Work Watch | June 2023

Executive Summary

Workskil Australia, the nation’s largest not-for-profit employment services provider, conducts quarterly analysis of all its registered job seekers, many of whom are disadvantaged. This snapshot includes key insights into where they are finding employment and the specific challenges they face in their journey to employment.

The Workskil Australia Work Watch June Quarter 2023 report provides a unique insight into the jobs market and the prospects for some of the nation’s most vulnerable job seekers.

Key observations include:

• Tougher economic conditions are impacting the employment market, particularly vulnerable job seekers, reflected in a 14% reduction in new job placements during the June quarter.

• The Trades & Services industry accounts for 31.5% of new hires (down from 33% in the March quarter) with fewer builder’s labourers jobs a sign of weakening infrastructure and building spending.

• Manufacturing saw the greatest reduction in new jobs creation while Retail rebounded from a previous fall.

• Traditional gender stereotypes remain with women making up the majority of sales assistant, receptionist and cleaning roles and men for factory processing, driver and labourer roles.

• Women are 5% more likely than men to maintain their employment for six months and beyond.

• First Nations people make up 20.2% of registered job seekers, a significant over-representation given they account for 3.8% of Australia’s population.

• 3.2% of all new employment involved individuals from a refugee visa background.

• 11.7% of job seekers who found work identified as having a mental health condition and were more likely to fall out of work within the first six months of employment than job seekers not making this disclosure.

• 13.9% of men and 8.8% of women who found work identified as having experienced homelessness. The total overall figure has risen over the past year (from 11% to 11.7%) with people who experience homelessness 30% more likely to fall out of work in the first six months.

• Underemployment remains a concern with the average number of hours worked per fortnight just 29.6 hours, compared with the Australian workforce average of 65 . This figure was again lower for people who experience homelessness and those who identified as having a mental health condition.

As a not-for-profit and charity, Workskil Australia delivers a variety of employment and community services programs to Australians in need of assistance.

Many of our customers engage in the Australian Government’s welfare programs and represent a significant portion of the nation’s unemployed working age population.

We undertake and publish this data analysis because our customers deserve a voice, and we have the ability to share their collective story.

Top Hiring Industries

The top 10 (in descending order) industries hiring in the June 2023 quarter are:

Observations:

• Overall the downturn in economic activity is starting to pinch, highlighted by a 14% reduction in new employment instances across the board this quarter.

• Trade & Services represented 31.5% of new hires, down from 33% in the March quarter. Building and trades activity is still the primary employment driver, but there are signs of weakening infrastructure and building spending. Whilst the

Trades & Services industry creates a lot of new jobs, unfortunately many are short-term in nature (e.g. project/contract roles) so about one third of these roles last for longer than six months.

• Retail bounced back following previous falls during the holiday months to account for 9% of all new jobs for the quarter (up from 7%).

• Hospitality & Tourism new jobs held steady, and when combined with Retail, reflects household spending priorities.

• Manufacturing saw the greatest reduction in new jobs creation.

• Other industries where the percentage of new jobs increased included Administrative & Office Support, and Community Services.

Top Hiring Jobs

The top 10 (in descending order) most common roles filled in the June 2023 quarter are:

Observations:

• Whilst there has been a slight reduction in the number of new Builder’s Labourer roles these positions continue to dominate the market, accounting for 11.3% (down from 12.7%) of all new jobs.

• Sales Assistant roles have risen significantly to 6.5% (up from 4.2%) of all new jobs.

• Other notable increases include Call/Contact Centre Operators and Domestic Cleaning roles.

Gender Divide

The top 10 (in descending order) industries

Observations:

• Whilst 47% of the job seekers we support to find work are women, there is over-representation in traditionally female-dominated roles with women making up:

• 67% of all Sales Assistant roles

• 75% of all Commercial Cleaning roles

• 88% of all Receptionist roles

• 91% of all Domestic Cleaning roles.

• There is significant overrepresentation in traditionally male-dominated roles with men making up:

• 88% of Factory Process Workers roles

• 95% of Truck Driver roles

• 95% of Builder’s Labourers roles

• 97% of Forklift Driver roles.

• Overall, the percentage of female employment has risen slightly in the June 2023 quarter to be now 42%, but still significantly behind that of men (58%).

• Across all of the job placements we’ve seen in the 2023 financial year, women are 5% more likely than men to keep their job for six months and beyond.

• The industries where women have the best chance of maintaining their roles for six-months and beyond are Defence & Protective Services, Engineering, Science, Sales, Human Resources, Health & Medical, Communications Advertising Arts & Media, and Administration & Office Support.

• The industries where men have the best chance of maintaining their roles for six-months and beyond are Accounting, Defence & Protective Services, ICT, Sales, Administration & Office Support, Banking & Financial Services, Community Services, and Customer Service & Call Centre.

