Sydney West and Blue Mountains

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1 Slide 1 Sydney West and Blue Mountains Priority Employment Area 9 May 2014 Presenter: Ivan Neville Branch Manager Labour Market Research and Analysis Branch

2 Slide 2 Sydney West and Blue Mountains PEA Hawkesbury Sydney CBD Blue Mountains Blacktown Parramatta Penrith Auburn Holroyd Sydney West and Blue Mountains Priority Employment Area: Sydney West and Blue Mountains PEA is made up for the following LGAs: Auburn Blacktown Blue Mountains Hawkesbury Holroyd Parramatta Penrith The Sydney West and Blue Mountains PEA lies within the following SA4s: *Blacktown 100% *Outer West and Blue Mountains 98% *Parramatta 83% Ryde 6% South West 0.5% *SA4s used for analysis in this presentation referred as Sydney West and Blue Mountains region The list below presents the LGA s within each SA4 boundary: Sydney Parramatta SA4: Auburn LGA Parramatta LGA Holroyd LGA

3 Sydney Blacktown SA4: Blacktown LGA Sydney - Outer West and Blue Mountains SA4: Blue Mountains LGA Hawkesbury LGA Penrith LGA

4 Slide 3 Population Profile Region Adult Population (15+) 2012 Growth (15+) 2007 to 2012 Median Age 2011 Auburn LGA 64,840 16% 31 Blacktown LGA 244,230 13% 32 Blue Mountains LGA 63,770 5% 42 Hawkesbury LGA 51,190 6% 36 Holroyd LGA 84,230 11% 34 Parramatta LGA 145,200 14% 33 Penrith LGA 147,600 7% 34 Sydney West and Blue Mountains PEA 801,060 11% 34 Australia 18,419,630 10% 37 Sources: ABS Estimated Resident Population 2012; ABS, Census of Population and Housing, Usual Residence, 2011 Population Profile Sources: ABS Estimated Resident Population 2012; ABS, Census of Population and Housing, Usual Residence, 2011 In the five years to 2011 the Blue Mountains and Hawkesbury LGAs experienced slower growth in the adult population (15 years and over) (5 per cent and 6 percent respectively) than Australia (10 per cent). Within the region growth has been strongest in the major centres, Auburn and Parramatta LGAs (16 per cent and 14 per cent respectively). The median age in the Sydney West and Blue Mountains PEA (34 years) is lower than the national average (37 years), although the Blue Mountains LGA has a higher median age (42 years).

5 Slide 4 Consistently higher unemployment rate Source: Department of Employment, Small Area Labour Markets, December Quarter 2013 Consistently higher unemployment rate Source: Department of Employment, Small Area Labour Markets, December Quarter 2013 The unemployment rate in the Sydney West and Blue Mountains PEA (7.3 per cent as at December 2013) and the Blacktown LGA (7.9 per cent as at December 2013) has generally been higher than Australia (5.8 as at March 2014).

6 Slide 5 Region December 2012 December 2013 Participation Rate (WAP) Auburn LGA 8.2% 11.3% 63.4% Blacktown LGA 6.0% 7.9% 73.0% Blue Mountains LGA 3.8% 5.2% 76.4% Hawkesbury LGA 3.6% 4.9% 79.3% Holroyd LGA 5.9% 8.7% 71.3% Parramatta LGA 4.6% 6.8% 71.7% Penrith LGA 4.7% 6.4% 76.9% Sydney West and Blue Mountains PEA 5.2% 7.3% 73.3% Australia Variation across the PEA 5.6% (March 2013) 5.8% (March 2014) 75.8% Source: Department of Employment, Small Area Labour Markets, December Quarter 2013, ABS Labour Force Survey March 2014, ABS Census of Population and Housing 2011 Variation across the PEA Source: Department of Employment, Small Area Labour Markets, December Quarter 2013, ABS Labour Force Survey March 2014, ABS Census of Population and Housing 2011 In December 2013 the unemployment rate in the Sydney West and Blue Mountains PEA was 7.3 per cent. Within the Sydney West and Blue Mountains PEA, the Auburn LGA had the highest unemployment rate (11.3 per cent). Unemployment in the Hawkesbury LGA was low (4.9 per cent). The Auburn LGA also had the lowest labour force participation rate (63.4 per cent), however, the highest labour force participation rate was in the Hawkesbury LGA (79.3 per cent).

