Survey of Employers’ Recruitment Experiences

Bundaberg-Hervey Bay Priority Employment Area – September 2011

This report was prepared by the Labour Market Research and Analysis Branch and is based on research conducted by the branch.

For further information:www.deewr.gov.au

Ph: 1800 059 439 | recruitmentsurveys@deewr.gov.au ABN: 63 578 775 294

Table of Contents

The Australian Labour Market.......................................................................................................3

The Bundaberg-Hervey Bay Priority Employment Area.................................................................3

Survey of Employers’ Recruitment Experiences............................................................................4

Key Findings...................................................................................................................................5

Recruitment Experiences in the 12 Months Preceding the Survey................................................5

Most Recent Recruitment Activity.................................................................................................7

Applicants and Suitability..............................................................................................................8

Indigenous.....................................................................................................................................9

Apprentices and Trainees..............................................................................................................9

Future Recruitment Expectations................................................................................................10

Recruitment Methods and Job Services Australia (JSA)...............................................................11

Opportunities for Job Seekers.....................................................................................................12

Department of Education, Employment and Workplace Relations

The Australian Labour Market

Prior to the onset of the Global Financial Crisis in September 2008, economic and labour market conditions in Australia had been reasonably strong, although the unemployment rate had already troughed at 4.1 per cent in March 2008 and the pace of employment growth had begun to ease. However, in September 2008 world growth weakened dramatically and economic and labour market conditions in Australia deteriorated sharply.

Between July 2009 and March 2011, the Australian labour market showed significant signs of recovery, with a fall in the unemployment rate of 0.9 percentage points to 4.9 per cent and a rise in employment of 496 700 people to 11 433 400. However, between March and September 2011 employment growth has slowed considerably (rising by only 8,300) and the unemployment rate has increased to 5.2 per cent.1

The Bundaberg-Hervey Bay Priority Employment Area

The Bundaberg-Hervey Bay Priority Employment Area (PEA) is located in the Wide Bay-Burnett region on the central coast of Queensland. It is approximately a six hour drive south to Brisbane or a 3-4 hour drive north to Gladstone. It accounts for almost two thirds (64 per cent) of the adult population of the Wide Bay-Burnett Labour Force Region (LFR). The Priority Employment Area comprises the entire Bundaberg Local Government Area (LGA) and Hervey Bay LGA (this LGA includes the cities of Hervey Bay and Maryborough and is also known as Fraser Coast), as well as the Miriam Vale SLA (previously an LGA in its own right and now a part of the Gladstone LGA).

In 2010 there were approximately 122 000 people of working age (15-64 years) in the Bundaberg-Hervey Bay PEA.2 Population growth in the Bundaberg-Hervey Bay PEA has been substantial, with a 17 per cent growth in the adult population over the 2005-2010 period. Growth was particularly high in Hervey Bay, the most populous area in the region, where the adult population increased by 27 per cent. While there has been population growth among all age groups in the Bundaberg-Hervey Bay Priority Employment Area, the largest contributors were the 65+ age group (22 per cent), the 15-24 age group (21 per cent) and the 55-64 age group (19 per cent). The rapid population growth among the older population reflects both population ageing and the “sea change/tree change” phenomenon that is taking place in the region.3

As of June 2011, the unemployment rate in the Bundaberg-Hervey Bay Priority Employment Area was 7.7 per cent, substantially higher than the Australian rate of 5.1 per cent. The unemployment rate for the Bundaberg LGA was 7.3 per cent and the Fraser Coast LGA was 8.7 per cent.4

1 ABS, Labour Force, Australia, August 2011, cat. no. 6202.0 (trend).2 ABS Estimated Resident Population 2010.3 ibid. These statistics do not take into account the effects of the floods that hit the region in December 2010.4 DEEWR, Small Area Labour Markets, June Quarter 2011.