• Best roles for women for career longevity are Advertising & Marketing, Bank roles, Teaching/ Education roles, Nurses, and Café Workers.

• Best roles for men for career longevity are Diesel Mechanics, Teaching/Education roles, Property Management, Medical Support roles, and ICT roles.

First Nations

Top 10 industries (in descending order) for First Nations recruitment in the June 2023 quarter are:

1 Trades & Services

6 Retail

2 Hospitality & Tourism

3 Transport & Logistics

4 Community Services

8 Administration & Office Support

9 Agriculture, Animals & Conservation

5 Manufacturing 10 Education & Training

Observations:

• First Nations people make up 20.2% of commenced customers, an over-representation given they account for 3.8% of Australia’s population.

• Overall new First Nations jobs reduced from 16% to 15%.

• The gender divide widens for women, who account for only 38% of all new First Nations job placements.

• Trades & Services roles make up 38% of all new jobs for First Nations Australians with 17% being Builder’s Labourer roles.

For comparison: Top hiring industries for First Nations recruitment (March 2023 quarter)

• The industries where First Nations people have the best chance of maintaining their roles for six-months and beyond are Banking & Financial Services, ICT, Engineering.

Migrants

Top 10 industries (in descending order) for Migrant recruitment in the June 2023 quarter are:

Observations:

• 3.2% of all new employment during the June 2023 quarter involved individuals who came from a refugee visa background. This again shows under-representation compared to the 4.1% of those on unemployment support being from a refugee visa background.

• Of all registered job seekers on unemployment benefits, 12.7% are classified as Culturally and Linguistically Diverse (CALD) and 3.6% refugees.

• The industries where refugee and CALD job seekers have the best chance of maintaining their roles for six-months and beyond are Defence & Protective Services, Executive & General Management, HR and Recruitment, ICT, Engineering, and Administrative & Office Support. These are generally qualified positions. For comparison: Top hiring industries for migrant recruitment (March

Joseph’s journey from homelessness to new heights

Joseph Paley feels right at home installing roofs on some of the largest commercial properties in the city.

However a year ago he didn’t have a roof over his own head or a job.

The 37-year-old was then sleeping rough and unemployed.

“I was just out of prison and estranged from my family and relatives,” he recalled.

“I had no accommodation of my own, no support network and no work.

“It felt like I was in complete limbo.

“I had been a street kid in my teenage years, so I knew how to live rough.

“I stayed a few nights at a mate’s place but soon found myself huddled up next to a wall at the train station. It was the middle of July last year and it was freezing.

“I walked into the local Workskil Australia office the next morning and started to turn my life around. That afternoon I had my first job interview and I haven’t looked back since.”

With the help of the Workskil Australia team, Joseph, who has a trades background and used to work as a fitter, got back on his feet

and immediately landed a job on a building site as a casual through Tech-Force recruitment.

He was later employed by Asurco Roofing and Cladding where he now works full time as a roofer on commercial building sites.

“It’s tough physical work and very satisfying,” Joseph said.

“You really develop a bond with the guys next to you and I love coming home feeling like I’ve done a good day’s work.”

As well as receiving a regular pay packet, Joseph now lives with his partner in Adelaide in stable accommodation.

His experience of unemployment and homelessness is not uncommon.

“My life was torn apart by drugs and I spent about three and a half years either homeless or in prison,” Joseph said.

“I’ve slept at train stations, in playgrounds and anywhere that can provide some shelter as well as

having done plenty of couch surfing.

“Not having a home makes finding a job almost impossible.

“It’s very hard to make yourself presentable for an interview with no access to hot water, a change of clothes or even an alarm clock. You are filled with self-doubt and loathing, which can be very hard to overcome.”

Workskil Australia provided Joseph with a new set of clothes, assistance with his resume, helped him search for temporary housing and organised for an interview with an organisation seeking casual building site workers.

“Most importantly they boosted my confidence to take that first interview and I got the job,” Joseph said.

“My life has turned around. I now own my car outright, I live in a house with my partner and I’m working with a great company.

“I’m mentally, physically and financially in the best position I’ve ever been.”

Average Weekly Hours

Observations:

For the 2023 financial year we have seen the following trends for average working hours for our customers:

• Average working hours per fortnight is 29.6 hours. This is well below the average working hours across the Australian workforce, which is around 65 hours per fortnight.

• Those who have experienced homelessness only worked an average of 27.6 hours per fortnight.

• Those who have identified as having mental health condition only worked an average of 28 hours per fortnight.

Mental Health

• Those who are CALD or have a refugee visa background work 31.5 and 32.7 hours per fortnight (respectively).

In the June 2023 quarter, 11.7% of job seekers who found work identified as having a mental health condition, compared to 15.8% of total customers who identified as having a mental health condition.

