Labour Market Conditions in - docs.employment.gov.au · Labour Market Conditions in PERTH...

Labour Market Conditions in

PERTH

Presenter: Ivan Neville

Branch Manager, Labour Market

Research and Analysis Branch

The Employment Service Areas of Perth

The Perth region can be broken down into 3 Employment Service Areas (ESA’S) Central and West Metro ESA = Central LFR and South West LFR East Metro ESA = South East LFR North Metro ESA = North LFR and East LFR

Labour Market Profile, by ESA

Central and West Metro

ESA

East Metro

ESA

North Metro

ESA

Perth Australia

Adult population (15+) 416,720 315,900 643,970 1,376,599 18,098,642

Annual % change 2009-2010 1% 2% 2% 2% 1%

Employment 278,700 208, 000 441,000 929,900 11,440,600

Annual % change to Sept 2011 1.2% 2.1% 0.5% 1.1% 1.3%

6 month % change to Sept 2011 0.1% 3.9% 1.8% 1.8% 0.5%

Unemployment rate 4.6% 3.7% 3.7% 4.0% 5.0%

Annual %pt change to Sept 2011 -0.6 pts -0.2 pts -0.4 pts -0.4 pts 0.1 pts

Participation rate (15-64) 78.3% 78.2% 80.0% 79.1% 76.6%

Annual %pt change to Sept 2011 -1.3 pts -1.0 pts 0.5 pts -0.4 pts 0.3 pts

Source: ABS Labour Force, Electronic Delivery, cat. no. 6291.0.55.003, September 2011, three month averages of original data, Adult population –data From ERP ABS – Cat. No. 3235.0

Labour market conditions in Perth are stronger than those for Australia overall.

Unemployment Rate

Source: ABS Labour Force data, September 2011, 3 month averages

0%

1%

2%

3%

4%

5%

6%

7%

Perth Australia

The unemployment rate for Perth is below the National rate.

Unemployed Persons: Perth

Source: ABS Labour Force data, September 2011, 12 month averages

0

2

4

6

8

10

12

14

0

10

20

30

40

50

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11

Perth LTU (52 weeks and over) Left Axis

Perth (Total Unemployment) Right Axis

Per

son

s Lo

ng

Term

Un

emp

loye

d (

00

0’s

)U

nem

plo

yed P

erson

s (00

0's)

While unemployment has been declining in the past 18 months, long-term unemployment in Perth has been increasing Approximately 40 000 people are unemployed in Perth Of the 5600 Long term unemployed, 2300 are very long term unemployed (over 104 weeks). Average weeks unemployed (September 2011) – 12 month averages Perth - 27 weeks (a 4 week increase from September 2010) Australia – 37 weeks (a 3 week increase from September 2010)

Teenage Full-Time Unemployment

Source: ABS Labour Force, Australia, (Cat No. 6291.0.55.001), 12 month averages of original estimates, September 2011

Region% of teens looking for

full-time work Teenage full-time

unemployment rate

Central and Western Metro ESA 4.3% 22.7%

East Metro ESA 5.4% 23.6%

North Metro ESA 3.6% 14.2%

Perth 4.2% 18.5%

Australia 3.3% 22.9%

A key indicator of teenage disadvantage is the proportion of teenagers who are neither working nor studying. The proportion of teenagers who were neither working nor studying varied among the 3 Perth ESA’s regions: •Perth: 5.5% of teenagers in Perth MSR overall were neither working nor studying, compared with 7 per cent for Australia. •Central Metro ESA: 5.1% of teenagers in the Central Metro ESA were neither working nor studying •East Metro ESA: 6.6% of teenagers in EAST Metro ESA were neither working nor studying •North Metro ESA: 5.2% of teenagers in North Metro ESA were neither working nor studying

Recipients of Centrelink Benefits

RegionWorking Age Population

in receipt of a Centrelink Benefit

Annual Growth

Working Age Population in receipt of an Unemployment

Benefit

Annual Growth

Central and Western Metro ESA

11% -2% 2% -12%

East Metro ESA 13% -1% 3% -10%

North Metro ESA 12% -2% 3% -11%

Perth 12% -2% 3% -11%

Australia 17% 0% 4% -4%

Source: DEEWR, Administrative Data, September 2010, September 2011Population – Perth & Australia: ABS Estimated Resident Population, June 2010, cat. no. 3235.0

