Youth labour market outcomes and challenges in the Northern Suburbs Presenter: Ivan Neville Branch Manager Labour Market Research and Analysis Branch
www.employment.gov.au
National youth labour market trends Youth unemployment rate high and a large proportion of young people have not worked before
Youth make up a large proportion of long-term unemployed
Youth underemployment at a record high
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The jobs market in Northern Adelaide is challenging Unemployment rate of 9.1% in Northern Adelaide - Elizabeth unemployment rate 32.9% - Youth unemployment rate 16.3% Year 12 completion rate for 18-24 year olds 63.5% - 41.5% Year 12 completion rate in Elizabeth Structural shift in jobs market - Jobs in Manufacturing down by 24% in 10 years - Increased employment in Services industries
Sources: ABS, Labour Force Survey, October 2015; ABS, Labour Force Survey, August Quarter 2015; ABS, Census of Population and Housing, 2011
Closure of Holden will have a negative impact… Projected impact since announcements in 2013
1,600 Holden plant workers
7,000 from companies in the supply chain
4,100 from the associated fall in consumption
Only 25% of Holden’s direct supply chain companies are sufficiently diversified to continue in the market after closure
Source: ‘Australia's Automotive Manufacturing Industry’, Productivity Commission, inquiry report, 31 March 2014; Edmund Tadros, ‘How many jobs will go after Holden stops making cars in Australia?’, Australian Financial Review, 11 December 2013; Government of South Australia, Submission to the Productivity Commission on the review of the Australian automotive manufacturing industry, November 2013
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…but forecast employment growth remains positive 220,000
Northern Adelaide
200,000 180,000 160,000 140,000 120,000 100,000
Sources: ABS, Labour Force, October 2015; Department of Employment Regional Projections, five years to November 2019
So where are the jobs? Northern Adelaide
15%
Health Care and Social Assistance
12%
Retail Trade
11%
Manufacturing
9%
Construction
7%
Transport, Postal and Warehousing
6%
Accommodation and Food Services
6%
Education and Training
2%
Agriculture, Forestry and Fishing
1%
Mining
0%
4%
8%
12%
16%
Share of total employment Source: ABS, Labour Force, August Quarter 2015, 4 quarter averages of original data
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Shift towards the Services sector… Northern Adelaide 40000
August Quarter 2000 August Quarter 2015
29,700
27,700 22,400
20,600 20000
17,100
17,900 14,800
11,200 3,400 3,200 0 Manufacturing
Agriculture, Forestry and Fishing
Construction
Retail Trade
Health Care and Social Assistance
Source: ABS, Labour Force Survey, August Quarter 2015
… which is going to continue Projected employment change for selected industries to November 2019, Northern Adelaide
3.7
Health Care and Social Assistance
3.1
Retail Trade
1.7
Education and Training Construction
1.2
Professional, Scientific and Technical Services
1.2
Transport, Postal and Warehousing
1.2
Accommodation and Food Services
1.1 1.0
Public Administration and Safety Manufacturing
Also turnover of jobs
-3.4
-4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 (‘000)
Source: Department of Employment, Industry Employment Projections five years to November 2019
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There are significant challenges to overcome
High levels of youth disengagement 20 to 24 year olds who are not working and not studying 50% Not studying or working, and: Not looking for work Looking for work 34%
25%
15% 25% 11% 8% 15%
11%
10%
7%
8%
Female
Male
15%
5%
7% 7%
15% 6%
11%
5%
6%
4%
Female
Male
Female
0% Male
Female
Elizabeth
Male
Playford
Female
Salisbury
Male
Northern Adelaide
Australia
Source: ABS, Census of Population and Housing, 2011; Playford and Salisbury refer to SA3 data, Elizabeth refers to SA2 data
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Intergenerational unemployment is a significant issue in Northern Adelaide Families with children under the age of 15
Jobless couple families
Northern Adelaide: 8% Playford: 13% Salisbury: 9% Australia: 5%
Jobless one parent families
Northern Adelaide: Around 15,000 children in jobless families
Northern Adelaide: 51% Playford: 63% Salisbury: 50% Australia: 44%
Source: ABS, Census of Population and Housing, 2011
The labour market is tough... Vacancies advertised on the internet or in a newspaper
Average number of applicants per vacancy
Average number of applicants interviewed
16
3
13 not interviewed
Reasons for not getting an interview: - Lack of relevant experience - Insufficient qualifications or training - Poorly written/presented application - Soft skills not demonstrated
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, All regions surveyed 12 months to June 2015
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...and the competition is getting tougher
Proportion with a Bachelor degree or higher (%)
16
Employed persons in clerical, sales and labourers jobs with a Bachelor degree or higher
14.6%
14 12
In 2014, 29.0% of workers held a bachelor degree or higher qualification • Up from 20.7% in 2001.
11.1%
10 8
7.6%
6 4 2 0 2001
2008
2014
Source: ABS, Education and Work, various issues
Improving the odds
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How can a young person gain experience? Every opportunity should be considered
Consider volunteering: • Experience • Referees • Contacts • New skills
Entry level jobs can help develop general soft skills.
Job
Job
Education and training is vital Unemployment rate, Persons aged 25-34 years 16%
14.9%
14% Unemployment Rate
12%
12.2%
The wrong training is of no benefit
10% 8% 6.0%
6% 4%
4.1%
3.8%
Bachelor Degree or higher
Advanced Diploma / Diploma
4.8%
2% 0% Certificate III & IV
Year 12 or equivalent
Certificate I & II
Below Year 12
Source: ABS, Census of Population and Housing, Northern Adelaide, 2011
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Ensure young job seekers’ applications: Match the job
Hey man I sore that job in the paper can I have it?
Cover key job requirements
I am smart, funni and I think ill b good at it.
Have correct spelling and grammar
Thanks Ivan Neville xoxo
Look professional
Job seekers need to develop and demonstrate soft skills Flexibility / adaptability
Enthusiasm / positive attitude
Interpersonal / social skills
Teamwork
Reliability
These skills are
Communication skills
ESSENTIAL
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, all regions surveyed, June 2015
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First impressions count Build on a good first impression
Appropriate dress is important
Bad first impressions can be hard to overcome
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, All regions surveyed to December 2014
There are many keen young people in your area Local youth recognise the importance of: Hard work
Loyalty
Responsibility, reliability and honesty
Source: Year 10 Employment Survey Results from a Northern Adelaide High School
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Job seekers need to tap into the informal jobs market 1 in 3 jobs are not advertised
Word of mouth Approached by job seeker
Source: Department of Employment, Survey of Employers’ Recruitment Experiences, All regions surveyed to June 2015
Conclusion •
•
•
Transitioning into employment can be tough o Breaking the cycle of jobless families o High youth disengagement o The jobs market can be highly competitive Still many opportunities o Strong growth in Services sector o Opportunities created through turnover Young people can improve their odds o Education and training critical o Soft skills always essential o Work experience is vital o Explore different job search methods
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Tools to assist with job search Websites
Publication
Phone Apps
We need your help! New youth website being developed - Help young people with their employment and career planning - Advisors’ page with resources that can be printed - Fact sheets, tip sheets and workbooks What else would you like to see included? - Please email Workforce.Development.Team@employment.gov.au
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