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					Slide 1
Labour Market Conditions and Employers’ Recruitment Experiences. Sydney.
Presenter: Ivan Neville, Branch Manager, Labour Market Research and Analysis Branch.

Slide 2: The Sydney Region
This is a map of the region for which this presentation covers. The entire region of ‘Sydney’ is based
on the boundaries for the Sydney Major Statistical Region.

We have broken down Sydney into some broad regions for analysis. These regions include the
following groups of LFRs (based on 2010 but when using 2006 data please note that some name
changes exist):

Region 1) The South-Western Sydney Region
         Fairfield-Liverpool LFR
         Outer South Western Sydney LFR
         Canterbury-Bankstown LFR

Region 2) The North-Western & Central-Western Sydney Region
         Central Western Sydney LFR
         Blacktown LFR
         Outer Western Sydney LFR

Region 3) The Sydney Remainder Region
         Eastern Suburbs LFR
         ST George-Sutherland LFR
         Lower Northern Sydney LFR
         Central Northern Sydney LFR
         Northern Beaches LFR
         Inner Sydney LFR
         Inner Western Sydney LFR

Region 4) The Gosford-Wyong Region
         Gosford-Wyong LFR
Slide 3: Sydney Labour Market Profile
   Almost one quarter (24%) of the population of Gosford/Wyong is aged 65 years or older.

In South Western Sydney and Gosford-Wyong:
   The unemployment rate is well above the national rate.
   The working age participation rate is significantly below the National rate.

Slide 4: Unemployment Rate: Sydney and Australia
In the past few years the Sydney unemployment rate has tracked reasonably closely to the National

Slide 5: Regional Diversity: Unemployment Rates
In Sydney, the unemployment rate is above 7 per cent in Gosford-Wyong, Fairfield-Liverpool, and
Canterbury Bankstown.

Slide 6: Total unemployment and long-term unemployment
Long term unemployment in Sydney has increased by more than 25 per cent in the three years to
August 2011
Average weeks unemployed (August 2011) – 12 month averages
       Sydney MSR- 34 weeks (a 12% increase from August 2010)
       Australia – 37 weeks (an 8% increase from August 2010)

Slide 7: Teenage Full-Time Unemployment
A key indicator of teenage disadvantage is the proportion of teenagers who are neither working nor

The proportion of teenagers who were neither working nor studying varied among the designated
Sydney regions:
       South Western Sydney: 8% of teenagers in Sydney were neither working nor studying,
        compared with 7 per cent for Australia and just 6 per cent for the entire Sydney MSR region
       North Western & Central Western Sydney: 9% of teenagers in Sydney were neither working
        nor studying
          Sydney Remainder: 3% of teenagers in Sydney were neither working nor studying
          Gosford Wyong: 9% of teenagers in Sydney were neither working nor studying
(2006 census).

Slide 8: Recipients of Centrelink Benefits
An above average proportion of the Working Age Population (WAP) living in South Western Sydney;
North Western and Central Western Sydney and Gosford-Wyong are in receipt of a Centrelink
          In the Sydney Remainder region, however, only 9 per cent of the WAP are in receipt of a
           Centrelink benefit which is well below the National rate.

Slide 9 Labour Market Outcomes for Persons (aged 15-74) with a Disability, 2009
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
          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.

Slide 10: Working Age Indigenous Population
Across Australia the Indigenous population have worse labour market outcomes than the non-
indigenous population.
          1.0% of the SYDNEY MSR (Greater Sydney) WAP population identifies themselves as
(Data released 29/06/2011)
Slide 11: Regions with High Levels of Disadvantage
Bankstown; Parramatta South; and Fairfield have levels of disadvantage that are well above average

Slide 12: People born in Other than Main English Speaking Countries
         There is a high incidence of people from OTMESC in Sydney
              o    A high proportion (30.5 per cent) of the Sydney MSR (Gr. Sydney) WAP population is
                   from an Other Than Main English Speaking Country (OTMESC), compared with just
                   16.9 per cent of the Australian WAP overall.
         Labour market outcomes are worse for people from OTMESC
         This is despite, a high proportion of people from OTMESC having a Bachelor Degree or
         More than one in ten working age people born in an OTMESC with a Bachelors Degree or
          higher work in lower skilled jobs.
         A further 6 per cent of people with a Bachelor Degree or higher from OTMESC are

Slide 13: Sydney Humanitarian Arrivals in past 5 years
More than one in four (27%) humanitarian arrivals to Australia over the past 5 years settled in
Sydney amounting to more than 18,000 humanitarian arrivals.

