Labour Market Research - Nurses Australia 2014-15 Number of years in shortage 5 years to 2014-15 Occupations in cluster Rating1 2541-11 Midwife Shortage 4 2544 Registered Nurse No Shortage 1 4114-11 Enrolled Nurse No Shortage 2 Key issues Employers are readily able to fill nursing vacancies, and there is generally a more than adequate supply of nurses to meet employers’ needs. o This labour market, though, has tightened slightly over the last two years, with a lower proportion of vacancies being filled and fewer suitable applicants per vacancy. o There is considerable variation in the labour market for nurses between states. o Despite the adequacy of supply overall, a number of employers have difficulty filling positions for experienced or specialised nurses. Shortages of midwives persist, but recruitment remains significantly easier than it was prior to 2012. The number of applicants for nursing vacancies is at a peak. 2 o Some surpluses of graduate nurses are evident and entry level vacancies are easily filled, with reported strong competition for public sector graduate intakes. o Graduate employment outcomes3 have fallen over recent years and the Australian Nursing and Midwifery Federation4 reports large numbers of graduates are unable to secure employment. Figure 1: Proportion of vacancies filled (%), average number of applicants and suitable applicants per vacancy (no.), Nurses, Australia, 2007-08 to 2014-15 100 90 80 70 60 (%) 50 40 30 20 10 0 Proportion of vacancies filled - LHS Applicants per vacancy - RHS Suitable applicants per vacancy - RHS 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 20.0 18.0 16.0 14.0 12.0 10.0 (no.) 8.0 6.0 4.0 2.0 0.0 2014-15 Source: Department of Employment, Survey of Employers who have Recently Advertised ISSN: 2201-2206 1 Ratings are based on research undertaken between April and June 2015 The Department’s readily accessible time series starts in 2007-08. Analysis of training data and GCA data indicate that this is likely to be the highest number of nursing applicants since the recession of the early 1990s. 3 GCA, Gradstats, 2014 and GCA, Graduate Destinations Supplementary Tables and Figures, 2013 4 ANMF, Australian Graduates and 457 Workers Exploited Under Current Laws, 19 June 2015 2 Labour Market Research and Analysis Branch Department of Employment Page 1 Survey results National shortages of registered nurses were evident almost continuously between 1986 and 2011 and for enrolled nurses between 2008 and 2012, but these have now abated.5 o Shortages of experienced midwives persist, having been evident almost continuously since 1996. The labour market for nurses remains complex. Overall, employers are able to recruit nurses with ease and the number of applicants per vacancy stands at a recent record high level. That said, results at the state and territory level are mixed. o The proportion of nursing vacancies filled has been declining for the last two years (down from 79 per cent two years ago to 73 per cent in 2014-15), together with a recent fall in the number of suitable applicants per vacancy (from 1.6 a year ago to 1.3 in 2014-15). o Unfilled vacancies for nurses were spread across a broad range of sectors, including mental health and aged care. Over the five years to 2014-15, there has been a strong increase in the number of applicants per vacancy. This figure now stands at a peak of 7.0 per vacancy, more than double the level recorded five years ago (3.3). In large part, this has been driven by the increase in the training of registered nurses. Despite the marked rise in the number of applicants, there has only been a small increase in the average number of suitable applicants per vacancy (up by 0.5 over the last five years to 1.3 per vacancy). o This may reflect a larger number of surveyed vacancies requiring experienced or specialised skills (compared with graduate or junior nursing positions) and the relatively small pool of suitably experienced applicants available to fill these roles. o It is worth noting that a number of otherwise suitable applicants did not progress in the selection process as they were unable or unwilling to work the requested hours or shifts. There continue to be some marked differences in recruitment experiences by occupation. o Employers recruiting for registered nurses filled more than 80 per cent of their vacancies, while two thirds of enrolled nurse vacancies were filled. o Employers experienced the most difficulty filling midwife positions (64 per cent of vacancies were filled). Midwifery vacancies attracted the smallest number of applicants and suitable applicants. Around one in five surveyed employers did not attract any applicants or suitable applicants for their midwife positions. While this labour market has tightened considerably since 2012-13 (when almost 80 per cent of vacancies were filled), recruitment is still significantly easier than it was three years ago. Between 2007-08 and 2010-11, an average of 31 per cent of midwife vacancies were filled. 