Department of Employment Overview of the

Slide 1 Department of Employment Overview of the Ballarat region labour market June 13 2014 Department of Employment Overview of the Ballarat region Labour Market June 13 2014 (surveyed November 2013) Ivan Neville Branch Manager Labour Market Research and Analysis Branch www.employment.gov.au

Slide 2 Map of Central Victoria Ballarat region Central Victoria Ballarat region Source: ABS (ASGC), 2006 LGA boundaries The Ballarat region includes the Local Government Areas (LGAs) of: Northern Grampians Ararat Pyrenees Ballarat Moorabool Hepburn The Central Victoria region includes the Ballarat region plus the following Local Government Areas (LGAs) of: Central Goldfields Greater Bendigo Mount Alexander 76% of the Ballarat SA4 population lives in the Ballarat region.

Slide 3 What has changed in the Ballarat region? (Since last survey, March 2012) What has changed in the Ballarat region? Unemployment rate Youth unemployment rate Demand for for labour Competition for for vacancies Future recruitment expectations Overall labour market conditions for for the the region MIXED ABS, Labour Force Survey, April 2014; ABS, Labour Force Survey, April 2014; Department of Employment, Small Area Labour Department of Employment, Small Area Labour Market data, December 2013; Survey of Employers Recruitment Experiences, Central Victoria PEA, Market data, December 2013; Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2012 and November 2013 ; Department of Employment administrative data, March 2014 November 2012 and November 2013 ; Department of Employment administrative data, March 2014 Source: ABS, Labour Force Survey, April 2014; Department of Employment, Small Area Labour Market data, December 2013; Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2012 and November 2013; Department of Employment administrative data, March 2014 Labour market conditions in the Ballarat region have strengthened slightly since 2012. The unemployment rate in the Ballarat region decreased to 5.8 per cent in December 2013 from 6.7 per cent in December 2012 (SALM, December 2013). The youth unemployment rate for the Ballarat region dropped from 17.7 per cent in April 2013 to 7.9 per cent in April 2014 (ABS LFS, April 2014). Competition for vacancies increased substantially. The survey showed an increase in recruitment activity and expectations of future recruitment were encouraging.

Slide 4 Population profile for the Ballarat region Population profile for the Ballarat region Adult Population (15 +) Growth 2007 to 2012 Working Age (15-64) Participation Rate (2011) Median Age (2011) Ballarat LGA 78,300 11% 74.6% 36 Ararat LGA 9,400 1% 69.9% 43 Hepburn LGA 12,200 6% 71.6% 44 Moorabool LGA 23,200 13% 75.6% 37 N. Grampians LGA 9,900 1% 73.0% 42 Pyrenees LGA 5,700 4% 65.2% 45 Central Victoria region 247,900 8% 73.5% 40 Victoria 4,599,100 10% 75.6% 37 Australia 18,419,600 10% 75.8% 37 Source: ABS, Estimated Resident Population, 2007 and 2012; ABS, Census of Population and Housing, 2011 Source: ABS, Estimated Resident Population, 2007 and 2012; ABS, Census of Population and Housing, 2011 The adult population (15 years+) in the Central Victoria region (247,900) has increased by 8 per cent in the five years to June 2012. The adult population for Victoria and Australia have both increased in the same period by 10 per cent. The Moorabool LGA has the strongest population growth (13 per cent) while the Ararat and N. Grampians LGAs had the weakest (both 1 per cent). At the time of the 2011 Census, the Working Age Population (15-64 years) participation rate for the region was 73.5 per cent, slightly weaker that Victoria (75.6 per cent) and Australia (75.8 per cent). The median age in the region was 40 years at the time of the 2011 Census, a slightly higher age compared with Victoria and Australia (both 37 years). The Pyrenees LGA had the highest median age (45 years).

Slide 5 Age distribution Ballarat region 14,000 Age distribution from 1991 to 2012 - Ballarat region 12,000 10,000 8,000 6,000 4,000 2,000 1991 1996 2002 2007 2012 0 Age (years) Source: ABS Estimated Resident Population, 2012 Source: ABS Estimated Resident Population, 2012 Over the 21 years between 1991 and 2012 the population has shown signs of aging.

