IT job ads have continued to fall but green shoots are starting to appear, according to the May results of the Olivier Job Index.
IT jobs fared worse than the rest of the market, falling by 5.19 per cent in May for a 12 month drop of 58.11 per cent. By comparison, overall job ads dropped by 4.32 per cent in May and 51.9 per cent for the year.
In NSW, the IT industry was one of the worst hit sectors and contributed to the state being hit by a 56.4 per cent drop in ads for the year.
Desktop support and helpdesk staff have been the biggest IT casualties, with job ads dropping by 73.1 per cent over 12 months. System administration support workers have fared the best, with hiring ads dropping by 51.6 per cent for the same period.
But according to Olivier Group director, Robert Olivier, green shoots are appearing with ads for part time and temporary/contract positions up 5.3 and 5.9 per cent respectively for the month. These figures are in line with those from the Hudson report released earlier this month, which showed a Q2 recovery in contract positions.
The May decline in IT ads is also less severe than the April decline of 7.44 per cent.
“I’ve been reporting bad news since January and February of last year and this is the first time I’ve had something to cling onto, an indication that we’re somewhere near the bottom,” Olivier said.
His comments match those of Clarius Skills Index publisher, David Stewart, who last month said that the rate of decline was stabilising. April figures from the Australian Bureau of Statistics (ABS) showed a surprising 0.3 per cent dip in unemployment.
While Olivier believes the recent announcement that Australia has avoided a technical recession will not directly affect job ads, he claimed it may boost jobs as hiring budgets are finalised.
“The negative or positive percentage won’t actually make a difference, but that positive number will give people confidence. So it’s not the direct consequence of that, it’s the indirect consequence of that on business and consumer confidence that may lead to positive things,” he said.