Of the 18,084 humanitarian migrants who settled in the Sydney MSR, almost half (49 per cent :
8916) settled in South Western Sydney, 39 per cent (7,066) settled in North Western & Central
Western Sydney, 11 per cent (2079) settled in the Balance of Sydney MSR and just 23 (0.1%) settled
in Gosford-Wyong – too small to be seen in the above pie chart (left hand side).

Of the 18,084 humanitarian arrivals to the Sydney MSR:
         39% were from Iraq.
         8% from Iran
         7.3% from China Peoples Republic
         7.1% from Afghanistan
         6.0% from Sri Lanka
         3.9% from Sierra Leone
         3.7% from Sudan
       3.5% from Burma
(Figures based upon arrival dates in the 5 years between 1st Aug 2006 and 1st Aug 2011).

Slide 14: Relationship between English Proficiency and Unemployment
   This chart looks at labour market outcomes by English language ability for persons in the Sydney
    MSR who speak a language other than English at home (of working age 15 – 64 years).

Slide 15: Educational Attainment 25-34 years of age
Educational attainment among 25-34 year olds in Sydney is well above levels for Australia.
   However, results vary significantly between regions.

Slide 16: Education Attainment and Labour Market Outcomes (Persons aged 25-34 years)
   Those with higher levels of education perform better in the labour market. They have higher
    labour force participation rates and lower unemployment rates. This reflects the pattern seen
    across Australia and emphasises the importance of continuing education to help job seekers
    obtain employment and participate in the labour market.

Slide 17: Employment by Industry
   In May 2011, the Health Care and Social Assistance industry was the largest employing industry
    in Sydney MSR, followed by Retail trade.

Slide 18: Employment Growth by Industry
There has been strong employment growth in the Health Care and Social Assistance Industry over
the past 5 years. Over the same period employment in Manufacturing has declined.

Slide 19: Internet Vacancy Index (IVI) NSW vs. Australia
While recruitment activity (as measured by the DEEWR Internet Vacancy Index or “IVI”) has
increased over the past two years, recorded levels of vacancies remain well below those recorded in
early 2008.

Measures of recruitment activity in our employer survey re-enforce these results finding that
recruitment activity increased between 2010 and 2011.
Slide 20: Employer Survey Results
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 results for all State Capital cities a smaller proportion of employers reported that:
       recruitment was ‘difficult’ in the previous six months.
       staff retention was a “significant problem” for their business.
       recruitment or retention difficulties prevented them from meeting the market demand for
        their goods or services, or from investing in or growing their business.

Slide 21: Staff Growth in past six months by industry
Across all industries 14% of employers reduced staff numbers in the previous 6 months while 24%
increased staff numbers.

There were significant differences by industry, however.

Very few businesses in the Health Care and Social Assistance industry reduced staff numbers in the
previous six months.

Slide 22: Job Opportunities in all Regions
This table shows that there were many job opportunities available in each region within Sydney.
Employers were less likely to say that recruitment was ‘difficult’ in South Western Sydney and
Gosford. This result may, in part, be due to the higher unemployment rates in these two regions
suggesting that employers have a larger pool of job seekers to select from.
       The incidence of self-reported recruitment difficulty in Sydney was lower than was the case
        for all State Capital cities.

The proportion of jobs that became vacant was reasonably strong in all regions highlighting that job
opportunities regularly come up in each area.
       On an annualised basis an average of one in four jobs became vacant in South Western
       In Gosford-Wyong slightly less than one in five jobs became vacant.
       Across Sydney more than one in five jobs becomes vacant each year.

Slide 23: 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 light blue:
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
    Formal method only:                       65% vs 65% for Australia
    Informal method only:                     17% vs 16% for Australia
    Both formal and informal methods:         15% vs 17% for Australia
    Formality unknown:                        3% vs 2% for Australia
(Formality unknown consists of ‘other’ where it is not clear if the method was formal or informal +
recruited internally – which could be either formal or informal).

