Almost half, or 47%, of Australian employers intend to increase permanent staff levels in the next 12 months, according to research from Hays Australia. 

 
The research found that 15% of the close to 3,500 employers surveyed also intend to increase their use of temporary or contract staff. 
Hays noted that not all industries and sectors will see headcount growth at similar levels. 

As the fight against the pandemic continues, Hays noted that 61% of life sciences employers intend to increase permanent staff levels over the coming year. 

Following close behind is the legal sector, where 59% of employers will add to their permanent headcount. Permanent vacancy growth is also notable in the contact centres (58%), technology (57%) and both engineering and human resources (56%) sectors. Architecture, construction and insurance (all 54%) and retail (52%) also have strong hiring intentions. 

According to the data, almost three-quarters of employers say permanent staffing levels are either above (29%) or equal (45%) to their pre-Covid-19 level.

Furthermore, 63% of employers have returned to ‘growth’ or ‘rapid growth’ and 72% say business activity will increase over the next 12 months. At the same time, 67% of employers are optimistic about the wider economic climate and the employment opportunities it may create in the next two to five years. 

More than half or 64%, of employers say skills shortages will impact the effective operation of their organisation or department in the next 12 months.  

Hays also noted that the looming threat of skills shortages is more acute in certain locations than others.

The Australian Capital Territory (ACT) and Western Australia are facing the greatest impact, according to employers, as skills shortages spread across these location’s quicker than others.  

In the ACT, 74% of employers say skills shortages will impact the effective operation of their organisation. The majority, or 75%, say permanent staffing levels are above or equal to pre-Covid-19 levels and 51% expect permanent staffing levels to increase in the next 12 months.

Meanwhile, in Western Australia, 74% also say skills shortages will impact the effective operation of their organisation. However, most, or 80%, say permanent staffing levels are above or equal to pre-Covid-19 levels and 47% expect permanent staffing levels to increase.

Nick Deligiannis, Managing Director of Hays in Australia & New Zealand said, “Fiscal stimulus and control of the spread of Covid-19 has helped to create a jobs market recovery, with employers navigating their way out of the pandemic and reinvesting in headcount growth. However, acquiring top talent with the right skills is not as easy as it first seems. An old challenge has reared its head once more – skills shortages.”

“With hiring activity increasing, the supply and demand imbalance has now tipped firmly in favour of skilled professionals,” Deligiannis continued. “While employers have so far managed the shortage, they are reaching their turning point. In the next 12 months, almost two-thirds say skills shortages will impact the effective operation of their organisation or department.

“There’s also a small but notable number, 22%, who do not believe they have the talent required to achieve their organisation’s strategic objectives,” Deligiannis said. “This skills imbalance is a substantial treat to those organisations that continue to invest in projects and headcount to return to, or cement, their growth.”