7 Slide 6 Most new jobs are part-time 40% 35% 30% 34% Sydney West and Blue Mountains Region Blacktown 25% 20% 18% 19% 16% 15% 10% 11% 5% 1% 2% 2% 0% Employed full-time Employed part-time Employed full-time Employed part-time Males Females Source: ABS, Labour Force Survey, February 2014, 12 month average Most new jobs are part-time Source: ABS, Labour Force Survey, February 2014, 12 month average Full-time jobs growth in the Sydney West and Blue Mountains region for males and females was very low (1 per cent and 2 per cent respectively), however, strong full-time jobs growth was recorded for females in Blacktown (16 per cent). Part-time jobs growth for males was high (18 per cent in Sydney West and Blue Mountains region and 34 per cent in Blacktown). In addition, part-time growth for females was high in the Sydney West and Blue Mountains region (19 per cent).

8 Slide 7 Health Care and Social Assistance Largest Employing Industries 12% 13% Retail Trade 10% 12% Manufacturing Construction 8% 8% 8% 10% Transport, Postal and Warehousing 5% 7% Public Administration and Safety 6% 7% Education and Training Professional, Scientific and Technical Services 6% 6% 8% 8% Accommodation and Food Services 6% 7% Financial and Insurance Services 5% 6% 0% 2% 4% 6% 8% 10% 12% 14% Sydney West and Blue Mountains Region NSW Source: ABS, Labour Force Survey, February 2014, 4 quarter averages Largest employing Industries Source: ABS, Labour Force Survey, February 2014, 4 quarter averages In the Sydney West and Blue Mountains region the Health Care and Social Assistance industry (13 per cent) is the largest employing sector. This was followed by the Retail Trade (12 per cent) and Manufacturing (10 per cent) industries.

9 Slide 8 Employment Growth Employment Change 2009 to 2014 (Region) Health Care and Social Assistance 19,303 Public Administration and Safety 7,154 Financial and Insurance Services Retail Trade Education and Training 3,900 3,783 3,498 Accommodation and Food Services Transport, Postal and Warehousing Other Services Manufacturing Construction -2,198-2,820-3,512-3,606-5,582-10,000-5, ,000 10,000 15,000 20,000 25,000 Source: ABS, Labour Force Survey, February 2014, 4 quarter averages Employment growth for largest industries Source: ABS, Labour Force Survey, February 2014, 4 quarter averages This graph shows the change in the number of people employed in the largest employing industries in the Sydney West and Blue Mountains region over the period 2009 to Much of the growth in employment in the region was concentrated in the Health Care and Social Assistance (19,303 persons) and Public Administration and Safety (7,154 persons) industries. Construction decreased by 5,582 and Manufacturing decreased by 3,606 between 2009 to 2014.

10 Slide 9 Much of the manufacturing industry in decline (PEA) Beverage Manufacturing 448 Professional and Scientific Equipment Manufacturing 284 Other Food Product Manufacturing 187 Bakery Product Manufacturing 123 Furniture Manufacturing -216 Other Fabricated Metal Product Manufacturing -271 Computer and Electronic Equipment Manufacturing -288 Structural Metal Product Manufacturing -288 Polymer Product Manufacturing Source: ABS, Census of Population and Housing, Usual Residence, 2011 and 2006 Much of the manufacturing industry in decline Employment Growth - Five years to 2011, Sydney West and Blue Mountains PEA Source: ABS, Census of Population and Housing, 2011 and 2006 This graph shows the change of the manufacturing industry in the Sydney West and Blue Mountains PEA at the 3 digit level. The largest decline was seen in Polymer Product Manufacturing, with 513 fewer employed in that industry in the five years to Although a large proportion of the manufacturing industry is in decline, there are still areas within the industry that have shown growth. The largest growth was seen in Beverage Manufacturing which employed 448 more people in the five years to 2011.

