Australian hiring expected to increase in Q3 2023

Australian employers anticipate an increase in hiring activity in the third quarter of 2023, a survey by workforce solutions provider ManpowerGroup Employment indicates.

ManpowerGroup surveyed 1,020 Australian employers in its Outlook Survey report, and found that 46 per cent of respondents report intentions to increase headcount during the coming quarter, while only 12 per cent anticipated a decrease.

The resulting Net Employment Outlook is at 37 per cent after seasonal adjustments, indicating a 7 per cent increase from the last quarter.

This score puts Australia as the country with the fourth highest Net Employment Outlook of the 41 countries surveyed, with only Costa Rica, the Netherlands and Peru ahead.

The global average sits at 28 per cent.

South Australia is expected to have the highest growth, with almost one in two employers reporting hiring intentions, closely followed for the Northern Territory and Tasmania.

Queensland reported the lowest hiring intentions at 27 per cent, followed by Victoria and NSW, both at 35 per cent.

ManpowerGroup Australia managing director Penny O’Reilly said the latest indicate that Australian business leaders are remaining positive and plan to grow their business despite ongoing challenges.

"There is no doubt, over recent years business leaders have become more confident operating in environments that are less than perfect."

"The fact that almost one in two businesses intend to increase their headcount during the coming quarter is a testament to that,” O’Reilly said

“Businesses continue to face daily challenges around supply chains, demand levels, inflation and talent availability, however, we are still seeing Australian leaders adopt a growth mindset and focus on long-term success.”

These hiring intentions remain positive across all nine employment sectors across Australia, with the strongest hiring outlooks being reported in the information technology at 61 per cent, and both communication services, and industrials and materials sectors at 38 per cent.

The Australian IT sector recorded a Net Employment Outlook of 61 per cent, increasing by 5 per cent since last quarter and 9 per cent since a year ago.

ManpowerGroup found that micro-organisations of less than ten employers recorded the largest increase in hiring intention, with a Net Employment Outlook of 38 per cent, increasing by 14 per cent since the last quarter. 

The workforce solutions provider said this is the highest Net Employment Outlook score recorded for micro-organisations since the company began tracking in 2008.

“Australia’s pool of IT talent is world-class. That is why we are seeing both domestic and international businesses competing hard to recruit these in-demand skills locally."

"As we continue to shift towards a digital society, it is reasonable to expect this demand will continue to grow over time,” O’Reilly said.

Hiring managers across APAC recorded steady growth in hiring intentions at 31 per cent, improving by 4 per cent compared to the previous quarter.

Throughout APAC, Australia recorded the highest hiring intention in the region with 37 per cent, followed by India at 36 per cent, and China at 35 per cent, while the weakest outlooks are forecast to be Taiwan and Japan at approximately 15 per cent.