Slide 1

							Slide 1
Survey of Employers’ Recruitment Experiences
Canterbury-Bankstown and South Western Sydney Priority Region
September 2009

Slide 2
Canterbury-Bankstown and South Western Sydney Priority Region
This map shows the Canterbury-Bankstown and South Western Sydney Priority Region which
covers the Canterbury-Bankstown, Fairfield-Liverpool and Outer South Western Sydney Labour
Force Regions (2006 geography).

The Local Government Areas in each Labour Force Region are:
Canterbury-Bankstown
Canterbury (C)
Bankstown (C)
Fairfield-Liverpool
Fairfield (C)
Liverpool (C)
Outer South Western Sydney
Camden (A)
Campbelltown (C)
Wollondilly (A)

Slide 3

Profile
This table compares demographics of the Labour Force Regions (LFR) in the Canterbury-
Bankstown and South Western Sydney Priority Region with New South Wales and Australia:
     Population growth across the region has been lower than in NSW and Australia
     The population across the region is relatively younger than NSW and Australia, apart
        from the Canterbury-Bankstown LFR where the population is slightly older
     The Fairfield-Liverpool and Canterbury-Bankstown LFRs have a much higher proportion
        of people born overseas than NSW and Australia
     A lower proportion of the population in the region are Indigenous compared with NSW
        and Australia
     Fairfield-Liverpool and Canterbury-Bankstown have a lower participation rate than NSW
        and Australia

Sources: ABS, 2006 Census of Population and Housing. Population growth is from Time Series
Profile (place of enumeration).
ABS, 2006 Census, Quickstats and Basic Community Profiles (place of usual residence)
ABS, Labour Force Australia, August 2009 (cat. no. 6202.0), 3 month averages
Slide 4

Why is Canterbury-Bankstown and South Western Sydney a Priority Region?
Recent increase in unemployment
Increase in the number of unemployment benefit recipients
High industry concentration in Manufacturing, Retail Trade and Construction
Lower levels of educational attainment

Slide 5

Unemployment
This graph shows the unemployment rate in the Canterbury-Bankstown and South Western
Sydney which has historically been higher than the rate for NSW and Australia:
     Within the region, the Fairfield-Liverpool LFR has the highest unemployment rate
     The unemployment rate in the priority region as a whole has increased from 6.2% to
        8.7% over the last year
     The three LFRs experienced very high unemployment rates in the early 90s recession:
        e.g. 15.9% in Canterbury-Bankstown in August 93 and 21.3% in Fairfield-Liverpool in
        November 92
     Over the year to August 2009, the number of unemployed people in the Outer South
        Western Sydney LFR has increased (by 3200 people or 40.6%) while the number of
        employed people has decreased (2400 or 2%).

Source: ABS, Labour Force Australia, Detailed – Electronic Delivery August 2009 (cat. no.
6291.0.55.001), 3 month averages

Slide 6

Unemployment
This chart shows that most of the Statistical Local Areas (SLA) within the Canterbury-
Bankstown, and South Western Sydney Priority Region have had a history of above average
unemployment rates relative to the NSW and Australia rates.
At the December quarter 2008, the unemployment rate for Sydney was 4.5%, the
unemployment rate for NSW was 4.8% and the unemployment rate for Australia was 4.2%.
Camden (Pink) and Wollondilly (Aqua) are the only two SLAs to have unemployment rates
consistently lower than the unemployment rates for both NSW and Australia.

Source: DEEWR, Small Area Labour Markets, Australia, December 2008.
Slide 7

Youth Unemployment
Compared with NSW and Australia, the region has higher youth unemployment (15 to 24 year
olds). In particular, the Fairfield-Liverpool LFR has a much higher youth unemployment rate.
The region also has a high level of teenage fulltime unemployment (25.4 per cent for Outer
South Western Sydney).