11 Slide 10 Employers not employing locally Sydney Source: ABS, Census of Population and Housing, 2011 Travelling for Work: Source: ABS, Census of Population and Housing, 2011 The Sydney West and Blue Mountains PEA is part of Sydney, the largest and most diverse labour market in Australia. Large numbers of people leave or enter the PEA for work. In 2011, the PEA was a net exporter of labour: 150,000 people who live in the PEA work outside the PEA 120,000 people who live outside the PEA work in the PEA The number of people leaving the PEA for work is likely to continue unless current trends change. Recent initiatives towards decentralisation of jobs away from the Sydney CBD may help reduce the number of people who leave the PEA for work.

12 Slide 11 Youth unemployment is high Youth unemployment Region Persons (15-24 years) Youth unemployment rate Participation rate Blacktown 4, % 62.2% Outer West and Blue Mountains 3, % 69.7% Parramatta 5, % 55.0% Australia 255, % 66.6% Source: ABS Labour Force data, March 2014 (12 month averages) Youth unemployment is high Source: ABS Labour Force data, March 2014 (12 month averages) Due to their lack of skills and experience, young persons can be particularly vulnerable during a labour market downturn. The youth unemployment rate is the proportion of those aged 15 to 24 years, participating in the labour market, who are unemployed. As at March 2014, the youth unemployment rate for Blacktown was 16.4 per cent, higher than for Australia (12.4 per cent). As at March 2014, the participation rate for Blacktown 62.2 per cent, lower than for Australia (66.6 per cent).

13 Slide 12 What are the youth doing? Sydney West and Blue Mountains PEA (15 24 years) Total: 120,100 Studying: 70,600 (59%) Not Studying: 49,500 (41%) Employed: 35,700 (30%) Not Employed: 13,800 (11%) Completed Year 12: 22,800 (11%) Did Not Complete Year 12: 12,900 (19%) Completed Year 12: 6,100 (6%) Did Not Complete Year 12: 7,700 (5%) Source: ABS, Census of Population and Housing, Usual Residence, 2011 What are youth doing? Source: ABS, Census of Population and Housing, Usual Residence, 2011 Of the 15 to 24 year old cohort in the Sydney West and Blue Mountains PEA (a total of 120,100), 59 per cent are studying, a figure similar to that for NSW (61 per cent). Of these 15 to 24 year olds 41 per cent were not studying: 11 per cent were not employed at the time of census (13,800 persons) compared to 10 per cent for NSW. 6 per cent (6,100 persons) had competed Year 12 of equivalent (this figure is also 6 per cent for NSW). 5 per cent (7,700 persons) had not competed Year 12 study (compared to a figure of 4 per cent in NSW).

14 Slide 13 High levels of disengagement among young adults (PEA, years) 35% Unemployed & Not Studying 30% Not in the Labour Force & Not Studying 25% 20% 23% 15% 15% 10% 8% 7% 7% 14% 6% 11% 5% 7% 5% 5% 7% 6% 4% 6% 4% 0% Male Female Male Female Male Female Male Female Blacktown LGA Holroyd LGA Sydney West and Blue Mountains PEA New South Wales Source: ABS, Census of Population and Housing, Usual Residence, 2011 High levels of disengagement among young adults Source: ABS, Census of Population and Housing, 2011 At the time of the 2011 Census, 15 per cent of young adults (persons aged 20 to 24 years) in the Sydney West and Blue Mountains PEA were neither working or studying. This figure was higher when compared with New South Wales (13 per cent). For young adult males in the PEA, 6 per cent were not in the labour force and not studying and a further 7 per cent were unemployed and not studying. For young adult females in the region, 14 per cent were not in the labour force and not studying and a further 4 per cent were unemployed and not studying. In the Holroyd LGA, for young adult females, 23 per cent were not in the labour force and not studying and a further 7 per cent were unemployed and not studying.

