IT best performing sector for executive employment in March

Stan Beer
Thursday, 12 April 2007 16:06

IT People - Enterprise

In March Information Technology was the best-performing sector in executive employment market, followed by Engineering. This continues the recent trend where these two sectors act out of step with the broader market. Management registered a slight increase, while Finance and Marketing fell back considerably.

Despite a steady rate call by the Reserve Bank this month continuous speculation that a rise is in the wings and the New South Wales election made employers hold off on new executive positions in March, according to the E.L Consult Executive Demand Index from executive search firm E.L Consult. 
 
The strengthening dollar and interest rate speculation due to stronger than expected retail and housing data all contributed to the softening of demand for executives, according to E.L Consult.
 
Senior finance positions which are highly sensitive to interest rate movements were particularly hit with a nation wide drop of 3% or around 150 positions.
 
Mr Grant Montgomery, Managing Director of E.L Consult, said: “The market is sensitive to changes in rates at the moment as many of the private equity deals currently being considered are highly leveraged.
 
"Rate rises affect disposable income and therefore have an impact on demand for a wide range of goods and services.
 
“There seems to be a closer eye now being kept on interest rates as they are now at an 11 year high."