Slide 1 - Albury-Wodonga presentation

Notes

15 April 2015

Presenter: Ivan Neville

Branch Manager

Labour Market Research and Analysis Branch

Slide 2- Albury-Wodonga region

Notes

The Albury-Wodonga region comprises five LGAs:

Albury

Corowa Shire

Indigo

Wangaratta

Wodonga

The Albury-Wodonga region makes up 49 per cent of the Hume SA4 (Victoria) and 53 percent of the Murray SA4 (NSW).

Slide 3 - Snapshot of the region

Indicator Albury-Wodonga

Victoria

Unemployment rate 7.7% 6.0%*

Participation rate (working age population) 77.2% 75.6%

Proportion of 25-34 year olds completed Year 12 62% 79%

Income support recipients (15-64 years old) 20% 17%

Proportion of disengaged youth (20-24 years old) 14% 11%

Notes

Source: Department of Employment, Small Area Labour Markets, December Quarter 2013 ABS, Census of Population and Housing, 2011; ABS Labour Force Survey, Victoria, February 15; Department of Employment, Administrative data, December 2014; ABS Estimated Resident Population, 2013

The indicators reported in the above table reveal that there are some areas of labour market disadvantage in the Albury-Wodonga region. These include a higher unemployment rate compared with Victoria, a lower proportion of 25-34 year olds who have completed Year 12, a larger proportion of the working age population on income support, and a larger proportion of youth who are neither working nor studying.

Slide 4 - Population Profile

Region Adult Population(15+)

Adult Population Growth

(2008-2013)Median Age

Albury LGA 40,800 5% 37

Wodonga LGA 29,400 10% 35

Corowa Shire LGA 9,400 3% 47

Indigo LGA 12,500 3% 44

Wangaratta LGA 22,200 2% 43

Albury-Wodonga region 114,300 5% 39

Victoria 4,688,100 10% 37

Australia 18,763,200 9% 37

Notes

Sources: ABS Estimated Resident Population 2013; ABS, Census of Population and Housing, Usual Residence, 2011

In the five years to 2013 the Albury-Wodonga region experienced slower growth in the adult population (15 years and over) than Victorian and Australia (10 per cent and 9 per cent respectively). Within the region, growth has been strongest in the major centres, Wodonga and, to a lesser extent, Albury.

The median age in the Albury-Wodonga region is only slightly higher than the state average, although Corowa Shire LGA and Indigo LGA have significantly higher median ages.

Slide 5 - Ageing population – Albury-Wodonga region

Notes

Sources: ABS, Estimated Residential Population 2003, 2008 & 2013

This graph shows the age distribution in the Albury-Wodonga region by year. There is a decreasing amount of 30-49 year olds and an ageing population with a larger proportion of 55 year olds and above in the region. Similar demographic patterns exist for other regional areas and are due in part to young adults moving to major urban centres.

Slide 6 - Losing your brightest and best?... – 25-34 years

Notes

Source: ABS, Census of Population and Housing, 2011

74 per cent of 25-34 year olds in Albury-Wodonga stayed behind whereas a quarter (26 per cent) moved away from the region.

For those aged 25-34 who stayed behind, 29 per cent were employed in a higher skilled job and only 17 per cent had completed a bachelor degree or higher.

Of those 25-34 year olds who moved away, 42 per cent were employed in a higher skilled job and more than 1 in 3 (36 per cent) had completed a bachelor degree or higher.

Slide 7 - Limited full-time employment growth – 5 year change, 2010-2015 (working age population)

Notes

Source: ABS, Labour Force data, February 2015 (3 month averages)

In the five years to 2015 full-time employment for males did not record any growth (5 per cent growth in Victoria) and there was a 2 per cent drop in full-time employment for females (4 per cent growth in Victoria). Part-time employment however rose by 11 per cent for males (7 per cent in Victoria) and 20 per cent for females (13 per cent in Victoria).

Slide 8 - Unemployment on the rise

Notes

Source: Department of Employment, Small Area Labour Markets, December Quarter 2014, ABS Labour Force Survey February 2015, Seasonally adjusted

In December 2014 the unemployment rate for the Albury-Wodonga region (7.7 per cent) was higher than the state (6.5 per cent) unemployment rate.

Slide 9 - …But is unemployment rate in Albury LGA really 12.0%?