15 Slide 14 Region Educational Attainment (25 34 years) Completed Year Completed Year 12 Growth (2006 & 2011) Attained Advanced Diploma, Diploma or Certificate III & IV Level Attained Bachelor Degree or Higher Auburn LGA 83% 7% 21% 44% Blacktown LGA 73% 9% 29% 30% Blue Mountains LGA 72% 3% 37% 31% Hawkesbury LGA 58% 4% 42% 17% Holroyd LGA 80% 8% 26% 40% Parramatta LGA 85% 7% 22% 51% Penrith LGA 62% 6% 36% 19% Sydney West and Blue Mountains PEA 75% 8% 29% 34% Australia 75% 6% 30% 35% Source: ABS, Census of Population and Housing, Usual Residence, 2011 and 2006 Educational Attainment Source: ABS, Census of Population and Housing, Usual Residence, 2011 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. At the time of the 2011 Census, the proportion of 25 to 34 year olds in the Sydney West and Blue Mountains PEA who had completed Year 12 or equivalent was 75 per cent, on par with Australia (75 per cent). However, growth for persons completing Year 12 between the 2006 and 2011 census was higher in Sydney West and Blue Mountains PEA (8 per cent) than for Australia (6 per cent respectively). At the time of the 2011 Census, the proportion of 25 to 34 year olds who had attained an Advanced Diploma, Diploma or Certificate level III or IV in the PEA (29 per cent) was slightly lower than the national average (30 per cent), and the proportion who had attained a Bachelor Degree or higher (34 per cent) was only slightly lower than the national average (35 per cent).

16 Slide 15 Region Literacy and Numeracy Year 9 government school students who did not meet minimum standard for reading in 2013 Year 9 government school students who did not meet minimum standard for numeracy in 2013 Auburn LGA 15% 26% Blacktown LGA 15% 16% Blue Mountains LGA 7% 11% Hawkesbury LGA 4% 15% Holroyd LGA 22% 33% Parramatta LGA 7% 14% Penrith LGA 5% 9% New South Wales 5% 8% Source: MySchool website, 2013; 2013 National Assessment Program - Literacy and Numeracy Summary Report, Figures in the table are based on a selected government school in the LGA and are not an average of schools in the LGA Literacy and Numeracy ; 2013 National Assessment Program - Literacy and Numeracy Summary Report, Figures in table are based on a selected government school in the LGA and are not an average of schools in the LGA. In 2013, some 15 per cent of year 9 student did not meet the minimum standard for reading in Blacktown. This is higher when compared to New South Wales (5 Per cent). In addition, 16 per cent of year 9 students did not meet the minimum standard for numeracy, this is double when compared to New South Wales (8 per cent).

17 Slide % Education & Labour Market Outcomes (PEA, years) 100.0% 12.0% 86.3% 84.1% 87.4% 12.1% 12.0% 90.0% 75.5% 80.0% 10.0% Unemployment Rate 68.4% 64.9% 70.0% 8.0% Participation Rate 6.8% 60.0% 50.0% 6.0% 4.0% 4.8% 5.3% 4.2% 40.0% 30.0% 20.0% 2.0% 10.0% 0.0% Bachelor Degree or Advanced Diploma Certificate III & IV higher and Diploma Level Level Year 12 or equivalent Certificate I & II Level Below Year % Source: ABS, Census of Population and Housing, Usual Residence, 2011 Education & Labour Market Outcomes Source: ABS, Census of Population and Housing, Usual Residence, 2011 There is a strong relationship between educational attainment and employment outcomes. For those aged 25 to 34 years in the Sydney West and Blue Mountains PEA, there were high unemployment rates for those who had completed Certificate I & II (12.1 per cent) and those who did not complete Year 12 without any further post school qualification (12.0 per cent). Unemployment rates are considerably lower for those who have completed a tertiary education at the Bachelor degree (4.8 per cent) or a Advanced Diploma and Diploma Level (5.3 per cent). It should also be noted that employment outcomes are better for those who have attained Certificate Levels III or IV (4.2 per cent unemployment rate). This emphasises the importance of post school education in ensuring success in gaining employment.

18 Slide 17 Improving youth labour market outcomes Feedback from Sydney West and Blue Mountains PEA employers 35% 30% 31% Attitude/motivation Presentation Job seeker expectations 25% 20% 15% 23% School based work experience Education Traineeships 10% 7% 5% 3% 0% Improve employability/labour market engagement Further develop work skills Government incentives/vocational guidance Employer based initiatives Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Improving Youth labour market outcomes Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Employers in Sydney West and Blue Mountains PEA were asked for feedback on strategies to improve labour market outcomes for youth. The majority of employers (31 per cent) believed that employability and labour market engagement were the most important factors in improving youth labour market outcomes, most particularly: Attitude/motivation Presentation Job seeker expectations A substantial proportion of employers (23 per cent) believed that further developing work skills was most important for youth, in particular: School based work experience Education Traineeships