A lower proportion of the working age population in Perth is on a Centrelink Benefit than is the case for Australia. •11 per cent (or 38 165 persons) of the working age population in the Central and Western Metro ESA are in receipt of a Centrelink benefit and 2 per cent (or 8 500 persons) are in receipt of an unemployment benefit. •13 per cent (or 35 900 persons) of the working age population in the East Metro ESA are in receipt of a Centrelink benefit and 3 per cent (or 8 700 persons) are in receipt of an unemployment benefit. •12 per cent (or 64 800 persons) of the working age population in the North Metro ESA are in receipt of a Centrelink benefit and 3 per cent (or 15 000 persons) are in receipt of an unemployment benefit. •13 per cent (or 202 600 persons) of the working age population in WA are in receipt of a Centrelink benefit and 3 per cent (or 50 000 persons) are in receipt of an unemployment benefit % of WAP on DSP Central and Western metro ESA 3.5% East Metro ESA 3.7% North metro ESA 3.4% Perth 3.5% WA 4.0% Australia 5.3%

Job Seekers on JSA Caseload, Disadvantaged Groups

Perth Australia

Disability 20% 20%

Homeless 11% 9%

Ex-Offender 14% 11%

NESB 21% 17%

Indigenous 12% 12%

Refugee 7% 4%

No. of Job Seekers on Caseload 41,677 764,23

% of WAP on JSA Caseload 4% 6%

Source: DEEWR, JSA caseload data, as at 29 April 2011.

•A lower proportion of the Working Age Population (4%) are on the JSA caseload than is the case for Australia (6%). There is a higher proportion of job seekers on the JSA caseload in some disadvantaged groups •Homeless – 11% compared with 9% for Australia. •Ex-offender - 14% compared with 11% for Australia. •Non English Speaking Background - 21% compared with 17% for Australia. •Refugee - 7% compared with 4% for Australia. •21% or (8900 persons) of the JSA case load were from a non English Speaking Background. •More than one half of these people (52 per cent or 4650 persons) reside in the North Metro ESA.

Migration to Perth past 5 years, by stream of Migration

Family Stream

Humanitarian Stream

Skilled Stream Total

Perth 23 934 6,843 69 481 100 258

% of all Australian Migration arrivals - in each stream

10% 10% 13% 12%

Source: Department of Immigration and Citizenship. Settlement reporting:

http://www.immi.gov.au/settlement/, viewed 6th October 2011.

A high proportion of Australian Migrants arrive in Perth relative to its population. 8 per cent of the Australia's population live in Perth.

15

36

26

15

5

17

29

479

103

355

217

205

130

75

781

586

379

277

236

125

153

0 200 400 600 800 1000 1200 1400

BURMA

SUDAN

AFGHANISTAN

IRAQ

THAILAND

CONGO

LIBERIA

Central and West Metro ESA East Metro ESA North Metro ESA

Humanitarian Arrivals to Perth in past 5 years

English proficiency of Humanitarian Arrivals to Perth

• 48 per cent had ‘no’ English

• 29 per cent had ‘poor’ English language proficiency

Source: Department of Immigration and Citizenship. Settlement reporting: http://www.immi.gov.au/settlement/, viewed 6th October 2011.

7 per cent of total migration to the Perth region is from the Humanitarian stream. Top seven countries – Raw numbers of entrants Burma 1275 Sudan 725 Afghanistan 760 Thailand 446 Iraq 509 Congo 272 Liberia 257

English Proficiency and Labour Force Outcomes (WAP)

For persons who speak a language other than English at home

Source: ABS 2006 Census of Population and Housing

8.3%

9.9%

7.2%

4.7%

3.3%

26%

45%

61%

75%79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0%

2%

4%

6%

8%

10%

12%

not at all not well well very well only speaks English

Par

tici

pat

ion

rat

e

Un

em

plo

yme

nt

rate

Unemployment Rate

Participation Rate

Labour Market outcomes are significantly worse for job seekers with lower levels of English proficiency.

Indigenous Population Aged 15-64

Civilian pop aged 15 to 64 years

Unemployment rate

Participation rate

Employment to population ratio

'000 % % %

WESTERN AUSTRALIA

Indigenous 47.6 22.1 57.4 44.7

Non-Indigenous 1522.1 4.2 79.0 75.7

Total 1569.7 4.6 78.4 74.7

AUSTRALIA

Indigenous 345.6 18.2 58.3 47.7

Non-Indigenous 14,736.8 5.1 76.8 72.9

Total 15082.7 5.3 76.4 72.3

Source: Labour Force Characteristics of Aboriginal and Torres Strait Islander Australians (ABS cat no. 6287.0), Estimates from the Labour Force Survey, 2010

