Executive demand falls
A combination of rising inflation and falling economic growth has led to a sharp decline in the number of Australian executive jobs on offer, according to executive employment specialists E.L Consult.
The E.L Executive Demand index fell 15 per cent in the month of July compared with the prior month as a number of poor economic growth indicators coincided with the release of inflation figures above the Reserve Bank of Australia's favoured 2-3 per cent band range.
The report finds that while growth in executive demand in the resource and mining remains strong, other areas are beginning to lag behind.
"We are in a stagflationary environment of sorts, where both inflation is rising and growth is falling. The RBA is stuck in the middle, having to slow the resource rich economy which is feeding demand-pull inflation, while not chocking off the anemic growth profile of the larger states such as New South Wales and Victoria and their non-resource sector industries,” said Managing Director of E.L Consult Grant Montgomery.
"As we said last month when the E.L Index rose 11 per cent, the spending on executive positions in the final month of the financial year clearly showed the conservatism of the market.
"Corporate players have waited until the last possible month to spend their budget rather than spreading it throughout the year because the enormous uncertainty they have on the business environment outlook.
"The losses in July were virtually across the board. We've seen a significant decrease, mostly in the public sector, probably as the NSW government attempts to reduce the bureaucracy in that state.”
Executive employment is currently at 50 per cent of the peak level of employment before the global financial crisis.
“Australia outside of the China led mineral boom is highly depressed and doesn't look like changing back any time soon,” Mr Montgomery said.
All sectors fell during the month. The losses were led by the Financial and Information Technology sectors.
Among the large states, Victoria slumped followed by New South Wales.
As could perhaps be expected, the resource-rich state of Western Australia was the only state to post a positive result, up 7 per cent in executive demand on the prior month.
More information can be found here