19 Slide 18 Long duration of unemployment Region Long-term unemployed Average duration of Percent of all Persons unemployment unemployed (weeks) Outer West and Blue Mountains 3,300 32% 53 Blacktown 3,000 25% 51 Parramatta 3,100 18% 34 Australia 141,400 20% 38 Source: ABS Labour Force, March 2014 (12 month average) Long duration of unemployment Source: ABS Labour Force, March 2014 (12 month average) Long-term unemployed are those who have been unemployed and looking for work for at least 52 weeks. The proportion of unemployed people who were long-term unemployed, in the Outer West and Blue Mountains area (32 per cent), was higher when compared to the national average (20 per cent). The average duration of unemployment in Outer West and Blue Mountains (53 weeks) and Blacktown (51 weeks) were also higher than the national average (38 weeks).

20 Slide 19 Many children in families with no working parent Region Jobless families Number of children* % who are Jobless Auburn LGA 1,800 4,400 25% Blacktown LGA 6,560 15,900 18% Blue Mountains LGA 800 1,600 11% Hawkesbury LGA 780 1,650 12% Holroyd LGA 1,920 4,450 17% Parramatta LGA 2,700 6,350 16% Penrith LGA 2,830 6,200 14% Sydney West Blue Mountains PEA 17,380 40,700 16% Australia 294, ,500 14% *Dependent children under 15 years of age; number is a minimum Source: ABS, Census of Population and Housing, Usual Residence, 2011 Jobless Families Source: ABS, Census of Population and Housing, Usual Residence, 2011 Note: as Census 2011 includes families with six children or more under the one classification, the numbers of children in the above slide are a minimum as an exact number is not available. Jobless families are families where the parents are unemployed or not in the labour force, with children under 15 years of age. Some 16 per cent of all families (with children under 15 years) in the PEA were jobless, a figure slightly larger than that for Australia (14 per cent). However, family joblessness varied greatly between LGAs. Auburn LGA had a high of 25 per cent of all families (with children under 15 years) who were jobless and the Blue Mountains LGA had a low of 11 per cent. At least 40,700 dependent children under the age of 15 were living in a family with no working parent.

21 Slide 20 Migration over 5 years (Sydney West and Blue Mountains PEA, WAP) 116,000 people moved to the PEA in the last 5 years - 43 per cent from overseas 77,000 people moved out of the PEA in the last 5 years Source: ABS, Census of Population and Housing, 2011 Migration over 5 years Source: ABS Census of Population and Housing, 2011 Around 116,000 people moved to the PEA in the last 5 years of whom 43 per cent were from overseas. Around 77,000 people moved out of the PEA in the last 5 years.

22 Slide 21 Migrant Arrivals in Last 5 Years Sydney West and Blue Mountains PEA years PEA 37,600 arrivals Australia 620,200 arrivals Family Humanitarian Skilled Source: Department of Immigration and Citizenship. Settlement reporting: February 2009 to February 2014, viewed 9 April Migrant Arrivals in Last 5 Years Source: Department of Immigration and Citizenship. Settlement reporting: February 2009 to February 2014, viewed 9 April The proportion of migrants aged 16 to 64 who were skilled, who have migrated to the PEA (40 per cent) over the past five years was much lower compared with the proportion of skilled migrants who were skilled, who migrated to Australia (54 per cent). The Sydney West and Blue Mountains PEA has a greater proportion of migrants arriving for family (45 per cent) and humanitarian (14 per cent) reasons compared with Australia (38 per cent and 8 per cent respectively).

23 Slide 22 Large proportion of OTMESC Region % who are OTMESC Unemployment rate OTMESC Non- OTMESC Participation rate OTMESC Non- OTMESC Auburn LGA 69% 9% 7% 63% 64% Blacktown LGA 40% 8% 7% 73% 74% Blue Mountains LGA 7% 6% 5% 71% 77% Hawkesbury LGA 6% 5% 5% 74% 80% Holroyd LGA 50% 8% 6% 69% 74% Parramatta LGA 52% 8% 6% 69% 75% Penrith LGA 16% 7% 5% 71% 78% Sydney West Blue Mountains PEA 36% 8% 6% 70% 76% Australia 19% 8% 5% 69% 78% Source: ABS, Census of Population and Housing, Usual Residence, 2011 Large proportion of OTMESC Source: ABS, Census of Population and Housing, Usual Residence, 2011 In the PEA, there is a high proportion of people from a other than main English speaking background (OTMESC) (36 per cent) when compared to Australia (19 per cent) At the time of the 2011 Census, the participation rate for OTMESC migrants was lower (70 per cent) compared to non-otmesc (76 per cent). The unemployment rate for the PEA was also lower for OTMESC when compared to non-otmesc (8 per cent and 6 per cent respectively).

