2019 is shaping up as boom year for the Australian economy despite international uncertainty.
New Year boom in executive jobs. Strongest monthly increase in new positions in over two years
New Year boom in executive jobs
Strongest monthly increase in new positions in over two years
All on the back of a robust domestic economy
2013 is shaping up as boom year for the Australian economy despite international uncertainty.
Demand for Australian executives surged 29 per cent in January as employers responded to a strong domestic outlook and set themselves up for what is likely to be a busy year.
Despite continued international economic turbulence the E.L. Executive Demand Index recovered all the losses recorded in the last three months of 2018.
Mr Grant Montgomery, Managing Director of international executive search firm E.L Consult that researches and publishes the E.L Index said "it might seem unusual in these heady political days to speak positively about the economy, but these numbers are very strong.
Executives are a high cost purchase and businesses only increase management numbers when they are planning and expecting a bright future.
"Although there has been a lot of talk about political and economic instability, it appears that employers are looking beyond this and voting with their feet. Their companies' futures look good and they are responding by building their management teams.
"The Australian share market lost 8.2 per cent in value in the last three months of 2018 over what, in hindsight, seems like a relatively small matter.
"This kind of volatility can deflate confidence and lead to what is called a 'market-led downturn', so it is unsurprising that employers took a break heading into Christmas.
"Now, as equity markets are showing signs of recovery and despite sabre rattling by the US and China the fear of a catastrophic world trade outcome has fallen.
"Recent research by E.L has shown that Australian executive demand leads international trends and situations, so this kind of recovery is a very good sign for the year of the pig.
"Executive demand is volatile on the upside and the downside, probably due to its smaller base compared to general employment. This can explain some large movements over the past six months and promises that volatility could be high going forward. However, the overall trend has continued to remain positive."
"Whatever your take on the federal political landscape the economy is doing well.
"Really the government, and the Reserve Bank, have not received the credit they deserve for shepherding the economy along with a light touch," Mr Montgomery said.
"Business confidence and consequently the economy is on a high."
Mr Montgomery said there are some domestic headwinds for the economy, particularly the probability that the next Federal election will produce a Labor victory, and, connected to that, a resulting slower domestic housing market as investment disincentives are introduced.
In January, the overall index was supported by gains in all states and territories. The biggest gains were in the larger states of Queensland and Victoria, while South Australia led the way among the smaller regions.
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