‘Employee’s market’ still alive and well

The “employee’s market” forecast is on track to continue indefinitely – particularly in certain sectors, according to a new report released this week.

The Resources and Energy Workforce Insights & Remuneration has been jointly released by REMSMART and AREEA, providing key insight on labour market trends.

According to the report, the notion of an “employee’s market” is still very much on the table, particularly when it comes to the resources, energy and servicing sectors.

“As we commence 2023, it is clear Australia still faces crippling skills shortages. On top of this, employers are dealing with the triple impact of increased inflation, minimal unemployment and salaries, which have increased significantly over the past six months,” said AREEA deputy chief executive Tara Diamond.

“We are still very much in an ‘employee’s market’ in the resources, energy and servicing sectors.”

Going into the figures, the report found employers surveyed expect average wage increases over the next 12 months to be as high as 5 per cent. At the same time, they’re having to manage 27 per cent average employee turnover in the resources, energy and servicing sectors, the report found.

Increasing workforce issues were identified as a key challenge by respondents, with many in the resources and energy sector noting they have to broaden their expansion of “people teams”. In fact, the past six months have seen an average increase of almost 20 per cent within the HR and related functions of industry participants, the report found.

Commenting off the back of the report’s release, REMSMART managing director Allan Feinberg said: “Recruitment and training are the strongest drivers of growth within the industry’s ‘people teams’. This speaks to the urgency in the market around both attracting and retaining skills and capability.

“Employers are building on depth of knowledge of existing people through training and development, while looking to gain new skills and capabilities through targeted recruitment.

“Employers also continue to focus on critical non-wage related issues, such as workplace flexibility, training and upskilling; and ensuring safe and appropriate workplace behaviours including workplace sexual harassment.”