There are some significant bumps along the road as the labour market continues to recover from the worst effects of the Covid pandemic. A record level of vacancies in Australia has been a headline statistic recently, causing headaches for agencies as they seek talent. This mirrors the experience of UK recruiters.
One of the reasons for such large gaps in the supply of talent has been the number of inactive workers, also known as the participation rate, the share of the population that is working or looking for jobs.
Some of the key reasons for high inactivity/low labour force participation rate include:
However, Australia differs significantly from the UK, which has seen as many as 1 million workers disappear!
Australia is outperforming nations in the G7 (allegedly the world’s largest developed economies), such as the UK.
Australia hasn’t only got more economically inactive people back to work, it’s got more back than pre-Covid – it has actually reversed the trend for inactivity that it saw before the pandemic hit.
Across the world, skyrocketing costs are creating upward pressure on wages. Increasing wage demands only serve to feed inflation, but when talent is in short supply, it is a candidate-led market and ultimately pay and reward packages become pivotal to securing the skills that agency clients need.
That’s OK if agency clients are in a booming sector where growth is strong. However, there are many businesses in some sectors where there is a need to restore profitability before upping the wages, and offering increased salaries poses some challenges.
For recruitment agencies, the market continues to be challenging while offering opportunities. To maintain focus on the core activity, recruitment businesses need access to reliable, best of breed technology.
ETZ’s leading timesheet, invoicing and payment solution, streamlines the back office processing of your recruitment agency. Our complementary solutions, ETZ Comply for onboarding and document management, and Caspian for business intelligence give agencies further capability to streamline and uncover opportunities.
ETZ is the RecTech partner of choice, helping agencies to navigate the pitfalls and obtain excellent value from technology. To find out more, call us on +61 (0) 405 458 821 or book a demo.
Boosting operational efficiency in the recruitment back office The back office of a recruitment agency plays a pivotal role in...Read more
Does ‘thought readership’ have a place in recruitment? In recruitment, in the battle for audience engagement, just like any other...Read more
Mastering RecTech determines your level of success The operating environment is dynamic and fast-moving. The opposition is aggressive and hungry...Read more
Save hassle, time and money with our powerful software.Book a Demo