Private Sector Labour Market Trends, Skills, and Opportunities

This report provides an analysis of the Australian private sector labor market, focusing on trends, skills, and opportunities. It begins with an overview of the private sector, highlighting challenges such as policy uncertainty, declining mining investments, and globalization. The report then examines changes in the private sector, including recruitment strategies, the impact of the National Innovation and Science Agenda (NISA), and improvements in resource efficiency. A case study of Adecco Holdings Pty Limited is presented, detailing its core values, performance over the past five years, and factors that may impact its operations in the future, such as economic uncertainty and increasing digitalization. The report also discusses labor market trends in Australia, including wage promotions and the inclusion of more women and young people in the workforce. Finally, it touches upon the skills and opportunities within Adecco Groups and a scenario for an interviewee.

Labour Market
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Table of Contents
Assignment 2:..................................................................................................................................3
Part 1............................................................................................................................................3
Introduction..............................................................................................................................3
Private Sector...........................................................................................................................3
Challenges in Private Sector....................................................................................................3
Changes in Private Sector........................................................................................................5
Part 2:...........................................................................................................................................6
Adecco Holdings Pty Limited.................................................................................................6
Core Values.............................................................................................................................6
Performance and Core Values of Adecco Group in Past 5 Years...........................................7
Factors Impacting Adecco Group and Private Sector in the Next 5 Years.............................7
Part 3............................................................................................................................................8
Labour Market Trends and Skills and Opportunities..............................................................8
Labour Market Trends, Skills and Opportunities of Adecco Groups......................................8
Interviewee Scenario...............................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
Appendices....................................................................................................................................13
Questions...................................................................................................................................13
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Assignment 2:
Part 1
Introduction
The assignment 2 focuses on the private sector of Australia and different challenges involved
within this sector. Statistical graphs and charts associated with this sector have been illustrated as
evidence to information about the private sector. Changes in this sector in recent years have also
been included. The background information of Adecco Holdings Pty Limited along with its
major core values and performance in the past 5 years as well as factors that could affect it has
been highlighted in the study. Labour trends and opportunities in private sector and Adecco
Holdings Pty Limited have also been focused, as I seek to attend an interview, which will be
conducted by the HR managing director for a position of an associate manager in this company.
Private Sector
In Australia, the Department of Foreign Affairs and Trade (DFAT) refers the commercial
companies as a private company, which includes trading as well as the customer service job. The
Australian Council for International Development’s (ACFID) further defines the private sector
industry as the companies, which operate with the informal economy, which includes
multinational companies along with domestic companies. In addition, it also comprises small and
medium-sized enterprises among others. At present, the Australian board is keen to extend the
technological advancements along knowledge advancements at the same time (APH, 2010).
Challenges in Private Sector
One of the major challenges faced in the private sector of Australia is that the policymakers do
not have any idea regarding their company’s future. Thus, in this context, the mining companies
of the private sector also declined due to the lower rate of investments as well as the commodity
prices. Exporters of the private sector further faced a major problem of the low exchange rate. In
the past 10 years, an increase in services at the rate of 7.1% is also responsible for leading to
create a major challenge in the private sector. Economic changes are also one of the sources that
created problems for the private sector. Ageing populations of the labours is also cited as one of
the factors that led to created challenges for the companies operating in the private sector (Fraser,
2015). In addition to the rapid rise of globalization, the private sector experienced a fierce
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competition with the other sectors of different countries. In this context, lack of skilled labours
along with the lower rate of literacy among the overall population of Australia was perceived as
some of the sources through which the private sector experienced difficulties in operating their
business.
Figure 1 Government Participation in Providing Services
Source: (Parkinson, 2012)
The above figure 1 projects a graph representing the participation of the government in the
community. No support to the communities in providing services such as healthcare services also
led to creating health issues, which further affected the private companies due to a decrease in
labour size. Thus, it was observed that some improvements were initiated, as the government
started participating in providing various public wants (Parkinson, 2012).
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Figure 2 Increasing orders of Investments in Mining Companies
Source: (Parkinson, 2012)
The non-mining companies of the private sector experienced development over the past 5 years,
whereas mining companies could not experience the same due to lower investments. However,
since the past 2 years, the above figure 2 illustrates that the investment in the mining companies
of this sector drastically increased and further dominated other companies in Australia.
