Northern Mallee Local Learning and Employment Network (NMLLEN)

Submission to the Victorian Inquiry into the Labour Hire Industry and Insecure Work

Background

Northern Mallee Local Learning and Employment Network (NMLLEN) is a not-for-profit community based incorporated association whose missions is:

Brokering strategic partnerships with stakeholder groups resulting in better outcomes in education, training and employment for young people aged 10-19 years.

NMLLEN’s area of influence covers the Mildura Rural City Council LGA and the Robinvale District in the Swan Hill Rural City Council LGA.

NMLLEN came into existence in 2001.

Focus of Submission

Terms of Reference:

(a)viii

(b)v

Comments and Observations

NMLLEN recognises that Labour Hire firms play a legitimate and important role in our community in connecting the supply of labour with the demand for labour. However, along with other labour market solutions, some practices may not be in the best interests of employers, workers and the community as a whole.

NMLLEN’s focus is on young people i.e aged 15-24

NMLLEN notes:

  • 2011 Census indicates there were 325 young people aged 15-19 not in education, training or employment in the Mildura Rural City Council LGA and a further 624 young people aged 20-24 not in education, training or employment. This represents 8.8% and 21.7% of the age group respectively.
  • Recent figures indicate a youth unemployment rate of 14.4% in this region.
  • On Track data on the destinations of 2014 Year 12 completers in this district shows:
  • That 6.9% are still looking for work, 6 months after completing Year 12 or its equivalent. This reflects an upwards trend over the last 5 years from 2.5% in 2010.
  • That 8.4% of Y12 completers go into apprenticeships which is consistent with the past few years of 10.6%, 9.1% and 7.1%. This is typically twice the State average.
  • That 17. 5% of Y12 completers have deferred their university studies in 2015, compared with the State average of 9.12%
  • That the percentage of Y12 completers whose destination is full time employment (4.05%) or part time employment (8.41%) has decreased each year for the last four years.

NMLLEN wishes to draw the Inquiry’s attention to the following concerns:

  • The impact of labour market mechanisms on the opportunities for young people to obtain employment in their local community. The local labour market is very competitive with labour hire firms and the stream of backpackers providing a supply of labour into the local market. This may be creating a “crowding out effect” for youth in the local labour market.
  • Local young people may be seeking employment for range of reasons. Employment after completing secondary school; undertaking an apprenticeship; gaining experience in the work force before going to University; employment to save funds so as to be able to go to University; having graduated from university and being unable to secure graduate employment, accessing a job until a graduate employment opportunity is achieved. All these are legitimate reasons for young people accessing employment. The extent to which transient workers compete in the local labour market may have an impact on local youth securing employment.
  • Overall, the various sources of the supply of labour and the access they have to the local labour market, will have not only economic, but also social and community impacts as well.

Ron Broadhead

Executive Officer

NMLLEN