Peoplebank Intermedium Federal Labour Hire Index: November 2010

As at June 2010, the Index stood at 1,316, a 141 point increase in the six months since the December 2009 figure (1,175) and an increase of 12.2% over the half year.

This increase is almost entirely due to a seasonal increase in June, as agencies initiate renewals of longer term (6 months +) contracts.

The June 2010 Index movement is markedly similar to that indicated by the June 2009 Index, which – despite post-Gershon Report moves to reduce the Federal Government’s reliance on ICT contractors – also rose 20% over the preceding six months.

This illustrates the highly seasonal nature of the Federal ICT labour market and how, despite efforts of agencies subsequent to the Gershon Report, demand continues to peak as agencies come to the market at the same time.

The June 2010 figure marks a peak for calendar 2010. In fact, the Index – from its July 2009 peak of 1,558 - fell steadily over the ensuing months to an all-time low of 763 in April 2010, before an upward trend commenced in May and continued throughout June.

This indicates that in spite of the traditional seasonal peak, implementation of the Gershon Report recommendations is having some impact.

Overall, the Index reflects a longer term downward trend since its peak of over 1,700, reached in July 2006. In particular, the twelve months since June 2009 saw the Index fall a
further 7.3%.

In the absence of a round of technology refreshes and assuming an adequate supply of skilled ICT people in the ACT, the Index can be expected to stabilise in 2011.

To download the November Index Release click here