Slide 1 – Labour market conditions in Pilbara and Kimberley · Web viewRecruitment activity still relatively high and competition for vacancies is low One in two jobs advertised

Slide 1 – Labour market conditions in Pilbara and Kimberley

Notes

7 September 2015

Presenter: Ivan Neville

Branch Manager

Labour Market Research and Analysis Branch

Slide 2 – Map of regions

Slide 3 - Population Profile

Pilbara Kimberley Western Australia

Adult population (15+) 54,600 30,700 2,037,000

Unemployment rate Western Australia-Outback 5.7% 6.4%*

% Indigenous (15+) 13% 37% 3%

% on Income support 7% 30% 12%

Notes

Source: ABS, Estimated Resident Population, 2013; ABS, Labour Force Survey, July 2015; Centrelink Administrative Data - Department of Human Services Administrative Data (Department of Social Services Extract), June 2015; ABS, Census of Housing and Population, 2011

Slide 4 - Kimberley

Slide 5 - Considerable regional variation and disadvantage in Kimberley

Notes

Source: Department of Employment, Small Area Labour Markets, March 2015; ABS, Census of Population and Housing, 2011

There is considerable disadvantage across the Kimberley, with the unemployment rates being very high in many localities. However, the unemployment rate varies substantially across the region and is particularly high in regions with large Indigenous populations.

Slide 6 – What are employers telling us?

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Kimberley, April 2015

Job opportunities across the region

• Recruitment activity has fallen considerably but is still relatively high

• Retaining workers is difficult for many employers

• Competition for vacancies remains low

• Heavy reliance on non-local labour including backpackers

Employers still commonly experienced recruitment difficulty

• Location of the job

• Tight labour market

Strong future recruitment expectations in a range of industries

Slide 7 - Recruitment conditions in Kimberley are easing

Notes


Slide 8 - Opportunities

Notes


• Recruitment activity still relatively high and competition for vacancies is low

• One in two jobs advertised informally

• Indigenous locals are a potential source of labour for employers

• Employers expect to recruit for a range of occupations in the next year including Sales Assistants, Receptionists, Housekeepers, General Clerks, Motor Mechanics, Waiters, Chefs, Bar Attendants and Baristas and Kitchenhands

Slide 9 - Pilbara

Slide 10 – What are the challenges in Pilbara?

Notes

• Mining construction boom in Pilbara is over

• Major construction projects are shifting from production to construction phase requiring far fewer workers

• Local economy and labour market is facing significant structural change as thousands of Mining construction jobs are lost

• Job seekers will have fewer job opportunities and increased competition for vacancies

Slide 11 -Mining investment is falling across Australia ($billions – current prices)

Notes

Source: ABS, Private New Capital Expenditure and Expected Expenditure, June 2015 (Cat. No. 5625.0)

Slide 12 - In 2011 one half of all jobs were in Mining and Construction – Jobs in the Pilbara, 2006 and 2011

Notes

Source: ABS, Census of Population and Housing, 2006 and 2011 (Place of work)

Between 2006 and 2011 there was a substantial growth in employment in Mining and Construction in the Pilbara. Employment in these industries more than doubled. While growth in employment in other industries was not as large, there was a flow-on affect, particularly in the Accommodation and Food Services industry.

Slide 13 - …However opportunities in Mining are declining across Western Australia

Notes

Source: ABS, Labour Force, May Quarter 2015, Four quarter averages of original data; Department of Employment, Industry Employment Projections, five years to November 2019

Employment in Mining across Western Australia reached its peak in 2013. In May 2013, almost 115,000 people in the state were employed in Mining.

Slide 14 - Opportunities in Mining are declining across Western Australia

Notes


In May 2015, this figure had dropped by 19,700 to stand at 95,200 employed in Mining across Western Australia.

Slide 15 - Opportunities in Mining are declining across Western Australia

Notes


This trend is set to continue, as it is projected that another 12,500 jobs in Mining in Western Australia will be lost by the end of 2019 at which point some 83,000 will be working in the industry.

Health Care and Social Assistance, Construction and Education and Training industries are the top 3 projected growth industries in Western Australia.

Slide 16 - The end of the Mining construction boom is impacting both local workers and FIFO workers in Perth

Notes

Source: ABS, Labour Force data, May Quarter 2015 (4 quarter averages)

The recent fall in Mining employment is not only reflected in the regions where Mining is present, but also in Perth where many FIFO workers live.

