Australia's economy may be heading towards a recession, as companies prioritise retaining existing staff over new hires.
According to Robert Half director Nicole Gorton, businesses are focusing on upskilling current employees rather than recruiting externally, reflecting a cautious approach amid economic uncertainty.
Supporting this outlook is Deloitte's latest employment report, which is based on surveys with chief financial officers of Australia's top 200 companies.
David Rumbens, a partner at Deloitte, said that while businesses show confidence in their performance, this is primarily driven by slow growth in demand rather than expanding employment. The report forecasts a potential rise in Australia's unemployment rate from 4.2% to 4.5%, translating to approximately 101,500 more unemployed individuals over the next year.
Canberra University economists professor Leonora Risse highlighted the "Sahm Rule," a recession indicator gaining attention in Australia that was designed to give governments a flashing economic warning signal.
Risse said according to the Sahm Rule, the rate of increase in Australia's unemployment rate is consistent with a pattern that's heading towards a recession.
Based on recent data, Risse believes that the increasing unemployment rate is consistent with indicators of an economic recession. She said, "The whole point is to look at those numbers and look ahead and take some action now to prevent that from happening.”
Gorton advises that given the employment market challenges, job seekers should broaden their search criteria and expect a longer job hunt.
"Maybe the role, the salary, the location, the industry that you were looking for, maybe look a little bit beyond that,” she said. “Widen your boundary of what it was, to open up opportunities for yourself, because what historically may have taken four to eight weeks might take 12 to 18 weeks — who knows?"