By Chris Zappone
Australian companies are looking to employ more workers before the end of the year as the outlook for the economy continues to brighten.
The Manpower employment survey shows a net employment outlook rising by 9 per cent for the fourth quarter, from a flat reading in the third quarter, as a stronger economy increases demand for more workers.
"Hiring intentions have strengthened across all of the industry sectors in Australia," said the report.
Hiring plans in financial services and real estate rose 7 per cent, mining & construction jumped 13 per cent, and services increased 15 per cent. In the wholesale and retail trade sectors, employers reported a 9 per cent jump in hiring plans for the quarter.
According to Manpower's survey of 2333 companies in Australia, 18 per cent said they expected to hire more, while 9 per cent predicted job cuts. The majority - 72 per cent - said they foresee no change in the quarter.
Seasonally adjusted, the survey shows a 7 index point gain in net employment outlook in the forth quarter, rising from 2 index points in the third quarter. The overall net employment outlook is calculated by subtracting the total percentage of employers tipping lay-offs from the total percentage of employers tipping an increase in numbers over the quarter.
The quarterly result of hiring intentions come ones a day after ANZ Bank released its August job ads survey, showing a 4.1 per cent increase, the first gain since April of 2008.
The Australian Bureau of Statistics will update the official unemployment figure on Thursday from its current 5.8 per cent level. A consensus of analysts expects it to rise to 5.9 per cent in the month of August.
The worst fears for the labour market since the global financial crisis emerged last year have not come to pass, surprising observers, and pleasing economists. The local economy expanded by 0.6 per cent in the three months to the end of June, from 0.3 per cent in the three months to March, raising hopes Australia will pass through the global downturn relatively unscathed.
czappone@fairfax.com.au
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