Department of Education, Employment and Workplace Relations 3

The teenage full-time unemployment rate in the Wide-Bay Burnett Labour Force Region was 30.2 per cent in September 2011, substantially higher than both Queensland (25.9 per cent) and Australia (22.9 per cent).5 At the time of the 2006 Census, 11 per cent of those aged 15 to 19 years were neither working nor studying, higher than both Queensland (8 per cent) and Australia (7 per cent).6

At the time of the 2006 Census, the proportion of those aged 25 to 34 years with a post-school qualification (47 per cent) and living within the Bundaberg-Hervey Bay Priority Employment Area was substantially lower than for Queensland (56 per cent) and Australia (61 per cent).7

Other indicators of social disadvantage include the high rate of jobless families in the PEA (29 per cent compared with 20 per cent for Australia) and the relatively low median weekly income in each region, ranging from $288 for Hervey Bay (Pt A) SLA to $380 in Burnett (Pt A) SLA (the median weekly income was $476 for Queensland and $466 for Australia).

The region was affected by flooding in December 2010, causing substantial damage to agricultural products and delays to exports (due to the closure of the Bundaberg port). The sugarcane industry, long regarded as the backbone of the Bundaberg region, was particularly hard hit, with revenue for sugarcane farmers projected to fall by 27 per cent as a result.8 Damaged fields and continued heavy rainfall throughout the region in the first few months of 2011 also resulted in crops not being planted. While agriculture itself accounts for 7 per cent of total employment within the Priority Employment Area,9 employment in industries that are involved in value-adding to primary products was also affected. Anecdotal evidence collected in the survey suggests that people subsequently left the region and may not have returned (or may not intend to return), and it is important to note that the population growth statistics do not take this into account, due to the flooding taking place after the period for which this data is calculated.

Survey of Employers’ Recruitment Experiences

In order to gain a better understanding of labour market conditions in the Bundaberg-Hervey Bay Priority Employment Area, the Department of Education, Employment and Workplace Relations (DEEWR) conducted a Survey of Employers’ Recruitment Experiences in September 2011. The survey was conducted by telephone interview with 355 businesses. This area was previously surveyed in May 2010 and August 2009.

The survey collected information on:

o the recruitment of employees in the 12 months preceding the survey;o the experience employers had recruiting for their most recent vacancy; ando recruitment expectations for the 12 months following the survey.

Key Findings

In line with the high unemployment rate, the survey results show that labour market conditions in the region are subdued.

5 ABS Labour Force Survey data, September 2011.6 ABS, Census of Population and Housing, 2006.7 Ibid.8 IBISWorld, Queensland Floods: the Economic Impact, January 2011, p4. The figure stating loss of revenue to sugarcane farmers takes the whole of Queensland into account and not just the Bundaberg-Hervey Bay PRIORITY EMPLOYMENT AREA. However, Agriculture (especially sugarcane) is a major employing industry in the Priority Employment Area.9 ABS, Census of Population and Housing, 2006.

Department of Education, Employment and Workplace Relations 4

Recruitment activity is relatively low and has decreased since the May 2010 survey.o 60 per cent of employers had recruited in the 12 months preceding the survey, compared

with 66 per cent in May 2010 and 74 per cent for all regions surveyed to June 2011.10 A relatively large proportion of employers (28 per cent) reported decreasing staff numbers in

the 12 months preceding the survey compared with all regions surveyed (19 per cent). Of those employers who did not recruit, 42 per cent cited insufficient work/downsizing/weak

economy as the reason for not doing so, compared with 16 per cent for all regions surveyed to June 2011.

Despite the subdued labour market conditions, the proportion of employers who encountered recruitment difficulty in the 12 months preceding the survey (59 per cent) was higher than May 2010 (48 per cent).

A high proportion of vacancies remained unfilled for Technicians and Trades Workers (23.9 per cent) and Managers and Professionals (12.5 per cent).

Employers had a relatively cautious outlook for the 12 months following the survey. A lower proportion (42 per cent) expected to recruit compared with all regions surveyed (52 per cent). A majority (59 per cent) expected to face challenges over this period, with reduced business activity the most commonly reported challenge (44 per cent).

o A smaller proportion of employers (16 per cent) expected to recruit an apprentice in the 12 months following the survey compared with all regions surveyed (23 per cent).

More than half (54 per cent) of employers who had hired an Indigenous job seeker had also used a Job Services Australia (JSA) provider in the previous 12 months, suggesting that JSA providers are having some success in finding employment for Indigenous job seekers.