Changes in Private Sector
A significant change has been observed in the private sector companies in Australia over the past
5 years. The labour market data portrays that private companies have always followed the same
strategies for the purpose of recruiting newer employees. A trend of enabling recruitment on a
monthly basis for the new employees is still being implemented. Besides this, the National
Innovation and Science Agenda (NISA) have further partnered with different private companies
in the past 5 years within the national boundaries. This has favoured the private companies in
developing their labour figures and to experience development. Similarly, the National
Innovation and Science Agenda (NISA) also focused on supporting younger people in
developing as well as allowing them to use the developed digital technologies. Even the
government of Australian have taken certain steps relating to private companies such as funding
different networks associated with these companies. Hence, this also led to the advancement in
employment services. This initiative greatly influenced private companies over the past 5 or
more (OECD, 2017).
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For improving the resource efficiency in both private as well as in the public sector,
harmonization of the legal standards as along with the regulatory frameworks associated with
employment services was undertaken in the past 5 years. This further enabled private companies
to rise and compete against the companies from those of the public sector (OECD, 2017). Apart
from these aspects, investment and the business environment of this sector have also developed
through several reforms of regulations and legal standards. Access to finance was further made,
in addition to the change in trading regulation and the process of business registration have
favoured tremendously. On specific markets, the private sector grew at a higher rate through
different business opportunities. This was mainly for the purpose of overcoming barriers of the
market as well as creating an incentive from the market. Risk management approach and skills
along with the expertise of infrastructure also helped in establishing a foundation for the private
sector companies in Australia over the past 5 years (DFAT n.d.).
Part 2:
Adecco Holdings Pty Limited
Adecco Holdings Pty Limited was established in Europe, 60 years ago. The company has more
than 5,200 branches, which operate on more than 60 countries. At the global platform, the
company has a total number of 70,000 employees (Adecco, n.d.). As a non-government
employer, the company is positioned to be the second largest employer in the world. In the field
of human resource industry, Adecco Holdings Pty Limited focuses significantly on maintaining
high-quality or top-class ethics and services. In addition, they facilitate employment to graduates
as well as to people of all ages, as it closely works with the employers, thereby addressing their
requirements. The company specifically gets people into work on one hand and on the other, it
delivers long term and short term hiring to the employers (The Adecco Group 2019).
Core Values
The core value of the company is to passionately serve clients, associates, and colleagues by
making a difference in their lives through their services. Furthermore, Adecco Holdings Pty
Limited empowers individuals, enrich societies, and fuel economy. On a similar note, it is highly
concerned with respect to its leadership position and further ensures to provide extended
opportunities to more people. Similarly, the core values also help in incorporating team spirit as
well as services are customer-centric. Therefore it focuses on providing the best talent at correct
times (The Adecco Group 2019a). In addition, it also emphasizes providing graduates with
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employment opportunities, as they have extensive localised along with international network
developed in a digital platform. The graduates require filling the short application and sending it
to the company, as they will find the job for the individual (The Adecco Group 2019b).
Performance and Core Values of Adecco Group in Past 5 Years
The revenue of Adecco Holdings Pty Limited in the last five years has ensured growth in its
business. In this context, the revenue of the company for the years in the year 2013, 2014, 2015,
2016, and 2017 amounted for 19.5 billion Euros, 20 billion Euros, 22.01 billion Euros, 22 billion
Euros, and 23.66 billion Euros respectively (Statista, 2019). In addition, in the year 2015, 2016
and 2017, Adecco Holdings Pty Limited organic revenue growth rate was 4%, $4%, and 6%
correspondingly. Furthermore, the EBIT margin increased to 5.2% in 2015, while it subsequently
decreased in 2016 and 2017 to 5.0% and 4.9% respectively. Adecco Holdings Pty Limited
facilitated a way to work program for preparing young people as well as to the graduates for
acquiring the right skill set along with experience through which they can be hired by the
employers (The Adecco Group, 2017; The Adecco Group 2016; The Adecco Group 2015). The
other factor that influenced Adecco Holdings Pty Limited is that it facilitated employers to
remain competitive in the market by providing adequate talent. The company identified that
graduate individuals face unemployment problems, as well as recruiters, hire only people with
adequate experience. Thus, for the purpose of addressing these Adecco provides internship and
training related to work for graduates and young people so that can get employment in
companies (The Adecco Group, 2016). Therefore, I am interested in working for the company, as
its core values can help me in obtaining opportunities to help young graduates to find jobs in the
future. I can provide work to a large number of graduates while working for myself and
developing my career.
