The Australian economy, despite global uncertainties, is showing resilience, especially in the labor market.

Although GDP growth is expected to remain below trend for the remainder of 2024 and 2025 due to cost-of-living pressures and higher interest rates, the unemployment rate remains low at around 4%, demonstrating the strength of the labour market. Recent Australian Bureau of Statistics (ABS) data indicates full-time employment increasing with employment growth outpacing population expansion, highlighting the continued demand for labour across multiple sectors.

Seek's employment report reveals year-on-year volumes are down 11.1%, however on a positive note, this is the third consecutive monthly rise in job ads. While demand increased in industries like retail, manufacturing, and logistics, certain sectors, such as ICT and hospitality, saw a decline. Australia's employment landscape is demonstrating notable resilience amidst global headwinds.

Interestingly, some regions like Queensland and New South Wales showed a rise in job ads, while others, like Victoria and Tasmania, experienced declines. Overall, the tightness in the labour market, combined with continued demand in key sectors, suggests that while challenges remain, Australia's employment landscape is demonstrating notable resilience amidst global headwinds.

The HR interim market specifically has two opposing drivers. On the one hand, you have reduced spending on external consulting & projects due to tighter budget constraints. Yet, on the other hand, there’s increased demand for flexibility. Given most HR teams are at capacity there is increased demand on bolting on HR contractors to meet any increased workload. This two-way pressure results in a consistent number of vacancies. The operational HR career remains most buoyant, with the more senior and executive positions remaining a lot softer and more competitive for candidates than hoped.

Given the incremental increase in the number of HR vacancies over the recent months, we are predicting the typical seasonal buoyant spike in contracting, across all career levels for the end of this calendar year. In addition to this, the US election might cause some unexpected swings in the market.

To discuss the HR Contracting Employment market further, you can reach us at contracting@tandempartners.com.au or 02 8045 2920.