Slide 6 More people moving into the region over the past 5 years - Working Age Population (15-64 years) More people moving into the region over the past 5 years Working Age Population (15-64 years) 19,500 people moved to the Ballarat region in the last 5 years 13,300 people moved out of the Ballarat region in the last 5 years 700 Bendigo region 1100 Queensland 1000 New South Wales 2400 Overseas Source: ABS Census of Population and Housing, 2011 8070 Greater Melbourne region Ballarat region 5220 Greater Melbourne region 700 Bendigo region 1200 Queensland 800 New South Wales Source: ABS Census of Population and Housing, 2011 In the five years to the 2011 Census, 19,500 people aged 15 to 64 have moved to the Ballarat region. The majority of people came from the following localities: region People % of people who moved to the region Melbourne 8070 (41%) Overseas 2400 (12%) Queensland 1100 (6%) New South Wales 1000 (5%) Bendigo region 700 (4%) In the five years to the 2011 Census, 13,300 people aged 15 to 64 moved out of the Ballarat region. region People % of people who moved to the region Melbourne 5220 (39%) Queensland 1200 (9%) New South Wales 800 (6%) Bendigo region 700 (5%)

Age (years) Slide 7 Residents on the move Residents on the move 5 years to 2011 - Ballarat region 15-24 25-34 35-44 3990 3750 2330 4710 5010 4430 45-54 55-64 Moved in Moved out 1750 1470 2780 2590 65+ 1220 2120-6000 -4000-2000 0 2000 4000 6000 Number of persons Source: ABS, Census of Population and Housing, 2011 Source: ABS, Census of Population and Housing, 2011 The age group responsible for the largest migration out of the Ballarat region is the 15 to 24 years age group (3990 moving out, with a net figure of 720 persons moving into the region). The largest migration into the region occurred in the 25 to 34 years age group (5010 moving in, with a net figure of 1400 persons moving into the region). The age group with the largest net migration into the region are 35 to 44 year olds (a net figure of 2100 persons moving in).

Slide 8 Migrating with a job into the Ballarat region? Migrating with a job into Ballarat region? (between 2006-2011) Group (age at 2011) Number of People Employed Unemployed Not in the labour force WAP 19,430* 65% (70%)* 7% (4%)* 29% (26%)* 15-24 4690 51% (57%) 10% (8%) 39% (35%) 25-44 9400 75% 5% 20% 45-54 2790 69% (79%) 7% (3%) 24% (18%) 55-64 2560 48% (59%) 5% (2%) 47% (39%) Note: * Figures only include those who sufficiently defined their labour forcestatus *RED Numbers in bracketsrepresentlabour force statusfor the totalworking agepopulation of Ballaratatthe time of the 2011 Census Source: ABS, Census of Population and Housing, 2011 Source: ABS, Census of Population and Housing, 2011 People of working age (age at 2011) who had migrated into Ballarat LGA between 2006 and 2011 (19,430 persons) were more likely to be unemployed (7 per cent compared with 4 per cent overall) and not in the labour force (29 per cent, compared with 26 per cent overall).

Slide 9 Where else do Ballarat residents work? Where else do Ballarat residents work? Occupations of those who work outside Destinations of those who work outside* Higher Skilled Medium Skilled Lower Skilled 10,800 people work outside** Source: ABS, Census of Population and Housing, 2011 *Moorabool figures are excluded from those who work in Melbourne Source: ABS, Census of Population and Housing, 2011 Of those who defined their place of work in 2011, 83 per cent (54,100) work locally and 17 per cent (10,800) work outside the Ballarat region. Those who work outside were more likely to be employed as Professionals (23 per cent compared with 19 per cent for those who live and work locally). Melbourne is by far the most common destination for Ballarat residents who work outside the region (8200 persons or 76 per cent of those who work elsewhere), followed by the Bendigo region (620 persons or 6 per cent of those who work elsewhere). Greater Geelong is also an important working destination (4 per cent). **9000 employed people living in the Ballarat region inadequately defined their place of work and so are excluded from these figures