Source: ABS, Labour Force Australia, Detailed – Electronic Delivery August 2009 (cat. no.
6291.0.55.001)

Slide 8

Unemployment Benefits
Overall, 22% of the working age population of the Canterbury-Bankstown and South Western
Sydney Priority Region are in receipt of a Centrelink benefit, which is higher than the
comparative proportion for Australia (18%).
The table shows there has been a 27% increase in the number of people receiving
unemployment benefits in the priority region. This compares with 24% and 29% for both NSW
and Australia respectively.
In June 2009, the number of people living in the Canterbury-Bankstown and South Western
Sydney Priority Region who received unemployment benefits was around 35 800 people, or
approximately 5% of the working age population (compared with 5% of the NSW working age
population and 4% of the Australian working age population). This was an increase of just over
7700 people, or 27%, on the number of people receiving an unemployment benefit in June
2008.
Recipients of unemployment benefits include those receiving Newstart Allowance and Youth
Allowance (Other).

The increase in the number of people receiving Newstart and Youth Allowance (Other) is
comparable to NSW and Australia:
NSW: Newstart: 24% increase; Youth Allowance (Other): 20% increase
Aus: Newstart: 29% increase; Youth Allowance (Other): 28% increase

Within the Outer South Western LFR, 22% of the working age population in Campbelltown were
in receipt of a Centrelink payment and 6% were in receipt of unemployment benefits.

Source: DEEWR administrative data, June 2008 and June 2009

Slide 9

Employment by Industry
Another indicator of labour market vulnerability is a high concentration of employment in
industries that are sensitive to economic downturns, such as the Manufacturing, Retail Trade
and Construction industries. These industries are already being affected by the impact of the
global recession and are likely to deteriorate further over 2009–2010.
This graph shows the proportion of total employment in each industry. The top 3 employing
industries in Canterbury-Bankstown and South Western Sydney are Manufacturing, Retail trade
and Construction. There is a substantially higher proportion of employment in the
Manufacturing industry compared with the rest of Australia.

Source: ABS, Labour Force Australia, Detailed – Electronic Delivery August 2009 (cat. no.
6291.0.55.001), 4 quarter average

Slide 10

Changes in Employment by Industry
This table shows the employment gains or losses by industry, in the Outer South Western
Sydney LFR in the major employing industries over the last year. Manufacturing, Construction
and Retail Trade are vulnerable to the effects of recession. Total employment in the region has
decreased by 5200 people or 4%. Employment in:
     Manufacturing has decreased by 4200 people or 24%
     Construction has decreased by 800 people or 6%
     Retail Trade has increased by 3300 people or 25%

Source: ABS, Labour Force Australia, Detailed – Electronic Delivery August 2008 and August
2009 (cat. no. 6291.0.55.001)

Slide 11

Employment by Occupation
This chart shows that compared to Australia, the Canterbury-Bankstown and South Western
Sydney Priority Region has a:
     Higher proportion of Clerical and Administrative Workers
     Higher proportion of Technicians and Trades Workers
     Higher proportion of Labourers and Machinery Operators and Drivers
     Lower proportion of Professionals and Managers

Source: ABS, Labour Force Australia, Detailed – Electronic Delivery August 2009 (cat. no.
6291.0.55.001), four quarter average

Slide 12

Educational Attainment
The level of educational attainment is strongly linked with labour market performance and the
ability of a region (or its population) to respond flexibly to an economic shock. Accordingly,
regions with relatively low levels of educational attainment tend, on average, to be less flexible
in the face of economic slowdowns and face greater labour market difficulties. For example,
upon retrenchment, those with lower educational attainment will find it significantly more
difficult to find subsequent employment than their more highly skilled counterparts.
This table shows the lower levels of educational attainment in the Canterbury-Bankstown,
Outer South Western Sydney and Fairfield-Liverpool LFRs, compared with NSW and Australia.
There is a higher level of educational attainment in the Canterbury-Bankstown LFR than in the
other LFRs in the Priority Region. However, in comparison to NSW and Australia, although there
is a higher level of year 12 completion rates in the Canterbury-Bankstown LFR not as many
people have attained a Bachelor degree or higher.

Source: ABS, 2006 Census of Population and Housing data, from matrix provided by Labour
Market Analysis section

Slide 13

Unemployment and Education Attainment
These figures are for all of Australia, but the same pattern is seen in every region of Australia.
There is a strong relationship between educational attainment and employment outcomes. The
unemployment rate for those who complete Year 10 or below is nearly double the
unemployment rate for those who have finished Year 12, and more than four times higher than
for those with a Bachelor degree.
These figures suggest that education and training will be issues to address in helping the
Canterbury-Bankstown and South West Sydney Priority Region to weather the global recession.