1.5 per cent of the population of Perth identify themselves as being Indigenous. The unemployment rate is substantially higher for Indigenous persons compared with non-Indigenous persons in both WA and Australia. Furthermore, the participation rate for those identifying as Indigenous is much lower compared with those who are non-Indigenous in both WA and Australia. WA Indigenous persons have an unemployment rate of 22.1 per cent and a participation rate of 57.4 per cent Non-Indigenous persons have an unemployment rate of 4.2 per cent and a participation rate of 79.0 per cent Australia Indigenous persons have an unemployment rate of 18.2 per cent and a participation rate of 58.1 per cent Non-Indigenous persons have an unemployment rate of 5.3 per cent and a participation rate of 76.4 per cent

Source: ABS Customised Tables, Survey of Education and Training, 2009; DEEWR, Administrative Data, September 2011.

Labour Market Outcomes for Persons (aged 15-74) with a Disability, 2009

* Please note, data excludes persons aged 65-74 years who are not in

or are not marginally attached to the labour force

Australia (persons aged 15 – 74)

Has a disability/health condition that restricts their

employment or schooling

Without a reported disability or health

condition

Share of total employment (%)

Accounts for 10.4% of total employment

Accounts for 71.3% of total employment

Key Labour Market Indicators

Unemployment rate 10.1% 5.5%

Participation rate* 54.4% 81.9%

In Perth region 3.5 per cent of the working age population (or 41 575 persons) are in

receipt of a Disability Support Benefit.

This slide shows the effect of having a disability on labour market outcomes. In 2009, over one in four (28.7%) of employed persons aged 15-74 years reported having a disability. 10.4% of employed persons (aged 15-74 years) reported having a disability that restricted their employment or schooling. In contrast, almost one in three (32.9%) of the total population aged 15-74 years reported having a disability in 2009. 15.5% of the population (aged 15-74 years) reported having a disability that restricted their employment or schooling. The unemployment rate was much higher and the participation rate was much lower for people with a disability that restrict their employment/schooling. Please note: data excludes persons aged 65-74 years who are not in or marginally attached to the labour force.

Kwinana ArmadaleWanneroo North West

Perth

Unemployment Rate (SALM) 10% 7% 7% 4%

% of families with children where no parent is working

23% 20% 15% 16%

% of population aged 25-34 who completed Year 12

45% 47% 55% 68%

% of population aged 15-64 on a Centrelink allowance

18% 17% 13% 12%

% of yr 9 Govt School Students below min standard for Reading

33% 25% 18% 8% (WA)

- for Numeracy 17% 14% 18% 15% (WA)

SLAs with High Levels of Disadvantage

Sources: Unemployment Rates - DEEWR Small Area Labour Markets, September

2011 (Smoothed Estimates); Centrelink - DEEWR Administrative data, September

2011 and ABS Estimated Resident Population, June 2010; Other - ABS 2006

Census of Population and Housing, MySchool Website

Some regions within Perth have high levels of disadvantage. Three regions with high levels of disadvantage are: •Kwinana SLA in Central and Western Metro ESA •Armadale SLA in East metro ESA •Wanneroo North West SLA in North Metro ESA

Educational Attainment and Labour Market Outcomes

2.3%

3.1%2.6%

3.4%

6.1%

7.2%

88.7%

82.7%

89.2%

80.2%78.3%

71.2%

0%

2%

4%

6%

8%

10%

12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bachelor degree or higher

Advanced Diploma/Diploma

Certificate III/IV Year 12 or equivalent

Certificate I & II Did Not complete year 12

Unemployment Rate

Participation rate

This chart highlights that labour market outcomes are improved significantly with greater levels of education.

Employment by Industry

Source: ABS Labour Force, Australia, August 2011 – average of four quarters: Nov 2010 to Aug 2011 (Cat No. 6291.0.55.003)

0% 5% 10% 15%

Mining

Accommodation and Food Services

Manufacturing

Education and Training

Professional, Scientific and Technical Services

Retail Trade

Health Care and Social Assistance

Construction

Perth

Australia

This chart provides a breakdown of Industry of Employment in Perth.

Employment Growth by Industrypast five years (‘000s)

Source: ABS Labour Force, Australia, Detailed, Quarterly, September

2011, (Cat No .6291.0.55.003), four quarter averages of original data

22.6

21.6

17.4

15.8

15.0

7.2

2.6

-4.4

-10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0

Construction

Mining

Education and Training

Health Care and Social Assistance

Professional, Scientific and Technical Services

Accommodation and Food Services

Retail Trade

Manufacturing

In Perth, there has been strong employment growth in the Construction industry over the 5 years to 2011, however employment has declined in Manufacturing.