13.6 %

of women who found work identified as having a mental health condition compared with 16.2% of women on our total caseload who identify as having a mental health condition.

Observations:

• Mental health conditions can be an impediment to finding and maintaining employment. This is particularly evident for men who have a mental health condition.

• People who have a mental health condition are more likely to fall out of work between months 3 and 6 than those who do not identify as having a mental health condition. This data aligns with common probation period durations, which is a known and challenging time for anyone in new employment.

• The data supports the case for ongoing efforts to provide an inclusive workforce to employ candidates who identify as having a mental health condition.

10.3 %

of men who found work identified as having a mental health condition, as compared to 15.4% of men on our total caseload who identify as having a mental health condition.

For comparison: In the March 2023 quarter, 11.6% of job seekers who found work identified as having a mental health condition. The breakdown of gender comparisons for those who found work against total caseload statistics were:

• Women: 13.5% of women who found work in March 2023 quarter identified as having a mental health condition, as compared to 13% of women on our total caseload who identify as having a mental health condition.

• Men: 10.4% of men who found work in June 2023 quarter identified as having a mental health condition, as compared to 13.1% of men on our total caseload who identify as having a mental health condition.

Homelessness

In the June 2023 quarter, 11.7% of job seekers who found work identified as having experienced homelessness, up from 11% a year ago.

8.8 %

of women who found work identified as having experienced homelessness, as compared to 11.9% of women on our total caseload who identify as having experienced homelessness.

Observations:

• Homelessness can be an impediment to finding and maintaining employment. Whilst homelessness has been disclosed for a greater portion of our male customers, the impacts on employment are felt regardless of gender.

• People who experience homelessness are more likely to fall out of work - 9% more likely in the first month, 15% in the first three months and 30% in the first six months.

• Age is a significant factor when considering homelessness impacts on employment. Those under 30 who have experienced homelessness are 45% less likely to last in employment for six months or more. Those over 30 who have experienced homelessness are 29% less likely to last in employment for six months or more.

13.9 %

of men who found work identified as having experienced homelessness, as compared to 16.8% of men on our total caseload who identify as having experienced homelessness.

• The real cost of recruitment can be up to two or three times the salary an employer is paying for a role. By looking for the warning signs and providing support to address a homelessness challenge for a staff member, employers might be saving tens of thousands in the long run.

• We know the nation is facing a housing crisis, and those who are struggling to make ends meet are at the bottom of every list. During the 2023 financial year Workskil Australia spent more than $130,000 on rent, crisis accommodation, tents, sleeping bags and swags. We know more needs to be done, and we want to be a part of that effort.

For comparison: In the March 2023 quarter 11.8% of job seekers declared having experienced homelessness. The breakdown of gender comparisons for those who found work against total caseload statistics were:

Women: 8.9% of women who found work identified as having experienced homelessness, as compared to 11.7% of women on our total caseload who identify as having experienced homelessness.

Men: 13.6% of men who found work identified as having experienced homelessness, as compared to 16.4% of men on our total caseload who identify as having experienced homelessness.

Disclaimer

This report is presented by Workskil Australia for the purpose of disseminating information for the benefit of the public. Workskil Australia has taken care to ensure the information in this report is as correct and accurate as possible at the time of publishing. Workskil Australia does not guarantee, and accepts no legal liability whatsoever arising from, or connected to, the use of any material contained in this report or on any linked website. Workskil Australia recommends that users exercise their own skill and care with respect to their use of this report and that users carefully evaluate the accuracy, currency, completeness and relevance of the material in this report for their purposes.

Privacy

The law, including the Australian Privacy Principles (APPs) as set out in Privacy Act 1988, protects personal information provided to Workskil Australia. The APPs regulate how entities collect, use, disclose and store personal information., APP 6 places limits on the use and disclosure (sharing or releasing) of personal information. Workskil Australia must also comply with the Social Security Laws in relation to personal and protected information and must not use or disclose it other than for the purpose of the Social Security Laws (with some limited exceptions). However, where information has been appropriately de-identified, it is no longer personal or protected information and can therefore be used or shared in ways that may not otherwise be permitted under the Privacy Act or the Social Security Laws. Workskil Australia has taken steps to remove identifiers or otherwise alter other information (‘quasi-identifiers’) that may lead to reidentification in the data access environment. Workskil Australia has also put in place controls that may be necessary to manage the risk of re-identification in the data access environment.

HEAD OFFICE: Level 1, 1069 South Road, Melrose Park SA 5039 workskil.com.au

Workskil Australia acknowledges First Nations peoples as the Traditional Owners and Custodians of this country, and their connection to land, water and community. We pay our respect to them, their cultures and customs, and to Elders past, present and emerging.