Is the recruitment market slowing? The answer here…

The questions I get asked in Australia and New Zealand, just about every day, are these;

• Has the market softened?
• Are job orders dropping off?
• Is there a slowdown?

Well, my response is a cautious and qualified ‘yes’, but with a very clear rider.

Being on the Board of 14 recruitment and HR tech businesses, as well as talking to business owners every day, is a privilege that gives the benefit of insight. And mostly, they tell me that things have tightened a little. Note, there is no ‘recession’. There is no ‘disaster’.  But orders have slowed, and fill times have blown out a little, and orders are being pulled a little more often.

Nigel Harse of Staffing Industry Metrics adds some science to the anecdotal evidence with his latest results.

SIM  found that perm sales came off the boil from September 2018. As the election loomed closer, they declined further.

By May 2019, just weeks from the election, average perm sales were down 20% on figures from May 2018.

However, if you take a wider perspective, and look at  Moving Annual Total (MAT) you get a clearer picture of the long-term trend.

MAT gives you the sum value of sales over a 12-month period. By taking monthly fluctuations out of the equation, MAT provides a true indicator of the market over the longer term.

Assessing  permanent sales in 2018-19, using the MAT method, we see a decrease in permanent sales just before the election. However, it also shows 7% growth over the course of the 12-month period from May 2018 to May 2019.

So when all is said and done, with the election and end of financial year now behind us and with the Liberal Party remaining at the helm, the permanent market in Australia is poised for another record-breaking year.

Yes, it has slowed a little, but the trend is up, opportunities abound.

So, less talk about ‘slowdowns’. More focus on the activities that will drive revenue in a slightly chilled market. Because trust me, the work is there!

Are you ready to capitalise?

PS – please contact Nigel direct for detail on how benchmarking can drive your business upwards

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