Economic data, election hold back jobs



BUSINESS hiring intentions are subdued due to conflicting economic messages and uncertainty over the outcome of the upcoming federal election, a survey says.


The Manpower Employment Outlook survey’s hiring intentions index for the June quarter was a seasonally adjusted four per cent, down five percentage points from the March quarter.

As well, the net employment index, based on the intentions of 2200 employers, was eight percentage points lower than a year earlier.

Manpower group managing director for Australia and New Zealand Lincoln Crawley said there was a lot of caution in the employment market.

“These conflicting indicators, coupled with the uncertainty an election year brings, are creating caution in the job market, as employers take a wait and see attitude to hiring,” he said in a statement on Tuesday.

Among the states, Western Australia has seen the biggest drop in hiring intentions over the past year, with a 15 per cent decline.

“This is the first time we have seen Western Australia’s employment outlook fall behind the other regions since 2010, suggesting the recent rally in commodities and positive activity in China is yet to flow through to jobs in resources,” Mr Crawley said.

The $10 billion Roy Hill iron ore project in the Pilbara recently said it probably won’t need the 1700 workers it applied for under a federal enterprise migration agreement scheme.

“The softening in areas such as the resources sector has meant the urgency of skills shortages has declined,” Mr Crawley said.

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