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Slide 10 Unemployment Rate relatively flat Unemployment rate relatively flat. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Ballarat Region Bendigo Region Victoria Source: Department of Employment Small Area Labour Markets, December 2013 Source: Department of Employment Small Area Labour Markets, December 2013 In December 2013, the unemployment rate in the Ballarat region was 5.2 per cent, lower than the Bendigo region (6.5 per cent) and Victoria (5.8 per cent). While the unemployment rate in the Ballarat region has decreased over the last few years, the region has consistently had higher unemployment rate than Victoria.

Slide 11 but recent decline.but recent decline region December 2012 December 2013 Annual Change Ballarat LGA 6.7% 5.8% -0.9% pts Ararat LGA 5.4% 4.9% -0.5% pts Hepburn LGA 6.1% 5.2% -0.9% pts Moorabool LGA 4.5% 3.9% -0.6% pts N. Grampians LGA 5.3% 4.4% -0.9% pts Pyrenees LGA 5.8% 4.9% -0.9% pts Ballarat region 6.0% 5.2% -0.8% pts Central Victoria region 5.9% 5.8% -0.1% pts Victoria * * Seasonally adjusted April figure 5.8% April 2013 6.4% April 2014 0.6% pts Source: Department of Employment, Small Area Labour Markets, December 2013 Source: DEEWR, Small Area Labour Markets, December 2013, In December 2013, the unemployment rate in the Central Victoria region was 5.8 per cent, lower compared with the state (6.4 per cent). The LGAs of Ballarat and Hepburn reported the highest unemployment rates in the Ballarat region (5.8 and 5.2 per cent, respectively). In contrast, the Moorabool LGA reported an unemployment rate of only 3.9 per cent. In the 12 months to December 2013, the unemployment in the Central Victoria region has decreased (by 0.1 percentage point) while Victoria it increased (by 0.6 percentage points) to 6.4 per cent.

Slide 12 Below average participation in most age groups Below average participation in most age groups Difference to national average (% pts) - Ballarat region 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% 1.3% 1.1% 15-19 years 2.0% 0.7% 20-24 years -1.3% -2.1% -2.0% 25-29 years -3.2% 30-34 years -1.8% -0.8% -2.5% -2.6% -2.5% 35-39 years 40-44 years Male 0.1% 45-49 years -1.7% -0.8% 50-54 years Female -3.1% 0.0% 55-59 years -2.4% -1.8% 60-64 years -0.3% -0.7% 65 plus yrs Source: ABS, Census of Population and Housing, 2011 Source: ABS, Census of Population and Housing, 2011 The participation rate for males aged 15 to 19 years (49.4 per cent) had a relatively high participation rate compared with the national rate (48.3 per cent). The participation rate for females in the same cohort (53.6 per cent) was also high compared with the national rate (52.3 per cent). The participation rate for males aged 55 to 59 had the lowest comparative rate with the Australia (76.7 per cent compared with 79.8 per cent), while females aged 30 to 34 had the lowest comparative rate with Australia (70.2 per cent compared with 73.4 per cent). Employed Unemployed NILF Civ pop LF PR LGA Ararat (RC) 4781 184 3817 8782 4965 56.5% Ballarat (C) 42289 2615 26604 71508 44904 62.8% Hepburn (S) 6199 369 4664 11232 6568 58.5% Moorabool (S) 13326 654 7215 21195 13980 66.0% Northern Grampians (S) 5178 255 3851 9284 5433 58.5% Pyrenees (S) 2599 193 2486 5278 2792 52.9% BALLARAT Region 74374 4273 48638 127285 78647 61.8% Central Goldfields (S) 4428 320 5174 9922 4748 47.9% Greater Bendigo (C) 45746 2502 28665 76913 48248 62.7% Mount Alexander (S) 7424 382 6081 13887 7806 56.2% BENDIGO Region 57598 3201 39917 100716 60799 60.4% Central Vic 131970 7474 88557 228001 139444 61.2% Victoria 2530634 144842 1451592 4127068 2675476 64.8% Australia 10058326 600134 5729306 16387766 10658460 65.0%

