This report was prepared by the Labour Market Research and Analysis
Branch and is based on research conducted by the Branch.
For further information:
Ph: 1800 059 439 | recruitmentsurveys@deewr.gov.au
www.deewr.gov.au
ABN: 63 578 775 294

Contents
Australian Labour Market ............................................................................................................... 1
The Central Coast - Hunter Priority Employment Area .................................................................. 1
Survey of Employers’ Recruitment Experiences ............................................................................. 1
Key Findings .................................................................................................................................... 2
Recruitment Experiences in the 12 Months Preceding the Survey ................................................ 2
Most Recent Recruitment Activity .................................................................................................. 3
Applicants and Suitability................................................................................................................ 4
Apprentices and Trainees ............................................................................................................... 6
Staff Training ................................................................................................................................... 6
Job Services Australia (JSA) ............................................................................................................. 6
Survey Results by Local Government Area ..................................................................................... 6
Future Recruitment Expectations ................................................................................................... 7
Opportunities for Job Seekers ........................................................................................................ 8
Department of Education, Employment and Workplace Relations i

Australian Labour Market

Prior to the onset of the Global Financial Crisis in September 2008, economic and labour market conditions in Australia had been reasonably strong, although the unemployment rate had already troughed at 4.1 per cent in March 2008 and the pace of employment growth had begun to ease. Then, in September 2008 world growth weakened dramatically and economic and labour market conditions in Australia deteriorated sharply.

Between June 2009 and March 2011, the Australian labour market showed significant signs of recovery, with a fall in the unemployment rate of 0.9 percentage points to 4.9 per cent and a rise in employment of 507,900 people to 11,436,700. However, between March 2011 and
March 2012, employment growth has slowed considerably (increasing by only 28,900 people) and the unemployment rate has increased to 5.2 per cent.
1
The Central Coast - Hunter Priority Employment Area
 The Central Coast – Hunter Priority Employment Area (PEA) is located north of Sydney, along the coast of New South Wales. It includes the Local Government Areas (LGAs) of Cessnock,
Gosford, Great Lakes, Lake Macquarie, Maitland, Newcastle, Port Stephens and Wyong. o The Wyong LGA was identified in the 2011-12 Federal Budget papers as one of 10 LGAs across Australia requiring specific place-based measures to target persistent local disadvantage.
2

The unemployment rate in the Central Coast – Hunter PEA in September 2011 was 5.0 per cent, which was on a par with the Australian unemployment rate at the time (5.1 per cent).
However, regional disparities were evident, with higher unemployment rates in the Cessnock and Wyong LGAs (6.4 per cent and 7.5 per cent respectively) and lower unemployment rates in the Great Lakes and Lake Macquarie LGAs (4.0 per cent and 4.2 per cent respectively).
3
Survey of Employers’ Recruitment Experiences

In order to gain a better understanding of labour market conditions in the Central Coast –
Hunter PEA, the Department of Education, Employment and Workplace Relations (DEEWR) conducted a Survey of Employers’ Recruitment Experiences in August 2011. The survey was conducted by telephone interview with 417 businesses responding.

The survey collected information on: o the recruitment of employees in the 12 months preceding the survey; o the experience employers had recruiting for their most recent vacancy; and o recruitment expectations for the 12 months following the survey.
1 ABS, Labour Force, Australia, March 2011, cat. no. 6202.0 (trend).
2 Department of Treasury, 2011-12 Budget papers.
3 DEEWR, Small Area Labour Markets, September quarter 2011.
Department of Education, Employment and Workplace Relations 1

Key Findings

The results of the Central Coast – Hunter PEA survey show that below average labour demand combined with a large pool of labour supply has created strong competition for vacancies in the area.
 The labour market in the Wyong LGA was particularly subdued, with a very high average number of applicants and suitable applicants per vacancy, a very small proportion of unfilled vacancies and a relatively small proportion of employers reporting recruitment difficulty.
 Future recruitment expectations in the Central Coast – Hunter PEA were more on a par with all regions surveyed. Half of all employers surveyed expected to recruit staff and 23 per cent expected to recruit an apprentice or trainee in the 12 months following the survey.
Recruitment Experiences in the 12 Months Preceding the Survey

A slightly larger proportion (70 per cent) of employers surveyed in the Central Coast – Hunter
PEA had recruited in the 12 months preceding the survey compared with the results from July
2010 and October 2009 (both 67 per cent). However, the result was in line with all regions surveyed in the 12 months to September 2011 (71 per cent). o Of those employers who had recruited in the Central Coast – Hunter PEA, a smaller proportion (51 per cent) recruited to increase staff numbers compared with the July
2010 result (60 per cent). However, 86 per cent of employers who had recruited did so to replace staff, which was larger than in July 2010 (78 per cent).
 The overall recruitment rate (18 vacancies per 100 staff) was the same as in July 2010, but lower than the result for all regions surveyed (22 vacancies per 100 staff). Recruitment rates also varied greatly across industries. o Within the Central Coast - Hunter PEA, the Wholesale Trade industry had the highest recruitment rate (43 vacancies per 100 staff), which was much higher than the recruitment rate for that industry across all regions surveyed
(13 vacancies per 100 staff). o On the other hand, the Retail Trade industry recorded a lower recruitment rate
(15 vacancies per 100 staff) than for all regions surveyed (19 vacancies per 100 staff).

