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Executive Summary

December 2021

Executive demand snaps its winning run, dropping 10 per cent

The post Covid jobs boom takes a breather 

Executive demand has finally snapped its winning run, falling 10 per cent in November. This fall has broken a record year of rises in which the EL Index which has been positive ten months out of the past twelve. Mr Grant Montgomery, Managing Director of E.L Consult, the leading human resource firm that researches and publishes the E.L. Index, said: "The E.L Index has finally broken the mould of continuously post -COVID rises with a negative result nationally. "Even Information Technology fell back this month. "The only rise in employment was in the government sectors which tend more to work more on forward planned budgets than prevailing commercial sentiment." Mr Montgomery said 2021 had been a classic year for executive demand, rising inexorably for most of the year after the disaster that was 2020. "It is not thought that this month's fall is a permanent end to the post Covid recovery but that the market is taking an employment "breather" and further increases are likely in the future," he said. "However, with the latest emergence of yet another Covid variation and Christmas season fast approaching it will probably not be until February 2022 that any enthusiasm comes back in executive employment. "It has been a tough year for many and holidays for those that can take them are sure to be on the agenda particularly as travel opens up." Mr Montgomery said employment has also slowed up due to candidate shortages. "Employment has slowed because of a candidate shortage which may result in increased pay offers in the future. Something that will also put increased pressure on the already predictable rising inflation rates." "More generally, the future of work for largely stay at home executives is still evolving. "There is a lot of uncertainly in the marketplace about the shape of future for executive employment and a new paradigm is about to emerge," Mr Montgomery said. "Anecdotal evidence suggests that many have had enough of working from home and will move back to the office or, once they re-experience the daily traffic commute, some type of hybrid model. "The home office environment doesn't lend itself to the induction and training of new employees and is not good for developing innovation. "In the long-term working in an office with colleagues as a team is more competitive and productive. "My guess is that there will be a steady and continuous growth in office attendance as executives realise that 'outside the office' is 'outside the business'. "The ambitious will see office working as career enhancing as few people get promoted who don't have direct and regular contact with their bosses. "How far will the economy revert back from the digital revolution that has been enhanced by continuous lockdowns is another serious question for the futurists amoung us. "And even if office workers return will retailers regain strong bricks and mortar sales or has the internet taken a large and permanent chunk of previous revenue? "Clearly players like Amazon think so with the opening of the largest warehouse (fulfilment centre) in the southern hemisphere in Sydney's southwestern suburbs," Mr Montgomery concluded. Among the industry sectors, none moved forward during the month. Engineering recorded the best result, being flat, while Management recorded the worst retraction of -18 per cent. The ACT again performed the best out of the states, rising 4 per cent, helped along by in all its sectors except for Engineering and Marketing. Every one of the larger states fell during the month, with the only other positive areas being Tasmania and the Northern Territory. Call Grant Montgomery on +612 9221 6688 for further details

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