media brief - july 2015
TRANSCRIPT
A CXC Global Knowledge InitiativeMonthly Media BriefEmployment | The Economy | Contract WorkJuly 2015
INTRODUCTIONThe purpose of this monthly report is to provide you with an opportunity to better understand recent news at both a macro & micro level, to
understand topical trends covered in the media both locally & globally, and to discuss how these
may impact business in A/NZ.
1
THE ECONOMYThe following, a summary of the coverage around the economic outlook for Australia for the period: August – mid September 2015.
ECONOMIC GROWTHSome sectors forecasting slow growth despite 2 interest cuts during the first half of the year. However, bright spots are seen in some sectors like in Housing and Construction
A Listless growth due to slower transition
Investment transition from Mining to Non-Mining
C Will make Australia the biggest exporter in the world
LNG – 2nd Biggest Export
B This sector benefits from record low interest rates
Booming Housing and Construction
C
AB
NAB & RBANAB’s quarterly business survey shows patchy longer-term
outlook for business, but improving near term indicators
A
B C
D
Business ConfidenceBusiness confidence was up in calendar Q2, the highest since calendar Q3 2014, increasing business confidence outside of mining
AOil Price MovementsOil price movements have been bearish in June & JulyBInternational Events Sour Investor Interest Poor investor interest due to: correction in Chinese equity markets, Greece’s high-profile economic instability lead-up to the conclusion of a nuclear deal between Iran & world powers
CRBA Soft on Expected GrowthThe RBA has gone soft on expected growth: it believes the dollar has been over-valued and is adjusting to conditions
D
IMF VIEWSThe IMF has warned of a slowing of Australia’s economy in the absence of drastic tax reform. They suggest a tax reform that includes:
Broader GSTPaul Bloxham (HSBC AU and NZ) Chief Economist recommends the government moves away from policies that “distort economic decisions”, such as income taxes, and towards more “efficient” taxes such as GST.Ending Capital Gains Discount
Each year the cost of the CGT exemption on the main residence costs the federal budget more than Defense, Education or Medicare according to the Main Residence Exemption ReportEnding High-End Superannuation ConcessionsProvision of massive taxation concessions the highest income earners causes the Budget to lose billions of dollars of forgone revenue
Brod
er G
ST
1
Zero
Cap
ital G
ains
2
Zero
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d su
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tion
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3
JOBS OUTLOOKThe following, a summary of the coverage around jobs outlook for Australia for the period: July 2015.
JOBS OUTLOOK
Employment Decline Hi
gh U
S Jo
b Op
enin
gsIncrease in jobs in June
Jobs
lost
from
Te
ch B
oom
A B
CD
RBA Forecasts Decline in Unemployment
NAB believes this is consistent with improvement in the non-mining economy, which in GDP terms, and overall demand, is being masked by the weakness in mining
ARecord High US Job OpeningsUS job openings are at a record high considering no increase in attritionB10.8% Increase in Job Ads in June YoY
The latest rise was below the 14% recorded in May, a month that showed the strongest increase in more than two years
CTechnology Boom Costs Jobs
An estimated 5 million jobs in the next 15 years will be lost with. Up to 40% of workers may need to reskill to be employable. Estimates are much higher in rural & regional areas
D
Contingent Workforce Coverage
NEW VMS FOR ATOFieldglass nominated by ATO as its VMS for managing contingent labour.
It will replace multiple existing processes and approaches with Fieldglass to manage contingent labour and the ICT Statement of Work (SOW) Panel arrangement.
The ATO aims to achieve:Greater efficiencies in identifying and remobilising resources.
Enhanced contractor engagement, retention and performance
Improved industry engagement
A
B
C
Strengthened accountability and transparency through the procurement process.
On-going, sustained cost reductions
D
E
AB
C
D E
F
US JOBS & EMPLOYMENT
Use of performance based contractors vs. fixed term
• An increasing trend in the US with the belief that performance based will reduce the percentage of failed agreements with contractors
US Tech companies converting contractors to employees
• Shyp being the latest – a service that helps customers’ ship products around the country
• Their belief is employees will provide a more consistent experience
• The decision will likely add pressure to the entire start-up industry to address the employment status of its contract workers.
Misleading data on worker classification numbers
• Potential mislabeling causing misleading data on worker class numbers in the US
• Surge of 32 million workers in 13 years whilst number of self-employed and part-time workers dropped
• Provides the contract landscape and a difficult measurement stick
AUSTRALIA WORKFORCESOURCINGBeeline’s acquisition of Onforce are working towards the first self-sourcing solution for enterprise companies, via this new plugin
A
EMPLOYEE ADVANTAGECompany’s or MSP’s requisition through Beeline’s VMS, sends requisition to staffing agencies, as well as invite independent contractors to apply directly
B
REVIEWS REMOVEDDeloitte’s head of people & performance in Australia (Alec Bashinsky) is running a global program to rid the business of performance reviews as he believes ongoing informal performance and appraisal feedback loop will be better
C
SourcesEconomy & Jobs:
1. The economy http://bit.ly/1LZb5eq 2. The RBA http://bit.ly/1LZbtJV3. NAB business outlook http://nab.co/1LZcp104. NAB Oil market outlook http://nab.co/1LZcD8r5. IMF views on Australian economy http://bit.ly/1LZdqGr 6. Decline in unemployment at odds with RBA estimates http://bit.ly/1LZbEoG7. Job openings up in US but talent not quitting http://on.mktw.net/1LZd2Yv8. Technology boom costing jobs http://bit.ly/1IaC0h59. Job ads up in Australia http://bit.ly/1IaCzaS
Contract Work:10. ATO/Fieldglass http://prn.to/1LZbr4P 11. Techs turning contractors to employees http://huff.to/1IaD44F12. Performance based contracts http://bit.ly/1IaDRCA13. Mislabeling worker types http://nym.ag/1IaDMiv14. Deloitte ditches performance appraisals http://bit.ly/1IaETi9
SOMETHING INTERESTING IS HAPPENING…
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AIR BNB4
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