Australia's Labor Market and Job Advertisements
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News for we commencing 18th of September, 2023. This month's internet vacancy index shows underlying labor market conditions in Australia holding relatively steady with online job advertisements decreasing slightly at the national level and across some regions. Online job advertisements at the national level decreased 0.4% in August to stand at 282,400. Over the year to August, 2023, the decline was 6%.
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The largest monthly increase was recorded in the ACT up by 4.5%, followed by Victoria up 1.8%.
Philippines-Australia Employment Agreement
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The Philippines and Australia have signed an agreement allowing nationals of both countries to seek employment while on vacation for a non-extendable period of 12 months, according to the Memorandum of Understanding, signed during the Prime Minister's official visit to the Philippines two weeks ago.
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The visa arrangement is open to Filipino and Australian nationals who are 18 to 31 years of age, who have graduated from tertiary education or have successfully completed at least two years of undergraduate study or post-secondary education, have passed health, character and national security requirements and have medical and health insurance for the duration of their stay. A commencement date for the program has not yet been announced.
Employment Outlook for Australia
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Globally, employers expect modest hiring to continue for the fourth quarter with hiring relatively flat year over year. According to the latest Manpower Group Employment Outlook survey of nearly 39,000 employers in 41 countries based on survey result responses between July 3 and July 31. Manpower Group's research found that 44% of employers anticipate an increase in hiring in the fourth quarter
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while 14% expect a decrease for a net employment outlook of a positive 30%, up from 28% in quarter three. Employers in Australia are demonstrating a confident but cautious approach to the final quarter of 2023, with a net employment outlook of positive 32%, according to the 1,020 local survey respondents. This result represents a two percentage point decrease from the previous quarter
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and a 6 percentage point decrease since the same quarter last year.
Tim Gurner's Controversial Comments on Unemployment
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Tim Gurner, founder and CEO of Property Developer Gurner Group and personally worth almost $1 billion, said the quite bit out loud last week at a Business Outlook conference when the topic of the labour market came up.
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In Gurna's view, historically low unemployment in recent years has undermined the work ethic and discipline of the people who construct the buildings that made him rich. Tradies have been paid a lot to do not too much in the past few years, and we need to see that change. We need to see unemployment rise. Unemployment has to jump 40 to 50 percent, in my view, Gurna said. And he went on.
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There has been a systematic change where employees feel that the employer is extremely lucky to have them as opposed to the other way around. We've got to kill that attitude and that has to come through hurting the economy. Governments around the world are trying to increase unemployment. We're starting to see less arrogance in the employment market and that has to continue. Gurness views predictably did not go down well with the Labour government.
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Member for Hawke later, Sam Ray said, guacamole economics from greedy property developers won't help productivity or get people into homes. The evidence shows that efficiency, wages and conditions coupled with job security drives sustainable productivity and economic prosperity, Ray said. You'd have to be a remarkable combination of entitled and thick to advocate the infliction of further pain on working people just to line your own pockets.
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But the following day, Gurna said that he deeply regretted the comments, which sparked a global backlash. After the video, these comments went viral, attracting over 23 million views and strong criticism online. Gurna said his comments were deeply insensitive to employees, tradespeople and families across Australia who are affected by cost of living pressures and job losses.
End of Pandemic Event Visas in Australia
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The federal government announced that it will stop issuing pandemic event visas beginning February 2024. The visa subclass 408 was introduced during the peak pandemic in 2020 to plug labor shortages and support international students who were not able to leave Australia. It allowed students to live in the country for an additional 12 months after their visas expired and travel to or from Australia multiple times during a stay.
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Whilst the rule came into effect on 2 September 2023, in order to promote visa integrity and as a transitional measure, any already lodged pandemic event visa applications are being accepted. According to its own data, the Department of Home Affairs issued 65,859 pandemic visas from June 2022 to March 2023.
Qantas Legal Challenges Over Outsourcing
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The union representing illegally sacked Qantas workers will return to court in the coming days to seek compensation and a hefty penalty against the embattled airline. After the High Court last week ruled that Qantas' decision to outsource 1,700 jobs during the COVID-19 pandemic was illegal.
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The unanimous judgment dismissed Qantas' appeal against two previous rulings in the Federal Court which found the outsourcing of baggage handlers, cleaners and ground staff was unlawful. Outside court Transport Workers Union National Secretary Michael Caine said the sackings were the largest unlawful terminations in Australian corporate history and that the union would return to court within days to pursue compensation and a financial punishment of Qantas.
