Employment Forecast: Employment Forecast May 2012


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The forecast provides an insight into the Australian jobs growth, salary conditions and candidate environment by state, key sector and demographic groups.

The May 2012 edition finds that conditions have improved since the last report, released in November 2011, when the European debt crisis was gripping the world. Since that time, the debt situation has improved significantly with a fall in the interest rates that troubled European nations such as Spain and Italy were paying. Greece's debt situation has also improved with a second bailout. The US market is also improving, with job numbers growing. The housing market is showing signs of life, and GDP is growing at trend levels. Although growth in China has slowed, it is still very strong.

In response, the Australian job market took a breather during 2011 as the nation awaited the outcome of the overseas debt situation. The Candidate Environment Index fell throughout the year. Job vacancies also softened, although they did remain at near record levels. Despite the soft global economic environment, Australia still added an impressive 140,000 jobs in the year to February 2012.

This report finds that the Mining Sector still remains a standout. In fact, this sector alone accounted for 61% of the growth in full time jobs over the last year. Other sectors have also grown, but nothing like Mining. THe Professional/Managers Sector is also improving as the hiatus that befell this sector in mid-2011 starts to lift.

The report also finds that Twilight Careers remains the fastest growing segment, with numbers reaching record levels. For the first time ever, the number of people employed in this segment has reached the 500,000 mark.

In terms of the future, with an improved global economic outlook, a rise in Australian business and a boost in consumer confidence throughout the nation, the jobs outlook is improving. Having said that, some sectors, notably Manufacturing, will continue to struggle under the weight of the high Australian dollar. Wages and salaries are also forecast to keep growing, much as they have done over the last 10 years.

With a stregthening job market and relatively low unemployment, there is limited slack in the Australian labour market. This in turn means that the ongoing skills shortage will only continue to grow.