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Employment sentiment continues to fall

Hiring expectations have fallen to their lowest point since the global financial crisis, amid a “restructuring” of the Australian economy.

While recruitment expectations remain positive overall – with insurance, finance and real estate among the most optimistic sectors – a “creeping cynicism” has seen forecasts drop, according to recruiter Manpower.

Its latest survey of 2261 Australian employers shows they are the most pessimistic bosses in the Asia-Pacific region, trailing New Zealand and Japan in hiring expectations for the coming fourth quarter.

However, Australia remains well ahead of employment growth expectations in the US, UK, Germany and Switzerland.

“The jobs market appears quite resilient in the face of concerns about the carbon tax, the continuing eurozone crisis and fears of a Chinese slowdown,” Manpower said.

“The survey results support the view that there is a structural shift occurring in the economy, with demand for professional skills in areas such as services and mining helping to offset the continued loss of manufacturing positions.

“Jobseekers need to focus on the areas that are growing and be willing to adapt. That may mean moving locations, retraining or updating skills.”

While seven of Australia’s eight industry sectors expect to increase their workforce in the three months to December, the net employment outlook has fallen quarter-on-quarter since June last year, from 20% to 9%.

Net employment outlook is calculated by deducting the percentage of employers who expect to reduce staffing levels from that of the ones forecasting an increase.

Hiring expectations in insurance, finance and real estate beat the national average at a seasonally adjusted 11%, behind services (16%) and transport and utilities (11%).

But the net outlook for insurance, finance and real estate is the weakest in three years, with hiring prospects falling eight percentage points quarter-on-quarter and 14 percentage points year-on-year.

Employment prospects in the Northern Territory (24%), Western Australia (22%) and NSW (10%) are the strongest, while Tasmania is the only state expecting a decline in overall employment numbers, at -6%.