labour market conditions in the queensland · web viewslide 20 future outlook for the tourism...
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Slide 1 Labour market conditions in the Queensland Tourism sector
www.employment.gov.au
Labour market conditions in the Queensland Tourism sector
Ivan NevilleLabour Market Research and Analysis Branch
Slide 2 Tourism overview
Tourism overview
• Over 580,000 workers employed in the Tourism sector across Australia.
• Nationally, employment grew by 5.5 per cent (or 30,100) over the five years to 2015-16 – All industry comparison: 6.9 per cent– More recent signs that the sector may be strengthening
• Approximately 130,900 directly employed in the Queensland tourism industry.
Sources: 2015-16, ABS, Australian National Accounts: Tourism Satellite Account, 2015-16. Queensland Regional Tourism Satellite Accounts 2013-14, Deloitte Access Economics
Slide 3 Tourism visitor nights on the rise
Tourism visitor nights on the rise
Queensland
Source: Tourism Research Australia: State Tourism Forecasts 2016
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Visit
or n
ight
s (‘0
00)
Projected
Slide 4 Are there currently widespread shortages of tourism workers in Queensland? From Deloitte’s report, Queensland
Are there currently widespread shortages of tourism workers in Queensland…?
From Deloitte’s report, Queensland
Sources: Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.
…but 93% of these vacancies are filled.
(Department of Employment)
2015
8%Vacancy rate
Estimated 10,400 vacancies across Queensland.
Deloitte defines this as a ‘shortage’…
Slide 5 But the sector does face a number of significant labour market challenges
… but the sector does face a number of significant labour market challenges
Employers need to source, develop and retain staff who:
• are available to work in their local region
• have the necessary skills and capabilities
• can meet short term seasonal demands
• are available to work the hours required
• are willing to work for the conditions and pay on offer
Slide 6 Current recruitment conditions
Current recruitment conditions
Slide 7 Internet vacancies have remained relatively flat since 2011. Tourism related occupations.
Internet vacancies have remained relatively flat since 2011…
tourism related occupations
Source: Department of Employment, Internet Vacancies Index, December 2016
0
20
40
60
80
100
120
INDE
X
Queensland
Slide 8 Regional variation. Tourism related occupations.
Source: Department of Employment, Internet Vacancies Index, December 2016
…with regional variationtourism related occupations
0
20
40
60
80
100
120
INDE
X
Sunshine CoastGold CoastBrisbaneFar North QueenslandOutback QueenslandCentral Queensland
Slide 9 Most vacancies are filled, but variation between occupations. Queensland, 2015-16
19.4%
17.0%
14.3%
8.6%
5.4%
0.9%0%
5%
10%
15%
20%
25%
Chefs/cooks Transportdrivers
HospitalityManagers
Kitchenhands HospitalityWorkers
Cleaners /Housekeepers
Prop
ortio
n of
vac
anci
es u
nfille
d
Average - all occupations
5.5%
Most vacancies are filled, but variation between occupationsQueensland, 2015-16
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015-16
Chefs consistently in shortage
7.4%
Average – tourism related industries
On average, unfilled vacancies still attract an average of 10 applicants.
Slide 10 Recruitment has become less difficult
Deloitte report 2011 2015 Change
Recruitment difficulties 52% 44% -8% pts
Department of Employment 2010-11
2015-16 Change
Recruitment difficulties 41% 33% -8% pts
Average applicants per advertised
vacancy
12 13 +1
% vacancies unfilled 12.5% 7.4% -5.1% pts
For about two thirds of unfilled vacancies, employers would not compromise on experience.
Slide 11 Higher proportion of students studying at Certificate III and higher. Queensland
Higher proportion of students studying at Certificate III and higher
Queensland
• Student enrolments in Tourism and Hospitality up by around 26% (or 6,300) in past 10 years.
• In 2015, more than two thirds of students enrolled at the Certificate III and higher.
• Enrolments at this level are up by 70% over 10 years.
Source: NCVER, VOCSTATS – Government funded students and courses, 2015
*Fields of education: 1101 Food and Hospitality; 0807 Tourism
Queensland student enrolments in Tourism and Hospitality* - VET
0
5
10
15
20
25
30
35
40
45
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Stud
ents
('00
0)
Certificate I and II Certificate III and higher
30%
70%48%
52%
Slide 12 Yet many employers are identifying skills deficiencies in their employees. Deloitte report, Queensland
Yet many employers are identifying skills deficiencies in their employees
Deloitte report, Queensland
Sources: Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.
2015
% of businesses identifying skills deficiencies in employees 68%
Skills deficiencies most commonly
identified for:
Cleaners
Guest service
Hotel receptionists
Slide 13 Reasons for skills deficiencies. Deloitte report, Queensland
Reasons for skills deficienciesDeloitte report, Queensland
Sources: Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.
1 2 3 4
High dropout from training
Lack of quality training
Training doesn't meet business needs
Lack of accessible training
Lack of opportunity to gain experience
Lack of relevant experience
Lack of applicants due to location
Skills misalignment
To a moderate degree
Not at all To a minimal degree
To a great degree
Slide 14 Staff retention remains a significant challenge. Queensland
2015 Changesince 2011
All industries QLD
Had retention difficulty
(Deloitte)
34% -7% pts N/A
2015-16 Changesince 2010-11
All industries QLD
Retention was a significant problem
(Department of Employment)
15% -12% pts 11%
Slide 15 And is particularly challenging in regional areas.
