The looming entry of online retail giant Amazon into Australia along with rising levels of automation are putting extra pressure on already soft demand for blue-collar workers in the retail sector, according to Australia's biggest labour hire firm, while adding that conditions in the manufacturing and industrial segments are also softening.

Programmed managing director Chris Sutherland says that while some economic indicators suggest a gradual strengthening of the economy in the next 12 months, it simply isn't happening at the coalface, particularly in blue-collar sectors.