Australia

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Overall Score

5.1 in 2015 5.0
0 2.5 5 7.5 10

Key Finding

Australia’s overall Index score suggests the labour market tightened slightly. This was primarily brought about by an increase in talent mismatch, as the skills unemployed workers possess are not those employers want to hire.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
4.1
Labour market
participation
3.8
Labour market
flexibility
4.6
Talent
mismatch
4.5
Overall wage
pressure
6.7
Wage pressure in
high-skill industries
8.0
Wage pressure in
high-skill occupations
3.9

COUNTRY OVERVIEW

View from the ground

Australia’s economy is undergoing structural change as it successfully transitions from mining to the services sectors, particularly health, retail, tourism and education. Headcounts are growing, market buoyancy is evident and employers report increased business activity. Given this sentiment you’d expect commensurate salary pressure, however, employers instead remain cost conscious. It remains to be seen how long this anomaly will last; already turnover is rising and the shortage of candidates in certain high-skill industries is leading to some wage pressure. While far from a universal trend, this suggests that employers must not be complacent in the face of increasing skills shortages.

Nick Deligiannis, Managing Director, Hays Australia

Nick Deligiannis, Managing Director, Hays Australia

Country Profile

GDP growth accelerated in the first half of 2016, driven by a surge in net exports.

Offsetting strong export growth was a sharp fall in business investment, as the mining sector reacted to lower commodity prices.

On the domestic front, Australia experienced an easing in consumer confidence and sluggish wage growth.

Nick Deligiannis, Managing Director, Hays Australia

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