A smaller proportion of employers in the Central Coast – Hunter PEA reported difficulty recruiting staff. o Of the employers who recruited in the preceding 12 months, a smaller proportion of employers in the Central Coast – Hunter PEA reported difficulty recruiting staff than the result for all regions surveyed (54 per cent compared with 60 per cent). However, this was larger than the results for July 2010 (45 per cent). o In accordance with the smaller proportion of employers who had experienced difficulty, a smaller proportion of vacancies over the preceding 12 months remained unfilled
(6.4 per cent) compared with all regions surveyed (8.0 per cent). However, this was larger when compared with the result for July 2010 (5.0 per cent) and October 2009
(2.8 per cent). o The Wholesale Trade industry had the largest proportion of employers reporting recruitment difficulty (78 per cent) in the region and also an above average proportion of vacancies remaining unfilled (11.3 per cent).
Department of Education, Employment and Workplace Relations 2

Table 1. Recruitment experiences in the 12 months preceding the survey
Central Coast
– Hunter PEA
Central Coast –
Hunter PEA
(August 2011) (July 2010)
Central Coast –
Hunter PEA
(October 2009)
All Regions
(12 months to
September
2011)
Proportion of employers who recruited
- to increase staff
- to replace staff
70%
51%
86%
67%
60%
78%
67%
51%
85%
71%
53%
86%
Vacancies per 100 staff
Proportion of recruiting employers who experienced difficulty
18
54%
18
45%
16
55%
22
60%
Proportion of unfilled vacancies 6.4% 5.0% 2.8% 8.0%
Most Recent Recruitment Activity
 Overall, employers in the Central Coast – Hunter PEA were more successful filling vacancies for their most recent recruitment round compared with all regions surveyed in the 12 months to
September 2011. o Employers in the Central Coast – Hunter PEA had a much smaller proportion of recent vacancies that remained unfilled (4.0 per cent, compared with 10.6 per cent for all regions). o The success of filling vacancies varied across occupation groups (Figure 1). A larger proportion of vacancies remained unfilled for Technicians and Trades Workers
(8.5 per cent, primarily Metal Fitters and Machinists). However, this was still less than half the unfill rate for Technicians and Trades Workers across all regions surveyed in the
12 months to September 2011 (19.5 per cent). o By contrast, all vacancies for Sales Workers were filled and a very small proportion of vacancies for Clerical and Administrative Workers remained unfilled (1.5 per cent).
Department of Education, Employment and Workplace Relations 3

Figure 1. Proportion of unfilled vacancies in the most recent recruitment round
12.0%
10.6%
10.0%
8.5%
8.0%
6.0%
6.0%
5.3%
5.1%
5.2%
4.0%
4.0%
3.4%
2.5%
2.0% 1.5%
0.0%
0.0%
Managers &
Professionals
Technicians and Trades
Workers
Community and Personal
Service
Workers
Clerical and
Administrative Operators and
Workers
Machinery
Drivers
Sales Workers Labourers Central Coast -
Hunter PEA
August 2011
Central Coast Central Coast -
Hunter PEA
July 2010
Hunter PEA
October 2009
All regions surveyed in 12 months to
September
2011
Applicants and Suitability

Consistent with the small proportion of vacancies remaining unfilled, employers in the Central
Coast – Hunter PEA experienced a higher level of competition for vacancies in their most recent recruitment round. o There was an average of 15.3 applicants per vacancy (compared with 6.0 for all regions), of whom an average of 3.6 applicants were considered suitable (2.0 for all regions).
Competition for vacancies had also continued to increase since the July 2010 and
October 2009 surveys (Figure 2). o In line with the higher unfill rates for Labourers and Technicians and Trades Workers, employers recruiting for these occupation groups received the lowest average number of suitable applicants (1.4 and 2.4 suitable applicants per vacancy respectively). o Clerical and Administrative Workers had the highest average number of applicants and suitable applicants per vacancy (33.8 and 7.2 respectively). This was consistent with the low rate of unfilled vacancies and the relatively small proportion of employers who reported difficulty when recruiting for this occupation group. o The most common reasons employers provided for applicants being considered unsuitable were a lack of experience (59 per cent), insufficient qualifications or training
(38 per cent) and limited interest in the job (13 per cent). o The proportion of vacancies in the Central Coast – Hunter PEA that were filled with job seekers who required development was on a par with that for all regions surveyed
(16 per cent and 17 per cent respectively).
Department of Education, Employment and Workplace Relations 4