Slide 17 - Projected employment growth very low – Western Australia Outback

Notes

Source: ABS, Labour Force Survey, July 2015; Department of Employment, Employment Projections to November 2019

Overall employment is also set to fall in the mining regions as a consequence of the downturn. Across Western Australia Outback, employment is only projected to grow by 5 per cent between 2014 and 2019

Slide 18 - Unemployment rates are rising (three year change)

Notes

Source: ABS, Labour Force Survey, July 2015 (3 month averages of original data)

The consequences of the downturn in Mining and Mining Construction are evident in the recent growth in unemployment both in Western Australia Outback and Perth.

Slide 19 - 457 visas on the decline for Mining and Construction

Notes

Source: Department of Immigration and Border Protection, Subclass 457 Visa Grants Quarterly, March 2015

The downturn is also evident in the fall in the number of 457 visas granted for those intending to work in the Pilbara in both Construction and Mining.

Slide 20 - 457 visas on the decline for Mining and Construction

Notes

Source: Department of Immigration and Border Protection, Subclass 457 Visa Grants Quarterly, March 2015

A similar decline is evident for 457 visas in Perth where many FIFO workers live.

Slide 21 - Apprenticeships and traineeships completions also falling in Mining - Pilbara

Notes

Source: NCVER, VOCSTATS, Apprentices and Trainees, December 2014

The Mining industry is also taking on less apprentices and trainees in the Pilbara. As a consequence, there is likely to be fewer opportunities for young people to get training in the region.

Slide 22- End of Mining construction boom affecting entire economy, including the housing market (median house price % change – from 2013 to 2015)

Notes

Source: Real Estate Institute of Western Australia, Regional Markets data

Slide 23 - Mining industry has been a large employers of Indigenous residents – Share of total employment (%)

Notes

Source: ABS, Census of Population and Housing, 2011

Mining is by far the largest employer of Indigenous people. Some 43 per cent of employed Indigenous persons work in the Mining industry, compared with 36 per cent for the overall working population. While Construction is also a major employer of Indigenous workers, non-Indigenous workers are better represented in this industry.

Slide 24 - Indigenous unemployment rate more than five times higher in Pilbara – Selected regions, 2011

Notes

Source: ABS, Census of Population and Housing, 2011

While Indigenous unemployment rates are not as high as elsewhere in Western Australia, the disparity between Indigenous and non-Indigenous unemployment rates in the Pilbara is particularly acute.

Slide 25 - What are employers telling us?

Slide 26 - How is the downturn affecting non-Mining industries?

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Pilbara, April 2015

Slide 27 - Recruitment activity halved between 2010 and 2015

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Pilbara, August 2010 and April 2015

Slide 28 - …and the decrease is across most industries (annual vacancies per 100 staff)

Notes


Slide 29 - Many more employers decreasing staff - % of employers who increased and decreased staff in previous 12 months

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Pilbara, April 2015

Slide 30 - Employers are finding it easier to fill their vacancies

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Pilbara, 2010, 2013 and 2015

Slide 31 - Recruitment difficulty has eased in all occupations

Notes


Slide 32 - Competition for vacancies has nearly doubled

Notes


Slide 33 - Recruitment activity is expected to remain subdued in the next 12 months

Notes


Slide 34 - What does this mean?

Notes

End of the Mining investment boom is having a major impact on all industries in the Pilbara

• Fewer job opportunities and increased competition for vacancies

Mining industry is a large employer of Indigenous locals

• Job losses could affect local communities

Ex-FIFO workers living throughout WA may need assistance finding employment or accessing training opportunities

Slide 35 - Backpacker labour in Kimberley and Pilbara

Notes

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, Pilbara and Kimberley, April 2015

One third of employers in Kimberley and Pilbara recruited staff from outside the local area

• Of those employers, 40 per cent in Kimberley and 33 per cent in Pilbara had recruited backpackers

• Many employers said they hired backpackers because they were easy to recruit, were willing to approach employers and were keen to work

• Backpackers were most commonly employed in the Agriculture, Forestry and Fishing, Retail Trade and Accommodation and Food Services industries

Slide 36

Notes

If you have any questions about the presentation please contact the Employer Surveys Section or Recruitment Analysis Section on:

Tel: 1800 059 439 or

Email: [email protected]

Slide 37 – Further Information

Notes

More information on labour market conditions and other research on small areas can be found on these web sites

• www.employment.gov.au/RegionalReports

• www.employment.gov.au/LMIP

• www.employment.gov.au/SkillShortages

• www.employment.gov.au/australianjobs

• www.joboutlook.gov.au

• http://whatsnext.employment.gov.au

• Demand for labour in Northern Australia www.employment.gov.au/presentations-and-reports-australia

Slide 38

Documents

Slide 1 – Labour market conditions in Pilbara and Kimberley · Web viewRecruitment activity still relatively high and competition for vacancies is low One in two jobs advertised