Slide 13 Male employment growth both full-time and part-time Male employment growth both full-time and part-time 2009 to 2014 Ballarat SA4 3.0 2.5 2.0 1.5 1.0 0.5 0.0-0.5-1.0-1.5 growth over 5 yrs ('000) Employed full-time Employed part-time 1.6 1.3 1.3 Males Females -1.0 Employed total 2.6 0.7 Source: ABS, Labour Force Data, April 2014, (12 month averages) Source: ABS, Labour Force Data, April 2014, (12 month averages) Over the five years to 2014, employment has grown by 3300 jobs across Ballarat SA4s. This growth was driven by male employment (up 2600 jobs). The growth was split evenly between full-time and part-time employment, both growing by 1300 jobs. Female full-time jobs grew by 1600 jobs, however, this was offset by a decline of 1000 part-time jobs over the same period. Industries in which growth occurred Male full-time employment growth Construction; Healthcare and Social Assistance and Information Media and Telecommunications Male part-time employment growth Retail; Accommodation and Food Services; Construction and Manufacturing Female full-time employment growth Education; Public Administration and Safety; Financial and Insurance Services and Health Care and Social Assistance Female part-time employment growth Increase - Healthcare and Social Assistance Decrease - Retail; and Administrative and Support Services

Slide 14 Health and Retail largest employing industries Health and Retail largest employing industries Ballarat SA4 Health Care and Social Assistance Retail Trade Manufacturing Construction Education and Training Accommodation and Food Services Professional, Scientific and Technical Services Public Administration and Safety 12% 12% 11% 11% 10% 9% 9% 8% 8% 7% 6% 4% 9% 4% 5% 15% Ballarat SA4 Victoria 0% 5% 10% 15% 20% Source: ABS Labour Force data, February Quarter 2014 (4 quarter averages) Source: ABS Labour Force data, February Quarter 2014 (4 quarter averages) Employment in the Ballarat region was highest in the Health Care and Social Assistance (15 per cent of all employed), Retail Trade (12 per cent) and Manufacturing Industries (11 per cent).

Slide 15 Structural change in industry employment Ballarat SA4 Structural change in industry employment (% of total employment 2004-2014) Ballarat SA4 16% 14% 12% 10% 8% 6% 4% 2% 0% 15% 11% 9% February Quarter 2004 February Quarter 2014 9% 8% 8% 8% Manufacturing Construction Education and Training Public Administration and Safety 6% 4% 4% 7% 7% Other Services Accommodation and Food Services 8% 12% 9% 15% Retail Trade Health Care and Social Assistance Source: ABS Labour Force, February Quarter 2014 (4 quarter averages) Source: ABS Labour Force, February Quarter 2014 (4 quarter averages) In the 10 years from 2004, industry employment has changed quite substantially in the Ballarat region. The reliance on the Manufacturing Industry has lessened, reducing from 15 per cent to 11 per cent of all employment. Whereas, the importance of the Health Care and Social Assistance industry is very evident having grown from 9 per cent to 15 per cent of all employment in the region. Largest industries in Ballarat (census) Largest Retail Trade (census) 57% Other Store-Based Retailing 24% Pharmaceutical and Other Store-Based Retailing 23% Clothing, Footwear and Personal Accessory Retailing 14% Hardware, Building and Garden Supplies Retailing 13% Department Stores 9% Furniture, Floor Coverings, Houseware and Textile Goods Retailing 8% Electrical and Electronic Goods Retailing 8% Recreational Goods Retailing 33% Food Retailing 7% Motor Vehicle and Motor Vehicle Parts Retailing 3% Fuel Retailing Health Care and Social Assistance 48% Hospitals 24% Medical and Other Health Care Services 19% Social Assistance Services 9% Residential Care Services

