Throughout the month of February, the Michael Page team hosted breakfast briefings for our clients across multiple industry sectors and locations. These sessions covered topics such as global economic trends, and what to expect from Australia’s economy in 2015, alongside salary and business trends.
A brief summary of the key themes covered is as follows.
The global economy is expected to grow in 2015
As Australia becomes increasingly influenced by global forces, the economic evolution of other countries has big implications for local trends. The International Monetary Fund (IMF) expects growth in 2015 to exceed the past three years, but still trail the World’s performance in the early 2000s. The IMF expects Global growth of 3.9% in 2015 compared with 3.3% in 2014. If that transpires, it will be the fastest growth levels witnessed since 2011.
The Australian economy will grow in 2015
In line with positive global economic sentiment, Australia’s economic and employment markets are tipped to improve this year. This is impacted by a few key factors, outlined below.
The downturn of the mining boom, is having a major impact on GDP. Mining investment is set to fall further in 2015, however this will be offset by a rise in non-mining investment. This is forcing the Australian economy to focus on exporting goods and services, ultimately leading to a more balanced economic market. The key challenge for Australia over the next few years will be how the downswing phase of the mining investment boom is managed.
Meanwhile, the strength of Australia’s major trading partners is creating a steady market for local exports. Even though the Chinese GDP growth has slowed, the sheer size of the economy still presents a significant market for Australian products.
This positive sentiment with regard to the Australian employment market is echoed by a selection of Australian experts:
“We expect 2015 to be a year of moderate gains as the global economy grinds up a gear.”
- Stewart Brentnall - Chief Investment Officer, ANZ Bank
“We expect growth in the Australian economy to gradually improve in the year ahead.”
- Lindsay Maxsted - Chairman, Westpac
“The unemployment rate is expected to remain elevated, declining in 2015 when we anticipate GDP growth to be picking up to an above-trend pace.”
- Philip Lowe - Deputy Governor, Reserve Bank of Australia
“We expect the unemployment rate to peak in H2 2014 before falling through 2015.”
Paul Bloxham - Chief Economist, HSBC
Gender diversity continues to be a major factor in the employment market as an increasing number of businesses accept that a balanced workforce ultimately leads to commercial gain. The full presentation outlines the practical approach being implemented by The Male Champions of Change, established in April 2010 by Elizabeth Broderick, Sex Discrimination Commissioner.