Source: ABS, Education and Work, Australia, May 2008 (cat. no. 6227.0).

Slide 14

Areas of Relative Disadvantage
The Socio-Economic Indexes for Areas (SEIFA) summarise aspects of the socio-economic
conditions of people living in an area. This map shows the index of disadvantage in the
Canterbury-Bankstown and Outer South Western Sydney Priority Region. This index is derived
from Census data related to disadvantage, such as low income, low educational attainment,
unemployment and dwellings with no car, among other things.
The light blue areas are those areas with the lowest levels of disadvantage in the Canterbury-
Bankstown and Outer South Western Sydney Priority Region (ranking within Australia). The
areas in dark blue are those areas which recorded the highest levels of disadvantage (the
bottom 20 per cent). What this map shows is that there is a range of different levels of
disadvantage across the area including some pockets of low disadvantage.
SLAs by SEIFA decile (low score indicates highest levels of disadvantage)

SLA                      Decile    LGA                  LFR
Fairfield East           1         Fairfield            Fairfield-Liverpool
Liverpool East           2         Liverpool            Fairfield-Liverpool
Bankstown North-         2         Bankstown            Canterbury-Bankstown
East
Bankstown North-         2         Bankstown            Canterbury-Bankstown
West
Canterbury               2         Canterbury           Canterbury-Bankstown
Fairfield West           3         Fairfield            Fairfield-Liverpool
Campbelltown North       3         Campbelltown         Outer South-Western Sydney
Campbelltown South       3         Campbelltown         Outer South-Western Sydney
Bankstown South          6        Bankstown           Canterbury-Bankstown
Liverpool West           6        Liverpool           Fairfield-Liverpool
Wollondilly              8        Wollondilly         Outer South-Western Sydney
Camden                   9        Camden              Outer South-Western Sydney
Source: Socio-economic Indexes for Areas (SEIFA), 2006, Table. 3 Statistical Local Area (SLA)
Index of Relative Socio-economic Disadvantage (ABS cat. no. 2033.0.55.001)

Slide 15

Internet Vacancy Index
Despite the economic downturn, there are still job opportunities across different skill levels.
This table shows that during August 2009, there were 64 160 new job vacancies in New South
Wales. More than 4000 of these vacancies were for Labourers.
These data are from the Internet Vacancies Index, which is based on vacancies newly lodged on
four online recruitment websites - SEEK, CareerOne, MyCareer and Australian JobSearch.

Source: DEEWR, Internet Vacancies Index, August 2009

Slide 16

Survey Results
The Canterbury-Bankstown and South Western Sydney Priority Region Survey of Employers’
Recruitment Experiences was conducted during June and July 2009.

Comparison Groups
Comparisons are made to the aggregate of all regions surveyed by DEEWR in the 5 months to
May 09 and 12 months to Dec 08.

Employers Who Recruited
A lower proportion of employers surveyed had recruited in the last 12 months compared with
the 12 months to Dec 08.
Recruitment Due to Growth
Similar proportion of employers recruited due to growth in Fairfield-Liverpool & Canterbury-
Bankstown when compared with 12 months to Dec 08. In contrast, substantially fewer
employers recruited due to growth in Outer South Western Sydney when compared with all
regions surveys in the 12 months to Dec 08.
Recruitment Due to Turnover
Recruitment due to turnover is lower compared to all regions in the 12 months to Dec 08.
Unfill Rate
The unfill rate in Outer South Western Sydney was considerably lower compared with Fairfield-
Liverpool and Canterbury-Bankstown region.
Both of which were also substantially lower when compared with all regions surveyed in the 12
months to Dec 08.
Experienced Difficulty
More employers in the Fairfield-Liverpool & Canterbury-Bankstown region experienced
difficulty recruiting in the last 12 months when compared with Outer South Western Sydney.
However both still experienced substantially less difficulty compared with all regions in the 12
months to Dec 08.

Slide 17

Most Recent Recruitment Activity
Employers in Canterbury-Bankstown and South Western Sydney Priority Region were asked
about their most recent recruitment experience.

