Recruitment Picture Brightening

September 10 2003 - Stephen Shepherd, Managing Director, Services Sector, for global staffing company Kelly Services, comments in advance of the August labour force figures. The July unemployment rate was 6.2 per cent, and followed a loss of 55,200 jobs in that month.

"There are some tentative signs that the employment market is beginning to improve although it is too early to say that we are entering a period of stronger employment growth. For the past six months, there has been no definitive trend. We have experienced a seesaw pattern where a positive month is followed by a downturn.

"There are signs of a stronger economic outlook that may be contributing to increased confidence and improved hirings, but it will probably be several more months before we see a clear trend.

"Many businesses have been focussed on curtailing costs, protecting margins and have been extremely selective in embarking on new hirings.

"Temporary hirings have been relatively slower than at this stage of earlier recoveries. Typically, after a period of sluggish activity, employers engage temporary staff ahead of making a commitment to permanent employees. Currently, we are seeing the balance more toward permanent placements.

"With the signs of an international economic recovery looking stronger and with improved business profit reporting, we would expect that this trend might intensify over the period ahead.

"Australia has undergone a period of relatively sound growth in jobs in the face of a bleak international economic and political climate with the rate of unemployment hovering at just above 6 per cent. The challenge will be to generate sufficient new employment to keep this unemployment rate from rising.

"The critical question is whether business is truly convinced that the economic climate has turned for the better and that expansion plans can proceed. If confidence returns, we would expect to see a pick up in activity in the lead up to Christmas."

• More Australian Job Market Articles