Factors Impacting Adecco Group and Private Sector in the Next 5 Years
The factors that can impact the working operations of the Adecco Holdings Pty Limited in future
include the economic uncertainty, gig economy, altered demographic mix, and geopolitical
aspects. The geopolitical along with economic uncertainty factors can lead to increased
flexibility requirement of Adecco Holdings Pty Limited. The workforce requirement of the
sector can change with the demand alteration. Hence, this can significantly influence the work of
the company. Furthermore, the necessary skill imbalance can impact the workings, as the
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changing job requirement will need new skills along with education. The job may be created but
the post may go vacant due to inadequate skills. Likewise, the new demographic mix can be
another factor, which can impact Adecco Holdings Pty Limited as well as the entire sector in the
future. Thus, in many of the nations, the rates of old ages are increasing while the rate of the
workforce and young talents are declining. This indicates a shortage of talents for filling up the
vacancies. Subsequently, by the year 2020, the millennial is expected to encompass 50% of the
overall global workforce. Another factor, which can affect the operations of Adecco Holdings
Pty Limited in the future include increasing digitalisation, analytics, and big data. As the staffing
sector developed, it has evolved from branch-based to offline and online model. The digital
market has increased the potential of the clients for direct hiring and thus there may be a decline
in the need of the services being offered by Adecco (Staffing Industry Analysts, 2018).
Part 3
Labour Market Trends and Skills and Opportunities
A major change in the structure of the labour trends in Australia has been determined since many
past years. Policies introduced by the new government of the nation have introduced changes in
the labour force nature as well as their demands from the jobs. This includes wage promotions
due to the rise in the price of the commodities along with the products in the market. More
women and young people are observed to be included in the workforce. This type of behaviour
or discipline of the labours is commonly observed in Australia. Inflation is one of the major
reasons, which affects the behaviours of the labours in the company, wherein they work.
Behaviour change among the labourers further results into decline in the employment rate. This
type of behaviour has created a problem for the private sector companies in Australia (Riley,
2018).
Labour Market Trends, Skills and Opportunities of Adecco Groups
Current labour-discipline trends required in the Adecco Holdings Pty Limited involves a higher
demand for newer skills among the labours. Since the population is ageing rapidly, the
workforces have also been drowning at a similar rate in the private sector. These ageing people
and the other workers, who are naive, are highly valued by the company at present. Retaining
them has been the current goal of the management. This is one of the opportunities experienced
by the millennial demography of the Adecco Company. In order to be competitive against the
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other companies of the private sector and public sector, adopting flexible workforce is currently
emphasized by the company. Innovation has also developed an opportunity of using data-driven
business models as along with the traditional idea for the Adecco Holdings Pty Limited (Staffing
Industry Analysts, 2018).
Interviewee Scenario
The interviewee identified will be Erica Page, who is the HR managing director of the Adecco
Holdings Pty Limited of Australia, which operates under the private sector. Based on the
understanding of the findings acquired, section 1 and section 2 will portray a set of questions that
will be asked to the HR manager during the interview. This interview will be conducted for at
least a minimum of 20 minutes up till the 30 minutes for completing the interview. The
following statement highlights answers to every question asked in the interview. Most of the
answers are positive, as the company has taken a leap in the recent years due to its effective
performance over the years. As the company management has widened their focusing area, they
now provide every new graduate with a training platform and help them develop a better career.
Educational programs have also focused on enhancing their skill of the newly recruited graduates
on the basis of current labour trends as well as the economic changes at the same time. One of
the significant factors can be the demography of workers. Additionally, we have been working to
deviate away from this type of factors in our daily-based performance. Demographic may affect
the labour market in future, but the companies must be able to avoid it through the
implementation of effective strategy. Digitalization enables companies in advertising and
promoting through online websites and e-mails.
Conclusion
It is understood that Private sector in Australia have faced many challenges in the past 5 years
and more, but they have also been able to overcome these challenges and achieve business
success at the same time. Effective business approaches and efficient use of labours has been one
of the major aspects of the business strategy followed by the private sector companies and it has
also helped them in developing over past years in the Australian Sector. Among these private
companies, one of them is Adecco Holdings Pty Limited, which have experienced this business
journey. With a major concern of acquiring skilled workers and the ageing of population at the
same rate, Adecco Holdings Pty Limited completely focuses on hiring skilled graduates for the
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available positions in the company. They also have focused on providing a foundation to
enhance the skills of job seekers so that they are placed in other companies based on their skills.
