HR Contracting, Employment Market Update, July, 2024

The current HR recruitment market is characterized as cautious and a conservative market, influenced by the ongoing economic conditions.

The employment growth figures were better than market expectations for last month the Australian Bureau of Statistics (ABS) said.? Just 39 percent of employers were either recruiting or had recruited in the past month, which was the lowest figure since the COVID-19 lockdown in September 2021, according to data released by Jobs and Skills Australia.

The number of job openings overall has declined by 23 percent since mid-2022, although there are still far more vacancies than before the pandemic, ABS figures show. However, Seek Employment Report published in June 2024 stated that the monthly Job Ad percentage change for HR & Recruitment grew 1.2% even though the overall average saw a decline of 1.5%.. Applications per job ad rose 3% and are 61.6% higher, indicating a competitive market still for candidates.

KPMG predicts unemployment will continue to rise slowly but steadily from 4.2% now to 4.7% over the next year. Wages growth is still high but has peaked and will start to soften. Inflation will continue downwards from 3.8% now to 2.7% by the end of next year. Cash rate to stay unchanged in 2024, with a rate cut expected in Q1 next year.

Things don’t seem like they will significantly change until we see a catalyst for change, such as a rate cut that could spur more GDP growth and create more employment growth. Until then, the HR employment market is still presenting great opportunities across all levels, and HR talent is still needed. HR contracting is also expected to grow as businesses evolve and adapt to changing economic conditions contracting and flexible employment will continue to play a critical role in navigating and managing the next phase of transformation within organisations.