Region December 2013

December2014

Participation Rate(Working Age

Population, 2011)

Albury LGA 6.3% 12.0% 77.3%

Wodonga LGA 6.5% 6.1% 77.1%

Wangaratta LGA 5.6% 5.3% 77.9%

Albury-Wodonga region 5.8% 7.7% 77.2%

Victoria 6.4%*(Feb 2014)

6.0%*(Feb 2015)

75.6%

Notes

Source: Department of Employment, Small Area Labour Markets, December Quarter 2013, ABS Labour Force Survey February 2015, ABS Census of Population and Housing 2011

In December 2014 the unemployment rate for Albury-Wodonga was 7.7 per cent, higher than Victoria (6.0 per cent).* The Albury LGA’s unemployment rate was particularly high at 12.0 per cent whereas Wangaratta was much lower at 5.6 per cent.

*Seasonally adjusted data, February 2015

Slide 10 - There has been an increase in those receiving unemployment benefits

% Working age population (15-64) receiving

Income support benefits Unemployment benefits Disability support

December 2014

% change (Dec 2013- Dec 2014)

December 2014

% change (Dec 2013-Dec 2014)

December 2014

Albury LGA 22% 4% 8% 10% 7%

Wodonga LGA 21% 2% 7% 3% 6%

Albury-Wodonga region

20% 3% 7% 7% 6%

Victoria 16% 2% 5% 4% 5%

Notes

Source: Department of Employment, Administrative Data, December quarter 2014; ABS, Population Estimates by Age and Sex, Regions of Australia, 2013

The Albury-Wodonga LGA had a significantly larger proportion of the working age population who were in receipt of an income support payment (20 per cent) than Victoria (16 per cent). The Albury LGA was particularly high at 22 per cent.

Slide 11 - Around one quarter of all unemployed people are long-term unemployed

Region Long-term unemployed (12 months or more)

Average duration of unemployment

Persons Per cent of all unemployed

Hume SA4 1,150 23% 35 weeks

Murray SA4 1,470 26% 48 weeks

Victoria 40,110 20% 37 weeks

Notes

Source: ABS, Labour Force Data, February 2015, 12 month averages of original data

Long-term unemployed are those who have been unemployed and looking for work for at least 52 weeks.

The proportion of unemployed people who were long-term unemployed in the Murray SA4 (26 per cent) was higher compared with the Hume SA4 (23 per cent) and Victoria’s (20 per cent) averages.

The average duration of unemployment in the Murray SA4 (48 weeks) was higher than Victoria (37 weeks).

Slide 12 - Youth unemployment higher than Australia… - (15-24 year olds)

Notes

Source: ABS, Labour Force Survey, February 2015, (12 month averages of original data) & Seasonally adjusted for Australia.

The youth (15-24 year olds) unemployment rate in the Hume and Murray region was at 17.2 per cent (3,300 persons) in February 2015 compared to Australia which was at 13.9 per cent.

Slide 13 - High levels of disengagement amongst young adults – (20-24 year olds)

Notes

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

At the time of the 2011 Census, 14 per cent of young adults (persons aged 20 to 24 years) in the Albury-Wodonga region were neither working nor studying. This figure was higher when compared with Victoria (11 per cent).

For young adult males in the Albury-Wodonga region, 5 per cent were not in the labour force and not studying and a further 6 per cent were unemployed and not studying.

For young adult females in the region, 12 per cent were not in the labour force and not studying and a further 4 per cent were unemployed and not studying.

Slide 14 - In what industries do local residents work? – Hume and Murray region

Notes

Source: ABS Labour Force data, February Quarter 2015 (4 quarter averages)

In the Hume and Murray region the largest employing industries were Health Care and Social Assistance and Retail Trade (13 per cent and 12 per cent respectively).

Slide 15 - Shift away from Manufacturing and Agriculture… - Hume and Murray region

Notes

Source: ABS, Labour Force Survey, February Quarter 2015 (4 quarter averages)

Over the last 10 years, a structural change in the economy of the Hume and Murray combined region has seen a shift in employment away from some major industries and growth in others. The Manufacturing and Agriculture, Forestry and Fishing industries now account for a smaller proportion of total employment than they did in 2005.

