Job ads in the sector slowed even further in the last quarter of 2023 due to cutbacks in the public sector, but RCSA members on the coalface of IT Recruitment say the plummet in demand isn’t as worrisome as it appears, unless you are a coder. RCSA council member Rob Woodward, explains demand is normalising after an unprecedented boom during Covid, but AI is starting to impact how and who organisations hire.
“If you want to look for a baseline, you have to go back to around 2018, pre pandemic. Recruitment during Covid was off the charts. We are peeling back now. It looks harsh when you consider the figures and the environment is certainly tough, but it is a cycle. I have been recruiting 25 years and I’d say we are ‘almost’ getting back to a pre-covid market, says Rob.
“AI is also not helping the situation. It is starting to take jobs away from employees with core skills like coding. It makes it even more important that professionals prioritise self-development and upskill.
“With AI, we are moving into an era where employers are going to start valuing the heart over the brain. Innovation, individuality and the ability to think beyond an algorithm are becoming vital skills.
“The world of work is changing at speed and only the motivated will keep the pace,” explains Rob.
Interest rate rises, inflation and global uncertainty can also be factored into the decline in demand for IT professionals as they all impact business confidence. Add a recent change of government and cuts to public sector funding, it is little wonder the data looks so dire.
RCSA member, Richard Vaughan from Younity says the recent election result dampened business confidence in the private sector.
“Once business gets a better picture of how this Government is going to govern, along with its spending plans, I am sure we will see an increase in activity. We are very close with our clients, and we know there are lots of programmes of new work waiting to commence, explains Richard.
“The public sector also needs clarity on whether it will grow or contract. It’s a particularly challenging time for public sector workers, and I’m sure they are looking forward to some certainty.”
While reasons for the almost 60% annual decline in demand for IT professionals can be explained away, they provide minimal comfort for the sector’s job seekers.
RCSA will release its first quarterly Jobs Report for 2024 in the coming weeks.
The most recent Jobs Report data can be accessed here: https://www.thejobsreport.co.nz/report/new-zealand-the-jobs-report-2023-a-year-in-review/
About RCSA
RCSA is the peak industry body for recruitment and staffing in Australia and New Zealand representing over 1400 Corporate and Individual Members.
RCSA promotes and facilitates professional practice in recruitment and staffing. It sets benchmarks for industry standards through representation, education, research and advisory support to member businesses and professionals who are bound by the RCSA Code for Professional Conduct. RCSA’s StaffSure certification program helps business, government, and workers to identify and partner with professional staffing organisations.
RCSA is a proud member of the World Employment Confederation, the voice of the employment industry globally, representing labour market enablers across 50 countries.
