Australian Work Outlook: Strong Employment Intentions and the Rise of the Casual Worker

Some surprising results with the Australian labour market showing signs of strong short-term employment intentions among employers. According to AHRI’s Quarterly Australian Work Outlook report for the June quarter of 2023, a whopping 46% of organizations are planning to increase their staff levels, while a mere 1% are considering reducing their workforce. This positive sentiment is driven by expected low redundancy activity and high recruitment demand.

Did you know that despite projections of lower economic growth in 2023, job vacancies in Australia remain high? This apparent anomaly may be attributed to a ‘recruitment catch-up,’ wherein employers are now filling vacancies that they previously struggled to fill.

Employment prospects are particularly bright in the public sector, where net employment intentions are even higher, standing at an impressive +54. Public sector employers also have higher pay intentions for the coming year (4.4%), compared to their private (3.2%) and not-for-profit (2.2%) counterparts.

One intriguing trend observed in the report is the rise of casual workers. These individuals are playing an increasingly vital role in the Australian workforce. Employers find them beneficial for various reasons, with 46% using them to manage short-term fluctuations in demand and 42% providing flexibility for individual employees.

As a matter of fact, employers often pay casual workers a higher hourly rate compared to permanent employees performing similar roles. Approximately 58% of employers are willing to pay a premium to casual workers, recognizing their value in a flexible workforce.

Moreover, casual employment has proven to positively impact both employers and individuals. Did you know that around two-thirds of employers perceive casual employees as being just as engaged, if not more engaged, than permanent employees? This attests to the productivity and dedication of casual workers.

However, it’s not all smooth sailing. The survey revealed that almost a fifth of employers do not grant casual employees the same access to training and development opportunities as their permanent counterparts. This raises questions about the potential impact on skill development and long-term career prospects for casual workers.

While employers enjoy the benefits of casual employment, there are concerns about the possible inflationary pressures it may cause. Yet, the data suggests that the positive employment intentions are not significantly affecting wage inflation. On average, employers expect a modest mean basic pay increase of 3.3% for the 12 months to April 2024.

The June 2023 Quarterly Australian Work Outlook showcases Australia’s labour market in a favourable light, with robust short-term employment intentions and a preference for casual workers to meet fluctuating demands. Employers value casual employees for their flexibility and higher engagement levels, but it is essential to ensure equal access to training opportunities for all workers. As the labour market continues to evolve, the role of casual workers and their impact on workforce dynamics remain critical areas to watch.

(Report Source: AHRI June 2023 Quarterly Outlook)