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A CXC Global Knowledge InitiativeMonthly Media BriefEmployment | The Economy | Contract WorkAugust 2015

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THE ECONOMYThe following, a summary of the coverage around the economic outlook for Australia for the period: August – mid September 2015.

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Economic Outlook

The RBA said the weakening Aussie dollar is helping to stimulate growth in the non-mining sector as Australia adjusts from a decade long period in mining investment, towards stronger growth in exports

1

For the first time in 2 years, the RBA says the Aussie dollar isn’t overvalued suggesting further interest rate cuts are unlikely to be needed

2

The dollar has fallen to its lowest level in six years3

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Economic Outlook

Multiple sources report that interest rates will remain low for many years.

This is due to the shift away from mining investment, ongoing weak growth, the need for lower policy rates and lower Aussie dollar to accommodate the rebalancing of the economy

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Economic Outlook

Policy makers are becoming confident that the post-mining boom is gaining steam, with recent strong data including hiring

Australia’s economy is growing at 2% YoY as it continues to transition to non-mining sources of growth…

Trading conditions and profitability are showing improvement in Australian listed companies, but the employment index sits stagnant. This adds to the mounting evidence that the AUD depreciation and record low interest rates are having the desired effect by helping to offset the weakness in mining.

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Economic Outlook

Australia’s spending in online retail to the 12 months to July 2015 was $17.4 billion. This is equivalent to 7.1% of spending at traditional bricks & mortar retailers as measured by the ABS in the 12 months to June 2015

(excludes cafes, restaurants & take-away foods)

Business conditions point to improvement in the non-mining economy, even though the financial markets have been jittery

ONLINE RETAIL

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Economic Outlook

PwC is foreseeing personalised interest rates as a thing of the future. Algorithm intelligence will predict the right interest rates based on an individual’s circumstances.

This is on the back of ongoing conversations about big data, what’s called ‘fintech’ where technology is translating to cheaper prices (for cash), faster transactions, leaving the end-consumer with more power than ever before.

Empower Consumers

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The displacement of hundreds of thousands of refugees from Syria, is causing concern for the European Union who are split on the process & quotas of refugees to accept. With an ageing population, there is speculation that labour woes on the Continent may be relieved through the mass migration. The discontent within the EU has the British Prime Minister questioning their very membership thereof, in a bid to retain autonomy around decisions for refugee displacement

Globally….

The RBA was slightly more upbeat about trading partner China, suggesting threats to growth in the world’s second biggest economy had ‘receded somewhat

Global growth remains sluggish with tempered forecasts with weaker than expected results coming out of Canada, India & Brazil

The pace of growth in advanced economies has improved. In contrast, Japan and the Euro zone are not growing strongly, and Canada is in recession

Emerging markets are driving most global growth, yet they are slowing with falling trade volumes and softer commodity prices eroding incomes, spending and outputs across East Asia, Latin America and South AfricaEconomic Outlook

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JOBS OUTLOOKThe following, a summary of the coverage around jobs outlook for Australia for the period: July 2015.

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Rise in job ads in August 2015,

compared to the previous year, according to

SEEK

+11%

Jobs Outlook

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Clear declines in jobs are evident in WA and NT. SA is softening, despite lesser reliance on mining, but heavier on manufacturing

Non-mining economies are showing jobs strength in the ACT, NSW, TAS & VIC

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Farm

ing,

an

imal

s &

cons

erva

tion

+32%

Jobs Outlook

Wage growth in Australia hits record low – in the private sector, at just 0.5% for the second consecutive quarter. The public sector had slightly better growth at 0.57% for the same period.

Ordinarily, an increase in hours worked would be accompanied by improvement in wages, but instead the opposite has occurred. The reason being an increase in the space capacity of the labour market

+26% +23%

Desig

n &

arch

itect

ure

22%

call

cent

rer &

cu

stom

er

serv

ice

Educ

atio

n &

train

ing

As resources roles decline, there’s uptake in other industries….

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Contingent Workforce Coverage

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Developing an appealing working environment is key to attracting & retaining talent. But many Australian employers are struggling to find the best, right talent as so many Australians are opting for a flexible working life, over job security

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Contract Work

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E-Lance/ODesk have over 161,000 Australian businesses registered with them: showing the power of these platforms for big business to get jobs & tasks completed without the burden of extra head count

1

The platform also reports that Australian businesses plan to continue to hire more freelancers over permanent hires for key roles including: admin, design, customer service, call centre, financial clerks

2

It’s also reported a growth in business hiring through the site of over 235% over 3 years

3

Traditionally, Australian workers had access to a limited number of clients in Australia. Now they work in a global market thanks to platforms like Elance/Odesk and Freelancer.

Contract Work

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In 2015, the U.S. Department of Labor found that 65 percent of employers anticipate an increase in the use of flexible staffing arrangements to meet their future talent needs

The slowing of the US economy has seen many traditional workers taking up the opportunities afforded by contract, freelance & gig based work. Including…

• renting rooms on Airbnb• making goods for Etsy• completing tasks on

Airtasker

Many worry about the safety of ongoing work, but largely are happier as an active participant in the gig economy than working for an individual boss

Contract Work

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Deloitte Consulting’s Global Human Capital Trends 2015 Whitepaper

of respondents said their need for

contingent workers will keep growing

over the next three to five years

51%

Contract Work

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Design-Led MSPs

Process optimization to enable hiring managers to focus on growing their business, strategizing and running their departments, driving profit & progress.

A great series of articles about the trend for improved designing of MSPs to not only offer…

‘Design thinking is increasingly being applied to complex, intangible issues like how a customer experiences a service’

Offers an emotional component to alleviate the burden of managing large teams of staffing suppliers and their talent

• deliver cost savings• visibility to performance &

spend• risk reduction• improved forecasting• and…

Contract Work

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SourcesEconomy & Jobs:

1. Job ads figures by state http://bit.ly/1LlQ2NY 2. The RBA & business outlook http://bit.ly/1Of4SLt3. Retail spending http://nab.co/1FzhLZI4. Business Confidence http://nab.co/1FzhPsh 5. PwC & Interest Rates http://bit.ly/1FzhUMt 6. Wage growth stagnates http://bit.ly/1FziNVu 7. Rates to remain low http://bit.ly/1UDMOQa

Contract Work:8. Freelance numbers in Australia http://bit.ly/

1UzRm6D9. Design-led MSPs http://bit.ly/1UDOwRw 10. Ranstad report http://bit.ly/1LZ9fYC 11. The traditional worker turned freelance worker

http://bit.ly/1LZ9GSI12. Is the gig economy over-hyped?

http://bit.ly/1LZa9nV

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