Internet Vacancy Index (IVI)

Source: DEEWR, Vacancy Report, September 2011

30

40

50

60

70

80

90

100

110

120

Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11

Metro Ref. Period AUST WA

Vacancy numbers have been recovering in Western Australia much faster than for Australia overall. In recent months, however, there has been a decline in the Internet Vacancy Index (IVI). The number of job vacancies remain below the levels prior to the global financial crises

Employer Survey ResultsEvidence of tightening labour market conditions

Recruitment Indicator Perth2011

Perth 2010

% Point

Change

% of jobs that became vacant

(annualised)29% 25% +4

% of vacancies unfilled 9% 8% +1

Recruitment ‘difficult’ 45% 41% +4

Recruitment or retention difficulties

constrained business activity28% 24% +4

Source: DEEWR survey of Recruitment Conditions in Capital Cities March/April 2011.

Survey of Employers in Capital cities, March/April 2011. 2650 responses Follows 2010 survey Response Rate 76.1% 77.3% of respondents from State Capital cities were also surveyed in 2010. Compared with 2010 results and the 2011 results for all capital cities, employers in Perth in the previous six months: •reported higher levels of recruitment activity •had a higher proportion of vacancies remaining unfilled •were more likely to report that recruitment difficulty was ‘difficult’ •were significantly more likely to report that staff retention was a significant problem for their business. •were more likely to report that recruitment and retention difficulties prevented them from meeting the market demand for their goods and services, or prevented them from carrying out an investment project.

Staff Growth in past six months by IndustryProportion of Employers Increasing and Decreasing Staff Numbers


Across all industries 18% of employers reduced staff numbers in the previous 6 months while 28% increased staff numbers. However, there were significant differences by industry. •30 per cent of employers in Manufacturing reduced staff numbers in the previous six months. •Only 10 per cent of employers in Health Care and Social Assistance, Construction and Retail trade reduced staff numbers.

Methods of Recruitment


... So what recruitment methods did employers use to fill these vacancies? We asked about the methods used to recruit staff in their most recent recruitment round. Formal Methods are shown in purple: Definition of Formal Methods: Vacancies can be accessed by job seekers from publically available and commonly known sources Informal Methods: dark blue Definition of informal Methods: vacancies not advertised where a wide range of job seekers can access them. Often do not have a formal application date or selection process. Employers often use more than one recruitment method The proportion of employers who used a: Formal method only: 64% vs 65% for Australia Informal method only: 16% vs 16% for Australia Both formal and informal methods: 19% vs 17% for Australia Formality unknown: 1% vs 2% for Australia (consisting of ‘other’ where it is not clear if the method was formal or informal + recruited internally – which could be either formal or informal).

Unfilled and unsatisfactorily filled vacancies by major occupation category, most recent recruitment experience


This chart shows (in employer’s most recent recruitment round) the proportion of vacancies that remained unfilled and the proportion of vacancies that were filled with workers who did not have the skills or capabilities desired by the employer. Many employers had difficulty recruiting staff for a wide range of major occupation categories. Overall more than one in three (34%) vacancies either remained unfilled (10%) or were filled with a worker who did not have the skills or capabilities that the employer was looking for (24%). The proportion of vacancies remaining unfilled were particularly high for Professionals (22%) and Technicians and Trades Workers (16%). Employers frequently filled vacancies with workers who did not have the skills/capabilities that they were looking for when recruiting for. Technicians and Trades Workers (35%) – Technical Skills and Experience were the most common skills shortfalls. Machinery Operators (30%) – Technical Skills and Qualifications were the most common skills shortfalls. Sales Workers (33.3%) - Technical Skills and Experience were the most common skills shortfalls.

Managers and Professionals Hospitality, Retail and Service Managers Construction ManagersRegistered Nurses ICT ProfessionalsSocial and Welfare Professionals Human Resource Professionals

Technicians and Trades WorkersAutomotive Electricians and Mechanics ElectriciansWelding Tradespersons Food Trades WorkersMetal Fitters and Machinists


Occupation Based Classifications High Skilled Occupation Categories

In cases where sufficient information was recieved to make an assessment, this table shows the high skilled occupations for which: employers commonly had vacancies remaining unfilled; employers had difficulty recruiting suitable staff; recruitment difficulties were not widespread. The high number of red squares on this slide is consistent with the high proportion of vacancies remaining unfilled for Professionals and Technicians and Trades Workers.

