Jul 18, 2024
As we dive into the Precision Sourcing Q4 Market Report, it’s clear that the current economic climate presents both challenges and opportunities for businesses and professionals alike.
Economic Overview
Australia is officially in a per capita recession, with the average income and economic output per person declining. The Reserve Bank of Australia anticipates an increase in the quarterly inflation rate to 3.8% for April-June, up from 3.6% in the previous quarter. As the June quarter results are set for release on July 31st, many are bracing for a potential interest rate hike.
Contractors are feeling the pressure, with over 90% seeking rate increases at extension, but unfortunately, most of these requests are being rejected by companies.
Market Dynamics
At Precision Sourcing, we’ve observed a 20% decrease in vacancies as businesses wrap up the financial year cautiously. Our survey with Australian CTOs and CIOs indicates a careful outlook for FY25, with capital expenditure expected to remain similar to FY24. Unemployment has edged up slightly to 4%, yet it remains historically low.
The good news is that vacancies increased by 8% this quarter compared to Q4 2023. Despite the challenges, Precision Sourcing enjoyed its best quarter of FY24 in terms of EBIT performance.
Sector Analysis
The technology and data sector has faced significant short-term challenges, with a steady decline since early 2023. Data and project services, along with software development, have been heavily impacted. However, the architecture, security, and SAP spaces have shown resilience.
Looking Ahead
While the downturn persists, history shows that the technology and data sector is well-positioned for a strong recovery in the mid to long term. Australia is in an excellent position to capitalize on the renewable energy shift and the demand for natural resources.
Advice for Candidates and Clients
Candidates: Demand face-to-face interviews to build stronger impressions and trust.
Clients: Don’t be complacent with your hiring process. With unemployment remaining low, streamline your hiring process to attract top talent from the outset.
Read the Report for Sector-Specific Insight into the:
- Data Market
- SAP Market
- Technology Market