Slide 16 One in four receive income support One in four receive income support Ballarat region Proportion of working age population in receipt of a benefit region Income Support benefits Unemployment benefits Disability Support Benefits Ballarat LGA 24% 7% 8% Ararat LGA 23% 7% 9% Hepburn LGA 23% 7% 9% Moorabool LGA 17% 5% 5% N. Grampians LGA 23% 7% 11% Pyrenees LGA 26% 7% 11% Ballarat region 23% 7% 8% Central Victoria region 24% 7% 8% Victoria 17% 5% 5% Australia 17% 6% 5% Source: Department of Employment Administrative Data, March 2014; ABS Estimated Residential Population, 2012 Source: Department of Employment administrative data, March 2014; ABS Estimated Residential Population, 2012 In March 2013, almost one in four (23 per cent) of the working age population were in receipt of an Income Support benefit in the Ballarat region, higher compared with Victoria and Australia (both 17 per cent). The proportion of working age persons on Disability Support Pension was particularly high (8 per cent) compared with the state and Australia (both 5 per cent of WAP). There is significant variation across the LGAs for example, 26 per cent of working age persons in the Pyrenees LGA were on Income Support benefits compared with only 17 per cent in the Moorabool LGA. Pyrenees also had 11 per cent of the working age population receiving Disability Support Benefits compared to 5 per cent in both Victoria and nationally.

Slide 17 What s happening with 45 to 64 year olds? - Ballarat What s happening with 45 to 64 year olds? Ballarat region 30% 25% 20% 15% 10% 5% 19% 15% 6% 6% Ballarat Australia 10% 7% 30% 25% 20% 15% 10% 5% 27% 22% 6% Ballarat Australia 15% 12% 5% 0% Benefits Unemployment Benefits Disability Support Payments 0% Benefits Unemployment Benefits Disability Support Payments Percentage of 45-54 year olds on Percentage of 55-64 year olds on Source: Department of Employment administrative data March 2014; ABS, Estimated Residential Population, 2012 Source: Department of Employment administrative data, March 2014; ABS, Estimated Residential Population, 2012 Reliance on income support payments is particularly high for those aged 45 to 64 years in the Ballarat region when compared with Australia overall. This is especially so for those aged 55 to 64 years. Disability Support Payments are the most common payment and a far higher proportion of the age group receive this payment when compared to Australia overall.

Slide 18 Jobless Families in the Ballarat region with children under 15 Jobless families with children under 15 - Ballarat region One in Seven Families (15%) in the Ballarat region are jobless There are at least 5250 children in jobless families in the Ballarat region One in Eight Families (13%) in Victoria are jobless Source: ABS, Census of Population and Housing, 2011 Source: ABS, Census of Population and Housing, 2011 The proportion of families with children under 15 years in the Ballarat region who are jobless (15 per cent) is above both Victoria (13 per cent) and Australia (14 per cent). One in seven families with children under 15 in the Ballarat region is jobless. 1 in 20 couple families are jobless Almost 1 in 2 lone parent families are jobless There are at least 5250 children in jobless families in the Ballarat region

Slide 19 Is youth unemployment really only 7.9%? Is youth unemployment really only 7.9%? region Youth unemployment rate (15-24 years) Youth Participation Rate (April 2014) Youth Unemployment to population ratio Ballarat SA4 7.9% 75.6% 6.0% Victoria 12.8% 65.3% 8.4% Australia 12.5% 66.6% 8.3% Source: ABS, Labour Force, April 2014 (12 month averages) Source: ABS, Labour Force, April 2014 (12 month averages) Due to their lack of skills and experience, youth participating in the labour market can be particularly vulnerable during a labour market downturn. In April 2014, the unemployment rate for the Ballarat SA4 was 7.9 per cent, a decrease of 9.8 per cent since the previous year. The unemployment rate was significantly lower than both Victoria (12.8 per cent) and Australia (12.5 per cent). Similarly, the youth unemployment to population ratio in the Ballarat SA4 (6.0 per cent) was lower than Victoria (8.4 per cent) and Australia (8.3 per cent).

