Newsletter #432 (View other news stories)
Employment expectations improve
Melbourne, Victoria, Australia
Thursday, 15 Oct 2009
Australia’s employment expectations are rising with 14% of businesses expecting to increase staff before Christmas, according to the latest business expectations survey from Dun & Bradstreet.
This comes on the back of improvements in the employment market in the June quarter, which saw 11% of companies employ new staff.
Firms are also positive about the sales and profits outlook and are confident about increasing inventory levels and capital investment in the quarter ahead.
Christine Christian, D&B’s chief executive, says the rise in employment expectations is important.
"Employment intentions often have a significant impact on the long-term unemployment rate; therefore the drastic improvement in this index should play a critical role in helping reduce unemployment. After the 1991 recession, it took 11 years for unemployment to return to pre-recession levels, however, current expectations suggest the return to lower unemployment figures should occur more quickly this time around."
About 40% of executives believe a slow growth in demand will be their biggest barrier to success in the year ahead. Funding shortages and access to skilled staff are also seen as barriers, with 20% and 10% of firms reporting these issues respectively as those most likely to impede growth.
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