The survey, which was part of a broader survey of 2,405 employers across Australia, revealed that the majority of employers in this sector are intending to hold the line on their staff levels for the next quarter. The levels of demand are also considerably lower than the past 24 months, and this industry is facing levels not seen since late 2006.
The Manufacturing sector's employment market shows a noticeable softening in hiring intentions in the October - December quarter of 2008, with a Net Employment Outlook of +13% showing that just 13% of industry employers will have jobs on offer, and this a considerable decline of 15 percentage points from the previous quarter (+28%).
According to Stephen Hinch, General Manager Marketing & Communications, Manpower, Australia and New Zealand "Whilst we have seen a softening in the intention to hire new staff, driven by a fall in business confidence, it may not be a signal for a slowdown in net growth. This is because this industry may well be propped up by the high levels of vacancies, which now stands at over 18,500. This will mean that jobs demand will be back around 21% by June-July 2009."
We can clearly see a disaggregation coming through in Australia's labour market, as some industries such as the Mining and Construction sector continues to be a strong economic driver and grow from strength to strength; while other industries such as Manufacturing and Wholesale & Retail Trade begin to shrink, following a tightening in consumer confidence. Business Leaders must also continue to think of strategies not only to attract the right talent, but more importantly how to retain them, as the Manufacturing industry added 32,500 in the December to February period and then shed 8,500 in the following three months March to May and may well just be stifled by this lack of supply" said Hinch.