24 Slide 23 Migrants Underutilised Labour market outcomes for people with a Bachelor Degree or higher, PEA 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 16% 4% Employed in Lower Skilled Occupations Unemployed Not in Labour Force 5% 2% 8% 7% 8% 6% 24% 3% 2% 13% OTMESC Non-OTMESC OTMESC Non-OTMESC Male 36% of OTMESC persons have a Bachelor Degree or above Female 15% of Non-OTMESC persons have a Bachelor Degree or above Source: ABS, Census of Population and Housing, Usual Residence, 2011 Migrants Underutilised: Labour market outcomes for people with a Bachelor Degree or higher Source: ABS, Census of Population and Housing, 2011 This chart illustrates migrant underutilisation by comparing labour market participation of those with a Bachelor Degree by whether they were a migrant from an Other Than Main English Speaking Country or not. Lower Skilled Occupations refers to Sales Workers, Machinery Operators and Drivers and Labourers. Overall, 36 per cent of working age (15-64) OTMESC migrants had obtained a Bachelor Degree or higher. These people were either. Not in the labour force (8 per cent for males and 24 per cent for females), Unemployed (4 per cent for males and 6 per cent for females), or Employed in a lower-skilled occupation (4 per cent for males and 6 per cent for females). This compares with 15 per cent of working age (15-64) non-otmesc migrants who had obtained a Bachelor Degree or higher. These people were either. Not in the labour force (7 per cent for males and 13per cent for females), Unemployed (2 per cent for males and 2 per cent for females), or Employed in a lower-skilled occupation (5 per cent for males and 3 per cent for females).

25 Slide 24 Importance of spoken English to labour market outcomes Sydney West and Blue Mountains PEA 18% 90% 16% 75.5% 76.4% 78.7% 15.2% 80% 14% 65.5% 70% 12% Unemployment Rate 60% 10% 8% 6% 5.9% Participation Rate 6.2% 6.8% 9.3% 41.6% 50% 40% 30% 4% 20% 2% 10% 0% Non-OTMESC Speaks English only Very Well Well Not well/not at all 0% Source: ABS, Census of Population and Housing, Usual Residence, 2011 Importance of spoken English to labour market outcomes Source: ABS, Census of Population and Housing, Usual Residence, 2011 People who speak English very well tend to have better labour market outcomes than those who do not speak English well or at all. For the OTMESC population in the Sydney West and Blue Mountains PEA that do not speak English well or at all, the unemployment was high (15.2 per cent) and the participation rate was low (41.6 per cent). This compares with a lower unemployment rate for the OTMESC population who speak English only (6.2 per cent) and a higher participation rate (76.4 per cent). The unemployment rate for the non-otmesc population was 5.9 per cent and the participation rate was 75.5 per cent.

26 Slide 25 Recruitment activity has eased and is soft The average number of vacancies per 100 staff was lower than in the previous survey Most vacancies filled Competition remains high Recruitment difficulty low Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Recruitment activity is soft Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area The average number of vacancies per 100 staff (12) was lower than in the previous survey in 2012 (15). Most vacancies were filled, with only 3.7 per cent remaining unfilled. Competition for vacancies continues to be strong with an average of 12.5 applicants per vacancy, of whom an average of 1.5 were suitable. The proportion of employers who reported difficulty recruiting has decreased from 35 per cent (2012) to 30 per cent in the most recent survey.

27 Slide 26 Competition for vacancies remains high Average number of applicants per vacancy 35.0 Average number of suitable applicants per vacancy Managers and Technicians Community Clerical and Sales Workers Machinery Labourers SW & BM SW & BM PEA Professionals and Trades and Personal Administrative Operators and PEA2013/ Workers Service Workers Drivers Workers Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Competition for vacancies remains high Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Competition for vacancies in the Sydney West and Blue Mountains PEA (12.5 applicants per vacancy) was higher compared with all regions surveyed in the 12 months to March 2014 (10.6 applicants per vacancy). There was a high level of competition for Clerical and Administrative Workers vacancies, with an average of 40.2 applicants per vacancy. Labourers had the lowest level of competition with 6.5 applicants per position.

