Executive Search in Australia– 2016 Outlook
Positive Growth, But Weak Job Market
It is true that the Australian economy is entering its 25th consecutive year of growth, however the consensus among economists appears to conclude that growth will remain below trend for another two years.
Expected weaker demand for our commodities from China and other global issues and uncertainties indicate that our growth this year may languish around 2. 5 percent before hopefully picking up in 2017- 2019 to around 3-3.5 percent
The mining boom is over.
The non-mining sector is still facing headwinds including weak demand, revenue and profits. It is suggested that in this climate it is considered that business will not invest and what investment there is will be flat.
The strong sectors are likely to be banks, health and education. Mining, engineering, construction and manufacturing will lag although a lower Australian dollar may help this latter sector.
The Australian labor market remains surprisingly resilient with an unemployment rate hovering around 6 percent. However new graduates are finding it tough to find and secure jobs in their field. It is said that the current situation is the worst seen in two decades and is not going to improve anytime soon. So graduates are opting to continue post graduate studies in the hope this will increase their job prospects in the next few years.
What does this mean for the search industry in Australia? It is quite difficult to predict, but demand is unlikely to increase this year. That said there will be activity as corporates and the public sector continue to restructure and seek executive talent to drive change and greater competitiveness
We also predict an increase in demand for executive coaching and assessment services as the push for improved executive performance continues unabated.