Occupation Based Classifications Other Occupation Categories

Community and Personal Services WorkersAged, Disability and Nursing Support Workers Child Care WorkersSports Coaches, Instructors and Officials Hospitality Workers

Clerical and Administrative WorkersAccounting Clerks and Book Keepers ReceptionistsCourt and Legal Clerks General Clerks

Sales WorkersSales Representatives Sales Assistants

Machinery Operators and DriversPlant and Machine Operators Truck DriversDelivery Drivers Store Persons

LabourersFood Preparation Assistants Factory Process WorkersShelf Fillers


Similarly, this table shows the lower skilled occupations (where sufficient information was available to make an assessment) for which: employers commonly had vacancies remaining unfilled; employers had difficulty recruiting suitable staff; recruitment difficulties were not widespread.

Basic Employability Skills

• Most importance placed on:

• 30% personal traits and qualities only

• 28% technical skills only

• 41% both equally important

• Personal traits and qualities applicants lacked:

• Communication

• Motivation

• Enthusiasm

• Presentation

Source: DEEWR, Survey of Employers’ Recruitment Experiences, 12 months to December 2010

Results from all regions surveyed in the 12 months to December 2010 showed that, when recruiting, employers placed most importance placed on: 30 per cent personal traits and qualities only 28 per cent technical skills only 41 per cent both equally important Personal traits and qualities that employers most commonly stated that applicants lacked: Communication Motivation Enthusiasm Presentation

Single Greatest Concern, by Industry next six months


Employers were asked about their single greatest concern for the next six months. •44% said that recruitment difficulties were their greatest concern for the next six months. •28% said that low or uncertain demand was their greatest concern. •9% of Perth based respondents said that they did not have any concerns for the next six months. Across all industries we can see that employers in Perth were far more likely to report that recruitment difficulties was their single greatest concern for the next six months than was the case for all capital cities (44% compared with 32%).

Recruitment Conditions in Capital CitiesSurvey Results

CHANGE INRECRUITMENT

ACTIVITY

2010 - 2011

RECRUITMENT DIFFICULTIES

METRO ‘11

CHANGE IN RECRUITMENT DIFFICULTIES

2010 - 2011

RECRUITMENT OUTLOOK

NEXT SIX MONTHS

SYDNEY INCREASE MODERATE EASING STEADY

MELBOURNE INCREASE MODERATE STEADY STEADY

BRISBANE STEADY MODERATE HIGHER STEADY

ADELAIDE INCREASE MODERATE EASING SUBDUED

PERTH INCREASE HIGH HIGHER STRONG

HOBART STEADY MILD EASING SUBDUED

DARWIN N/A VERY HIGH N/A VERY STRONG

STATE CAPITALS INCREASE MODERATE STEADY STEADY


Overall, and taking into account a wide range of indicators in Perth there has been: An increase in recruitment activity; An increase in recruitment difficulties which are now at a ‘high’ level; and The recruitment outlook for the next six months was strong.

ConclusionLabour market conditions are strong• Low unemployment rate • Strong employment growth in last six months• Employers are recruiting more; having greater difficulty filling vacancies; and more vacancies unfilled

Regional and Industry disparity

Some people are at risk of being left behind• Job seekers with limited English; Teenagers; less educated; Indigenous; persons with a disability; long term unemployed.

Many opportunities: job seekers need to be job ready• Work experience, training, apprenticeships; • Communication, motivation, enthusiasm, presentation, language and literacy.

Continue to work with employers regarding their needs and expectations

Some signs that labour market conditions may strengthen further

Sa

This chart shows that we have conducted survey’s in the majority of Western Australia over the past 2 years. We are scheduled to survey the South West Perth Metropolitan ESA in March 2012. The metro survey will be going ahead in March-April 2012.

Recent Employer Surveys in Regional WAHeadline Results

Region Date Jobs Vacant% annual

Recruitment

Difficult

Southern ESA Jun 2011 24% 53%

Mid West and Gascoyne ESA May 2011 37% 56%

Goldfields-Esperance ESA Nov 2010 26% 52%

Pilbara ESA Aug 2010 79% 61%

All Regions Surveyed: Year to June 2011 24% 45%

Previous surveys show that, in many regional areas of Western Australia, levels of recruitment activity and recruitment difficulties have been high.

Further Information

– www.deewr.gov.au/regionalreports

– www.deewr.gov.au/lmip

– www.deewr.gov.au/skillshortages

– www.deewr.gov.au/AustralianJobs

– www.joboutlook.gov.au

– www.skillsinfo.gov.au

Australian Government Department of Education, Employment and Workplace Relations

Labour Market Conditions in - docs.employment.gov.au · Labour Market Conditions in PERTH...

Documents

Transcript of Labour Market Conditions in - docs.employment.gov.au · Labour Market Conditions in PERTH...