Recruitment Experiences in the 12 Months Preceding the Survey

In the 12 months preceding the survey, 60 per cent of employers in the Bundaberg-Hervey Bay PEA had recruited. This was lower than when the region was surveyed in May 2010 (66 per cent), and substantially lower than all regions surveyed in the 12 months to June 2011 (74 per cent).

There were 16 vacancies for every 100 staff employed in the previous 12 months. This was lower than when the region was surveyed in May 2010 (20 vacancies for every 100 staff), and substantially lower than the average for all regions surveyed in the 12 months to June 2011 (24 vacancies for every 100 staff employed).

A large proportion of employers had recruited due to turnover (85 per cent) compared with recruitment due to business growth (49 per cent). This was similar to when the region was surveyed in May 2010, and all regions surveyed in the 12 months to June 2011 (see Table 1).

A higher proportion of vacancies over the preceding 12 months remained unfilled (6.7 per cent) compared with when the region was surveyed in May 2010 (4.2 per cent), but was lower compared with all regions surveyed in the 12 months to June 2011 (8.3 per cent).o Unfilled vacancies were most common in the Other Services industry11 (23.1 per cent) and

the Construction industry (19.4 per cent).o Three out of five employers (59 per cent) who had recruited in the year prior to being

surveyed had difficulty recruiting for one or more occupations, similar to all regions surveyed (60 per cent). By contrast, employers reported lower recruitment difficulty (48 per cent) when the region was surveyed in May 2010.

10 All regions surveyed includes the combined data for all regions surveyed across Australian in the 12 months to June 2011.11 The Other Services industry includes a broad range of personal services, such as hairdressing; religious, civil, professional and other interest groups; and selected repair and maintenance activities, including automotive repair.

Department of Education, Employment and Workplace Relations 5

o Employers had particular difficulty recruiting for vacancies in the Professional, Scientific and Technical Services (85 per cent), Construction (69 per cent) and Retail Trade industries (64 per cent).

A relatively large proportion of employers (28 per cent) reported decreasing staff numbers in the last 12 months, substantially higher compared with all regions surveyed to June 2011 (13 per cent). Staff numbers were reduced most frequently in Professional, Scientific and Technical Services (54 per cent), Construction (46 per cent) and Manufacturing (41 per cent).o The most common reason for not recruiting was adequate staffing levels (48 per cent),

although this was significantly lower compared with the results of the May 2010 survey (69 per cent) and with all regions surveyed to June 2011 (73 per cent). The next most common reason was insufficient work/downsizing/weak economy (42 per cent), substantially higher than reported when the region was surveyed in May 2010 (17 per cent) and for all regions to June 2011 (16 per cent).

o Anecdotal evidence from the survey suggests that many businesses were running on ‘skeleton’ staff, reducing both staff numbers and hours to minimal levels.

Table 1. Recruitment experiences in the 12 months preceding the survey

Bundaberg – Hervey Bay

(September 2011)

Bundaberg – Hervey Bay(May 2010)

All Regions(12 months

to June 2011)

Proportion of employers who recruited

60% 66% 74%

- to increase staff 49% 48% 53%

- to replace staff 85% 88% 85%

Vacancies per 100 staff 16 20 24

Proportion of recruiting employers who experienced difficulty

59% 48% 60%

Proportion of vacancies unfilled 6.7% 4.2% 8.3%

Department of Education, Employment and Workplace Relations 6

Most Recent Recruitment Activity

Employers were asked about their most recent recruitment experience.

A higher proportion of recent job vacancies were not filled (8.4 per cent) in the Bundaberg-Hervey Bay Priority Employment Area compared with when the region was surveyed in May 2010 (3.2 per cent) and slightly lower than all regions surveyed in the 12 months to June 2011 (10.0 per cent).o The unfill rate varied by occupation. The high unfill rate for Technicians and Trades Workers

(23.9 per cent) was spread across a range of trade occupations, including Hairdressers, Metal Fitters and Machinists and Plumbers.