Figure 2. Average number of applicants and suitable applicants per vacancy
(most recent recruitment round)
40.0
Average number of applicants per vacancy
35.0
33.8
Average number of suitable applicants per vacancy
30.0
25.0
20.0
17.3
15.3
15.0
14.7
14.3
13.8
13.5
9.7
10.0
7.6
7.6
7.2
6.0
5.0
3.9
4.0
3.6
3.1
3.0
3.2
3.3
2.4
2.0
1.4
0.0
Managers &
Professionals
Technicians and Trades
Workers
Community and Personal
Service
Workers
Clerical and
Administrative
Machinery
Operators and
Workers Drivers
Sales Workers Labourers Central Coast -
Hunter PEA
August 2011
Central Coast -
Hunter PEA
July 2010
Central Coast -
Hunter PEA
October 2009
All regions surveyed in 12 months to
September
2011
The proportion of employers who reported difficulty recruiting for their most recent vacancy was smaller than for all regions surveyed (42 per cent compared with 47 per cent).

A lack of technical skill requirements for the job (44 per cent) was the most common reason given for recruitment difficulty, followed by a tight labour market (32 per cent) and soft skill requirements of the job (21 per cent).
 Metal Fitters and Machinists, Real Estate Sales Agents and Structural Steel and Welding Trades
Workers were the occupations most commonly mentioned as being difficult to fill (Table 2).
Table 2. Occupations difficult to fill by skill level
Bachelor Degree or Higher VET Qualifications
Metal Fitters and Machinists Real Estate Sales Agents
Structural Steel and Welding Trades Workers
Retail Managers
Other occupations
Receptionists
Sales Assistants (General)
Electricians
General Clerks
Building and Plumbing Labourers
Truck Drivers
Department of Education, Employment and Workplace Relations 5

Apprentices and Trainees

Some 35 per cent of employers had an apprentice or trainee on staff at the time of the survey, which was the same as for all regions surveyed.
 The proportion of employers in the region who anticipated recruiting an apprentice or trainee in the 12 months following the survey was also in line with that for all regions (both 23 per cent).

At the industry level, more than half (58 per cent) of employers in the Accommodation and Food
Services industry employed an apprentice or trainee, which was substantially larger than the figure for all regions surveyed (30 per cent). A large proportion of employers in the
Accommodation and Food Services industry also anticipated recruiting an apprentice or trainee in the 12 months following the survey (42 per cent compared with 23 per cent for all regions).

Almost one third (31 per cent) of employers in the Central Coast – Hunter PEA who had an apprentice or trainee reported that they had experienced challenges in employing them. This was significantly smaller than the result for July 2010 (58 per cent) and all regions (42 per cent). o The main challenges reported were a lack of general work readiness (57 per cent), a lack of soft skills (39 per cent) and that apprentices did not complete their studies or stay on after attaining their qualifications (27 per cent).
Staff Training
 A slightly larger proportion of employers (48 per cent) had staff undertake recognised training in the 12 months prior to the survey compared with all regions surveyed (44 per cent).

Only 14 per cent of employers reported challenges in providing the training. This was smaller than all regions surveyed (22 per cent). o The main challenge reported was the high cost of training (48 per cent), followed by the location of the training (25 per cent) and timing of the training (22 per cent).
Job Services Australia (JSA)
 A small proportion (6 per cent) of employers used a Job Services Australia (JSA) provider in their most recent recruitment round. o The most common recruitment methods used by employers were Internet advertisements (43 per cent), newspaper advertisements (34 per cent) and word of mouth or approaching applicants (28 per cent). o Of the employers who used a JSA provider, 81 per cent were satisfied with the service provided.
Survey Results by Local Government Area
 The survey results highlight that the Newcastle, Gosford and Wyong LGAs all had high levels of available labour that allowed employers to fill vacancies with minimal difficulty.
 Wyong had a very high number of applicants and suitable applicants per vacancy, a very low unfill rate and a smaller proportion of employers reporting recruitment difficulty than Newcastle and Gosford, despite having a higher recruitment rate. o Employers in Wyong were very successful at filling their most recent vacancies, with only
1.2 per cent of vacancies remaining unfilled. o In addition, a substantially smaller proportion (27 per cent) of employers in Wyong reported difficulty recruiting for their most recent recruitment round.
Department of Education, Employment and Workplace Relations 6

o This high level of recruitment success is likely attributed to a large pool of applicants for
Wyong employers to select from, with an average of 17.9 applicants per vacancy, of whom 5.4 were considered suitable.

