Slide 1 Labour market conditions in the Ovens-Murray region

www.employment.gov.au

Labour market conditions in the Ovens-Murray region

15th June 2017

Chris SainsburyDirector

Recruitment and Employer Needs Analysis

Slide 2 Ovens-Murray map

Ovens-Murray map

Hume SA4

Ovens-Murray region

Slide 3 Ovens-Murray region overview

Ovens-Murray region overview

Source: ABS, Estimated Residential Population 2016;Department of Employment; Small Area Labour Markets, March quarter 2017 (LGA); Department of Employment, Survey of Employers’ Recruitment Experiences, 2016; ABS Census of Population and Housing, Usual Residence, 2011

Population

Unemployment Rate

Proportion of employers with

recruitment difficulty

Proportion of Owner Manager businesses*

121,940

4.9%

29%

21%

*includes contributing family workers

Slide 4 Ageing population – Ovens-Murray region.

Source: ABS, Estimated Residential Population 2001 and 2015

Ageing population Ovens-Murray region

Age 2015 Change since 2001

Less than 50 71,200 5,800

50+ 49,300 14,000

Total 120,500 8,200

Age 2015 Change since 2001

Less than 50 71,200 5,800

50+ 49,300 14,000

Total 120,500 8,200

Slide 5 Ageing population – Ovens-Murray region

Source: ABS, Estimated Residential Population 2001 and 2015; ABS, Census of Population and Housing, 2011

Ageing population Ovens-Murray region

Population up by 8,220 (7%) since

2001

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000 2001

2015

44% of 15-20 year olds had left the region 5 years later

Slide 6 Relatively low unemployment rates across the region - Ovens-Murray region (March 2017)

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Victoria

Source: Small Area Labour Markets, March quarter 2016 (LGA); ABS Labour Force Survey May 2017, Seasonally adjusted

Relatively low unemployment rates across the regionOvens-Murray region (March 2017)

Indigo

Ovens-Murray

Mansfield

Alpine

Towong

Wangaratta

Benalla

Wodonga

Slide 7 Drop in full-time employment growth - Hume SA4, 2 year change, 2015-2017 (15+)

Drop in full-time employment growthHume SA4, 2 year change, 2015-2017 (15+)

Source: ABS, Labour Force data, April 2017 (12 month averages)

-3300

2540

370

1790

-4000

-3000

-2000

-1000

0

1000

2000

3000

Full-time Part-time Full-time Part-time

Males Females

Slide 8 Shift to the services sector – Hume SA4, 2007 and 2017

Shift to the services sectorHume SA4, 2007 and 2017

Source: ABS, Labour Force data, February 2017 (4 quarter averages)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Transport, Postal andWarehousing

Agriculture, Forestryand Fishing

Education andTraining

Manufacturing Accommodation andFood Services

Retail Trade Construction Health Care andSocial Assistance

2007

2017

Slide 9 Which will continue over the next five years - Projected employment growth in the Hume SA4, five years to November 2020

…which will continue over the next five yearsProjected employment growth in the Hume SA4, five years to November 2020

Source: Department of Employment, 2016 Industry Employment Projections, five years to November 2020

1800

800

690

430

400

380

160

-480

-1000 -500 0 500 1000 1500 2000

Health Care and Social Assistance

Accommodation and Food Services

Retail Trade

Education and Training

Construction

Agriculture, Forestry and Fishing

Transport, Postal and Warehousing

Manufacturing

Slide 10 Duration of unemployment by age - Australia

Duration of unemployment by age Australia

Source: ABS, Labour Force Survey, September 2016, 12 month averages of original data (Australia)

Ave.

dur

ation

of u

nem

ploy

men

t (w

eeks

)

Age group

3240

45

61

80

0

20

40

60

80

100

15-24 years 25-34 years 35-44 years 45-54 years 55-64 years

Slide 11 Getting a job can be competitive - Vacancies advertised on the internet or in a newspaper, Ovens-Murray region