Slide 20 More young people in Central Victoria not studying More young people in Central Victoria not studying Population (18-24 years): 25,140 Studying: 10,580 42% Not Studying: 14,560 58% Employed: 11,140 44% Not Employed: 3,420 14% Completed Year 12: 7,130 28% Did Not Complete Year 12: 4,010 16% (5%*) Completed Year 12: 1,320 5% Source: ABS, Census of Population and Housing, 2011 Did Not Complete Year 12: 2,100 8% * Victoria figure Source: ABS, Census of Population and Housing, 2011 At the time of the 2011 Census, there were 25,140 18-24 year olds in the Central Victoria region, of which 14,560 (58 per cent) were not studying. Overall in Victoria the percentage of 18 to 24 year olds that were studying was higher at 51 per cent. Of the 14,560 who were not studying, those who did not complete year 12, are vulnerable and may have difficulty entering the labour market, whether they re employed or not employed. One in four people (24 per cent) in the Central Victoria region aged 18 to 24 were not studying and had not completed Year 12, this was high compared to the state where 16 per cent were not studying and had not completed Year 12. Of those not studying, 77 per cent were employed comparable with Victoria where 78 per cent of those not studying were employed. Victoria studying not studying 240,380 235,000 51% 49% employed not employed 183,530 51,470 39% 11% completed not comp completed not comp 132,210 51,320 25,890 25,580 28% 11% 5% 5% Note: Not stated records for FT/PT Student Status, Labour Force Status and Higher Year of School Completed have not been included.

Slide 21 Lower educational attainment in Ballarat Lower educational attainment in Ballarat 25-34 years of age Ballarat region Victoria 67% 79% 35% 29% 26% 40% Completed Yr 12 Attained Advance Diploma, Diploma or Certificate III/IV Attained Bachelor Degree or higher Source: ABS, Census of Population and Housing, 2006 and 2011 Source: ABS, Census of Population and Housing, 2006 and 2011 The Ballarat region has had an improvement of 6 percentage points in the proportion of 25 to 34 year olds that have completed Yr 12 or equivalent studies between 2006 and 2011. This is in line with the 6 percentage point improvement seen in Victoria overall. The improvement was not even across all LGAs. Ararat LGA had an improvement of 8 percentage points (to 63 per cent) while North Grampians LGA only had a 1 percentage point improvement (to 57 per cent) The number of 25 to 34 year olds having completed an Advance Diploma, Diploma or Certificate III/IV was quite high for all Ballarat LGAs. In the Moorabool LGA some 41 per cent of the cohort had completed these courses compared to 29 per cent for Victoria. The story was very different for Bachelor Degrees or higher. Ballarat LGA had the highest level at 29 per cent of the cohort while the Pyrenees LGA had a level of only 16 per cent. The level for Victoria was 40 per cent.

Slide 22 Importance of education to labour market outcome Importance of education to labour market outcomes 25 34 years, Central Victoria region 35% 30% 25% 20% 15% 10% 5% 0% 88.9% 2.8% Bachelor or higher 84.5% 87.7% Unemployment Rate (LHS) Participation Rate (RHS) 3.7% 4.3% Advanced Certificate III & IV Diploma & Level Diploma Level 77.9% 5.8% Yr 12 or equivalent 66.1% 18.8% Certificate I & II Level 63.1% 12.7% Below Yr 12 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: ABS, Census of Population and Housing, 2011 Source: ABS, Census of Population and Housing, 2011 This slide illustrates the correlation between education and labour market outcomes in the Central Victoria region, with higher labour force participation rates and lower unemployment rates for those with higher levels of educational attainment. This reflects the pattern seen across Australia and demonstrates the importance of continuing education to help job seekers obtain employment and participate in the labour market.