The Newcastle LGA had the largest proportion of employers who expected to recruit in the 12 months following the survey (57 per cent). This was larger than the figures for both the PEA as a whole and all regions. The Newcastle LGA also had the largest proportion of employers who anticipated recruitment difficulty (42 per cent).
Table 3. Recruitment experiences and expectations by Local Government Area
Newcastle
LGA
Gosford
LGA
Wyong
LGA
Central Coast
Hunter - PEA
All regions
(12 months to Sep 11)
12 months preceding the survey
Proportion of employers who recruited
73%
Vacancies per 100 staff 18
Employers’ most recent recruitment activity
Proportion of vacancies unfilled 3.5%
73%
15
3.7%
67%
26
1.2%
70%
18
4.0%
71%
22
10.6%
Average number of applicants per vacancy
Average number of suitable applicants per vacancy
Had difficulty recruiting
17.9
4.2
40%
Future – 12 months following the survey
13.6
2.1
40%
17.9
5.4
27%
15.3
3.6
42%
6.0
2.0
47%
Will recruit 57% 45% 44% 50% 52%
Anticipated difficulty recruiting 42% 36% 18% 39% 47%
Future Recruitment Expectations

Recruitment expectations in the Central Coast – Hunter PEA had increased since the region was last surveyed and were in line with all regions surveyed in the 12 months to September 2011
(Table 4). o Half of employers expected to recruit in the 12 months following the survey, which was in line with the result for all regions surveyed (52 per cent). However, this was larger than when the region was surveyed in July 2010 (46 per cent) and October 2009
(40 per cent). o A slightly larger proportion (34 per cent) of employers anticipated increasing staff numbers in the 12 months following the survey compared with all regions surveyed
(29 per cent) and the result for July 2010 (30 per cent) and October 2009 (29 per cent). o Compared with all regions surveyed (47 per cent), a smaller proportion (39 per cent) of recruiting employers in the Central Coast – Hunter PEA expected difficulty in doing so.
Department of Education, Employment and Workplace Relations 7

However, this figure had increased since the region was last surveyed in July 2010
(33 per cent expected difficulty recruiting).

A slightly larger proportion (59 per cent) of employers expected challenges to their business in the 12 months following the survey compared with all regions surveyed (57 per cent). o Reduced business activity was most commonly expected to cause challenges (33 per cent of employers), followed by business regulations/government policy changes
(29 per cent).
Table 4. Recruitment expectations for the 12 months following the survey
Expects to recruit
Expects to increase staff numbers
Expects to reduce staff numbers
Expects future difficulty recruiting
Uncertain about future recruitment
Opportunities for Job Seekers
Central Coast
Hunter PEA
(August 2011)
50%
34%
4%
39%
11%
Central Coast
Hunter PEA
(July 2010)
46%
30%
4%
33%
16%
Central Coast
Hunter PEA
(October
2009)
40%
29%
2%
39%
17%
All Regions
(12 months to
September
2011)
52%
29%
4%
47%
12%
 Insufficient experience to perform job duties was the most common reason employers found applicants to be unsuitable. The survey results highlight the need to provide job seekers with avenues to gain relevant work experience.

The survey results indicate that there are opportunities for job seekers in entry-level occupations such as Sales Assistants (General) and Building and Plumbing Labourers.
Opportunities also exist for job seekers willing to take up apprenticeships or traineeships, particularly in the Accommodation and Food Services industry.

Prospects for job seekers in the Wholesale Trade industry are also good as indicated by a very high recruitment rate, and a high rate of recent vacancies remaining unfilled.
 There may be opportunities for job seekers in some parts of the Central Coast – Hunter PEA to take advantage of Government relocation initiatives and obtain employment in other parts of
Australia where demand for labour is higher.
Department of Education, Employment and Workplace Relations 8

For more information:
 Labour Market Information Portal:
www.deewr.gov.au/lmip

Skill Shortages www.deewr.gov.au/skillshortages

Survey of Employers’ Recruitment Experiences
www.deewr.gov.au/regionalreports

Job Outlook http://joboutlook.gov.au/Pages/default.aspx

SkillsInfo www.skillsinfo.gov.au
This report was prepared by the Labour Market Research and Analysis Branch and is based on research conducted by the Branch.
For further information:
Ph: 1800 059 439 | recruitmentsurveys@deewr.gov.au www.deewr.gov.au
ABN: 63 578 775 294