27 October 2009
Demand for Accountants and Auditors, after significant contractions in employment opportunities between the December and June quarters, is showing signs of recovery, according to the September 2009 Quarter Clarius Skills Index.
However, the recovery is marginal at this stage in a fluctuating market.
The market for Accountants and Auditors, including Company secretaries and Treasurers, peaked in the December quarter this financial year at 192,000 (a shortage of 2,000 people).
However, demand dropped to 186,000 (an oversupply of 3,000 candidates) in the March quarter but then fell further to 174,000 (again an oversupply 2,000) in the June quarter.
The September quarter has seen demand for the combined occupational categories rise to 178,000 (employed plus vacancies) with the total number of people available (either employed or seeking work in the professions) rising to 180,000 (i.e. a current oversupply of 2,000).
The Clarius Skills Index for Accountants fell very marginally by 0.4 per cent during the quarter to 98.1, while the Skills Index for Auditors fell by 0.8 per cent to 97.6.
A score of 100 in the Clarius Skills Index indicates equal tension between labour supply and demand. Anything greater than 105 on the skills index is regarded as extreme shortage. A score of 95 to 98 is moderate. 95 is low.
The most recent fluctuations are attributed to several issues in the economy.
“All of the big four accounting firms in Australia have now implemented policies which are allowing them to ask their current employees to work reduced hours,” Kym Quick, Executive General Manager, for Lloyd Morgan specialises in the accounting and auditing sector.
“Looking at employment trends we are seeing in Lloyd Morgan, this means that employment is unlikely to grow rapidly even with an economic recovery taking place. Firms will probably meet their demand for labour in the first instance by increasing hours of existing staff before seeking additional employees through recruitment.”
However, Ms. Quick acknowledges there is some anecdotal evidence that employers are finding it difficult to recruit Accountants and Auditors.
“This is at odds with the data available, which shows that the number of accountants seeking work has increased. One possible explanation is that the job vacancies lie in certain specialised areas of accounting (such as insolvency), requiring specialised skills or experience,” Ms. Quick added.
Background and how the Clarius Skills Index works:
The Clarius Skills Index analyses labour demand against supply, using labour force data supplied by the Department of Employment and Workplace Relations and the Australian Bureau of Statistics.
The results are reflected in a skills barometer which applies a ranking to specific occupation categories which will be released quarterly.
A score of 100 indicates equal tension between labour supply and demand. Anything greater than 105 on the skills index is regarded as extreme. A score of 95 to 98 is moderate.
Any disparities when comparing the published quarterly values of the Clarius Skills Index with the labour demand and supply people estimates are due to two factors.
First, the estimates of labour supply and demand are rounded to the nearest thousand in the body of the report, whereas the raw index is calculated using exact, unrounded numbers. Second, the skills index is seasonally adjusted to take into account the regular fluctuations through the year in the pattern of demand and supply for labour.
The Clarius Skills Index is produced quarterly so that government and business can keep a very close eye on any skills trends that might otherwise get overshadowed by a downturn in the economy.
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