Australia's unemployment rate is expected to remain low
Melbourne, Australia (PRWEB) October 18, 2012
Australia bypassed the worst of the global financial crisis, which has meant its effect on the Australian Employment Placement Services industry has been mild compared with its international counterparts. Australia's rise in unemployment was relatively small in 2008-09 and 2009-10, and quickly began to reverse in subsequent years, with demand for employment placement services rebounding strongly in 2010-11. According to IBISWorld Industry analyst Alen Allday, “employment demand remained strong in 2011-12, and is expected to continue through 2012-13”. IBISWorld estimates industry revenue will increase an annualised 2.9% over the five years through 2012-13 to $2.73 billion. In 2012-13, industry revenue is expected to increase 4.1%, as Australia's unemployment rate remains low and strong demand for mining, resources, health, trade and administration positions continues. Despite uncertainty among international global clients and reduced business confidence in the United States and Europe, the Employment Placement Services industry is expected to increase strongly in 2012-13 due to greater demand in permanent recruitment services and an increase in client-paid net fees.
As the Australian economy continues to stabilise over the five years through 2017-18, industry revenue is forecast to increase. “This will be driven by increased economic activity, a strengthening labour market and the provision of a wider range of employment placement services online”, says Allday. Greater external competition from on-line business networking sites, such as LinkedIn, is expected to have a small negative effect on the industry in future years as incumbent firms develop complementary services and other additional recruitment services and processes.
IBISWorld estimates that the Employment Placement Services industry in Australia has a medium level of market share concentration. Industry concentration increased over the past five years via acquisitions by major players, and organic growth. This trend is expected to continue in the next five years as the larger companies continue to become more dominant and increase their market share levels. As well as several large companies operating within the industry, there are many small and medium-size firms in the industry that tend to specialise in niche areas and often operate in a particular geographic region. This is in contrast to the larger firms that operate nationally and internationally, and which often have international links, offering a full range of services across the entire economy. The top four players in the industry are Hays Specialist Recruitment, Chandler Macleod Group, Hudson Global Resources and Manpower Services.
For more information, visit IBISWorld’s Employment Placement Services report in Australia industry page.
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