Since the company seeks to focus in creating values for their customers, it has also undertaken
approaches that provide platform to the newly graduates for showing them the path to a better
career in future. Realizing this opportunity, I have taken a decision of working in this company
and develop my career.
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References
Adecco Group 2015, Annual report 2015, About Us, viewed 28 January 2019,
<https://www.adeccogroup.com/wp-content/themes/ado-group/downloads/
AnnualReport2015.pdf>.
Adecco No Date, About us, Our Company, viewed 27 January 2019,
<https://www.adecco.com.au/our-company>.
ASIC, 2018, ‘18-159MR Major changes affecting reported net assets and profit, and other
focuses for 30 June 2018 reporting’, New Accounting Standards, viewed 27 January 2019,
<https://asic.gov.au/about-asic/news-centre/find-a-media-release/2018-releases/18-159mr-major-
changes-affecting-reported-net-assets-and-profit-and-other-focuses-for-30-june-2018-reporting/
>.
Deliotte 2018, ‘Indeopendent auditor’s report to the members of EQT Holdings Limited’, Report
on the Audit of the Financial Report, pp. 1-110.
DFAT No Date, Private sector development. How We are Helping, viewed 27 January 2019,
<https://dfat.gov.au/aid/topics/development-issues/private-sector-development/Pages/private-
sector-development.aspx>.
Fraser, J 2015, ‘The Australian economy and challenges of change’, Address to the China
Advanced Leadership Program (CALP), pp. 1-21.
IFAC 2019. Engagement and outreach in support of the new auditor’s report, Audit &
Assurance, viewed 27 January 2019, <https://www.ifac.org/global-knowledge-gateway/audit-
assurance/discussion/engagement-and-outreach-support-new-auditor-s>.
Parkinson, M 2012, ‘Challenges and opportunities for the Australian economy’, Consumers and
Community, viewed 27 January 2019, <https://treasury.gov.au/speech/challenges-and-
opportunities-for-the-australian-economy/>.
Riley, T 2018, ‘Recent trends in Australia’s labour market’, Economic Literacy Centre and Tim
Riley Publications Pty Ltd, pp. 1-20.
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Staffing Industry Analysts 2018, Economic Uncertainty, Gig Economy, Demographics Make
Adecco’s ‘Megatrends’ List, Daily News, viewed 27 January 2019,
<https://www2.staffingindustry.com/site/Editorial/Daily-News/Economic-uncertainty-gig-
economy-demographics-make-Adecco-s-megatrends-list-45468>.
Statista 2019, Revenue of Adecco Group Worldwide from 2006 to 2017 (in billion euros), The
Statistics Portal, viewed 27 January 2019, <https://www.statista.com/statistics/190996/revenues-
of-adecco-worldwide-since-2006/>.
The Adecco Group 2016, Performing transforming innovating, 2016 Annual Report, viewed 27
January 2019, <https://www.adeccogroup.com/wp-content/themes/ado-group/downloads/
AnnualReport2016.pdf>.
The Adecco Group 2017, Making the future work for everyone, Delivering Progress, viewed 27
January 2019, <https://press.adeccogroup.com/download-pdf/5ab2a97b2d40ce46b8592190>.
The Adecco Group 2019, The Adecco Group Australia, Our Company, viewed 27 January 2019,
<https://www.adeccogroup.com/worldwide-locations/australia/>.
The Adecco Group 2019a, Our company, Core Values, viewed 27 January 2019,
<https://www.adeccogroup.com/our-company/core-values/>.
The Adecco Group 2019b, How to apply, Are You an Employer, viewed 27 January 2019,
<https://www.adecco.com.au/how-to-apply>.
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Appendices
Questions
1. Does the institution respond to meet the labour market requirements and increase the
confidence of the employers in graduates?
2. Do you think that direct educational programmes can generate number of graduates, who can
meet the requirements of the labour market?
3. Can professional programmes for developing skills of youngster serve the need of the labour
market in the changing trend?
4. Which skill development programme can meet the requirement of the future labour market?
5. How educational systems should renew themselves for meeting the labour market needs?
6. What are the actions that can appropriately link the educational environment and labour
market?
7. The labour workforce is impacted by economic changes. How do you respond in addressing
this issue?
8. What are the significant factors that can affect the labour market?
9. How can a demographic mix influence the labour market?
10. How can digitalisation impact the hiring procedure?
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