recruitment industry update

According to ANZ and Fairfax, February saw the biggest increase in job ads across print and online in 11 years with February job advertisement figures reflecting an increase in staff hiring plans and a recovering economy. Total job adverts increased by 19.1% since January 2010. Major metropolitan newspaper job advertisements increased by 13.1% in February (seasonally adjusted) and Internet job advertisements increased by 19.6% in February (seasonally adjusted).

''Total job advertisements are continuing to improve month on month from their cyclical low point last year,'' ANZ chief economist Warren Hogan said. ''This has already translated into solid employment growth and reduced unemployment, even through a period of relatively strong labour force growth.'' The total number of job ads rose to an average of 159,778 a week in February, seasonally adjusted, just 2.3 per cent lower than in February last year. Newspaper job ads rose 13.1 per cent to 9947 a week, seasonally adjusted, while internet job ads increased 19.6 per cent to a weekly average of 149,831.

The overall jobs market has been helped by surging business confidence, which increased for the second straight month in February, according to a National Australia Bank survey, also out recently. The market bet on an April interest rate rise by the Reserve Bank edged up after the release of the data. Credit Suisse predicts a 36 per cent chance of a 25 basis point rise, up from 31 per cent before.

In February, total job ads were 27.5 per cent above their July 2009 seasonal trough, but remain 42.6 per cent below the all-time peak reached in April 2008. Newspaper ads increased by 22 per cent in Western Australia, seasonally adjusted, where mining and resource-related companies are rushing to add staff as projects come on line after being temporarily shelved during the global financial crisis. South Australia's newspaper ads rose 19.5 per cent in February, while Victoria's jumped 19.3 per cent and those in New South Wales increased 14.4 per cent. Only Queensland posted a decline of 6.3 per cent in the month.

Both business confidence and expectations of growth have risen strongly and are well above their historic lows in Nov 08. According to the RCSA, in terms of business mix for Recruiters, there has been an increase of around 42% in full-time placements and a drop of 50% in on-hired employment & contractors. This shows employers are becoming more confident in hiring permanent staff again.

In terms of the temporary workforce, current RCSA research now shows:

• Slightly less than half are long term (more than three months)
• Just under two thirds are female with the greatest proportion in the 31 to 45 age range
• Both the education levels and skills levels are high with just over half having completed higher education and the same proportion being rated as highly skilled
• The greatest number comes from other agencies and open-ended employment while they go to ‘other’ and open-ended employment.

Which key sectors are experiencing growth?
IT Professionals and Business Professionals are amongst the Top 10 Categories of Skills Demand. Receptionists and Telephonists are amongst the lowest demanded skills groups.

According to My Career, professional job positions grew in February, resulting in a national increase in online job advertisements. Key sectors which displayed month on month online job ad growth included:

• Legal - grew by 11.41%
• Accounting - grew by 10.02%
• Administrative and clerical - grew by 5.51%
• IT & Telecommunications - 8.11%
• Graduate positions have also experienced a 3.96% growth in the past 12 months.

These results reflect positively on the Australian job market and growth in key industries.

Source: The Advantage Job Index