Ivan Neville Branch Manager Labour Market Research and Analysis Branch

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1 FUTUREgen16 Transitioning to work for young people 2 August 2016 Ivan Neville Branch Manager Labour Market Research and Analysis Branch

across States and occupations Source: ABS, Labour Force, June 2016 (three month

2 The jobs market remains solid Australia 11.9 million employed 5.8% unemployment rate 169,000 internet vacancies There is significant variability across States and occupations Source: ABS, Labour Force, June 2016 (three month average data, and seasonally adjusted data); Department of Employment, Vacancy Report, June 2016, averaged data

3 Unemployment rate (%) but youth unemployment is still a concern Australia 15 to 24 years Australia 15 years+ GFC Source: ABS, Labour Force, June 2016 (seasonally adjusted data)

and youth disengagement is also a challenge 18 24 year olds 30% 25% 20% Not studying and: Not looking for work Looking for work 15% 10% 5% 0% 20.7% 7.9% 10.3% 8.

4 and youth disengagement is also a challenge year olds 30% 25% 20% Not studying and: Not looking for work Looking for work 15% 10% 5% 0% 20.7% 7.9% 10.3% 8.8% 8.1% 8.1% 6.7% 7.9% 4.9% 4.3% 6.3% 5.5% 4.6% 6.5% 6.2% 4.2% 2.3% 5.0% NSW VIC QLD SA WA TAS NT ACT Australia Source: ABS, Census of Population and Housing, 2011

5 and some young people face additional barriers Jobless families (with children under the age of 15) Northern Territory 20% Tasmania 18% South Australia 15% NSW 15% Australia 14% Children who are growing up: Without working parents as role models Source: ABS, Census of Population and Housing, 2011

6 Indigenous Indigenous (15 to 24 years) Northern Territory 38% Tasmania 6% Queensland 5% Western Australia 5% Australia 4% Year 12 completion rates year olds 37% of indigenous 76% non indigenous Unemployment rates Indigenous / Non-Indigenous yrs 31.8% 16.7% yrs 19.2% 5.2% yrs 18.2% 3.9% yrs 10.8% 2.7% 55 yrs + 6.2% 3.0% Source: ABS, Census of Population and Housing, 2011; ABS National Aboriginal and Torres Strait Islander Social Survey, Australia,

7 Where are the jobs in Australia? Health Care and Social Assistance Retail Trade Construction Professional, Scientific and Technical Services Education and Training Manufacturing Accommodation and Food Services Public Administration and Safety Transport, Postal and Warehousing Other Services Financial and Insurance Services Administrative and Support Services Mining Arts and Recreation Services Rental, Hiring and Real Estate Services Information Media and Telecommunications 2% 2% 2% 2% Source: ABS, Labour Force, May quarter 2016 (4 quarter average) for Australia 4% 4% 4% 5% 6% 7% 7% 8% 8% 9% 11% Services industries 13% Producing industries 0% 2% 4% 6% 8% 10% 12% 14% Proportion of total employment

8 92% of new jobs will be in services industries Source: Department of Employment, Industry projections, Australia, five years to November 2020 Health Care & Social Assistance 250,200 (23%) Construction 87,000 (8%) Agriculture, Mining and Manufacturing (producing industries) are all projected to have job losses Producing industries 8% Services industries 92% Professional, Scientific & Technical Services 151,200 (14%) Education & Training 121,700 (11%) Retail 106,000 (10%) Accommodation & Food Services 98,800 (9%)

Source: Department of Employment, Employment

of projected employment growth 44% 49% Almost

9 Source: Department of Employment, Employment Projections, five years to November % of the new jobs will be medium to high skilled 2 in 5 new jobs may require VET qualifications Share of projected employment growth 44% 49% Almost half may require a bachelor degree or higher qualification

10 Young people should consider all possible training pathways VET / TAFE Apprenticeship / Traineeship University

Australia, 25 to 34 year olds Unemployment

may need applicants to have this level of

Diploma and Diploma Level Certificate III &

11 Further education and training is vital Highest level of educational attainment, Australia, 25 to 34 year olds Unemployment rate 16% 14% 12% 10% 8% 6% 4% 93% of new jobs may need applicants to have this level of education 3.6% 4.1% 4.1% Students first target 6.0% 14.4% 12.5% 2% 0% Bachelor Degree and Higher Advanced Diploma and Diploma Level Certificate III & IV Level Year 12 Certificate I & II Level Below year 12 Source: ABS, Census of Population and Housing, 2011; Department of Employment, Employment Projections, five years to November 2019

Commencement numbers ('000) 100 90 80 70 60 50 40 30 20

2 apprenticeship or traineeship 75.1 44.2 43.9 61.0 37.