Halas Recruitment Agency Liquidation
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Late last week, industry news service Shortlist reported that one of Australia's best known white collar recruitment agencies, Halas, had gone into voluntary liquidation. Halas was established over three decades ago and built its reputation as a volume supplier in call center recruitment as banks and other B2C businesses systematically replaced multi-branch counter services with large centralized customer contact centers.
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Shortlist reported that secured and unsecured creditors totaled around $19 million, of which the company's former employees erode approximately $1.2 million. The ATO is owed $13.4 million and state revenue offices in New South Wales, Victoria, WA and South Australia, another $2.2 million collectively. As of today, the Halas website was still active, although the most recent of the 11 jobs listed
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was posted on the 29th of August for an assistant store manager.
World Bank Report on the Global Gig Economy
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There are between 154 million and 435 million online gig economy workers across the globe, representing 4.4% to 12.5% of the global workforce, according to a report by the World Bank titled Without Borders, The Promise and Peril of Online Gig Work. The high estimate includes those who do gig work as secondary or marginal workers.
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The World Bank estimates there are 545 online gigwork platforms across the globe with headquarters in 63 countries and platform workers and clients located in 186 countries. The World Bank's reports definition of online gigwork includes two types. Firstly, location-based gig jobs in which a digital platform allocates work that is tangible and all delivers to a client in a physical location. Examples being
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ride-sharing, delivery or home services. Secondly, online gig jobs where the work is delivered online. This is broken down into two categories, online freelancing such as IT, graphic design and micro work that involves breaking tasks down into small subtasks that can be completed in seconds or minutes by remote workers through online platforms.
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According to the World Bank report, most online gig workers tend to be aged under 30, and women in most regions are participating in the online gig economy to a greater extent than in the general labour market.
Hamilton Island Sale
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Attendees at the RCSA SHAPE conference now understand the eye-watering prices charged on Hamilton Island when early last week it was revealed that the island is for sale for around $1 billion.
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Hamilton Island was first developed in the early 1980s by Keith Williams and sold to Robert Oatley after running into financial trouble in 2003. The Oatley family are estimated to have spent $450 million on the island's development and upkeep since they purchased it for a reported $200 million and your running costs are around $16 million. And that's the news for the week beginning the 18th of September, 2023.
Career Lasso Business Model by Adele
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So Adele, we are now more than six months into our podcast and I've just realized we haven't actually told our listeners what we do, how we make our money, because obviously we don't make any money from the podcast. So I thought this would be a good opportunity for us to share with the listeners how we make our money and maybe they might be interested in some of the things that we do. So Adele, tell me about career lasso.
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So career lasso is my business involved in trying to create a pathway for new people to come into our industry. So in simple terms, I call it sourcing, training and placement. So I'm sourcing people who want to get into recruitment or may have transferable skills for recruitment. I'm training them as recruitment consultants and then I'm placing them into recruitment agencies. So it's a model that is unique. Nobody else is doing this in the industry.
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And it's, as I said, a means or a pathway to bring people in directly into our industry and in my view, in a very positive way. So making sure they're getting the good foundational training and being placed with the right agency that can support them. So as part of that, I also do run my entry-level recruitment training program called Pathway Recruitment Training Program. I run that every month and I'm actually switching it as of next month
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back to in-person. So it'll run in Melbourne actually this month, sorry, September and in Sydney in October. Back to in-person live training, which is something that no other trainers are doing at the moment. So that's what's happening for me, Russ. Tell me a little bit about your business.
Ross's Income Sources
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So I have effectively five different ways in which I
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an income. So I have three online training programs. I have a rookie recruiter training program, an advanced recruiter program, and a team leader program, which is called Leadership Coaching for High Performance. And they are live hosted webinars. So the rookie program is two hours each week for eight weeks, advanced recruiter,
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is six two-hour sessions each fortnight across three months, does also have an individual session of 45 minutes and Leadership Coaching for High Performance has six 90-minute group sessions and one individual session with me.
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And that's also across three months. I undertake individual coaching with recruitment agency owners. Typically they are micro recruitment agency owners. So it's a startup or maybe two or three or four employees. So I've certainly worked with larger agencies.
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And I also do conference speaking mostly in-house or internal conferences and I also do other conferences as well. So that's basically how I earn my money. So how can people find out more information about your services Adele? Where do you suggest they go?
