By Matthew Franceschini, CEO of Entity Solutions
Throughout the mining boom, there was much talk about Australia’s two-speed economy. The idea that one portion of the economy was thriving while another declined was hard to deny, especially when, in 2012, the Australian Bureau of Statistics pointed out that sales growth across our mining states was five times that of the rest of Australia.
Mining slowdown contrasted by growth in other sectors
Mining has now slowed and the question of performance is more complex. Instead of two speeds, we’re seeing a multi-speed economy, with the construction industry growing strongly while, at the same time, the performance of the services sector has [pullquote]In our multi-speed economy, the freedom to bring in new skills, to ‘staff up’ or down as demand requires, is extraordinarily attractive and very powerful.[/pullquote]deteriorated. Deloitte’s report Positioning for prosperity? Catching the next wave predicts that the five sectors to experience steady incremental growth over the next 10-20 years will include agribusiness, gas, tourism, international education and wealth management. Collectively, these five sectors have the potential to plug the gap as the mining boom recedes.
As a result of the multi-speed economy, in 2014 businesses showed a marked apathy towards large investment decision-making. While Australia has staved off recession for over two decades, there is no denying we are in an economic slowdown, with recent figures indicating GDP growth slowed to just 0.5% in the last quarter of 2014. With these conditions expected to continue well into 2015, many organisations adopt a “wait and see” approach to anything requiring additional financial risk.
Contingent workers: The key to navigating lulls
Contingent workers (those work is characterised by non-permanent contract arrangements) have long been engaged by organisations looking for scalable technical expertise on demand. However just as the global workforce landscape has rapidly evolved from what it once was, contingent workers have developed and grown to be more than simply a gun for hire.
According to research by Oxford Economics, 3 of the top 5 labour market shifts affecting workforce strategy are increasing number of contingent employees (37%), increasing number of intermittent employees (37%) and changing work models (35%).
85% of Australian organisations were also seen to be increasingly using contingent, intermittent, seasonal, or consultant employees to help rebound amidst economic uncertainty, indicating this is no passing trend. Contingent work will continue to grow as a crucial mode of engagement to support businesses and individuals craving flexibility alike.
In our multi-speed economy, the freedom to bring in new skills, to ‘staff up’ or down as demand requires, is extraordinarily attractive and very powerful.
To read full article please visit http://blog.entitysolutions.com.au/navigating-the-multispeed-economy-in-2015/
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Originally Published in the Sauce eNewsletter – theOutsourcing-Guide.com