The IT employment boom has taken a dive in Australia, with 30,000 fewer jobs advertised on the major Web sites over the last five months. Declining business confidence is forcing many not to hire.
A survey conducted by job placement organisation Olivier Recruitment has revealed the average number of jobs advertised per week has fallen from 116,604 in October to 87,546 in January, which research director Robert Olivier describes as "concerning".
Olivier attributes the steep dive in IT job ads to a lack of business confidence over the past 12 months, with Y2K, GST and the global economy contributing factors.
"Recruitment activity levels are definitely down. This is not about technology take-up. The significant move from print media last year has proven that employers and job seekers are happy with Internet recruitment. What's missing is business' confidence to employ," Olivier said.
Olympics, $AU, US economy
The slowdown in job ads began in August, but the real decline started in October, suggesting some Olympic-related impact.
Olivier however, says although "buoyancy and confidence" has evaporated since the Olympics - it is not the only reason for the decline as many states outside NSW have also recorded falls.
The recruiter says the US economy and low exchange rates have all contributed to a lack of business confidence and "if you're not confident, you don't recruit."
Furthermore, of the 21 industry sectors effected by the downturn, jobs in IT&T and the Internet have again been hit hard by declining business expectations.
The jobs slump can also be attributed to a combination of the decline in the dot-coms - a significant creator of new jobs 12 months ago - and a freeze in new technology investment.
"There's no GST, no Y2K bug and we've all established our Web sites. Sure, systems maintenance and Web site enhancement [is happening] but the IT sector is struggling to find new revenue streams," Olivier said.
"There couldn't be a clearer signal that the Reserve Bank needs to act promptly to ensure a soft landing for the Australian economy," Olivier said.
