Survey of Employers’ Recruitment Experiences
Cairns, Queensland
Priority Employment Area
May 2012
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 |Email: ABN: 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 | ABN: 63 578 775 294
With the exception of the Commonwealth Coat of Arms and where otherwise noted all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia licence (http://creativecommons.org/licences/by/3.0/au/).
The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence (http://creativecommons.org/licences/by/3.0/au/legalcode).
The document must be attributed as the ‘DEEWR - Survey of Employers’ Recruitment Experiences – Cairns Priority Employment Area – May 2012’.
Contents
The Cairns Priority Employment Area 1
Survey of Employers’ Recruitment Experiences 2
Key Findings 2
Recruitment Experiences in the 12 Months Preceding the Survey 2
Most Recent Recruitment Activity 3
Applicants and Suitability 5
Apprentices and Trainees 5
Job Services Australia and Recruitment Methods 6
Indigenous 6
Future Recruitment Expectations 6
Opportunities for Job Seekers 8
Labour Market Analysis and Research Branch
Department of Education, Employment and Workplace Relations ii
The Cairns Priority Employment Area
· The Cairns Priority Employment Area (PEA) is located in Far North Queensland and includes the Local Government Areas (LGAs) of Cairns, Cassowary Coast, Tablelands and Yarrabah. There are 206 360 people aged 15 or over in the region, most of whom reside in the Cairns LGA. Cairns is the largest population centre and main service centre for the region. Other population centres include Innisfail (Cassowary Coast LGA), Atherton and Mareeba (both in the Tablelands LGA).[1]
· The adult population in the Cairns PEA increased by 8 per cent between 2006 and 2011, lower compared with Queensland (11 per cent) and Australia (9 per cent).[2]
· The PEA has a high proportion of the working age population who identify as Indigenous
(10 per cent) compared with Queensland (3 per cent) and Australia (2 per cent). The Yarrabah LGA has a very high Indigenous population (98 per cent).[3]
· As of March 2011, the unemployment rate in the PEA was 8.1 per cent, substantially higher than the rates for Queensland and Australia (5.5 per cent and 5.1 per cent respectively). The unemployment rate peaked at 10.6 per cent in June 2010.[4]
· At the time of the 2006 Census, the proportion of 25 to 34 year olds who had completed Year 12 in the Cairns PEA (66 per cent) was slightly lower compared with Queensland (68 per cent) and Australia (69 per cent). However, a substantially lower proportion (17 per cent) had attained a bachelor degree or higher compared with Queensland (24 per cent) and Australia (29 per cent).[5]
· A higher proportion of the working age population in the PEA (21 per cent) was in receipt of an income support payment compared with Queensland (17 per cent) and Australia (16 per cent). The proportion of the working age population in receipt of an income support payment was particularly high in the SLAs of Yarrabah (36 per cent), Herberton (30 per cent), Mareeba
(24 per cent) and Cairns – Pt B (24 per cent).[6]
· While the proportion of families with no working parent in the Cairns PEA (19 per cent) is the same as Queensland (19 per cent) and similar to Australia (20 per cent), it is substantially higher in the SLAs of Cairns – Central Suburbs (35 per cent) and Herberton (33 per cent).[7]
· The major employing industries in the PEA are Retail Trade, Accommodation and Food Services, Construction and Health Care and Social Assistance. Agriculture is also a large employer in the areas outside of Cairns (the Cassowary Coast and Tablelands LGAs). Agriculture and Tourism are both prone to seasonal fluctuations in employment.
· The region was directly affected by Cyclone Yasi in January 2011, with the Cassowary Coast LGA (including the population centres of Tully, Cardwell and Innisfail) being the most severely impacted by the disaster.
Survey of Employers’ Recruitment Experiences
The Department conducted a Survey of Employers’ Recruitment Experiences in the Cairns Priority Employment Area (PEA) in May 2012. In total, 384 employers were surveyed, of whom 266 had recruited in the previous 12 months. The PEA was previously surveyed in April 2010 and September 2009.
