Stuck in the Middle: believe me, the employment market is still a bit shaky
Our columnist returns for 2010 and gives his views on the ups and downs of the employment market.
It has been three months since I began a contract position within the investments division of a smaller institutional group (after 10 months out of work). All this recent experience of job searching, interviewing and (finally) working has given me the inside knowledge to offer some comments on the current state of the employment market in Australia.
Although it was most definitely a huge relief to secure a job after such a long time seeking work, it soon became very apparent that the firm I am working for has suffered just as dramatically as most other financial sector companies.
I was employed to cover a 14-month maternity absence, and I can categorically say that this is the only reason the firm took me on. This was most definitely not an expansionary position.
Everybody (still) hurts
My new colleagues are still, to a degree, coming to terms with major staff layoffs that took place between December 2008 and June 2009. Most people have been more than welcoming, but there is little doubt that memories of colleagues and friends who were made redundant are still fresh in their minds.
Current workloads remain high and in most areas we are under resourced. Yet at this stage there is little to suggest we will be hiring in the short term, at least not until our profit margins increase.
And despite the market upturn, corporate recovery remains slow. A major reason for this is the excessively high cost of debt, which in turn is impacting investment returns. In other words, our profits will remain impinged until the cost of debt comes down, which in turn makes the likelihood of new recruitment less likely.
It's better at the i-banks
That is not to say that employment markets aren't recovering. I have read recent press of major investment banks repositioning themselves in terms of staff. Indeed, I know first hand of major movements between the major players in the market (my brother was recently poached himself).
Nevertheless, outside of the larger IB's, recruitment activity still appears to be somewhat thin.
I continue to track available positions, cognisant of the fact that by Q3 2010 I will once again be looking for a new role. The current sovereign debt problems and the jittery stock market hardly inspire confidence in sustained recovery.
Hope?
That being said, we are a long way from the dark days of March 2009, and whilst the firm I currently work for may not yet be back in hiring mode, at the very least it is looking forward to better times. I firmly believe for many out there it will be a matter of being in the right place at the right time.
Even as I write this article, in full knowledge that we are not in a hiring position, at least yet, I am also distinctly aware of the more upbeat chat about the coming year of M&A opportunities and new products being developed to maximise our returns.
Within the office there is a strong sense of hope and greater expectation about 2010, although this remains just that at this stage (hope). This is tapered by the current market uncertainty, as everyone is waiting in anticipation to see what will happen.
Will we experience a double-dip downturn, or will business make significant strides forward? At this stage we are all keeping our fingers crossed for the latter, and with this a continued recovery in the employment markets.
And maybe, just maybe, we will see our department heads given free licence to expand their teams, rather than just filling positions as and when other employees leave.
