The latest Manpower Employment Outlook survey released yesterday surveyed over 2200 Australian employers measuring hiring intentions for the coming quarter and found a decline in overall hiring intentions in Australia for the next three months.

The survey revealed that 20% of employers intend to increase hiring over the next three months, down from 24% in the previous quarter, while the number of companies planning to decrease hiring remained at 11%.

As a result, Australia's net employment outlook stands at +10%, its weakest point since the fourth quarter of 2009.

ManPowerGroup Australia and New Zealand managing director Lincoln Crawley said employer confidence had dropped on the back of global and market woes.

"The high exchange rate, low consumer sentiment and uncertainty in Europe is making employers nervous and holding back hiring in many parts of the economy," he said.

"The Manpower Employment Outlook Survey suggests employers are looking ahead with flagging confidence levels, and responding to economic uncertainty by adjusting their workforce strategies from month to month."

Breaking the figures down, hiring intentions in the mining and construction sector dropped with employer confidence falling nine percentage points from last quarter to a net employment outlook of +10%.

Employers in the transport and utilities, and wholesale & retail sectors also reported a slight drop in hiring intentions for the upcoming quarter.

Meanwhile employers in the finance, insurance & real estate sectors forecasted a more optimistic outlook, with employer confidence up five percentage points from last quarter to a net employment outlook of +19%.

While the mining sector only makes up about 2% of Australia's labour market, Crawley said it too was feeling the effects of global market uncertainty while at the same time being hit by the skills shortage.

"Frustrations over continued skills shortages and lack of effective solutions in this sector have seen employers take a step back from the aggressive hiring competition that has been a constant in the industry since 2010," he said.

While last month's Organisation for Economic Cooperation and Development report said Australia was set to experience strong growth in 2012/13 ahead of the US and UK, employers were struggling to catch on.

"Australia's business projections are strong but employers are understandably cautious in their hiring and investment," Crawley said.

"We are working with clients to create talent strategies that bring the right skills into their organisation, maximise productivity and ensure they have the most effective workforce for the future."