Economic uncertainty slows employers recruiting decisions, tightest in decade

Uncertainty about Australia’s current and future economic conditions and the resulting cautionary approach to recruitment decisions has seen the latest Clarius Skills Index reach the closest tension between supply and demand of skilled labour in a decade.

According to the June Quarter Clarius Skills Index, released today, supply and demand of skilled labour across 20 occupation categories was at a perfectly balanced 100.0, despite there being shortages in some trades occupations.

Overall demand for skilled labour fell by 56,800 people (1.6 per cent) while supply fell 44,700 people (1.3 per cent).

This resulted in a net shortage of just 1,000 skilled people across all categories in the quarter compared with the March Index (100.3) which reported a shortfall of 11,000 skilled workers across all occupation categories.

As a result of the global economic situation and uncertainty about our own economy, which has been compounded by the Carbon Tax debate and stalk of interest rate rises, employers have pull back on their hiring intentions.

While the skills gap had closed, it was likely to re-emerge in the coming quarters, even if the uncertainty around the economy remained unchanged, as a result of the introduction of the Carbon Tax, greater investment in the Queensland rebuild, rollout of the NBN and the government’s commitment to adding 500,000 new jobs, largely driven by the resource sector.  

Read the full media release here.