Slide 1

Survey of Employers’ Recruitment Experiences – November 2011

Townsville – Thuringowa Priority Employment Area (PEA)

Slide 2

Map of Townsville – Thuringowa PEA

This map shows the Townsville – Thuringowa PEA (with 2006 ASGC LGA boundaries).

The Townsville-Thuringowa PEA in Queensland comprises the following seven Local Government Areas (LGAs):

•Burdekin

•Charters Towers

•Dalrymple

•Hinchinbrook

•Palm Island

•Thuringowa

•Townsville

Please note that these boundaries are based on the 2006 ASGC. Since this time there has been a major consolidation of LGAs in Queensland. This has affected some LGAs in the Townsville-Thuringowa PEA:

•Dalrymple now falls within the Charters Towers LGA

•Thuringowa now falls within the Townsville LGA

The Townsville-Thuringowa PEA falls wholly within, and comprises the majority of, the ABS Labour Force Region (LFR) of Northern – North West (The PEA comprises 88 per cent of the 2010 Adult population in the LFR).

Slide 3

Townsville – Thuringowa Priority Employment Area

Source: ABS Estimated Resident Population, 2005 and 2010, ABS Census of Population and Housing, 2006

The Townsville – Thuringowa PEA adult population (15 years+) at June 2010 was 183,200. This represented an increase of 14 per cent from June 2005. Population growth between 2005 and 2010 for Queensland and Australia was 14 per cent and 11 per cent respectively.

In June 2010 the LGA of Townsville accounted for 49 per cent (or 90,600 persons) of the adult population within the Townsville - Thuringowa PEA.

At the time of the 2006 Census, the Working Age Population (15-64 years) participation rate for the PEA was 77 per cent, similar to that of Queensland (76 per cent) and Australia (75 per cent). The LGA of Palm Island had the lowest participation rate (50 per cent).

The Median age in the Townsville – Thuringowa PEA was 34 years. This was slightly lower than the median age across Queensland (36 years) and Australia (37 years). Palm Island had a very low median age of 22 years.

Slide 4

Unemployment Rate

Source:ABS Labour Force, January 2012 (3 month averages)

Between January 2011 and January 2012 the unemployment rate for the Northern – North West LFR more than doubled, increasing from 3.4 per cent to 7.2 per cent.

Slide 5

Teenage Full-time Unemployment

Source:ABS Labour Force, January 2012 (12 month averages); ABS Census of Population and Housing, 2006

Due to their lack of skills and experience, teenagers in the full-time labour market can be particularly vulnerable during a labour market downturn.

In January 2012, the teenage full-time unemployment rate for the Northern-North West LFR was 31 per cent. This was an increase of 11 percentage points over the 12 months to January 2012. This figure was above the rates for Queensland and Australia (26 and 23 per cent respectively).

At the time of the 2006 Census, 7 per cent of 15 to 19 year olds in the Townsville – Thuringowa PEA were neither studying nor working, in line with the national average.

Slide 6

Proportion of 20-24 year olds neither working nor studying

Source: ABS Census of Population and Housing, 2006

At the time of the 2006 census, 13 per cent of 20-24 year olds in the Townsville – Thuringowa PEA were neither employed nor studying, in line with the national figure (also 13 per cent). For males, it was just as likely that those neither employed nor studying were unemployed as not in the labour force, while for females who were neither employed nor studying, a far greater proportion were not in the labour force.

There are areas in Townsville – Thuringowa PEA that have a particularly large proportion of non-participation. For instance, 53 per cent of 20 – 24 year olds in Palm Island were neither studying nor working. Other areas with large proportions of 20 – 24 year olds neither studying nor working included Charters Towers (24 per cent) and Burdekin (20 per cent).

Slide 7

Recipients of Centrelink Benefits

Source: DEEWR Administrative Data, December 2011; ABS Estimated Resident Population, 2010

In December 2011, 16 per cent of the WAP in the Townsville – Thuringowa PEA were in receipt of a Centrelink benefit. This was in line with state and national levels (17 per cent and 16 per cent respectively).

However, there was variation in the number of Centrelink recipients across the PEA. For instance, one quarter of the WAP in the Palm Island LGA were in receipt of a Centrelink benefit, while only 13 per cent were in the Townsville LGA.

Also, 5 per cent of the PEA WAP received unemployment benefits, on a par with state and national levels (5 per cent and 4 per cent respectively). Again, Palm Island stood out with the largest proportion of its WAP in receipt of unemployment benefits (11 per cent).

Slide 8

Jobless Families

Source: ABS Census of Population and Housing, 2006

Overall, almost one in five (18 per cent) families with children in the Townsville - Thuringowa PEA did not have an employed parent, in line with the figures for Queensland (19 per cent) and Australia (20 per cent).