5 Department of Employment, Historical list of skill shortages (from 1986) Labour Market Research and Analysis Branch Department of Employment Page 2 Figure 2: Average number of applicants and suitable applicants per vacancy (no.), Nursing occupations, Australia, 2007-08 to 2014-15 10.0 2.5 Applicants per vacancy Suitable applicants per vacancy 8.0 2.0 6.0 1.5 4.0 1.0 2.0 0.5 0.0 0.0 Source: Department of Employment, Survey of Employers who have Recently Advertised There are variations in the labour market for nurses across the states and territories (see Table 1). o In Victoria, 66 per cent of vacancies surveyed in 2014-15 were filled and there was 1.0 suitable applicant, on average, per vacancy. By contrast, in Western Australia, 86 per cent of vacancies were filled and there were 3.5 suitable applicants per vacancy. Table 1: Skill shortages, Nursing occupations, States and Territories and Australia, 2014-15 Occupations in cluster 2541-11 Midwife 2544 Registered Nurse 4114-11 Enrolled Nurse Rating NSW VIC QLD SA WA TAS NT ACT AUS S M-D R-D R NS D S NS S R;M-D NS R NS NS NS NS NS NS NS R NS NS NS NS NS S NS Source: Department of Employment, Survey of Employers who have Recently Advertised Key: S = Shortage, D = Recruitment Difficulty, R = Regional Shortage, M-D = Metropolitan Recruitment Difficulty, R-D = Regional Recruitment Difficulty, NS = No Shortage In 2014-15, regional employers found it slightly more difficult to recruit nurses than their metropolitan counterparts. o The number of suitable applicants per vacancy was similar (an average of 1.2 compared with 1.4 in metropolitan areas), but around 70 per cent of regional vacancies were filled compared with 75 per cent in metropolitan locations. Over the four years to 2014-15, however, there has been a clear improvement in the ability of employers to fill nursing vacancies in regional areas (Figure 3). o Despite this, employers commonly noted that it was more difficult to recruit in regional locations. Labour Market Research and Analysis Branch Department of Employment Page 3 Figure 3: Proportion of vacancies filled (%), average number of applicants and suitable applicants per vacancy (no.), Nurses, Metropolitan and regional locations, 2010-11 to 2014-15 Applicants per vacancy - RHS 100 Suitable applicants per vacancy - RHS Proportion of vacancies filled - LHS 15.0 80 12.0 60 9.0 40 6.0 20 3.0 (%) (no.) 0 0.0 2010-11 2011-12 2012-13 2013-14 Metropolitan 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 Regional Source: Department of Employment, Survey of Employers who have Recently Advertised Reasons applicants were unsuitable The majority of applicants were qualified nurses, but more than 70 per cent of qualified applicants were considered by employers to be unsuitable. The primary reason for applicant unsuitability was a lack of relevant experience. o For a number of vacancies, skills in a specialty area or with particular client groups were required and applicants without this experience were considered to be unsuitable. o Some employers noted that experience between sectors (such as between aged care and acute care) was generally not transferable. Other reasons for unsuitability included o a failure to adequately address the selection criteria for the position o poor performance at interview. Demand and supply trends Employment 6 Data from the Australian Health Practitioner Regulation Agency6 (AHPRA) show that there were 363,501 nurses and midwives registered and practising in Australia in March 2015, up by 5 per cent since March 2013, comprising o 264,238 registered nurses (a rise of 7 per cent over the period) o 60,306 enrolled nurses (1 per cent higher) o 5,467 with dual registration as a registered and enrolled nurse (34 per cent higher) o 3,587 midwives (36 per cent higher) o 29,903 with dual registration as a nurse and a midwife (10 per cent lower). AHPRA: Nursing and Midwifery Board, Nurse and Midwife Registrant Data, various issues Labour Market Research and Analysis Branch Department of Employment Page 4 Turnover Labour turnover of registered nurses and midwives is relatively low. Over the year to February 2013, 3.9 per cent of midwives and nursing professionals left their occupation group (compared with 11.4 per cent across all occupations).7 There is some evidence to suggest that the number of nurses retiring fell during the global financial crisis.8 While no up-to-date data are available to determine if this is still bolstering the supply of nurses, it may have contributed to the easing of shortages. o ABS Labour Force data show nursing occupations have relatively old age profiles, with a median age of 43 years for registered nurses, 42 years for midwives and 46 years for enrolled and mothercraft nurses. The median age for workers across all occupations is 40 years.9 Vacancies The level of advertised vacancies for nurses has been increasing strongly since the start of 2014, suggesting that demand for nurses has risen.10 In the year to June 2015 compared with the year to June 2014, the number of vacancies was o 25.6 per cent higher for registered nurses o 15.9 per cent higher for midwives o 22.5 per cent higher for enrolled and mothercraft nurses. Figure 4: Vacancy levels, Nursing occupations, Australia, December 2006 to June 2015 (indexed) Registered Nurse Enrolled and Mothercraft Nurses Midwives All IVI vacancies 250 200 150 100 50 0 Source: Department of Employment, Internet Vacancy Index, 12 month moving average (Dec 2006 = 100) 7 ABS, Labour Mobility, May 2013, customised table Note: Labour turnover is people leaving these occupations for other employment or leaving the workforce. 