The devastating Queensland floods have failed to dampen the Australian manufacturing industry’s hiring outlook, with 25% of employers still planning to increase their headcounts in the second quarter of 2011.
Despite concerns about the impact of floods on the Australian economy, the national employment outlook for the second quarter of 2011 remains steady, according to the latest Manpower Employment Outlook Survey.
The survey results – which included more than 1,900 Australian employers – indicates that the hiring pace for the upcoming quarter “has not been significantly affected by the flood aftermath”, with the seasonally-adjusted Net Employment Outlook holding steady at +21% for the nation.
Though the survey did not include employers from Queensland, due to other research being conducted at the time, the number of employers planning to increase hiring elsewhere in the nation has remained relatively stable in comparison to Q.1 results.
In positive news, the percentage of employers planning to decrease headcount has also dropped to 6%, which is down one percentage point from the same period last year.
“The Manpower Employment Outlook Survey points to a strong and resilient Australian job market. Despite Mother Nature giving us a tough start to the year, national hiring intentions remain strong. The Net Employment Outlook is just one percentage point weaker than the same time last year (+22%), and worlds away from the gloomy outlook in Q2 of 2009, when the Outlook was -1%,” said Lincoln Crawley, managing director of Manpower Australia & New Zealand.
According to Crawly, manufacturers are certainly more confident going into 2011 than they were going into 2010.
"Sentiment amongst hiring managers has improved significantly since the financial crisis and manufacturers are becoming more confident. While demand for flexible workers remains strong, we are also seeing a growth in permanent hires," he told Manufacturers’ Monthly in an interview earlier this year.
Crawly was speaking shortly after releasing the results of Manpower’s Employment Outlook Survey for Q1 2011.
However on the flip side of the coin, he believes skills shortages are set to become a major industry issue in certain areas.
"Skills shortages in manufacturing are on the rise – not so much on the production line but in maintenance and support functions. We’re seeing more employers in the manufacturing sector trying to source labour from overseas to bridge the gap.
"Manufacturers are going to find it increasingly difficult to source trades people – like electricians, welders and fitters – unless they have a strong employer brand and above average wage rates.
"They are also competing with the mining and transport/logistics sector for staff, and the talent war for these skills will get more intense in 2011," he said.