Chart 1: Proportion of unfilled vacancies by occupation

Managers & Professionals

Technicians and Trades

Workers

Community and Personal

Service Workers

Clerical and Administrative

Workers

Machinery Operators and

Drivers

Sales Workers Labourers Bundaberg - Hervey Bay Sep

2011

Bundaberg - Hervey Bay May 2010

All regions surveyed Jun

2011

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

12.5%

23.9%

6.3%

3.0%

0.0%

2.8%

8.6% 8.4%

3.2%

10.0%

Almost half (45 per cent) of employers surveyed in the Bundaberg-Hervey Bay Priority Employment Area had difficulty recruiting for their most recent vacancy, the same as all regions surveyed (45 per cent), and higher than when the region was surveyed in May 2010 (38 per cent). Recruitment for Professionals (67 per cent) and Technicians and Trades Workers (66 per cent) was particularly difficult.

Employers in the Bundaberg-Hervey Bay Priority Employment Area reported difficulty recruiting for a range of occupations (see Table 2).

Department of Education, Employment and Workplace Relations 7

Table 2: Occupations difficult to fill

Bachelor Degree or Higher VET QualificationsGlaziers Electricians*

Motor Mechanics* Chefs*

Metal Fitters and Machinists* Structural Steel and Welding Trades Workers

Other OccupationsEarthmoving Plant Operators Truck Drivers

Receptionists* Waiters

Sales Assistants (General)* Kitchenhands*

*Occupations marked with an asterisk were difficult to fill in both May 2010 and September 2011.

The most common reason given for recruitment difficulty was the technical skill requirements of the job (43 per cent), followed by the tight labour market (23 per cent) and the nature of the work required (22 per cent).

o Difficulty recruiting staff with the requisite technical skills was common in the recruitment of Technicians and Trades Workers (48 per cent) and Community and Personal Service Workers (45 per cent).

o Tight labour market conditions were mainly reported as a source of difficulty by employers recruiting for Technicians and Trades Worker vacancies (38 per cent), while nature of the work required was cited as a difficulty in recruiting for Professionals (33 per cent), Labourers (31 per cent), and Community and Personal Service Workers (27 per cent).

Applicants and Suitability

There was an average of 7.2 applicants per vacancy in the Bundaberg-Hervey Bay Priority Employment Area, of whom an average of 1.8 applicants was considered suitable. By contrast, when the region was surveyed in May 2010 there were 11.6 applicants per vacancy of whom 3.9 were considered suitable. There were 6.2 applicants per vacancy, of whom an average of 2.0 applicants were considered suitable, across all regions surveyed to June 2011 (see Chart 2).

o Applicants were frequently deemed unsuitable due to insufficient experience (56 per cent), insufficient qualifications or training (29 per cent) and poor attitude or lack of work readiness (23 per cent).

o The decrease in both the average number of applicants per vacancy and the average number of suitable applicants per vacancy (between the May 2010 and September 2011 surveys) may partially be a result of the flooding and the subsequent decline in the population of the region.

o Employers had low numbers of suitable applicants for Labourer (1.3 suitable applicants), Technicians and Trades Worker (1.6 suitable applicants) and Community and Personal Service Worker (1.6 suitable applicants) vacancies.

o On the other hand, there were very high numbers of applicants for a limited number of Clerical and Administrative Worker vacancies (particularly Receptionists, General Clerks and Bank Workers).

Department of Education, Employment and Workplace Relations 8

Chart 2: Average number of applicants and suitable applicants per vacancy by occupation group

All regions surveyed Jun 2011

Bundaberg-Hervey Bay May 2010

Bundaberg-Hervey Bay Sep 2011

Labourers

Sales Workers

Machinery Operators and Drivers

Clerical and Administrative Workers

Community and Personal Service Workers

Technicians and Trades Workers

Managers & Professionals

0.0 5.0 10.0 15.0 20.0 25.0

2

3.9

1.8

1.3

2.3

1.8

3.1

1.6

1.6

1.7

6.2

11.6

7.2

4

9.2

6

21.1

5.7

4.3

6.5Average number of applicants per vacancy

Average number of suitable applicants per vacancy

A higher proportion of employers (25 per cent) recruited staff who required further training/development, higher than when the region was surveyed in May 2010 (17 per cent) and for all regions surveyed (14 per cent).o The most common reasons staff needed development were that they required training in

skills specific to the job (52 per cent) and product training (28 per cent).

