Mining hiring outlook to remain bleak ‘for a year’

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ID 10060422
ID 10060422

A leading global expert in recruitment says hiring in Australia’s mining and resources sector is not likely to recover for another year after it has been affected by China’s slowing growth.

Image courtesy of [jannoon028] \ FreeDigitalPhotos
Image courtesy of [jannoon028] \ FreeDigitalPhotos
Australia’s miners have been trimming investment and recruitment because demand for raw materials by its biggest trading partner, China slowed down.

In a report published in the Financial Times, Hays said mining and resources hiring will be tough for a period to come.

“[Our fees] will be pretty flat from now on for the next six to 12 months,” said Hays Finance Director Paul Venables.

Hays generates about a fifth of its overall fees from Australia. On Thursday the UK-based recruiter said net fees from its resources and mining business in Australia fell by 61% year-on-year in the three months ending September 30.

A lack of hiring in Australia’s mining sector helped drag down Hays’s fees by 20% year-on-year in the Asia Pacific region in the quarter, or 12% on a constant currency basis. Its Australian division damped the group’s overall growth in the quarter.

Mr.Venables said the UK jobs market is in the initial stages of a widespread and sustainable recovery. Group net fees have increased by 1% year-on-year in the period or 2% on a constant currency basis.

Recruiters have expressed increasing optimism about the UK jobs market in recent months, and Hays’s net fees from the UK and Ireland increased by 8% year-on-year in the quarter.

“The biggest change has been our clients are making decisions quicker. That’s always the first sign. What we haven’t seen yet is a big uplift in the amount of candidates registering with us to change jobs,” said Mr.Venables.

Meanwhile, in Europe and across Hays’s other international operations, net fees increased by 1% – or 6% on a constant currency basis. According to the recruiter strong fee growth came from Germany, a relatively immature recruitment market that many recruiters are investing in.

On Thursday,Hays’s share price climbed by 2.25%to 118.20p during afternoon trading.

Australia’s miners have been trimming investment and recruitment because demand for raw materials by its biggest trading partner, China, has slowed[c1]

In a report published on the Financial Times, Hays stated[c2]  that mining and resources hiring will be tough for a period to come.

“[Our fees] will be pretty flat from now on for the next six to 12 months,” said Hays Finance Director Paul Venables.

Hays generates about a fifth of its overall fees from Australia.On Thursday the UK-based recruiter said net fees from its resources and mining business in Australia fell by 61% year-on-year in the three months ending September 30.

A lack of hiring in Australia’s mining sector helped drag down Hays’s fees by 20% year-on-year in the Asia Pacific region in the quarter, or 12% on a constant currency basis. Its Australian division damped the group’s overall growth in the quarter.

Mr.Venables said the UK jobs market is in the initial stages of a widespread and sustainable recovery. Group net fees have increased by 1% year-on-year in the period or 2% on a constant currency basis.

Recruiters have expressed increasing optimism about the UK jobs market in recent months, and Hays’s net fees from the UK and Ireland increased by 8% year-on-year in the quarter.

“The biggest change has been our clients are making decisions quicker. That’s always the first sign. What we haven’t seen yet is a big uplift in the amount of candidates registering with us to change jobs,” said Mr.Venables.

Meanwhile, in Europe and across Hays’s other international operations, net fees increased by 1% – or 6% on a constant currency basis. According to the recruiter strong fee growth came from Germany, a relatively immature recruitment market that many recruiters are investing in.

On Thursday,Hays’s share price climbed by 2.25%to 118.20p during afternoon trading.