Getting a job can be competitive

Vacancies advertised on the internet or in a newspaper, Ovens-Murray region

Average number of applicants per vacancy

13

Average number of applicants interviewed

4

9 not interviewed

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Ovens-Murray region 2016

Reasons applicants didn’t get an interview:• Lack of experience• Insufficient qualifications• Poorly written application• Applicant availability

Slide 12 Many young people are facing challenges getting a foothold in the jobs market

Youth unemployment

rate(Hume SA4, 15-24 yrs)

Disengaged youth

(20 – 24 yrsnot studying and

not looking for work)

13.8%

(VIC 13.2%)

9%

(VIC 7%)

Many young people are facing challenges getting a foothold in the jobs market

Source: ABS, Labour Force, Australia, April 2017, 12 month averages ;ABS, Census of Population and Housing, 2011

Slide 13 Many young people grow up in jobless families. Families with children under the age of 15

Many young people grow up in jobless familiesFamilies with children under the age of 15

Source: ABS, Census of Population and Housing, 2011

44% (1,300) of one parent families in the

region are jobless

15% (1,600) of families in

the region are jobless Around 3,500

children from jobless families

Slide 14 Many local jobs are not advertised - Ovens-Murray region

38%of employers used informal methods

only

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Ovens-Murray region 2016

Many local jobs are not advertisedOvens-Murray region

Already known to employer

Word of mouth

Slide 15 Employers consider these skills to be essential

Employers consider these skills to be essential

ESSENTIALthroughout

their careersReliability

Teamwork

Flexibility /adaptability

Enthusiasm /positive attitude

Communication / social skills

Willingness to learn

Customer Service

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015

Slide 16 Unpaid work experience can help many young people – Proportion of workplaces hosting work experience in the last 12 months.

Student 36%

Job seeker 7%

Did not offer work experience

57%

Unpaid work experience can help many young people

Source: Survey of Employers’ Recruitment Experiences, November 2016

Proportion of workplaces hosting work experience in the last 12 months

Motivations: To meet recruitment needs helping disadvantaged job seekers providing skills for the wider industry short term labour to use in their

business encouraging apprenticeships financial incentives (i.e. wage subsidies)

Slide 17 Many local employers still have difficulty finding the right workers

Many local employers still have difficulty finding

the right workers…

• Technical skill requirements• Lack of experienced applicants• Soft skill requirements

Most common reasons for difficulty:

• Grow the business• Meet market demand• Increase productivity

This has adverse impacts on the

employer’s ability to:

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Ovens-Murray region 2016

1 in 4 employers hiring staff from outside the local area

Slide 18 Post-school qualifications are key - Unemployment rate by level of educational attainment for persons aged 25-34 years in Ovens-Murray

2% 2%

4%

7%

12%13%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

BacxhelorDegree or

higher

AdvancedDiploma and

DiplomaLevel

Cert III & IVLevel

Year 12 orequivalent

Cert I & IILevel

Below Year12

Post-school qualifications are key…Unemployment rate by level of educational attainment

for persons aged 25-34 years in Ovens-Murray

Source: ABS, Census of Population and Housing, Usual Residence, 2011

Post school qualification

93% of new jobs across Australia will require post school qualification

Slide 19 Increasingly employers are looking for staff with these skills

…and increasingly employers are looking for staff with these skills

Critical thinking

Financial literacy

CreativityDigital literacy

Problem Solving

Job advertisements requiring these skills

have increased by over 200% since 2012

Skills not easily replicated by artificial

intelligence

Source: Foundation for Young Australians, The New Basics, April 2016

Transferable

Slide 20 There are resources to assist you

There are resources to assist you

jobsearch.gov.au/13 62 68

http://australianjobs.employment.gov.au/

http://joboutlook.gov.au/

http://lmip.gov.au/

Slide 21 Australian Government Department

If you have any questions about the presentation please contact the Recruitment and Employer Needs Analysis section on:Email: recruitmentsurveys@employment.gov.au