Labour Market Conditions in Gladstone

Labour market conditions in Gladstone have deterioratedin the past year as the construction phase of some major projects in the region approached completion and many construction workers ceased employment.

The unemployment rate for the Fitzroy region[1] increased by 4.6 percentage points to 8.4percent in the year to August 2015[2] and is now significantly higher than the rate for Australia (6.2 per cent).[3]
Despite strong employment growth in the region over the five years to August 2014 (19,200employed people or 19percent), employment fell by 6,900(or 6 per cent) in the year to August 20152,with the Construction industry heavily affected (down by 2,300).[4]

What are employers telling us?[5]

The survey results highlightthe significant fall in recruitment activity in Gladstone since the region was surveyed in 2011. In addition, past skill shortageconcerns have eased significantly and competition for vacancies is now veryhigh.

The annual recruitment rate (17vacanciesper100 staff) was well below the result from the previous survey in 2011 (25vacanciesper100 staff).
Some 42 per cent of employers reported that they had decreased staff numbers in the 12months preceding the survey (17 per cent in 2011).
The proportion of employers who reported recruitment difficulty in their most recent recruitment round (34per cent) had almost halved since 2011 (62 per cent). The decrease was even greater for employers recruiting for Technicians and Trades Workers or Machinery Operators and Drivers (see Chart 1).
The unfilled vacancy rate in 2015 (5.2 per cent) was less than one thirdof the rate in 2011 (16.3percent).
On average there were 15applicants per vacancy compared with only 4 applicants per vacancy in 2011.

Future recruitment expectations in Gladstone were very subdued.

The proportion of employers expecting to recruit (29 per cent), and increase staff numbers (4per cent),in the next year was significantly lower than at the time of the 2011 survey (65per cent and 42percent respectively).
The proportion of employers who were concerned about skill shortages and recruitment/retention difficulty decreased from 57percent in 2011 to 9 per cent in 2015.

Where are the opportunities for job seekers?

Despite the highly competitive labour market in Gladstone, employment opportunities still exist, particularly in high growth industries such as Health Care and Social Assistance and Tourism, although it may be necessary for some job seekers to consider further training to take advantage of those opportunities. Others, particularly those previously employed in the Construction industry,who wish to remain in the industry, may need to relocate to other regions where construction activity is stronger.

This report was produced by the Labour Market Research and Analysis Branch. Further results on the Survey of Employers’ Recruitment Experiences can be found at www.employment.gov.au/regionalreports or by contacting .

[1]Fitzroy region (SA4) includes Gladstone, Rockhampton, Emerald, Biloela, and surrounding areas

[2] ABS, Labour Force Survey, Fitzroy SA4 (3 month averages of original data), August 2015

[3] ABS, Labour Force Survey (Seasonally adjusted), September 2015

[4]ABS, Labour Force Survey (4 quarter averages), August 2015

[5] Department of Employment, Survey of Employers’ Recruitment Experiences in Gladstone-Biloela SA3, December 2011 and July 2015