HR Contracting, Employment Market Update, June, 2024

Amongst the economically challenging times, the HR contracting market remains stable and robust. Contracting roles continue to account for a quarter of all advertised HR job opportunities. This proportion is expected to rise in the latter half of the year due to businesses remaining cautious, with a requirement for change management and more flexible employment options.

Overall, the Australian Bureau of Statistics has reported, that across Australia, we’ve seen less of an annual increase of filled jobs — from 4.9% last year to 2.4% this year — although the positive news is, that we are still in a strong position. Even with a 25% drop in job vacancies since the peak in September 2022, there are over 60% more vacant jobs than pre-pandemic levels.

The overall unemployment rate remains low, and inflation is heading toward the target, although slower than expected, creating a drag on confidence, and risk-taking, and stunting investment for growth. Until there's heightened growth and less drag, our HR employment market won't experience the buoyancy we have seen across other stronger markets, but the general sense, from our seat, is we are heading there at a slower pace than what we would like, but for now, in the right direction.

When it comes to contracting and interim vacancies, the Asia-Pacific region may not be mature in comparison to the evolved US and European markets. However, despite legislation changes in Australia, and economic uncertainty, Australia continues to experience the highest growth for temporary employment. From 2018, Australia’s temporary staff services experienced an annualized business growth rate of 8.3%.

Despite a recent slowdown in job vacancy listings, hiring persists and talent shortages exist in areas across HR. Although there is a positive outlook in the overall direction of the employment market, we still are in an "employer’s market", so employers remain highly selective, sometimes with slower decision-making processes, and candidates need to be ready for frequently redefining requirements.

As we move into the second half of 2024, as the volatility begins to level out, the HR contracting market is expected to continue to show demand and remain a viable employment option across all areas and levels of HR, appealing to both employers and active job seekers.

Please enquire if you require high-caliber HR talent, who are immediately available to assist your business, or if you are an experienced HR generalist or specialist who is open to exploring contracting.