Slide 24: Unfilled and unsatisfactorily filled vacancies
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 20 per cent of vacancies either remained unfilled (8%) or were filled with a worker
        who did not have the skills or capabilities that the employer was looking for (12%).

Slide 25: Occupation Based Classifications. High Skilled Occupation Categories.
Professionals and Managers
Hospitality, Retail and Service Managers    RED
Registered Nurses                           RED
Civil Engineers                             RED
ICT Professionals                           RED
Solicitors                                  YELLOW
Advertising Professionals                   YELLOW
Business Administration Managers            YELLOW
Accountants:                                GREEN
Technicians and Trades Workers
Automotive Electricians and Mechanics       RED
Electronics Tradespersons                   RED
Welding Tradespersons                       YELLOW
Food Trades Workers                         YELLOW
Hairdressers                                YELLOW
Electricians                                YELLOW
Building and Engineering Technicians        YELLOW

For occupations where we got sufficient information 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; and
       recruitment difficulties were not widespread.

Rating Guidelines
RED:     employers commonly had unfilled vacancies          >12.5% vacancies remain unfilled
YELLOW: employers had difficulty recruiting suitable staff >12.5% vacancies unsatisfactorily filled
GREEN: recruitment difficulties were not widespread         <12.5% vacancies unsatisfactorily filled

Slide 26: Occupation Based Classifications. Other Occupation Categories.
Community and Personal Services Workers
Aged, Disability and Nursing Support Workers        YELLOW
Child Care Workers                                  YELLOW
Welfare Support Workers                             YELLOW
Hospitality Workers                                 GREEN
Clerical and Administrative Workers
Accounting Clerks and Book Keepers                  YELLOW
Receptionists                                       YELLOW
General Clerks                                       YELLOW
Secretaries and Personal Assistants                  GREEN
Sales Workers
Sales Representatives                                RED
Sales Assistants                                     YELLOW
Real Estate Agents                                   YELLOW
Checkout Operators                                   GREEN
Motor Vehicle Sales Persons                          YELLOW
Machinery Operators and Drivers
Delivery Drivers                                     RED
Truck Drivers                                        YELLOW
Plant and Machine Operators                          YELLOW
Store Persons                                        GREEN
Food Preparation Assistants                          YELLOW
Factory Process Workers                              GREEN
Shelf Fillers                                        GREEN

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

Slide 27: Basic Employability Skills
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

Slide 28: Single Greatest Business Concern
Employers were asked about their single greatest concern for the next six months.
       Slightly more than one third of employers (34%) said that low or uncertain demand for their
        goods and services was their greatest concern for the next six months.
       Almost one quarter (24%) said that recruitment difficulty was their greatest concern.
       9% of Sydney based respondents said that they did not have any concerns for the next six

Slide 29: Single Greatest Concern, by Industry. Next six months.
This chart shows the proportion of employers whose single greatest concern for the next six months
was “recruitment difficulties” and “low or uncertain levels of demand ” by industry

Across all industries 24% of employers in Sydney reported that recruitment difficulties was their
single greatest concern for the next six months. This compares to 31% across all State Capital cities.
       34 per cent of employers in Sydney said that low or uncertain demand for their goods or
        services was their greatest concern for the next six months.

Slide 30: Recruitment Conditions in Capital Cities. Survey Results.
Overall, and taking into account a wide range of indicators, recruitment difficulties were considered
to be ‘Moderate’ in Sydney, after easing on levels recorded in March 2010.

Slide 31: Conclusions
Overall, labour market conditions remain relatively strong.
   Regional and Industrial disparity

Some groups are particularly vulnerable
   OTMESC; Teenagers; less educated; Indigenous; persons with a disability; long term

Employers having less difficulty filling vacancies, but there are still many local job opportunities
   Sydney is a large labour market
   Vacancies across the city
   Employers report difficulty filling vacancies for a wide range of occupations.
   Growth industries – Health Care and Social Assistance

Job seekers need to be job ready
   Communication, motivation, enthusiasm, presentation, language and literacy
   Also important: work experience, training, apprenticeships.

Continue to work with employers regarding their needs and expectations.
Future outlook somewhat uncertain

Slide 32: Further Information

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