20,000 new jobs in September
An unexpected jump in the number of jobs created last month has signalled a rate freeze but recruiters say a two-speed economy is very much at play.
The Australian Bureau of Statistics (ABS) announced that 20,400 jobs were added to the economy in September, double the 10,000 rise that economists were expecting.
The unemployment rate fell to 5.2 per cent from an unrevised 5.3 per cent.
Despite the positive data, recruiters have said a two-speed economy is putting pressure on some sectors.
Jeff Doyle, CEO of Adecco Group said that while overall unemployment rates have fallen and participation rates remain steady, this is being largely driven by the booming resources and mining sectors.
“We believe the professional services and consulting market is contracting, reflecting the contradiction that is Australia’s dual-speed economy,” he said.
“At the moment, if you're consulting in the resources or mining sectors in WA or Queensland, life is pretty good, but if you're on the east coast consulting in the finance, retail, construction or manufacturing sectors it’s a tough slog and will only get worse if we see the forecast ‘double dip’ recession hit our shores.”
Nigel Heap, managing director of Hays Recruitment said that there has been a decline in the number of jobs in the banking sector and construction sector.
Mr Heap said that financial services was cautious in hiring due to uncertainty coming from Europe.
"Clients are not as bullish in their hiring in the financial services and it is largely based on the uncertainty coming from Europe," he said.
Although there have not been widespread redundancies in construction, hiring in this sector in the Sydney and Melbourne areas has slowed down significantly.
Employer caution is also being reflected in the hiring of sales staff.
Simon Meyer, managing director of recruitment company Michael Page said: "Replacing sales people hasn't been an issue but there hasn't been much rigour around growing sales teams."
Overall, recruiters said that the jobs figures were strong and reflected some of the good recent economic data.
Article from News.com.au