Slide 16 - …Which is expected to continue – Projected growth for Hume and Murray – five years to November 2018

Notes

Source: Department of Employment Industry Projections to November 2018

The Department of Employment has projected that jobs will grow in the Hume and Murray region by 7,500 in the five years to November 2018. The largest growth is projected to occur in the Health Care and Social Assistance industry. Education and Training had the second largest projected jobs growth followed by Accommodation and Food Services. The Manufacturing industry will experience the greatest decline in employment (down 1310 jobs) in the five years to November 2018.

Slide 17 - Lower educational attainment – persons aged 25-34 years

Region Completed Yr 12

Attained Advanced Diploma, Diploma or

Certificate III & IV Level

Attained Bachelor Degree or Higher

Albury LGA 65% 37% 26%

Wodonga LGA 60% 41% 19%

Corowa Shire LGA 53% 44% 15%

Indigo LGA 61% 39% 24%

Wangaratta LGA 63% 40% 22%

Albury-Wodonga region 62% 39% 23%

Victoria 79% 29% 40%

Australia 75% 30% 35%

Notes

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

Job seekers who have not completed Year 12 and have limited experience in the workforce are likely to lack many basic employability skills that employers value and look for in applicants, particularly for lower skilled vacancies and entry level positions such as apprenticeships and traineeships.

At the time of the 2011 Census, the proportion of 25 to 34 year olds in the Albury-Wodonga region who had completed Year 12 or equivalent was 62 per cent, smaller than for Victoria (79 per cent) and Australia (75 per cent).

At the time of the 2011 Census, the proportion of 25 to 34 year olds who had attained an Advanced Diploma, Diploma or Certificate level III or IV in the Albury-Wodonga region (39 per cent) was larger than state and national averages (29 per cent and 30 per cent respectively), while the proportion who had attained a Bachelor Degree or higher (23 per cent) was far lower than the state and national averages (40 per cent and 35 per cent respectively).

Slide 18 - What are employers telling us?

Notes

Slide 19 - Increasing demand for labour – Albury-Wodonga region

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, November 2014, October 2013, September 2012, August 2011, Hume Region

The graph compares indicators of recruitment activity from the November 2014 survey (proportion of employers who had recruited in the past twelve months) with those of three previous surveys going back to August 2011.

The results indicate a recent increase in recruitment activity in the Albury-Wodonga region. However, only a small number of vacancies were left unfilled (1.8 per cent).

Slide 20 - Recruitment across industries is mixed

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, November 2014, Hume Region

Recruitment activity across industries was mixed with an equal proportion of employers increasing and decreasing staff (both 18 per cent).

Slide 21 - Why didn’t applicants get an interview? – Vacancies advertised on the Internet or in a newspaper

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, November 2014, Hume Region

Majority of applicants (78 per cent) who applied for vacancies that were advertised on the Internet or in a newspaper did not get an interview. Main reasons were:

Lack of relevant experience (61 per cent)

Lack of soft skills (35 per cent)

Insufficient qualifications or training (26 per cent)

Poorly written/presented application (13 per cent)

Slide 22 - What can job seekers do?

Notes

Slide 23 - The right training is vital – Unemployment rate by level of educational attainment for persons aged 25-34 years

Notes

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

There is a strong relationship between educational attainment and employment outcomes. For those aged 25 to 34 years in the Albury-Wodonga region, there were high unemployment rates for those who had completed Certificate I & II, but had not completed Year 12 (13.2%) and those who did not complete Year 12 without any further post school qualification (13.3%).

Unemployment rates were considerably lower for those who have completed a tertiary education at the Bachelor degree, Advanced Diploma and Diploma Level. It should also be noted that employment outcomes are better for those who have attained Certificate Levels III or IV. This emphasises the importance of post school education in ensuring success in gaining employment.

Slide 24 - Build employability skills – Skills employers in Albury-Wodonga viewed as essential

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, November 2014, Hume Region

There were a range of general employability skills and personality traits that employers in the Albury-Wodonga area commonly viewed as essential for the position they recently recruited for.

Employability Skills commonly considered essential included:

Interpersonal/Social Skills

Customer Service Skills

Communication

Teamwork

Personality Traits commonly considered essential included:

Enthusiasm and Motivation

Presentation & Confidence

Reliability

Honesty, Loyalty and Work Ethic

Slide 25 - Consider informal methods of recruitment

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Hume Region, November 2014

Just over half of recruiting employers (55 per cent) used formal methods to advertise for vacancies (i.e. internet, newspaper).

