The latest EL Consult Index for September reveals a major demand for IT corporate security executives as demand shot up for the month by 17% to follow the upward trend of August when demand rose by 14%.
But, despite the strong performance by the IT sector, EL Consult managing director Grant Montgomery says the index is coming off a small base, therefore accentuating the percentage movements, and he says the volatility in the IT sector is evident, with the index moving around from the top to the bottom of its trading range on a month to month basis.
Nevertheless, the IT sector index is trading near the top of its range and Information Technology, along with Management and Marketing, made up the bulk of the monthly increase for executive demand across Australia..
"For example, the NSW Information Technology sector and the Marketing public sector positions were stronger. Victoria also performed very well with strong growth in the government sector of the Marketing area and Finance,” Montgomery said.
On the index across all business and industry sectors, EL reports that demand for Australian executives continued to rise in September, making three consecutive monthly increases.
The September increase was 5% culminating in an overall rise of 15% for the financial year.
"The 5% increase last month in an Index that is highly predictive of overall economic conditions suggests the economy is steadily improving, "Montgomery said.
"The slowing Chinese economy, crashing global commodities markets and share market volatility has all had a significant dampening effect on Australia.
"But these results show that the overall economy seems, at this time, to be ignoring the market and grinding slowly upwards.
"The lower Australian dollar has given a major boost to profits for exports and that includes the resources sector. Now at around US70c the Australian dollar value of exported goods is 30 per cent higher than it was two years ago.
"Sure global prices of some commodities like iron ore have fallen but the fall is much less severe when the value of the dollar is factored in.
"In Australian dollar terms has been a stabilisation in commodity prices. This will give the economy more confidence, without halting the transferral of the economy from a commodity-led economy to a more broad-based economy.
"If Australians are employed in a production process then those costs relative to the rest of the world have fallen 30% in the last 12 months.
Montgomery said the E.L Index was showing signs that the Australian economy is beginning to grow at more even aspect.
"On an overall basis we are seeing better signs of economic growth but we still have a long way to go. Among the states and territories, New South Wales continues to skip away from the other states.
Victoria is running a relatively close second. Amazingly, at one stage Western Australia was challenging New South Wales for the position of the biggest supplier of executive positions relative to population. Now, demand in Western Australia is approximately half that of New South Wales.”