8 Australia ('000) 171.2 2008 2015 2.5 1.9 4.7 3.

12 Commencement numbers ('000) Fewer young people are starting an 90.2 apprenticeship or traineeship Australia ('000) NSW VIC QLD SA WA TAS NT ACT -41% Source: NCVER, Apprentices and Trainees, December quarter 2015

but university commencements have been rising Australia ('000) 450 400 350 300 250 200 150 100 50 0 271.9 41% 382.

13 but university commencements have been rising Australia ('000) % Source: Department of Education and Training, ucube data, Tertiary education commencements of domestic students (undergraduate and postgraduate only)

14 and some graduates are having difficulty finding work Apprentices & Trainees All VET students Bachelor degree % 74.2% 67.4% % in employment after graduation (up to 6 months) Employment may not be in the area of study Source: GCA, GradStats, various issues NCVER, Student outcomes, customised data

So, successful applicants need more than just

important consideration Both equally important 52%

Department of Employment, Survey of Employers

15 So, successful applicants need more than just technical skills % of employers who rated as most important consideration Both equally important 52% Technical skills 31% Employability skills 17% Source: Department of Employment, Survey of Employers Recruitment Experiences, All regions surveyed December 2010 (Skill Level 1)

16 A successful job applicant has: Technical skills Soft skills Stands out Qualifications Relevant experience Technical knowledge People & communication skills Reliability & positive attitude Customer service & teamwork Strong résumé Suitably presented first impressions count Effective interview skills Source: Department of Employment, Survey of Employers Recruitment Experiences, 2016

Source: Graduate Careers Australia, Graduate Outcomes Survey 2015 Employers do

other important attributes % of employers who ranked graduate applicants

activities Verbal communication skills Writing skills Presentation skills

17 Source: Graduate Careers Australia, Graduate Outcomes Survey 2015 Employers do not think graduates have enough prior experience they also think graduates lack other important attributes % of employers who ranked graduate applicants attributes as good/very good Academic results Professionalism Extra-curricular activities Verbal communication skills Writing skills Presentation skills Knowledge of organisation Prior work experience 61% 65% 81% 80% 80% 78% 77% 91% 0% 20% 40% 60% 80% 100%

Source: Foundation for Young Australians, The New Basics,

with these transferable skills Skills not easily replicated

these skills have increased by over 200% since 2012 Critical

18 Source: Foundation for Young Australians, The New Basics, April 2016 Employers are also increasingly seeking workers with these transferable skills Skills not easily replicated by artificial intelligence Job advertisements requiring these skills have increased by over 200% since 2012 Critical thinking Problem solving Creativity Digital literacy Financial literacy

19 The jobs market in Australia is competitive Vacancies advertised on the internet or in a newspaper Average number of applicants per vacancy Average number of applicants interviewed not interviewed Source: Department of Employment, Survey of Employers Recruitment Experiences, All regions surveyed and Metro 12 months to December 2015

20 yet there are employers who are having 60% difficulty filling their jobs Employers who had difficulty recruiting for their most recent vacancy (%) 50% 40% 30% 20% 10% 44% 48% 32% 24% 27% 31% 28% 34% 0% Managers and Professionals Technicians and Trades Workers Community and Personal Service Workers Clerical and Administrative Workers Sales Workers Machinery Operators and Drivers Labourers Total Source: Department of Employment, Survey of Employers Recruitment Experiences, All regions surveyed and Metro 12 months to December 2015

21 so young people and the services supporting them need to approach employers directly 1 in 3 job in Australia is not advertised Word of mouth 66% 34% Approached by job seeker Social media Networking Source: Department of Employment, Survey of Employers Recruitment Experiences, All regions surveyed and Metro, 12 months to December 2015

22 Employers must play a key role in workforce development In an ageing workforce where are staff going to come from? Relevant experience is gained in the workplace Soft skills are developed in the workplace On the job training/ internships

23 Concluding thoughts The job market is changing - globalisation, ageing population and emerging technologies Post-school education & training are increasingly important However, it is not all about technical skills; greater emphasis being placed on soft skills. Employer engagement is essential

24 Resources Websites Fact Sheets Publications Phone Apps

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