Vacancies Not Filled
Proportion of vacancies not filled was lower than all regions in the 12 months to Dec 08, but
higher than 5 months to May 09.
Unfill rate was lower in Outer South Western Sydney when compared with Fairfield-Liverpool &
Canterbury-Bankstown.

Staff Needing Development
A far higher proportion of employers in Outer South Western Sydney were willing to put on
employees who needed development (16 per cent) compared with Fairfield-Liverpool and
Canterbury Bankstown (11 per cent) and compared with the 5 months to May 09 for all regions
and the 12 months to Dec 08 for all regions (both 11 per cent).

Experienced Difficulty
More employers experienced difficulty filling a vacancy in the most recent recruitment round
compared with the 5 months to May 09, but was still lower when compared to all regions
surveyed in the 12 months to Dec 08.

Slide 18

Occupations Difficult to Fill
This slide shows the main occupation types that in the Canterbury-Bankstown and South
Western Sydney priority region employers considered difficult to fill.
The occupations fall across a wide range of areas.
Relatively few of them required a higher level of education.
Most of those occupations mentioned as difficult to fill are medium to lower skill level jobs.

Employers were asked about the reasons they considered the vacancy difficult to fill. Overall,
the most common reasons for difficulty filling the vacancy were the technical and soft skill
requirements for the jobs.

Slide 19

Competition for Vacancies
Overall, there were an average of 7.7 applicants per vacancy, of those only 2.3 were considered
suitable. Nearly 2/3 of applicants were considered to be not suitable.
In the Canterbury-Bankstown and South Western Sydney region there was an unusually large
number of applicants for managerial vacancies (17.7 applicants), indicating a high level of
competition for these vacancies.
However there was a large difference between the average number of applicants and the
average number of suitable applicants (1.9 applicants), indicating that it was harder to fill these
Managers vacancies.
In contrast, there were relatively few applicants for vacancies for Labourers (an average of 3.1
applicants), approximately one of every two applicants to these vacancies were considered
suitable (an average of 1.7 suitable applicants to every 3.1 applicants).

Slide 20

Reasons Applicants Were Unsuitable
The main reason provided for applicants being rated as unsuitable for the positions were that
they did not have the appropriate skills for the position, in particular, employers reported that
applicants had insufficient experience (66 per cent), and insufficient qualifications (34 per cent)
to perform the job duties.
Employers in Canterbury-Bankstown and South Western Sydney Survey also found some
applicants unsuitable due to a lack of enthusiasm for the job or work generally (17 per cent).

                                       Insufficient qualifications Insufficient experience
Managers                                          25%                         88%
Professionals                                     38%                         75%
Technicians and Trades Workers                    62%                         69%
Community and Personal Service Workers            50%                         56%
Clerical and Administrative Workers                9%                         73%
Machinery Operators and Drivers                   31%                         54%
Sales Workers                                     19%                         56%
Labourers                                         50%                        100%
Total                                             34%                         66%

Slide 21

Basic Employability Skills
Employers in the Canterbury-Bankstown area were asked if they placed more importance on an
applicant’s traits and qualities or on their technical skills and experience when making hiring
decisions.
Across all employers surveyed, an equal number placed the highest level of importance on
either personal traits and qualities or technical skills and experience (36-37 per cent). A
substantial proportion of employers (23 per cent) also reported placing an equal amount of
importance on both of these when making hiring decisions.
The results indicate that when seeking a job, applicants need to have both technical skills and
job-specific experience as well as personal traits and qualities (such as communication skills,
motivation and positivity):
     Communication skills were highly sought after by employers looking to fill vacancies in
        Sales Worker occupations (52 per cent of employers recruiting for sales workers).
     Positivity was highly sought after by employers looking to fill vacancies in Community
        and Personal Service Worker occupations (61 per cent). In comparison, positivity was of
        less importance for employers looking to fill vacancies for Managers and Professionals
        occupations (22 per cent).
        Motivation was valued by employers seeking to fill vacancies in Technicians and Trade
         Workers and Machinery Operators and Drivers occupations (both 33 per cent).
Opportunities for Job Seekers
In the Outer South Western Sydney region, opportunities for job seekers appear to exist in the
Sales Workers occupation group with vacancies receiving lower than average numbers of
applicants (4.5) and suitable applicants (1.6). Nearly two thirds of employers recruiting for this
occupation group placed emphasis on personality traits over technical skills.
In the Canterbury-Bankstown and Fairfield-Liverpool region, opportunities for higher skilled
workers appear to exist in the Technicians and Trades Workers occupation group (e.g. Metal
Fitters and Machinists and Panelbeaters), with a very high proportion of vacancies remaining
unfilled (28 per cent), a high proportion of vacancies filled with job seekers who required
development (22 per cent) and low numbers of suitable applicants per vacancy (1.3). Employers
recruiting for this occupation group placed equal emphasis on technical skills and personality
traits, with the most valued personality traits being motivation, a positive attitude and good
teamwork skills.

