• 40% of employers expect permanent staff levels to increase in the year ahead;
• 70% expect business activity to increase;
• 60% say skill shortages will impact the effective operation of their business or department.

Forty percent of employers expect to increase their permanent staff levels in the coming year, with engineering, IT, HR and distribution departments tipped to see the biggest job growth, according to recruiting experts Hays.

According to findings in the 2016 Hays Salary Guide, which is based on a survey of 2,752 organisations representing over 2.6 million employees, this far exceeds the 13% of employers who expect to decrease their permanent headcount.

Engineering professionals will be the biggest beneficiaries of this job creation, with 52% of employers indicating they will increase permanent headcount in their engineering department.

IT (47%), HR and distribution (both 45%), operational management (44%), project management (43%), and sales (41%) departments will also see permanent headcount growth. So too will 37% of purchasing/procurement, 36% of marketing and 26% of accountancy & finance departments.

With 70% of employers expecting business activity to increase in the year ahead, the addition of permanent headcount growth could explain why 60% say skill shortages will impact the effective operation of their business or department.

'With permanent headcounts expected to rise and seven in ten employers believing that business activity will increase, the financial year ahead will be one where the resilience of our recruitment market is on display,' says Nick Deligiannis, Managing Director of Hays in Australia & New Zealand.

'Over recent years Australia's skill shortage certainly did relax as headcounts were frozen or closely monitored. If they did gain approval to recruit employers had far more choice.

'But as our economy successfully transitions from the mining to the residential construction and services sectors that's changing. Today we all need to recognise that with permanent job vacancies increasing the skill shortage will intensify anew, particularly around highly-skilled professionals.

'This will lead to salary pressure when recruiting, but more notable pressure will come from existing employees who are aware of the positivity and want to see their salaries increase accordingly.

'For job seekers, the growth of permanent headcount will create an opportunity to secure a role that provides immediate career advancement or a long-term career path. By focusing on your ultimate career goals, you can find a role that will help get your career to where you ultimately want it to be,' he said.

The Hays Salary Guide includes salary and recruiting trends for over 1,000 roles and is based on a survey of 2,752 organisations, representing over 2.6 million (2,686,179) employees in Australia and New Zealand.

Get your copy of the 2016 Hays Salary Guide by visiting www.hays.com.au/salary, contacting your local Hays office or downloading The Hays Salary Guide 2016 iPhone app from iTunes.

Hays is the most followed recruitment agency on LinkedIn in the world. Join our growing network by following Hays Worldwide. You can also get expert advice, insights and the latest recruitment news by following us on Twitter @HaysAustralia and @HaysNewZealand.

Hays, the world's leading recruiting experts in qualified, professional and skilled people.

For further information please contact Lucy Sharp, Regional Head of Marketing at Hays, on +61 2 8226 9885 or [email protected]