The services sector could soon find itself demanding executive recruitment expertise, after it has emerged that related industries have continued to thrive.
Details of the latest Australian Industry Group Australian Performance of Services Index (PSI) show a 2.9-point increase in performance throughout July, bringing the reading to its highest level since February last year. Certain industries are doing well at the moment, with property and business services, retail trade and wholesale trade all registering positive results.
Chief Executive of the Australian Industry Group Innes Willox said the trend has started to emerge over the past few months. However, efforts must be made to ensure that this is able to continue and that economic factors don't start to take their toll.
Improvements in the services sector not only have ramifications for related industries, but the economy as a whole.
"Stronger housing market activity, low interest rates and the lower dollar are supporting demand for some local services," remarked Mr Willox.
"A number of business service respondents also attributed the recent improvement in trading conditions to the small business measures announced in the federal budget in May."
The significance of the Australian services sector
Improvements in the services sector not only have ramifications for related industries, but the economy as a whole. A report from the House Standing Committee on Economics, Finance and Public Administration found that services industries make up the majority of the national economy.
Not only does it account for around three-quarters of gross domestic product, but also a large proportion of Australian employment. Success in this area is therefore likely to lead to a rise in executive recruitment across key roles.
Many service-based industries have been able to improve their productivity over recent years as a result of increased innovation, but those in senior positions still play an important role.
Roy Morgan Research revealed that in July, employment in Australia reached a record high. A total of 12.67 million people are now in work, and the services sector is likely to represent a large proportion of this.
As the PSI indicates, improved activity in these particular industries is likely to have a positive impact on the desire to take on new staff. All five of the sub-indexes included in the index witnessed expansion over the course of July, including sales and new orders.
Businesses that are hoping to maximise their opportunities in the current environment may therefore benefit from taking on quality executive staff, especially if they're going to keep pace with the increased level of activity.