Slide 22

Future Recruitment Expectations
The proportion of employers in Canterbury-Bankstown who expected to recruit in the next 12
months was higher when compared to all regions in the 5 months to May 09 (37%). This was
still substantially lower when compared to the proportion of employers in the 12 months to
Dec 08 who intended to recruit (51%). More employers in Fairfield-Liverpool & Canterbury-
Bankstown expected to recruit compared with Outer South Western Sydney. Employers
expected to encounter fewer difficulties when recruiting in the next 12 months, compared with
the 12 months to Dec 08 where over half (59%) of the employers expected to encounter
difficulties when hiring staff. The level of uncertainty about future recruitment was similar
compared to all regions 5 months to May 09 (16%).
Reducing Staff
A higher proportion of employers in Fairfield-Liverpool & Canterbury-Bankstown (5%) reported
an intention to reduce the number of staff when compared with Outer South Western Sydney
(3%). The main reasons reported for reducing staff numbers over the next 12 months were: Fall
in demand for products/services and pressure on cash flow. The results suggest that overall
recruitment activity may decline in the next 12 months, with 43 per cent of employers
expecting to recruit compared with 55 per cent in the previous 12 months. In line with results
from other regions recently surveyed, employers were relatively optimistic about business
conditions in the next 12 months, with only a small proportion (4 per cent) of employers
expecting to reduce staff numbers, and the majority of employers who expect to recruit
reporting they will do so as a result of business growth.
Recruit an Apprentice
Employers were asked if they intended to recruit an apprentice in the next 12 months. There
were 22 per cent of employers from the Canterbury-Bankstown region who reported the
intention to recruit an apprentice in the next 12 months. The proportion of employers
expecting to recruit an apprentice was only slightly higher compared to the proportion for all
regions in the 5 months to May 09 (18 per cent) but was still substantially lower than that for all
regions in the 12 months to Dec 08 (39 per cent).
The main reason that employers reported for not hiring an apprentice was that it does not fit
with the industry needs (46 per cent) and that the current staffing levels were adequate to
address the needs of the business (28 per cent).

Slide 23

Conclusion
Labour market conditions in the Canterbury-Bankstown and South West Sydney Priority Region
are slowing, as evidenced by the increase in the unemployment rate in the last 12 months. The
results of the Survey of Employers’ Recruitment Experiences suggest that recruitment activity
may decline in the next 12 months (43% of employers expect to recruit in next 12 months,
compared to 55% of employers who recruited in the 12 months preceding the survey).
Our survey results have shown that employers are looking for job-specific skills, as well as a
positive attitude and basic work readiness skills. Further education and training and work
experience are some methods for improving these skills – especially for young people.
Opportunities for job seekers exist in the Retail Trade industry and in the Sales Workers and
Technicians and Trades Workers occupation groups.
Even in the slowing labour market, there are job opportunities available, for example over 4000
vacancies for Labourers and 10,000 vacancies for Clerical and Administrative Workers as shown
in the IVI figures.
Job seekers need the skills to take advantage of these opportunities. One way jobseekers can
acquire those skills is through work experience and training in basic work readiness skills.

Slide 24

Further Information
More information on labour market conditions and other research on small areas can be found
on these web sites.
A report on the survey findings will be placed on the regional reports section of the Workplace
web site.
Thank you.

Slide 25

Department of Education, Employment and Workplace Relations logo.