MARKET PULSE: As EY gets set to slash another 100 advisory jobs, the market for graduates is slowing but Aussies are still optimistic about their future job prospects.
On Wednesday came the news that EY was poised to cut more than 100 staff from its payroll next week in the face on the downturn in advisory market.
“The cuts follow the firm culling dozens of partners and more than 240 staff in the second half of 2023,” according to The Australian Financial Review which said consulting and financial advisory staff are highest on the target list.
The move comes after the heavy recruitment following COVID-19 and the slowdown later, not helped by the scandal surrounding PwC tax leaks. The report also said KPMG and Deloitte “slashed dozens of staff, while PwC cut its workforce by about 330 staff and up to 37 partners. At the global level, McKinsey has resorted to offering certain staff nine months’ pay to leave the firm due to lower demand.”
But this could all be good news for smaller firms with lower fees.
Elsewhere there were early signs that the job market overall was cooling down for graduates – at the same time that international graduates are back in classrooms to nail their dream jobs.
The job market, which had almost two years of exponential growth in graduate roles and record breaking salaries, is now starting to slow – with numbers tracking 20 per cent lower in early 2024 compared to the same time last year.
Online recruitment site Indeed’s Asian Pacific economist, Callam Pickering, said that “at least some graduates will find it harder to lock in a job before they graduate.”
The softening of the jobs market for graduates is most likely attributed to the challenging economic circumstances in which businesses now find themselves.
Searches for graduate positions were also decreasing, said Pickering – indicating that students would rather return to study than take up jobs “not up to scratch”.
Research by Deakin University’s Ly Tran and colleagues had found that 27 per cent of 485 visa holders have now returned to study. Of the 1156 international graduates surveyed from 35 universities, only 36 per cent gained full time employment- 40 per cent were employed in low-skilled jobs such as retail, hospitality, cleaning or driving.
Figures aside, Aussies remain optimistic about the future of work. A new report by ADP titled People at Work: A Global Workforce View Study showed that 80 per cent of Australian employees express optimism about their next five years in the workplace. This was despite challenges such as ongoing concerns about AI, cost of living and other macroeconomic factors.
The company said that the optimism reflects growing confidence in the adaptability and resilience of the Australian workforce. Leading the pack were:
- the IT and telecommunications industry with 96 per cent
- construction with 88 per cent
- finance with 83 per cent
The report also attributed flexible working arrangements as a significant driver of optimism – with 84 per cent of work from home employees expressing positivity about the future of their roles.
ADP’s managing director of ANZ, Kylie Baullo said businesses should prioritise employee wellbeing, reward achievements, address mental concerns and invest in upskilling if they want to sustain this optimism. She said automating tasks such as payroll administration will allow managers to devote more time to supporting their teams.