Indigenous

One fifth of employers in the Bundaberg-Hervey Bay Priority Employment Area who had recruited in the preceding 12 months had Indigenous applicants.12 Of those employers who had Indigenous applicants, 52 per cent had filled a vacancy with an Indigenous applicant. Employers with lower skilled vacancies (such as Sales Workers and Labourers) were most likely to have had Indigenous applicants (43 per cent), and employers recruiting for Technicians and Trades Worker vacancies were also relatively likely to receive Indigenous applicants (19 per cent).

Apprentices and Trainees

A lower proportion (31 per cent) of employers in the Bundaberg-Hervey Bay Priority Employment Area had an apprentice or trainee employed in their business compared with May 2010 (36 per cent) and with all regions surveyed (35 per cent).

A lower proportion of employers (16 per cent) anticipated recruiting an apprentice or trainee in the 12 months following the survey compared with May 2010 (19 per cent) and with all regions surveyed in the 12 months to June 2011 (23 per cent).o Industries which were most likely to have an apprentice employed were Construction

(69 per cent), Manufacturing (63 per cent), and Other Services (56 per cent).o The industries most likely to take on an apprentice in the 12 months following the survey

were Manufacturing (34 per cent) and Other Services (28 per cent).

12 At the time of the 2006 Census, 2.5 per cent of the working age population in the region identified as Indigenous, slightly lower compared with Queensland (3.0 per cent) and slightly higher than Australia (2.1 per cent).

Department of Education, Employment and Workplace Relations 9

Future Recruitment Expectations

Recruitment expectations for the year following the survey were relatively subdued, with 42 per cent of employers expecting to recruit in the 12 months following the survey, almost the same as when the region was surveyed in May 2010 (44 per cent) and lower compared with all regions surveyed over the 12 months to June 2011 (52 per cent).o Future recruitment expectations were particularly high in the Accommodation and Food

Services (56 per cent), Manufacturing (50 per cent) and Health Care and Social Assistance (45 per cent) industries.

o Future recruitment expectations were subdued in the Construction industry (27 per cent), despite the general expectation that the industry would experience a rebuilding ‘boom’ following the December 2010 floods.

Of those employers who anticipated recruiting, 40 per cent expected to have difficulty filling their vacancies, similar to when the region was surveyed in May 2010 (41 per cent) and lower than all regions surveyed in the 12 months to June 2011 (47 per cent).o Anticipated recruitment difficulty was especially high in the Manufacturing industry

(69 per cent).

Chart 3: Recruitment expectations for the 12 months following the survey

% Will recruit % Expected difficulty % Will increase % Uncertain % Will recruit an apprentice or trainee0%

10%

20%

30%

40%

50%

60%

42%40%

24%

15% 16%

44%41%

26%

22%19%

52%

47%

29%

13%

23%

Bundaberg-Hervey Bay Sep 2011

Bundaberg-Hervey Bay May 2010

All regions suveyed June 2011

More than half (59 per cent) of employers anticipated they would face either new or ongoing challenges in the 12 months following the survey, higher than May 2010 (53 per cent) and all regions surveyed in the 12 months to June 2011 (55 per cent).o Reduced business activity (44 per cent) was the most common reason for expected

challenges. This is substantially higher than when the region was surveyed in May 2010 (34 per cent) and for all regions surveyed (23 per cent).

o Business and government regulations (21 per cent) were frequently mentioned as employer challenges in the 12 months following the survey, similar to May 2010 (23 per cent) and all regions surveyed (22 per cent).

o Employers also mentioned to the interviewers challenges arising from the flooding in December 2010, as well as increasing demand from the Mining industry for skilled staff from the region.

Department of Education, Employment and Workplace Relations 10

o The current drain of skilled workers from the Bundaberg-Hervey Bay PEA, especially in the Technicians and Trades Workers occupation (evident in the high unfill rate and employers’ difficulty in recruiting for Electrician, Metal Fitter and Machinist, Motor Mechanic and Structural Steel and Welding Trades Worker vacancies), is likely to be exacerbated as large resource projects come on line.