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Well, you can go straight to my website, which is karilasu.com, or you can find me on LinkedIn and reach out to me that way as well. And the same with me, you can just go to RossClenet on LinkedIn and send me a connection request. My website is rossclenet.com and you'll see on the homepage, there are big buttons that represent each of my services. So you can click on those buttons and find out about the upcoming programs.
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Each of my programs is starting its new season either September, which is the rookie program or next month, leadership coaching and the advanced recruiter program.
Can Gatherers Become Hunters in Recruitment?
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Question of the week is, can a gatherer be turned into a hunter? What's your opinion of this one, Ross?
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Adele, the answer is a flat no from me. Okay, tell me why. Pretty simple. Gatherers are applying for a gathering job. And let's be clear, it's a sourcing candidate role in recruitment.
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because that's what they prefer. They're not sales oriented people. And in my world, in my experience, they don't have the same levels of achievement drive and the same levels of resilience that a hunter has. So I would say no. And very few people in my experience have proven me wrong.
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So you think those things can't be taught, achievement drive and resilience? Only developed at the margins. So someone's a five out of 10 on achievement drive.
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No training or motivation will get them to an eight out of 10. Yes, you might be able to get a five out of 10 to a five and a half or a six, maybe a six and a half, but you're not going to get them to an eight or an eight and a half or nine. And if you're going to be a hunter or you are instinctively a hunter, then your achievement drive is naturally already going to be an eight or eight and a half.
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So that's that's what I would say. Basically, they can't be developed or in very few circumstances can they be developed. What do you think? I'm going to disagree with you on this one. I think that the ability to change from gatherer to hunter really depends on how hungry you are.
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If you're starved and you need some food, your hunter skills will come into effect in force because out of necessity. So I think that I'd like to think that as long as there is a pathway and I do think it takes, there's a step in the middle there. So from what we're saying in terms of that gather a resource to a straight out hunter BD sales type person,
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there's a farmer in the middle there. There is somebody who is nurturing livestock or crops in the middle there and is able to do that dual role between dealing with clients and maybe it's called an account manager type role. So there may be a pathway or steps in there, but I really think that if somebody is determined enough to get to a more driven BD role, I think it's certainly achievable. I think with training and support, it can be done.
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you would need to have a very sound methodology, a sound process and structure for doing that, the way that they're going to go about it, the activities they actually have to do, even maybe write down to scripts if you get that prescriptive about it. And then it's about that consistency of application. How are they being managed and mentored in doing this job? What kind of targets are being set? What kind of
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review and checking is going on. It can't be that, okay, now your job is BD, which is what a lot of people are facing at the moment in the industry and agency owners are struggling with this. We know this right now. They hired people that they needed to fill jobs through COVID and now they've got a paddock full of gatherers. What do they do? How do they turn these people into hunters? So I'd like to give you some hope out there for those that are listening and wondering if it's possible that yes, it can be done, but it's going to require a very
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committed effort from you around training, support, solid process and getting that application of the process and the steps done in a very consistent fashion. Hmm. Okay. So you kind of convinced me, well, I won't say convinced me, but so where I would agree with you
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would be if you've got a gatherer and you as a leader said to them, all right, we're not going to ask you to initiate new relationships to generate jobs, but we are going to ask you to convert your existing candidate relationships into a client relationship. So potentially
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a gatherer could be given a target in terms of conversion of candidates to clients. So there's already an existing relationship, which is a candidate relationship to become a client. So I think that that would work. Although you wouldn't want to have two higher expectations of how quickly that'll convert into work. But I think that's one thing you could do. And the second thing I think you can do with a bunch of
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gatherers is that you give them responsibility to generate leads, not to actually make the calls, but to actually find leads about vacancies. So that is continuing to ask their candidates about where they're interviewing or what jobs they may have potentially turned down, going onto job boards and finding vacant jobs that are relevant, but potentially the
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hunter could do the telephone prospecting call for. So I think certainly there's some, let's call them small steps in the hunter direction that a gatherer could take, but to get them from a full-on gatherer to a full-on hunter within two or three months, I think is still a very big stretch.
Connecting Through Recruitment News Australia
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And now you're up to date with your recruitment news. And for all previous episodes, visit our website at recruitmentnewsaustralia.com.au. And connect with us on LinkedIn, Ross Clannett and Adele Last.