Companies undeterred by interest rate pressures

Hiring activity in the white-collar market is proving resilient in the face of possible interest rate rises, according to the latest Michael Page Employment Index.

Whilst speculation of increased interest rates typically generates caution, the majority of companies surveyed (78%) stated that the prospect of future rises in 2010 is not limiting their hiring activity. Many Australian companies benefited from low rates during 2009, with prospective increases likely to adjust rates back toward pre-economic downturn levels.

The trend of steady jobs growth continues, with 33% of companies intending to increase headcount throughout June. 76% of companies intend to hire full time employees. This willingness to invest in longer-term positions reflects growing employer confidence and the expectation of sustained business growth into the future.

New hires in June are focused on mid-level professionals in front line functions such as sales (39%). Strong growth can also be seen in back office roles (33% of new hires), with functions such as accounting and marketing required to support increased business activity.

Despite measured growth in domestic business confidence, Australian employers are still watching global conditions closely. At present, the economic uncertainties in Europe are only having a minimal impact on the plans of Australian businesses to hire new staff. 37% of companies reported that conditions in Europe are having a slight impact on their recruitment plans, with a further 41% reporting that they are having no impact at present.

 

Further Information

• Visit the News and Research Centre
• Visit the News and Research Archive
• Find out more about our Recruitment Services
• Visit the Career Centre
• Visit the Salary Centre