Slide 23 Improving Youth labour market outcomes Improving youth labour market outcomes Feedback from Central Victoria employers 70% 60% 50% 40% 30% 20% 10% 60% Attitude/motivation Job seeker expectations Presentation School based work experience Further education 27% Apprenticeships/Traineeships 15% 5% 0% Improving employability/labour market engagement Experience/training Government incentives/vocational guidance Employer based initiatives Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2013 Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2013 Employers in Central Victoria were asked for feedback on strategies to improve labour market outcomes for youth. The majority of employers (60 per cent) believed that improving employability and labour market engagement were the most important factors in improving youth labour market outcomes, most particularly: Attitude/motivation Job seeker expectations Presentation A substantial proportion of employers (27 per cent) believed that experience or training was most important for youth, in particular: School based work experience Further education Traineeships

Slide 24 Signs of weakening recruitment conditions Signs of weakening recruitment conditions Recruitment experiences in the 12 months preceding the survey Ballarat region Central Victoria region All regions surveyed November 2013 November 2012 November 2013 November 2012 (12 months to March 2014) Annual vacancies per 100 staff 15 15 14 16 16 Increased staff 20% 22% 19% 20% 16% Decreased staff 21% 14% 21% 17% 22% Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria Coast Priority Employment Area, November 2012 and November 2013; All regions surveyed in the 12 months to March 2014 Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria Coast Priority Employment Area, November 2012 and November 2013; All regions surveyed in the 12 months to March 2014 The survey results indicate a weakening in recruitment conditions across the Central Victoria region and Ballarat region over the last year. Recruitment activity has decreased over the year (from 16 vacancies to 14 vacancies per 100 staff). Additionally, a slightly smaller proportion of employers had increased staff and a larger proportion had decreased staff when compared to the results from a year earlier.

Slide 25 Competition for vacancies increased since 2012 Competition for vacancies increased since 2012 Managers and Professionals Technicians and Trades Workers Community and Personal Service Workers Clerical and Administrative Workers Sales Workers Machinery Operators and Drivers Labourers Central Victoria PEA November 2013 Central Victoria PEA November 2012 All regions, 12 months to March 2014 Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November, 2013 and November 2012; All PEAs surveyed in the 12 months to March 2014 1.3 1.3 1.8 1.6 1.2 2.0 1.7 1.5 1.7 1.5 4.7 4.7 5.2 8.2 9.2 Average number of applicants per vacancy Average number of suitable applicants 9.0 10.3 10.6 15.4 18.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2013 and November 2012; All PEAs surveyed in the 12 months to March 2014 There was a higher average number of applicants per vacancy (9.0) compared with previous surveys (5.2 in November 2012). The average number of suitable applicants interviewed per vacancy (1.5) was similar to November 2012 (1.7) and all regions surveyed to March 2014 (1.5).

Slide 26 Informal recruitment growing in popularity Informal recruitment growing in popularity.and much less competition for informal vacancies Central Victoria region Formal method 56% Informal method ONLY 44% 14 applicants, 4 interviewed 4 applicants, 2 interviewed Reasons applicants did not qualify for interview Lack of experience Poor job application Insufficient qualifications Applicants availability for work Lack of experience Applicants availability for work Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November 2013 Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November 2013 Employers in the Central Victoria region relied on informal recruitment methods only, such as word of mouth and being approached by job seekers, slightly less often than formal methods, such as newspapers, the internet and recruitment agencies. Nevertheless, vacancies for which employers used informal recruitment methods attracted less than one third the number of applicants than when the employers used formal methods. This highlights the value of job seekers actively approaching employers when looking for work.

Slide 27 Personality Traits and Employability Skills employers in Central Victoria viewed as essential Personality traits and employability skills employers in Central Victoria viewed as essential Employability Skills considered most essential Personality Traits considered most essential Interpersonal/Social Skills Attitude & Motivation Customer Service Skills Reliability, Honesty & Work Ethic Communication Presentation Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November 2013 Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November 2013 There were a range of general employability skills and personality traits that employers in the Central Victoria region commonly viewed as essential for the position they recently recruited for. Employability skills commonly considered essential included: Interpersonal/Social Skills Customer Skills Communication Personality traits commonly considered essential included: Attitude and Motivation Reliability, Honesty and Work Ethic Presentation