However, there was disparity within the region. More than half (55 per cent) of families with children in the Palm Island LGA were jobless. This differed considerably from both the Dalrymple and Thuringowa LGAs, where only 15 per cent of families with children were jobless.

Slide 9

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

Source: ABS Customised Tables, Survey of Education and Training, 2009

This slide shows the effect of having a disability on labour market outcomes.

In 2009, over one in four (28.7 per cent) employed persons aged 15-74 years reported having a disability.

• 10.4 per cent 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 per cent) of the total population aged 15-74 years reported having a disability in 2009.

• 15.5 per cent 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 restricts their employment/schooling.

Slide 10

Aboriginal and Torres Strait Islander Peoples - Working Age Population

Source: ABS Census of Population and Housing, 2006

At the time of the 2006 Census, the Townsville – Thuringowa PEA had a larger proportion of indigenous residents (6 per cent) than both Queensland (3 per cent) and Australia (2 per cent).

As can be seen in the table, unemployment rates for indigenous residents are far higher than for non-indigenous residents. At the time of the 2006 Census, the overall unemployment rate for indigenous residents in the Townsville – Thuringowa PEA was 17.5 per cent. This compared with only 3.9 per cent for non-indigenous residents.

Participation was also much lower for indigenous residents in the Townsville – Thuringowa PEA (53.3 per cent) when compared with non-indigenous residents (78.8 per cent).

Slide 11

Educational Attainment – persons aged 25-34 years

Source: ABS Census of Population and Housing, 2006

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 economic shocks. 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.

At the time of the 2006 Census, the proportion of 25 to 34 year olds in the Townsville – Thuringowa PEA who had completed Year 12 or equivalent was 66 per cent, in line with Queensland (68 per cent) and Australia (69 per cent). This differed across regions, with Palm Island having substantially lower Year 12 attainment levels (21 per cent).

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.

The proportion of 25 to 34 year olds who had attained an Advanced Diploma, Diploma or Certificate in the Townsville – Thuringowa PEA (34 per cent) was on a par with state and national averages (33 per cent and 32 per cent respectively), while the proportion who had attained a Bachelor Degree or higher (20 per cent) was lower than the state and national averages (24 per cent and 29 per cent respectively).

Palm Island and Dalrymple LGAs both had consistently lower educational attainment levels.

Slide 12

Educational Attainment and Labour Market Outcomes for the Townsville - Thuringowa PEA

Source: ABS, Census of Population and Housing, 2006

For those people aged 25 to 34 years in the Townsville – Thuringowa PEA who did not complete Year 12 or any post school qualification, there was a high unemployment rate (8.7 per cent) as well as a lower participation rate (69.8 per cent). The unemployment rate was even higher for people who did not complete year 12 and only had a Certificate I or II qualification (16.9 per cent).

For those who attained a Bachelor Degree, Advanced Diploma or Diploma, Certificate Level III or IV or completed Year 12, the unemployment rates were lower at 1.8 per cent, 3.0 per cent, 2.5 per cent and 4.7 per cent respectively. This emphasises the importance of continuing education in helping job seekers obtain employment.

Slide 13

Indicators of Disadvantage by Statistical Local Area

Source: ABS Census of Population and Housing, 2006; ABS Estimated Resident Population, 2010; DEEWR Administrative Data, December 2011; Myschool website: DEEWR Small Area Labour Markets, September 2011

The Statistical Local Areas of Palm Island, Vincent and Townsville – Pt B had overall higher levels of disadvantage when compared with other areas within the PEA and Australia. Depending on the area, factors included a lower median household weekly income, higher unemployment rates, higher proportions of Centrelink benefit recipients, higher proportions of persons using public housing and higher levels of students not meeting national school literacy and numeracy standards.

Slide 14

Employment by Industry

Source: ABS Labour Force Data, November quarter 2011, four quarter averages of original data

In the Northern – North West LFR, the Health Care and Social Assistance and Retail Trade were the top employing industries (13 per cent and 12 per cent of total employed persons respectively). The Northern – North West LFR also had a large proportion of employed people working in the Agriculture, Forestry and Fishing industry (10 per cent). This was much larger than the proportion for Australia (3 per cent).

The Professional, Scientific and Technical Services industry employed a considerably smaller proportion of people in the Northern – North West LFR (4 per cent) compared with Australia (8 per cent).

Slide 15

Survey Results

Recruitment Experiences 12 Months Preceding the Survey for the Townsville-Thuringowa Priority Employment Area

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011, August 2010 and November 2009.

371 employers were surveyed in the Townsville-Thuringowa PEA in November 2011.

The proportion of employers who had recruited in the past 12 months in the Townsville-Thuringowa PEA (69 per cent) was smaller than the previous two surveys in August 2010 and November 2009 (both 75 per cent), but on a par with the result for all regions surveyed in the 12 months to December 2011 (68 per cent).