Key Findings
· Overall, labour market conditions in the Cairns PEA are subdued. Nonetheless, there are some indications that conditions have improved since the region was last surveyed.
o Demand for labour in the 12 months preceding the survey was similar to all regions surveyed, however, most recruitment activity was due to staff turnover and few vacancies remained unfilled.
o The supply of labour was high, with a high average number of applicants for a limited number of vacancies.
o Despite relatively soft labour market conditions, there was evidence of skills shortages in some sectors, with a high rate of unfilled vacancies and difficulty recruiting for Technicians and Trades Workers.
o Employers’ outlook following the survey was cautious and a high proportion of employers still expected to reduce staff. Nonetheless, there were signs of improvement, particularly in some industries.
Recruitment Experiences in the 12 Months Preceding the Survey
· The proportion of employers (69 per cent) who had recruited in the 12 months preceding the survey was similar to all regions surveyed in the 12 months to March 2012 (68 per cent).
o Recruitment activity was particularly high in the Accommodation and Food Services
(80 per cent), Construction (74 per cent) and Retail Trade (74 per cent) industries.
· Although the proportion of employers who recruited to replace staff (89 per cent) was slightly higher compared with all regions surveyed (86 per cent), the proportion of employers who recruited to increase staff numbers was lower compared with all regions surveyed (42 per cent compared with 50 per cent).
· There were 25 vacancies for every 100 staff employed in the 12 months preceding the survey, compared with all regions surveyed (20 vacancies per 100 staff employed).
· The proportion of vacancies remaining unfilled (3.8 per cent) was substantially lower than the average for all regions surveyed in the 12 months to March 2012 (7.4 per cent).
o Employers in the Manufacturing (7.6 per cent) and Construction (6.0 per cent) industries reported relatively high unfill rates, while the Retail Trade (3.1 per cent) and Accommodation and Food Services (2.7 per cent) industries reported very low unfill rates.
· The proportion of employers who experienced recruitment difficulty in the 12 months preceding the survey (58 per cent) was similar to all regions surveyed (59 per cent).
Table 1. Recruitment experiences in the 12 months preceding the survey
Cairns PEAMay 2012 / Cairns PEA
Apr 2010 / Cairns PEA
Sep 2009 / All Regions Surveyed
12 Months to Mar 2012
Proportion of employers who recruited / 69% / 68% / 58% / 68%
- to increase staff / 42% / 48% / 48% / 50%
- to replace staff / 89% / 83% / 83% / 86%
Vacancies per 100 staff / 25 / n/a* / 20 / 20
Proportion of vacancies unfilled / 3.8% / n/a* / 3.7% / 7.4%
Proportion of recruiting employers who experienced difficulty / 58% / 56% / 58% / 59%
*Employers were not asked about the number of vacancies for which they recruited in the 12 months preceding the survey in the April 2010 survey.
Most Recent Recruitment Activity
Employers were asked about their most recent recruitment experience.
· The proportion of vacancies that were not filled was 4.6 per cent, compared with 3.6 per cent in September 2009. Despite the increase since the last survey, the unfilled vacancy rate is substantially lower compared with all regions surveyed in the 12 months to March 2012
(10.1 per cent) (Figure 1).
o All vacancies for Community and Personal Service Workers and Machinery Operators and Drivers were filled, while very few vacancies for Labourers and Sales Workers remained unfilled (2.7 per cent and 2.9 per cent respectively).
o On the other hand, the unfill rate for Technicians and Trades Workers (12.5 per cent) was relatively high.
Figure 1. Unfilled vacancies by occupation
· Around 45 per cent of employers experienced recruitment difficulty for their most recent vacancy.
o A high proportion of employers had difficulty recruiting for Technicians and Trades Workers (67 per cent) and Managers and Professionals (55 per cent).
o The most common reasons for recruitment difficulty were finding staff who met the technical skill requirements for the job (45 per cent), the tight labour market
(33 per cent) and the nature of the work (20 per cent).
· Employers in Cairns PEA reported recruitment difficulty for a range of occupations (Table 2).
Table 2: Occupations difficult to fill by skill level
Bachelor Degree or Higher VET QualificationsChefs / Motor Mechanics
Hairdressers / Air-conditioning and Refrigeration Mechanics
Electricians / Registered Nurses
Other Occupations
Sales Assistants (General) / Truck Drivers
Waiters / Housekeepers
Receptionists / Retail Supervisors
Applicants and Suitability
· The supply of labour in the Priority Employment Area had increased since the September 2009 survey with 10.9 applicants per vacancy compared with 6.0 applicants in September 2009. The number of suitable applicants per vacancy has also increased (from 2.0 in September 2009 to 3.7 in May 2012).
