Employers more upbeat although new job creation still limited

Publish Date: Friday October 30, 2009

Despite an improving business outlook the majority of white-collar employers will maintain staff numbers at existing levels for the coming month. The Michael Page Employment Index for November reveals 59% of employers will maintain current headcount levels, not making any further job cuts and replacing people who leave.

Only 24% of companies will add new staff in November, with a hiring preference for junior staff on a full-time basis in operational areas such as product development and sales. Those companies looking to reduce headcount in November are no longer making substantial cuts – 84% are working to a headcount reduction target of less than 10%.

As a forward looking indicator, 23% of companies currently maintaining staff levels will look to add new people over the next 3-6 months, with a further 27% likely to increase staff numbers in 6-12 months.

With respect to the resilience of the Australian labour market, 76% of respondents cited the strength of our economy going into the downturn as the most important factor in saving jobs. A further 11% identified Government stimulus spending and 6% highlighted resources demand from China.

Attachments

Download the Michael Page Employment Index for November 2009

Notes to Editor

The Michael Page Employment Index provides a snapshot of hiring and business confidence trends for the white-collar employment market in Australia. The report is predictive and focuses on anticipated trends for the month ahead, rather than an analysis of historical employment data such as job advertisement numbers. The online survey is distributed monthly to a group of more than 100 executive level human resources professionals who have agreed to participate in the research.