Manufacturing confidence at two-year low

Employment prospects for jobseekers in the manufacturing sector have fallen considerably as employers cease hiring for the second half of 2008, according to the recently released Manpower Employment Outlook Survey.

The survey, which was part of a broader survey of 2405 employers across Australia, revealed that the majority of employers are intending to hold the line on their staff levels for the next quarter. Demand is also considerably lower than the past 24 months, at a level not seen since late 2006.

The manufacturing sector's employment market shows a noticeable softening in hiring intentions in the October–December quarter of 2008, with a net employment outlook of +13% — showing that just 13% of industry employers will have jobs on offer, compared to +28% in the previous quarter.

"Whilst we have seen a softening in the intention to hire new staff, driven by a fall in business confidence, it may not be a signal for a slowdown in net growth," said Stephen Hinch, GM of Marketing & Communications, Manpower Australia and New Zealand.

"This is because this industry may well be propped up by the high levels of vacancies, which now stand at over 18,500. This will mean that jobs demand will be back around 21% by June–July 2009."

The survey showed a clear disaggregation in Australia's labour market. Some industries, such as the mining and construction sector, continue to be strong economic drivers and grow from strength to strength; while other industries, such as manufacturing or wholesale and retail trade, begin to shrink, following a tightening in consumer confidence.

"Business leaders must also continue to think of strategies not only to attract the right talent, but more importantly how to retain them, as the manufacturing industry added 32,500 in the December to February period and then shed 8500 in the following three months March to May — and may well just be stifled by this lack of supply," said Hinch.