Figure 2. Competition for vacancies by occupation
Apprentices and Trainees
· The proportion of employers in the Cairns PEA who currently employ an apprentice or trainee
(36 per cent) was the same as when the region was surveyed in April 2010 (36 per cent) and slightly higher compared with all regions surveyed (34 per cent).
o A high proportion of employers in the Health Care and Social Assistance (63 per cent), Other Services (57 per cent), Construction (51 per cent) and Manufacturing
(47 per cent) industries reported employing an apprentice.
· The proportion of employers who expected to recruit an apprentice or trainee in the 12 months following the survey (23 per cent) was slightly higher compared with when the region was surveyed in April 2010 (21 per cent).
o A high proportion of employers in the Health Care and Social Assistance (56 per cent), Other Services (38 per cent) and Manufacturing (32 per cent) industries expected to recruit an apprentice or trainee in the 12 months following the survey.
Job Services Australia and Recruitment Methods
· The recruitment methods used most frequently during employers’ most recent recruitment round were newspapers/magazines (45 per cent), internet (24 per cent) and word of mouth
(23 per cent).
o The proportion of employers who recruited using informal methods only (30 per cent) was similar to all regions surveyed (31 per cent).
· Some 7 per cent of employers used a JSA provider in the 12 months preceding the survey.
o Of those employers, 79 per cent were satisfied with the service.
Indigenous
· Some 37 per cent of employers who recruited in the 12 months preceding the survey had applicants from an Indigenous background, of whom 61 per cent had filled a vacancy with an applicant from an Indigenous background.
o A high proportion of employers in the Retail Trade (50 per cent) and Health Care and Social Assistance (45 per cent) industries had applicants from an Indigenous background.
· Some 16 per cent of recruiting employers reported challenges to employing Indigenous applicants, the most common of which were absences and time off from the work place
(63 per cent) and poor attitude/lack of basic work readiness (19 per cent).
Future Recruitment Expectations
· Almost half (49 per cent) of employers expected to recruit in the 12 months following the survey, compared with 59 per cent in April 2010.
o A high proportion of employers expected to recruit in the Accommodation and Food Services (75 per cent) and Health Care and Social Assistance (59 per cent) industries.
· The proportion of employers who expected to increase staff was lower (22 per cent) compared with all regions surveyed (29 per cent), however, similar to when the region was surveyed in April 2010 and September 2009 (24 per cent and 20 per cent respectively).
o Industries in which a high proportion of employers expected to increase staff included the Professional, Scientific and Technical Services (39 per cent) and Accommodation and Food Services (31 per cent) industries.
· A higher proportion of employers expected to decrease staff (7 per cent) compared with all regions surveyed (4 per cent).
· The proportion of employers who expected recruitment difficulty in the 12 months following the survey (44 per cent) was similar to all regions surveyed (46 per cent).
o High recruitment difficulty was expected by employers in the Professional, Scientific and Technical Services (78 per cent) and Construction (64 per cent) industries.
Table 3. Future recruitment expectations
Cairns PEAMay 2012 / Cairns PEA
Apr 2010 / Cairns PEA
Sep 2009 / All Regions Surveyed
12 Months to Mar 2012
Will recruit / 49% / 59% / 42% / 52%
Expect to increase staff / 22% / 24% / 20% / 29%
Expect to reduce staff / 7% / 8% / 5% / 4%
Will recruit an apprentice or trainee / 21% / 21% / 20% / 23%
Expect difficulty / 44% / n/a* / 38% / 46%
*Employers were not asked if they expected recruitment difficulty in the 12 months following the survey in the April 2010 survey.
· The proportion of employers who expected challenges in the 12 months following the survey (59 per cent) was similar to all regions surveyed (58 per cent).
o A high proportion of employers in the Other Services (71 per cent), Retail Trade
(68 per cent), Construction (67 per cent) and Manufacturing (64 per cent) industries expected challenges in the 12 months following the survey.