A career in Financial Services or Investment Banking? Think again! While there is still a lot of uncertainty around the general employment market in Australia, here is what we forsee for 2009.While many employers have put temporary hiring freezes in place through to the end of 2008, we believe there is pent-up demand for vacant positions to be filled. We expect to see a mild surge in jobs and hiring in late January and February.
Employers will reassess business conditions in March / April 2009. If the business outlook is stable, hiring will continue at a subdued but steady pace. However, if business conditions have deteriorated expect a round of layoffs in the April / June quarter.
Demand for graduates has been buoyant for the past few years across most disciplines but especially in IT, Accounting and Engineering. Expect that to change... Demand for graduates has been buoyant for the past few years across most disciplines but especially in IT, Accounting and Engineering. Expect that to change.
Past recessions have seen companies completely cancel graduate programs, so we expect graduate recruitment activity in 2009 (for 2010 graduate hires) will definitely be reduced. The main flow on effect will not hit until 2010.
Expect the accounting firms to scale back on accounting graduates. They will be absorbing record numbers of new graduates at the start of 2009, which may put them in a position of being over-staffed.
During a recession companies treat management consultants as the first discretionary expense to be cut. So expect a lot of consultants to be looking for new jobs. Consulting firms will minimise or cancel graduate recruitment altogether
Engineering demand for graduates will also ease up and graduates who have been hired to support specific projects which get cancelled, will now come on to the market.
We may see graduates who have been offered a position for the start of 2009 now have their offer rescinded due to business circumstance. So there will be an influx of quality graduates from all disciplines in the first quarter of 2009. In previous downturns we have seen some employers offer new graduates delayed start dates ot 6 months plus.
With respect to redundancies, we don't expect to see a big impact on recent graduates / young professionals who are already employed. There continues to be a shortage of quality young professionals. We think that employers will cut again into middle level managers, particularly baby boomers who are close to retirement any way.
However the shake-out in the Financial Services sector has definitely reduced employment prospects there. If you were considering a career in investment banking or related areas - think again!
One last comment – top people are always in demand and recessions shake out the marginal performers – businesses and employees! |