…and is particularly challenging in regional areas% of tourism related businesses for which retention was a significant problem for the business
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015-16
29%
25%
21% 21%
17%
10%8% 7%
5%
15%
11%
0%
5%
10%
15%
20%
25%
30%
% o
f em
ploy
ers
Slide 16 Reasons for retention difficulty. Deloitte report, Queensland
Reasons for retention difficultyDeloitte report, Queensland
Sources: Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.
To a moderate degree
1 2 3 4
Visa restrictions
Other external factors
Recruited by businesses in other industries
Unhappy with wages
Recruited by other tourism businesses
Limited career development opportunity
Leave for personal reasons
Employment conditions
Unsuited for role
Commitment to roles
Short term employment only
Not at all To a minimal degree
To a great degree
Slide 17 Recruitment can be expensive
Recruitment can be expensiveIndirect costs
• Interviewing times• Informal training• Productivity loss
until new employee settles in
Direct costs• Advertising• Consultant fees• Selection process• Training• Payout (if they leave
in the first year)
Employee on $35,000 salary just over 50% of salary
$11,850 $5,900
Source: Workplace Info (http://workplaceinfo.com.au)
Slide 18 Seasonality will remain an ongoing challenge. Remote Queensland
Seasonality will remain an ongoing challengeRemote Queensland
Source: Survey of Employers’ Recruitment Experiences, 2015-16 (remote Queensland)
60% of tourism related businesses recruited seasonally in remote Queensland
26%21%
14%
26%
38%
67%71% 71%
67%
40%
26% 26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
% o
f em
ploy
ers i
mpa
cted
by
seas
onal
ity
Peak months for staffing
Across Australia, more than 200,000 working holiday visas
are issued each year
Slide 19 Why do employers hire a backpacker? Selected regional areas, Australia
Why do employers hire a backpacker?
Selected regional areas, Australia
Sources: Survey of Employers’ Recruitment Experiences, 2015
3%
8%
16%
19%
20%
41%
0% 10% 20% 30% 40% 50%
Other
Most qualified for the job
Good attitude or work ethic
Appropriate for short term orseasonal roles
Ease of recruitment
Not enough suitable local applicants
% of employers (that hired a backpacker)
Slide 20 Future outlook for the tourism industry
Future outlook for the tourism industry
Slide 21 Future recruitment expectations. Tourism Related Businesses, Queensland
Future recruitment expectations
Tourism Related Businesses, Queensland
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015-16; Department of Employment projections to 2020; Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.
23% increase
5% decrease
70% remain the same
Expected change to staff numbers in the next 12 months
Deloitte Department of Employment
Projected employment growth to 2020 +85,000 +71,000
Projected tourism growth across Australia:
Slide 22 Future job openings in tourism related occupations.Over the five years to 2020, Australia
19.2
19.0
15.6
11.7
8.4
7.3
5.1
4.5
2.4
2.2
2.1
0.3
55.9
126.8
34.3
97.2
106.1
13.5
33.1
22.8
20.7
14.0
9.9
10.3
0 80 160
Chefs
Waiters
Cafe and Restaurant Managers
Bar Attendants and Baristas
Kitchenhands
Tourism and Travel Advisers
Cafe Workers
Housekeepers
Cooks
Conference and Event Organisers
Transport Services Managers
Bus and Coach Drivers
Projected employment growthAccumulated Turnover
Future job openings in tourism related occupationsover the five years to 2020, Australia
(‘000)
Many current job openings are filled by jobactive placements
Source: Calculated from Department of Employment, 2016 Employment Projections five years to November 2020 and ABS Participation, Job Search and Mobility, Australia, February 2015, Cat. No. 6226.0, custom data request, Department of Employment Gross Replacement Rates
Slide 23 Employers’ greatest concern for the next 12 months. Tourism related businesses, Queensland
Employers’ greatest concern for the next 12 months
Tourism related businesses, Queensland
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015-16
78%
63% 62%58% 56%
48%41%
24%
50%
6%10% 8%
2%
13% 14% 16%24%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mackay Fitzroy Townsville Wide Bayand
SunshineCoast
Cairns DarlingDowns
Gold Coast GreaterBrisbane
Queensland
Demand/ economyRecruitment or retention difficulty/ skill shortages
Slide 24 Conclusions
Conclusions
Recruitment difficulties have been easing and shortages are not widespread• Most vacancies are filled• On average, employers receive 13 applicants per vacancy• Significant challenges in some regions and occupations
Some widespread challenges• Skills development of recently hired workers• Staff retention, costly and hampers skills development
Employment growth in Tourism projected to pick up in coming years• Employers remain more concerned about the demand for their services than
staffing• Staff turnover will generate many more job opportunities in the sector
Significant regional diversity means that local solutions are likely to be most effective.
Slide 25 Some questions to consider
Some questions to consider
• What can be done to reduce staff turnover to help alleviate skill deficiencies?
• Can the industry play a greater role in skills development?
• Are job seekers aware of the career opportunities in the sector?
• Is there an overemphasis on experience for some occupations (eg cleaners)?
• Are there cases where the industry can better utilise local job seekers and become less reliant on overseas workers?
• Is the industry taking full advantage of Government Employment Services?
Slide 26 Further Information
Further Information
– https://www.employment.gov.au/recruitment-conditions
– www.lmip.gov.au
– www.employment.gov.au/SkillShortages
– www.employment.gov.au/australianjobs
– www.joboutlook.gov.au
Slide 27 Contact
If you have any questions about the presentation please contact the Recruitment and Employer Needs Analysis section on:Email: [email protected]