• 6.0

    2019

0.3

Up

Key drivers

Labour Market Participation (5.7)

The growth in Australia’s participation rate is forecast to slow this year, reducing the rate at which the pool of available skilled labour is expanding.

Talent Mismatch (6.1)

The unfilled job vacancy rate has risen in Australia, further above its historical average. This suggests there is a growing mismatch between the skills held by workers, and those sought by employers.

Education Flexibility (4.9)

The number of graduates as a share of the total population has fallen in Australia, reducing the pool of skilled labour employers can recruit from.

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Education Flexibility

4.9
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Labour Market Participation

5.7
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Labour Market Flexibility

4.3
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Talent Mismatch

6.1
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Overall Wage Pressure

5.9
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Wage Pressure in High-Skill Industries

8.6
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Wage Pressure in High-Skill Occupation

6.2
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Nick Deligiannis

Managing Director, Hays Australia

View from the Ground

Over the past year we’ve seen skill shortages intensify and the talent mismatch widen. It’s no wonder then that Australia’s overall Hays Global Skills Index score has climbed for the fourth consecutive year. As we move further into the fourth industrial revolution, the demand for highly skilled professionals is surpassing that of low-skill workers. Yet while demand for highly skilled professionals exceeds supply, wage growth remains stubbornly subdued. Employee turnover is consequently rising since a higher salary increase can be achieved by changing jobs. Employers in 2019-20 must therefore find other compelling ways to attract, retain and engage staff, including reinvesting in training, career development and genuine work-life balance.

Nick Deligiannis, Managing Director, Hays Australia

Key Skills in Demand

  • Business Analysts
  • Systems Engineers
  • Project Managers with major infrastructure experience
  • Risk & Compliance Managers
  • Marketing & Content Managers

Market Insight

The Australian economy continued to perform strongly in 2018, expanding by 2.9%. The robust economic performance was accompanied by improved labour market conditions. The numbers employed rose by 2.7%, with particularly rapid growth in the employment of people working under 35 hours a week, up 4%. This led to a decline in the unemployment rate to 5.3%, down from 5.6% in 2017. The progression of the economy into 2019 however has seen a more modest level of growth.

The Hays Australia 2019-20 Salary Guide shows that while employers will continue to add to their headcount, 70% simultaneously acknowledge that skill shortages are likely to impact the effective operation of their business or department, up from 67% in 2018-19.