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Hays sees oversupply entering logistics employment market

Energy sector redundancies up but recruitment firm also highlights demand for tertiary qualifications

 

With the traditional transport and logistics down period in full swing, the employment-picture contrast with recent times could not be more stark.

Where once the mining and resources sector sucked up most of the skilled talent, recruitment specialist Hays has seen fit to roll out the “g” word – glut.

“There is currently a lack of urgency when making hiring decisions as employers believe there is an oversupply of candidates in the market,” the company adds in its latest Hays Quarterly Report.

Some of this has been due to redundancies in the oil and gas industry due to lower energy prices.

“The lower oil price should increase road transport, but we are yet to notice that flow on effect,” Hays adds.

“Employers currently prefer to hire staff on a temporary basis.

“This quarter is normally a quiet time for the logistics industry as we head into the winter months.

“As consumer spending slows so does the transporting of goods.”

South Australia is displaying interesting dynamics, with the new Royal Adelaide Hospital due for completion in about six months and materials supply to that project easing.

Against that, grocer Aldi’s tilt at the major supermarkets is seen as leading to some demand for logistics support.

“Aldi’s new distribution centre will employ in excess of 140 staff and will need to be staffed with a number of experienced team leaders and supervisors,” Hays points out.

“Store persons and warehouse operators with forklift licences are also sought after.

“Again, Aldi’s distribution centre will need to employ in excess of 100 store persons.

“There will be a lot of movement of candidates with this skill in the coming quarter.

“At the same time Aldi is recruiting, SA Health’s distribution centre is going to move to three shifts and triple its current output as soon as the new Royal Adelaide Hospital has finished construction.”

A broader trend relates to the search for suitably qualified staff, particularly amongst larger firms encompassing the likes of logistics, supply chain and warehouse managers with tertiary qualifications.

“It has become a lot harder to work your way up into an operational management or even into a supervisory role without some formal training/education,” the firm says.

Hays detects national recruitment strategies being engaged for any management roles that oversee an operation of more than 80 staff.

“Good quality demand planners are always needed as they ensure there are adequate stock levels of products in a company’s inventory,” Hays adds.

“So too are analysts (logistics & supply chain) as companies are seeking to reduce costs by analysing how they supply and transport products.”

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