28 Slide 27 The recruitment process Average number of applicants per vacancy Average number of applicants interviewed Average number of interviewed applicants who were suitable Not Interviewed 74% of applicants did not receive an interview Why? - Lack of relevant experience - Insufficient qualifications or training - Application Poorly written / presented - Basic employability skills Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area The recruitment process Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area This slide shows the recruitment process employers under went in the Sydney West Blue Mountains PEA. On average employers in the PEA received 13 (12.5) applicants per vacancy Of these applicants on average only 3 (3.3) were interviewed. Of these interviewed applicants only 1 (1.5) were considered suitable for the vacancy. The reason those applicants did not get an interview were: Lack of relevant experience (59 per cent) Insufficient qualifications or training (30 per cent) Application poorly written/presented or not good enough (27 per cent) Applicant not available for required work hours (22 per cent) Applicant located overseas/interstate/out of area (17 per cent) Basic employability skills

29 Slide 28 Employability Skills Essential What employers considered essential in an applicant 71% of businesses said that personality traits/qualities are more or equally as important as technical skills Enthusiastic/positive attitude Interact/connect with others Hardworking/good work ethic Teamwork Communication Make good decisions Reliable Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013; All regions surveyed in the 12 months to Dec Employability skills essential Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013; Department of Employment, Survey of Employers Recruitment Experiences, all regions surveyed in the 12 months to December % of businesses said that personality traits/qualities are more or equally as important as technical skills Employers want people who can/have Enthusiastic/positive attitude Interact/connect with others (people skills) Hardworking/good work ethic Teamwork Communicate (higher order skill e.g. hold an argument) Make good decisions Reliable

30 Slide 29 % of total vacancies Recruitment Methods 68% Used a formal method 16 applicants per vacancy 25% Informal methods ONLY 3 applicants per vacancy Approached directly by job seeker ONLY (7%) Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Methods of recruitment Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area 68 per cent of vacancies in the Sydney West and Blue Mountains PEA were recruited for through formal methods of recruitment (such as the Internet or Newspapers), receiving an average of 16.9 applicants per vacancy. By contrast, one third (25 per cent) of vacancies were recruited for through informal methods only (such as word of mouth or approached by job seeker), receiving an average of just 3.2 applicants per vacancy. Employers for some 7 per cent of vacancies relied solely on being approached directly by job seekers.

31 Slide 30 Occupations that were difficult to fill Higher Skill Level Bachelor Degree or Higher Medium Skill Level Certificate IV to Associate Degree Structural Steel and Welding Trades Workers * Registered Nurses* Chefs * Real Estate Sales Agents Early Childhood Teachers* Plumbers Electricians* Lower Skill Level Compulsory Secondary Education to Certificate III Storepersons Truck Drivers* Sales Representatives* Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area * Occupations also difficult to fill in the September 2012 survey Occupations that were difficult to fill Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area This slide shows the vacancies that employers most commonly reported as being difficult to fill in the Sydney West and Blue Mountains PEA. * Denotes occupations also difficult to fill in the September 2012 survey Higher Skill Level (1) Bachelor or Higher Medium Skill Level (2 & 3) Certificate IV to Associate Degree Structural Steel and Welding Trades Workers* Registered Nurses* Chefs* Real Estate Sales Agents Plumbers Early Childhood Teachers* Electricians* Lower Skill Level (4 & 5) Compulsory Secondary Education to Certificate III Storepersons Sales Representatives* Truck Drivers*

32 Slide 31 Recruitment outlook remains soft 41 per cent of employers expected to recruit in the next year (similar to all regions surveyed 38 per cent). 19 per cent of employers expected to increase staff numbers in the next year. 4 per cent of employers expect to decrease staff numbers. Stronger recruitment expected in the Retail Trade and Health Care and Social Assistance industry. Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Recruitment outlook remains soft Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area 41 per cent of employers expected to recruit in the next year similar to all regions surveyed (38 per cent). 19 per cent of employers expected to increase staff numbers in the next 12 months, in line with the results from 2012 (20 per cent) and all regions (19 per cent). 4 Percent of employers expect to decrease staff numbers, slightly lower than the previous survey (6 per cent). Stronger recruitment expected in the Retail Trade (51 per cent) and Health Care and Social Assistance (46 per cent) industries in the next 12 months.

