employment Forecast for 2008-09.
Contrary to the current market sentiment pointing to a slowdown in the economy, the survey shows that employers are cautiously optimistic with 61 per cent predicting sustained employment growth over the next 12 months, albeit at a slower pace than 2007. A total of 33 per cent of employers surveyed said staff numbers would remain constant while only six percent expected a decrease.
Wages inflation in the highly skilled workforce is forecast to continue at around four to six per cent leading to concern over labour costs for the professional services market. 33 per cent of hiring managers believe their predicted wages inflation would not be sustainable over the longer-term.
The report shows a significant increase in infrastructure expenditure and investment in resources projects continues to drive demand for professionals in the mining and resources, engineering and construction sectors as well as business support functions ranging from finance and technology to sales and marketing. The global volatility in financial markets will slow labour demand in banking and financial services in the short-term.
"The skills shortage is hampering growth of companies in the professional services sector", said Phillip Guest, Managing Director for Australia & New Zealand, Michael Page International.
"Australian skilled professionals are in huge demand, not just locally but also in international markets. Our survey indicates that 52 per cent of professionals have worked overseas and of this group 63 per cent would do it again. An overwhelming 91 per cent of hiring managers believe that retention is an issue impacting employers across industries."
The Michael Page survey also found productivity and increasing participation are key concerns for employers given that Australia’s working population is declining. "There is a need to focus on career development and training to improve current productivity levels as the survey indicates that 53 per cent of employers do not feel that productivity levels are in line with wages growth over the last 12 months," said Mr Guest. To remain competitive, employers need to create a flexible workplace that addresses the requirements of mature-age workers and professionals with family responsibilities.
"The mining and resource boom is driving employment growth in Queensland and Western Australia which are growing at a faster rate that the other states and job seekers are now able to command comparative salaries nationally."
About Michael Page International Salary and Employment Forecast
The Michael Page International Salary and Employment Forecast is an annual survey that measures salary and recruitment trends in the professional services sector (white-collar). The survey for 2008-09 was completed by 1500 employers and 5500 employees covering a range of sectors including Finance, Financial Services, Legal, Marketing, Technology, Human Resources, Engineering & Manufacturing, Procurement & Supply Chain, Property & Construction, Mining & Resources.
About Michael Page International
Michael Page International is a leading professional recruitment consultancy specialising in the recruitment of permanent, contract and temporary positions on behalf of the world’s top employers. The consultancy operates through 149 offices in 25 countries and employs more than 5,000 people. Australian operations began in 1985 and the office network has since expanded to include Sydney, Chatswood, Parramatta, Melbourne, Wheelers Hill, Brisbane and Perth.
Contact
Jason Hemens
Corporate Communications Manager
Michael Page International
Ph: 02 8292 2131
Email: jasonhemens@michaelpage.com.au
