Seven signs that the hiring crunch is coming in February

With the summer season winding down, and bonus season starting up, February is the month to get serious about your job search. Here are some reasons why.

1) Candidates are confident (and already employed)

Candidates who are already in a permanent role now far outnumber those who are immediately available, says Jane McNeill, senior regional director of Hays Banking. "The market is making its way back to a state of candidate shortage. It's dominated by people confident in the market's ability to present them with a career-advancing opportunity. In 2009 and 2010 there were a number of immediately-available unemployed candidates, but they have now secured a role."

2) Bonuses will be bad

February and March are traditionally months when financial recruitment gets into gear, prompted by bonuses or lack of sufficient payments. As we reported earlier this week, there are signs that the numbers for 2010 won't be great.

3) Several skill sets are short

Talent shortages next month are likely to occur in many sectors, including risk management, compliance, product control, internal audit, finance technology and funds management. Returnees and foreign candidates could feature in more interviews than last year as banks try to plug their holes.

4) Returnees take advantage

Recruiters say UK-based Australians are optimistic about the job market down under. Dominic Bareham, manager, Morgan McKinley Sydney, has recently seen "a number of Australians who have been working in London use the Christmas break to move back home and seek employment." While many summer returnees struggled to find work in 2009 and 2010, employers are now more desperate for talent, so this year's batch should have more luck.

5) Temps transform into perms

Once they have proven themselves on an assignment, most temps are now quickly securing permanent positions. "In response to the tightening candidate market, employers know that speed of response and timeframes when recruiting are imperative for success, so they will move fast when they are certain of the candidate," says McNeill.

6) But more temps still needed

"In general, we expect permanent recruitment drives to commence from February onwards and to be the main focus, but employers will also rehire temporary candidates as volumes pick up, or for projects, or to cover workloads while a permanent employee is sourced," says McNeill.

7) Making the most of multiple offers

It's likely that more candidates will receive multiple offers this bonus season compared with last. And the result could be rising compensation. "Where talent is in short supply, this does increase salary levels, but only if the job seekers feel they have the upper hand. In other words, if they are getting numerous interviews/offers and have the option to choose," says Bareham.