Hiring expectations returning with business confidence

Australian businesses' employment intentions have increased for a third consecutive quarter to a level not seen since the first quarter of 2011, according to Dun & Bradstreet.

The company's latest business expectations survey indicates that 22% of Australian businesses plan to employ new staff during the second quarter, compared to 12% which want to reduce headcount.

These intentions have lifted the employment expectations index to 9.2%, up from just 0.1% a year earlier.

ABS stats indicate that the Australian economy added 47,300 jobs in February and 18,000 in January.

The turnaround can in part be attributed to an increased sales outlook and improving business confidence following last year's soft business conditions, Dun & Bradstreet said.

"Last year's soft conditions forced businesses to manage their costs closely and become more efficient in their operations,” Dun & Bradstreet Australia and New Zealand CEO Gareth Jones said.

"With confidence returning, interest rates remaining low and global conditions recovering, businesses now appear ready to focus on growth."

The survey suggests that two-thirds of companies are more optimistic about economic growth in 2014 compared to 2013.

The employment expectations index for the communications, transport and utilities sector increased to 9%, from 8.2% last quarter. But the index for the services sector - which includes some categories of IT services - declined to 10.5% from 12.4%.

A separate survey published last week suggests that over a quarter of Australian organisations plan to hire more ICT contractors or staff during Q2