Slide 28 Overall recruitment expectations Average overall recruitment expectations Anticipated staff change for the 12 months following survey by industry 35% % increase % decrease 25% 23% 22% 21% 16% 12% 20% 19% 12% 11% 8% 2% 10% 8% 4% 7% 6% Education and Training Construction Professional, Health Care and Scientific and Social Assistance Technical Services Manufacturing Retail Trade Accommodation and Food Services Central Victoria PEA November 2013 All regions surveyed 12 months to March 2014 Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November, 2013; All regions surveyed in the 12 months to March 2014 Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2013; All regions surveyed in the 12 months to March 2014 One in five (20%) of employers in the Central Victoria region anticipated increasing staff numbers in the 12 months following the survey, while 7% anticipated decreasing staff numbers, comparable with the average for all regions surveyed (19% increase, 6% decrease). The Education and Training and Construction industries were most likely to increase staff in the 12 months following the survey (35% and 25% respectively). While 10% of employers in the Manufacturing industry expected decreasing staff numbers in the 12 months following the survey, there are still jobs in the industry with just over one in five employers expecting to increase staff numbers.

Slide 29 Many opportunities exist across occupations- * Occupations Difficult to Fill Many opportunities exist across occupations 47 per cent of employers in Central Victoria anticipate recruiting in the 12 months following the survey, most commonly for: Sales Assistants (General) Motor Mechanics * Structural Steel and Welding Trade Workers * Truck Drivers * Kitchenhands Real Estate Sales Agents Waiters Checkout Operators and Office Cashiers Child Carers * Bar Attendants and Baristas Nursing Support and Personal Care Workers Pharmacy Sales Assistants Pharmacists * Registered Nurses * * Occupations that employers reported were difficult to fill in their last recruitment round Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November, 2013 Source: Department of Employment, Survey of Employers Recruitment Experiences, Central Victoria PEA, November 2013 Other occupations difficult to fill Chefs Motor Vehicle and Vehicle Parts Salespersons Bakers and Pastrycooks

Slide 30 Employers concerns for the future Employers concerns for the future Demand/economy 6% 6% 6% 6% 4% 19% Recruitment or retention difficulty Cash flow/funding Competition (inc. high Australian dollar) 11% 41% Regulation/red tape Costs (including wages) Other No concerns Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November, 2013 Source: Department of Employment, Survey of Employers Recruitment Experiences Central Victoria Priority Employment Area, November, 2013 Two in five (41 per cent) employers surveyed considered demand and the economy to be their greatest concern. While some 11 per cent felt recruitment and staff retention difficulties to be of concern. One in five (19 per cent) employers felt they had no concerns at all.

Slide 31 Conclusion Conclusion The labour market is mixed in the Ballarat region Recent decline in unemployment, yet regional disparity Recruitment activity falling Overall decline in the Manufacturing industry Demographic change: ageing population, young people leaving the region Residents travelling to other regions for work - Melbourne and Geelong Future labour supply Disadvantaged groups: Vulnerable and disengaged youth, persons with lower levels of education, mature age population, high number of income support recipients Opportunities exist Major growth industries (Health) Almost half of employers expect to recruit A broad range of occupations will be in demand Improved opportunities for job seekers who actively approach employers Job seekers need to be engaged in the labour market Employability skills are a must Continued stakeholder and employer engagement Conclusion The labour market is mixed in the Ballarat region Recent decline in unemployment, yet regional disparity Recruitment activity falling Overall decline in the Manufacturing industry Demographic change: ageing population, young people leaving the region Residents travelling to other regions for work - Melbourne and Geelong Future labour supply Disadvantaged groups: Vulnerable and disengaged youth, persons with lower levels of education, mature age population, high number of income support recipients Opportunities exist Major growth industries (Health) Almost half of employers expect to recruit A broad range of occupations will be in demand Improved opportunities for job seekers who actively approach employers Job seekers need to be engaged in the labour market Employability skills are a must Continued stakeholder and employer engagement

Slide 32 Contacts If you have any questions about the presentation please contact the Employer Surveys Section or Recruitment Analysis Section on: Tel: 1800 059 439 or Email: recruitmentsurveys@employment.gov.au If you have any questions about the presentation please contact the Employer Surveys Section or Recruitment Analysis Section on: Tel: 1800 059 439 or Email: recruitmentsurveys@employment.gov.au

Slide 33 Australian Government Department of Employment