An also large (45 per cent) proportion of employers used informal methods only to recruit (i.e. word of mouth, approached by job seeker).

Although more employers are advertising through formal methods (17 applicants, 4 interviewed), competition for vacancies is much lower when job seekers apply through informal methods (3 applicants, 2 interviewed).

Slide 26 - Improving the employment prospects of young Australians – employers’ perspective

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, various regions, October 2013 to April 2014

This graph is based on employer responses from the Gladstone, Bundaberg-Hervey Bay, Central Victoria, Port Augusta - Whyalla - Port Pirie, Sydney West and Blue Mountains, Illawarra, Caboolture-Sunshine Coast and Tasmania regions between October 2013 and April 2014.

Over half of employers (57 per cent) believed that improving employability and labour market engagement would improve youth labour market outcomes, most particularly:

Attitude/motivation

Communication/teamwork

Reliability

Presentation

A substantial proportion of employers (30 per cent) believed that work experience and further education or training would improve youth labour market outcomes, in particular:

Work experience

Education

Traineeships/Apprenticeships

While a total of 3142 employers were surveyed, the percentages reported in this graph are based on the 69 per cent who provided a response. Some responses were coded to multiple categories.

Slide 27 - Benefits of work experience – as suggested by employers

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, various regions, October 2013 to April 2014

Employers provided reasons as to why they believed work experience is an effective way to improve employment prospects.

Around 13 per cent of employers said that some form of work experience or volunteer work, particularly while still at school, was an effective way for young people to improve their employment prospects. The benefits of work experience mentioned by employers were: provides practical skills, provides insight into specific occupations, demonstrated commitment to employers and educates on workplace expectations.

This finding aligns with results from the ABS survey which found that the second most common difficulty in finding work for unemployed persons aged 15-24 was ‘insufficient work experience’. (Australian Bureau of Statistics Job Search Experience survey, July 2013).

In addition, around one in ten employers said that training and further education was the most effective way to improve the employment prospects of young people due to the acquisition of

work specific skills and qualifications. Higher education, TAFE courses, and apprenticeships and traineeships were most commonly mentioned.

Slide 28 - The Outlook

Notes

Slide 29 - Recruitment outlook optimistic - % of employers who said they would recruit in the next 12 months

Notes

Source: Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Hume Region, November 2014

Just over half (52 per cent) of employers expected to recruit in the 12 months following the survey.

Almost one quarter (24 per cent) of employers expected to increase staff numbers in the next 12 months.

Slide 30 - Occupations likely to present opportunities – Albury-Wodonga region

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Hume Region, November 2014

Occupations which employers most commonly expected to recruit for included Sales Assistants (General), Kitchenhands, Checkout Operators and Office Cashiers, Waiters, Bar Attendants and Baristas, Shelf Fillers, Truck Drivers, Registered Nurses, Motor Mechanics, Nursing Support and Personal Care Workers, Structural Steel and Welding Workers.

Truck Drivers, Motor Mechanics and Structural Steel and Welding Workers were also difficult to feel in the past 12 months.

Slide 31 - Conclusion

Notes

Labour market conditions are mixed

Unemployment rate higher than Victoria

High youth unemployment

Increase in part-time employment

Challenges

Mixed recruitment activity across employers in the region

Youth unemployment/disengagement and low education levels

Decline of large employing industries (Agriculture and Manufacturing)

Increasing competition for vacancies

Opportunities

Recruitment outlook optimistic

Strong growth in Health and Social Assistance industry

Employers using informal methods (e.g. word of mouth) to recruit

Job seekers need to have…

Employability skills

Experience

Education and Training

Slide 32 - Further Information

Notes

More information on labour market conditions and other research on small areas can be found on these websites:

www.employment.gov.au/regionalreports

www.lmip.gov.au

www.emplyoment.gov.au/SkillShortages

www.employment.gov.au/australianjobs

www.joboutlook.gov.au

Career quiz (http://joboutlook.gov.au/careerquiz.aspx)

Slide 33

If you have any questions about the presentation please contact the Recruitment Analysis and Employer Surveys sections on 1800 059 439 or email recruitmentsurveys@employment.gov.au

Slide 34