National insolvency firm Mackay Goodwin director Grahame Ward,who is the administrator for Digital Gurus,said times were challenging for recruiters amid fierce competition for new candidates.
“It’s no secret that there are less eligible and available candidates applying for new jobs. Employees are reluctant to swap jobs during periods of economic uncertainty,” Ward said.
“Some industries such as logistics,construction,childcare,and nursing appear to be struggling now to attract local candidates.”
Australia welcomed387,000 migrants in 2022 which has helped ease shortages of skilled workers,as well as put pressure on housing supply. The federal government’s changes to visas have made it easier for migrants to fill in-demand roles and plug skills shortages.
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“Against that,it appears rising interest rates,inflation,and supply chain challenges have,however,pushed some businesses to cut back on external hiring costs for new recruits,bringing recruitment in-house rather than outsourcing to recruitment agencies or even halting recruitment altogether to ride out tough hiring conditions,” Ward said.
In the 2023 financial year,nearly 8000 Australian companies entered into external administration,an increase of nearly 50 per cent on the previous year,prompting some experts to describe the situation as an “insolvency armageddon”.