33 Slide 32 Recruitment Outlook Higher Skill Level Bachelor Degree or Higher Medium Skill Level Certificate IV to Associate Degree Early Childhood (Pre-primary School) Teachers Motor Mechanics Registered Nurses Real Estate Sales Agents Child Carers Lower Skill Level Compulsory Secondary Education to Certificate III Sales Assistants (General) Truck Drivers General Clerks Bar Attendants and Baristas Waiters Storepersons Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Recruitment outlook Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area This slide shows the vacancies that employers most commonly expected to recruit for in the Sydney West and Blue Mountains PEA in the 12 months following the survey. * Occupations also difficult to fill in the September 2012 survey Higher Skill Level (1) Bachelor or Higher Medium Skill Level (2 & 3) Certificate IV to Associate Degree Early Childhood Teachers Real Estate Sales Agents Registered Nurses Motor Mechanics Child Carers Lower Skill Level (4 & 5) Compulsory Secondary Education to Certificate III Sales Assistants (General) Bar Attendants and Baristas Waiters General Clerks Storepersons

34 Slide 33 Single Greatest Future Concern 7% 6% Health No concerns Care and Social Assistance 39% 18% Recruitment or retention difficulty/ skill shortages Demand/ economy 21% 21% Wages/Costs/CashFlow 10% 19% Competition (including high Australian dollar) Recruitment or retention difficulty / Other skill shortages Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Single Greatest Future Concern Source: Department of Employment, Survey of Employers Recruitment Experiences, December 2013/February 2014, Sydney West and Blue Mountains Priority Employment Area Overall, demand for products/services and economic conditions were the most common future concerns of employers surveyed (39 per cent). In the Health Care and Social Assistance industry the most common future concern of employers was recruitment or retention difficulty and skill shortages (21 per cent).

35 Slide 34 Conclusion Labour market remains subdued High unemployment in the region Very little full-time jobs growth Recruitment activity eased and remains subdued Challenges Younger population - disengaged young people and many children growing up in jobless families Long duration of unemployment Underutilisation of migrants; English proficiency Transition from manufacturing to services sector underemployment for males Creating pathways into new opportunities significant skills gap Ensuring more job opportunities go to local job seekers Improving education outcomes Opportunities Large and growing industries e.g. Health Care and Social Assistance Lower skilled occupations difficult to fill including Storepersons, Sales Representatives and Truck Drivers Announcement of new airport at Badgerys Creek and supporting infrastructure Job seekers need to have Employability skills Higher level of education and training Work experience (understanding business needs) Collaboration with key stakeholders including close links with business Conclusion Labour market remains subdued High unemployment in the region Very little full-time jobs growth Recruitment activity subdued Challenges Younger population - disengaged young people and many children growing up in jobless families Long duration of unemployment Underutilisation of migrants; English proficiency Transition from manufacturing to services sector underemployment for males Creating pathways into new opportunities significant skills gap Ensuring more job opportunities go to local job seekers Improving education outcomes Opportunities Large and growing industries e.g. Health Care and Social Assistance Lower skilled occupations difficult to fill including Storepersons, Sales Representatives and Truck Drivers Announcement of New Airport at Badgerys Creek Job seekers need to have Employability skills Higher level of education and training Work experience (understanding business needs) Collaboration with key stakeholders including close links with business

36 Slide 35 Further Information www. employment.gov.au/skillshortages www. employment.gov.au/australianjobs Further Information More information on labour market conditions and other research on small areas can be found on these web sites A report on the survey findings for the Sydney West and Blue Mountains PEA will be placed on the regional reports section of the Department of Employment - Regional Reports web site. Thank you.

37 Slide 36 If you have any questions about the presentation please contact the Employer Surveys Section or Recruitment Analysis Section on: Tel: or If you have any questions about the presentation please contact the Employer Surveys Section or Recruitment Analysis Section on: Tel: or

38 Slide 37

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