Low unemployment rate impacts skills shortage: Robert Half

With Australia’s unemployment rate hitting a low 3.5 percent this puts more strain on the current skills shortage according to new research.

Research from Robert Half shows that 73 percent of employers believe it will be more challenging to find qualified employees now compared to six months ago.

The biggest challenge faced by hiring managers is finding candidates that demonstrate the right skills and cultural fit, followed by finding candidates with the right skills to fill open roles.

According to the ABS, job vacancy levels increased 13.8 percent between February and May this year.

Research from Robert Half shows that 48 percent of Australia’s leaders are looking to expand their current permanent headcount in the next sixth months. On top of that, 41 percent will maintain the current headcount, 8 percent will freeze hiring, and just 2 percent intend to eliminate positions.

Australia’s technology sector is showing signs of strong growth over the remainder of 2022 with 53 percent of CIOs planning to expand their current headcount and just 2 percent intending to reduce headcount over the next six months. 35 percent will maintain headcount, and 9 percent will freeze hiring.

David Jones, managing director at Robert Half Australia said, “Despite signs of an economic easing, and international talent contractions in the tech space setting off alarm bells for Australian employers, our employment landscape tells a different story. Australia’s current labour conditions point to an exceptionally strong position from which to navigate potentially more challenging conditions ahead.

“The current tight labour market, which is being driven by buoyant job creation and already high participation rates, is showing no signs of easing with Australian business confidence also remaining strong in this new financial year. Increased hiring activity and rising turnover alongside an ever-shrinking active job seeker market means the competition for talent is growing fiercer.”

Securing the necessary skills to progress infrastructure, development and transformation priorities remains an obstacle to growth for many CIOs.

The top five skills for the remainder of 2022 are:

• Cyber security
• Data analytics
• Cloud computing
• Software engineering

While CIOs are willing to pay an additional premium of up to 30 percent to secure technical skills across the board, the skills that can attract the highest salary are:

• Data analytics
• Cloud computing
• Software engineer
• Blockchain
• Software development

Jones said organisations should have an open mind when hiring employees.

“While employers will be typically looking for many in-demand soft-skills and technical skills to fill roles in the coming months, it’s important for companies to remain open to hiring candidates based on their potential to grow into a role with the support of ongoing investment in internal training, professional development and succession planning,” he ended.