However, vacancies per 100 staff in the Townsville-Thuringowa PEA in November 2011 were on a par with the results for August 2010 (25 vacancies per 100 staff) and slightly higher compared with all regions surveyed (20 vacancies per 100 staff).

Employers in the Townsville-Thuringowa PEA had similar success in filling their vacancies when compared to the previous two surveys conducted in the area. The rate of unfilled vacancies over the past 12 months (6.6 per cent vacancies unfilled) was slightly above the results for the region in August 2010 and November 2009 (6.1 and 6.2 per cent vacancies unfilled respectively). However, the rate of unfilled vacancies was lower compared with all regions surveyed in the 12 months to December 2011 (8.0 per cent).

In line with this, the proportion of employers who reported recruitment difficulty was larger in the November 2011 survey (66 per cent) compared with the August 2010 result (55 per cent), and all regions surveyed (59 per cent).

Slide 16

Recruitment Difficulty by Occupation

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011, August 2010 and November 2009.

Since the region was last surveyed in August 2010, employers in the Townsville-Thuringowa PEA have had less success filling their most recent vacancies (13.6 per cent compared with 5.5 per cent). The figure was also higher when compared with the result for all regions surveyed in the 12 months to December 2011 (10.3 per cent).

At the occupation level, employers had the least success filling vacancies for Technicians and Trades Workers (21.7 per cent unfilled). By contrast, only a small proportion of vacancies for Machinery Operators and Drivers went unfilled (2.4 per cent).

Slide 17

Competition for vacancies

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011, August 2010 and November 2009

Employers surveyed in the Townsville-Thuringowa PEA in November 2011 had on average 6.7 applicants per vacancy, of whom an average of 2.0 were considered suitable. This compared with an average of 5.4 applicants per vacancy for August 2010, of whom an average of 1.9 were considered suitable. Compared with all regions surveyed competition for vacancies was also higher in November 2011 (an average of 6.1 applicants per vacancy, of whom an average of 2.0 were considered suitable for all regions surveyed in the 12 months to December 2011).

Slide 18

Reasons Applicants Unsuitable

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011

70 per cent of applicants were regarded by employers as unsuitable

Reasons applicants were considered unsuitable include:

•Insufficient experience to perform job duties (57 per cent)

•Insufficient qualifications or training (36 per cent)

•Personality does not fit with the organisation (17 per cent)

•Applicants seemed uninterested in the job (14 per cent).

Slide 19

Basic Employability Skills

Source: DEEWR, Survey of Employers’ Recruitment Experiences, all regions surveyed.

Employers surveyed placed most importance placed on:

•personal traits and qualities only (30 per cent)

•technical skills only (28 per cent)

•both equally important (41 per cent).

Personal traits and qualities applicants lacked:

•Communication

•Motivation

•Enthusiasm

•Confidence

•Reliability.

Slide 20

Apprentices, Trainees and Staff Training

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011

•36% of employers had at least one apprentice or trainee (34% in all regions)

–29% of these employers reported challenges

–Common challenges included:

  • Apprentices and trainees lacked work readiness (48%)
  • Employers had difficulty retaining apprentices and trainees (30%)
  • Apprentices and trainees lacked soft skills (25%)

•Over one quarter of all employers (28%) expected to recruit at least one apprentice or trainee in the 12 months following the survey.

Slide 21

Staff Training

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011

Some 50 per cent of employers had employees undertake recognised training (43 per cent in all regions). Training was most commonly supplied by a commercial training provider (42 per cent) or TAFE (22 per cent).

One in five (19 per cent) employers had encountered a barrier to providing training. The most common barriers included cost (42 per cent), location (29 per cent) and timing of the training (22 per cent).

Slide 22

Occupations Difficult to Fill

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011 and August 2010

This slide shows the vacancies that employers considered difficult to fill in the Townsville-Thuringowa PEA (* Occupations also difficult to fill in the August 2010 Survey)

Bachelor Degree or Higher VET qualifications

•Motor Mechanics

•Electricians

•Metal Fitters and Machinists

•Real Estates Agents

•Chefs

•Registered Nurses

•Secretaries

•Structural Steel and Welding Trades Workers

Other VET qualifications and lower skilled occupations

•Child Carers

•Truck Drivers

•Receptionists

•Sales Assistants (General)

•General Clerks

•Storepersons

•Waiters

•Housekeepers

Slide 23

Future Recruitment Expectations

Source: DEEWR, Townsville-Thuringowa Priority Employment Area Survey of Employers’ Recruitment Experiences, November 2011, August 2010 and November 2009

The proportion of employers who expected to recruit staff in the 12 months following the survey (62 per cent) was larger than in August 2010 and all regions surveyed in the 12 months to December 2011 (53 and 51 per cent respectively). A slightly larger proportion of employers expected to increase overall staff numbers (31 per cent) compared with the August 2010 and all regions results (27 and 29 per cent respectively).