February 09, 2017/ News
Employment in Australia has undergone changes, with significant shifts in the way that hiring takes place. Employers are increasingly outsourcing the recruitment process and looking towards labour hire agencies to find workers for them. This is particularly true for the construction and healthcare industries, as the growth in demand for these sectors is higher than others. According to a 2016 IBIS World report, the total revenue of the labour hire industry in Australia currently sits at approximately $19.7 billion, with an average annual growth rate of 2.2%. This indicates that labour hire in Australia is stable and expected to grow at a steady pace. Labour hire is on the rise and expected to affect how recruitment is conducted within several industries in Australia.
Here are three key labour hire trends that you should be aware of:
1 - Growth in The Outsourcing of Non-core Activities
Businesses are predicted to continue stripping down their operations to its core functions and increasingly outsourcing elements, such as the hiring process, to external agencies. This has been done in order to redirect valuable time and resources to more crucial company aspects. As a result of this restructuring, demand for labour hire services is predicted to rise, as businesses turn to them for an easier and more time-effective method of employment.
2 - Increasing Demand From Construction, Media and Healthcare Industries
Due to the often project-based nature of the work, or the need to source workers quickly, labour hire services are expected to experience the most growth in these industries. In particular, the construction industry will be a major source of revenue for labour hire agencies and the overall industry. As reported by the ABC, Sydney is undergoing a boom in housing construction with nearly 200,000 homes to be built in the next 5 years. This will result in a spike in demand for short-term, contract labour for these widespread construction projects.
3 - Labour Hire in The Mature Phase
The labour hire industry is in the mature phase, which means that profit margins have lowered and the industry is experiencing moderate revenue growth. This can be attributed to an overall increase in the unemployment rate and rising employment costs. However, demand for temporary recruitment is projected to continue to rise. As a result of the steadily growing demand for labour hire services, the labour hire industry is becoming saturated with more and more agencies looking to capitalise on the demand. The high levels of competition will provide employers with more options amongst labour hire companies and make recruitment easier.
Being aware of and understanding the forecasted trends of labour hire is vital for anyone affected by the employment process, such as job seekers, employers, management, etc. This information provides the key insights necessary for effective planning of human resources, the identification of booming industries, and a greater idea of the employment situation in certain sectors and in general.
If you're an employer looking for a professional labour hire agency to help you out with your recruitment needs, contact us at Workfast today!