A higher proportion of employers (6 per cent) expected to decrease staff numbers in the 12 months following the survey, double the proportion compared with when the region was surveyed in May 2010 (3 per cent) and for all regions surveyed (3 per cent).

Employers expected to recruit for a range of occupations in the 12 months following the survey (see Table 3), including entry-level occupations such as Waiters, Cafe Workers and Kitchenhands.

Table 3: Future occupations by skill level

Bachelor Degree or Higher VET QualificationsHairdressers Real Estate Sales Agents

Air Conditioning and Refrigeration Mechanics Welfare Support Workers

Other Occupations

Truck Drivers General Clerks

Waiters Receptionists

Kitchenhands Sales Assistants (General)

Bar Attendants and Baristas Cafe Workers

Food and Drink Factory Workers Housekeepers

Sales Representatives

Recruitment Methods and Job Services Australia (JSA)

The recruitment methods used most frequently during employers’ most recent recruitment round were word of mouth (30 per cent), internet advertising (25 per cent), newspaper advertising (25 per cent) and recruitment agency (19 per cent). o Use of word of mouth (36 per cent) and recruitment agencies (32 per cent) was particularly

high among employers with Labourer vacancies. One quarter of employers used a Job Services Australia (JSA) provider when recruiting in the 12

months preceding the survey compared with 6 per cent of employers in the most recent recruitment round. One in six employers who had used a JSA in the previous 12 months (16 per cent) reported dissatisfaction with the service received, most commonly because the JSA had no suitable applicants to refer or because of poor customer service.

More than half of employers who had hired an Indigenous job seeker also used a JSA provider; suggesting JSA providers are successfully referring Indigenous people to employers.

Department of Education, Employment and Workplace Relations 11

Opportunities for Job Seekers

The survey results indicate strong competition for some lower skilled occupations with lower levels of qualifications, where unfill rates and recruitment difficulty were below average for the Priority Employment Area. However, opportunities may exist for job seekers in lower-skilled occupations which were difficult to fill, such as Sales Workers (Sales Assistants (General), Sales Representatives), Clerical and Administrative Workers (Receptionists) and Machinery Drivers and Operators (Truck Drivers).

Employers expected to recruit for a range of occupations in the 12 months following the survey, including several entry-level occupations (Sales Assistants, Kitchenhands and Cafe Workers), suggesting opportunities for job seekers to enter the labour market will become available.

Opportunities exist for job seekers to upskill in the Technicians and Trades Worker occupation group (particularly Chefs, Electricians, Motor Mechanics and Automotive and Engineering Trades Workers), with employers reporting a high unfill rate, a low number of suitable applicants and high recruitment difficulty for these occupations.

The wide range of recruitment methods used by employers demonstrates that to maximise job opportunities, job seekers need to use a range of job search techniques. The high proportion of employers using word of mouth as a recruitment method also suggests that there are job opportunities which JSA providers could tap into by further engagement with employers and by expanding their community networks.

One of the main reasons applicants were deemed unsuitable was a lack of experience. Support for work experience programs, work readiness skills and support for apprentices and trainees could provide job seekers with the skills that employers are seeking.

Support for employers with apprentices and trainees could help increase the stock of skilled workers in the Bundaberg-Hervey Bay Priority Employment Area, especially in difficult to fill occupations.

Department of Education, Employment and Workplace Relations 12

For more information:

Labour Market Information Portal:

www.deewr.gov.au/lmip

Skill Shortages

www.deewr.gov.au/skillshortages

Survey of Employers’ Recruitment Experiences

www.deewr.gov.au/regionalreports

Job Outlook

www.joboutlook.deewr.gov.au

SkillsInfo

www.skillsinfo.gov.au

Australian Jobs

www.deewr.gov.au/australianjobsThis report was prepared by the Labour Market Research and Analysis Branch and is based on research conducted by the branch.

For further information:www.deewr.gov.au

Ph: 1800 059 439 | recruitmentsurveys@deewr.gov.auABN: 63 578 775 294

This report was prepared by the Labour Market Research and Analysis Branch and is based on research conducted by the branch.

For further information:www.deewr.gov.au

Ph: 1800 059 439 | recruitmentsurveys@deewr.gov.auABN: 63 578 775 294