In response to the Federal Government’s budget announcement, specialist recruitment and HR services company Randstad welcomed moves to combat unemployment and shelter working Australians from the effects of the global downturn.
Randstad CFO, Edmund Khalaf, applauded the Government for its attempt to save an estimated 210,000 jobs by investing in infrastructure, but expected the Australian public would monitor its progress with great interest.
“Since last year’s budget, we’ve gone from a severe talent shortage to a situation where organisations are cutting costs and having to restructure. People, afraid of losing their jobs, are working harder and extending their working day in order to stay in their current roles.
“Any move by the Government to stimulate the economy and boost the employment market must be welcomed by Australia’s business community.”
Federal Treasurer, Wayne Swan’s $22 billion Nation Building program will see increased spending on rail, road and port facilities. The program will be supported by extensive investment in communications, energy, education and health, and savings of $22.6 billion by trimming Federal spending over the next four years.
Mr Khalaf said that the money being spent on infrastructure comes at a good time for the employment market.
“Although the pace of spending might be slow, it is doing its part to boost the employment rate in sectors such as construction, engineering, building and design. The creation of more jobs will have a knock-on effect in other areas and will play a vital role in aiding our economy.”
Mr Khalaf also congratulated the Government on its decision to introduce a paid parental leave system, which will bring Australia in-line with all other OECD countries outside the United States.
“Offering parents a government-funded paid parental leave scheme is a long-term economic and social measure that will help retain as many jobs as possible in a tough climate, keep productivity on track and build a healthy and prosperous community.”
“Countries that offer paid parental leave, either by the employer or the Government, overwhelmingly keep people connected to the workforce for the long-term. Without it, many parents stop work altogether and find it difficult to return.”
Despite last week’s dip in the jobless rate from 5.7 per cent to 5.4 per cent, the unemployment rate is still expected to hit six per cent by June this year, before accelerating to 8.25 per cent a year later. It is then expected to extend even further to 8.5 per cent in 2010/11, which equates to around one million people looking for work.
Mr Khalaf said that despite the apparent easing of the talent shortage in Australia there will still be pockets of the labour market that will experience acute difficulties finding the right people over the next 12 months.
“While the Government should be applauded for the investment it is making in healthcare, this sector remains critically short of skilled workers. This shortage is impacting on service delivery and patient care. Australia needs a sensible immigration policy that supports the increasing demand for healthcare workers in Australia.”