Competition likely to heat up as unemployment remains at historic lows
Recruitment will likely become even more competitive in the second half of the year as Australian employers are looking into expanding or maintaining their current headcounts in the coming months.
In a survey among 300 hiring managers, 42% said their organisations plan to expand their headcount in the next six months, while 46% plan to hire new staff for vacated positions, according to Robert Half.
Only eight per cent of the respondents said they will freeze their headcount in the next six months, while a smaller three per cent said they will carry out layoffs.
"Companies know that stagnancy is the enemy of growth, so they are working within their limits to tactically hire headcount while sticking to company-set boundaries. This is precisely what is shaping today's hiring landscape," said Robert Half director Nicole Gorton in a statement.
By state, employers Western Australia reported higher hiring ambitions with 44% planning to expand their headcount. They are followed by businesses in Queensland (41%), Victoria (41%), and New South Wales (40%).
Reasons for bigger hiring intention
A majority of the respondents cited their company's growth (34%) as the reason for hiring. Other factors include:
- Company performance (29%)
- Availability of qualified candidates (23%)
- Economic forecasts (23%)
"Budget and project approvals have kickstarted the need for companies to strategically hire for new or vacated positions in order to support growth initiatives and strengthen their service offering to stay ahead of their competitors," Gorton said.
The widespread hiring intentions among employers come as Australia's unemployment rate stayed at a historic low of 3.5%. At the same time, the country's job mobility also remained at a decade-high 9.5%, where 1.3 million people changed their employer or business in the 12 months to February 2023, according to official data.
These labour conditions indicate that competition for talent will be tight in the coming months, with employers predicted to be more "strategic" in their hiring.
"For companies who plan to hire in the near future, we see they are taking a very deliberate and strategic approach to their decisions," Gorton said.
"With more stakeholder approvals and time needed to get new hires over the line, organisations are ensuring the talent they bring in is the best they can find, and who bring serious added value to their bottom line."