8 O’Loughlin, Humpel and Kendig, ‘Impact of the global financial crisis on employed Australian baby boomers: a national survey’, Australasian Journal on Ageing, 2010 (vol 29, issue 2) 9 ABS, Labour Force, 2014 annual average 10 Department of Employment, Internet Vacancy Index, June 2015, 12 month moving average Note: The number of vacancies is very low for midwives, contributing to the variability over the time series for that occupation. Labour Market Research and Analysis Branch Department of Employment Page 5 Training Initial training for registered nurses and midwives is at the bachelor degree level through universities and for enrolled nurses the vocational education and training (VET) system offers diploma courses. o It is notable, though, that enrolled nursing can be a pathway to registered nursing, as enrolled nurses can further their qualifications through the university sector. More than one fifth of enrolled nursing students progress to university study on completion of their VET course.11 Higher education statistics show that there has been a strong rise in the number of domestic students commencing and completing a general nursing course that leads to initial registration.12 o In 2014, there were around 46,600 student enrolments in these courses, a rise of 39.5 per cent compared with 2009. o The number of commencements increased by 39.6 per cent over the five years to 2014 to nearly 17,500 (well above the all fields of education average of 28.8 per cent). o The number of completions increased by 32.3 per cent (to 9600) over the five years to 2014 (well above the all fields of education average of 23.0 per cent). National Centre for Vocational Education Research (NCVER)13 figures show that the number of domestic students enrolled in a vocational education and training (VET) certificate IV or higher qualification in the field of nursing has increased significantly in recent years.14 o In 2014, there were around 19,100 enrolments, up by 42.8 per cent compared with 2009. Figure 5: Domestic enrolments, Nursing, Higher education and vocational education and training, 2009 to 2014 (‘000s) Higher Education 50 Vocational Education and Training ('000) 40 30 20 10 0 2009 2010 2011 2012 2013 2014 Sources: Department of Education, Higher Education Student Statistics Data Cube and NCVER, Students Data Cube Notes: Higher education nursing data are for the special field “General nursing course required for initial registration. Vocational education and training data are limited to certificate IV or higher qualification. 11 NCVER, Student Outcomes Survey, 2014, data combine two survey periods Department of Education and Training, Higher Education Student Statistics Data Cube, 2014, domestic students Note: “General nursing course required for initial registration” is a special course code. All fields of education data exclude enabling and non-award courses. 13 NCVER, Students and Courses, 2003-2014 data cube, includes domestic students undertaking training packages or nationally accredited courses. Note: Data are for publicly funded providers only, figures exclude international fee-paying students. 14 Note: All current AHPRA approved programmes of study for registration as an enrolled nurse are at the diploma or higher level, however, data cited here include certificate IV and higher qualifications to ensure a consistent time series and reflect transition pathways. 12 Labour Market Research and Analysis Branch Department of Employment Page 6 Graduate employment outcomes Graduate Careers Australia (GCA) data15 show that domestic bachelor degree graduates of nursing (initial) courses have strong employment outcomes, with 80.5 per cent securing full-time work in 2014. o While this is well above the all fields of education average (68.1 per cent), graduate outcomes for nurses have declined markedly over the last five years (down from 96.3 per cent in 2009) to their lowest level since the recession of the early 1990s. o That said, more than 90 per cent of those who are working full-time are employed in occupations which are relevant to their broad field of training. Figures reported by the Australian Nursing and Midwifery Federation 16, suggest that large numbers of graduate nurses are unable to find work in the state hospital system. They estimate that “some 3000 graduates [are] still unable to find work”. o Michael Roff, chief executive of the Australian Private Hospitals Association17 has stated that, “there are not enough graduate entry places for them [graduate nurses]” and that the current situation is a “short-term bottleneck”. Figure 6: Bachelor degree graduates in full-time employment, Nursing (initial), 2009 to 2014 (%) 100 95 90 85 80 (%) 75 70 65 60 55 50 2009 2010 2011 2012 2013 2014 Source: GCA, Graduate Destinations, Australian resident bachelor degree graduates, as a proportion of those available for full-time work four months after graduation NCVER data18 indicate that outcomes are also relatively strong for those who complete their training in a course designed for enrolled nursing, with 90.6 per cent employed six months after completion in 2014. It is notable, though, that o almost 70 per cent of those employed found work as an enrolled nurse o almost two thirds of those employed were working part-time. 15 GCA, Gradstats, 2014 and GCA, Graduate Destinations Supplementary Tables and Figures, 2013 Note: Outcomes are as a proportion of Australian resident bachelor degree graduates who were in full-time employment four months after completing their degree of those who were available for full-time work. Nursing (initial) comprises the fields of study 060300 Nursing nfd and 060301 General Nursing. 16 ANMF, Australian Graduates and 457 Workers Exploited Under Current Laws, 19 June 2015 17 Australian Private Hospitals Association media release, Statement from the Australian Private Hospitals Association re:457 Visas, 21 May 2014 18 NCVER, Student Outcomes Survey, 2014, data combine two survey periods Note: Outcomes are the proportion in employment (full-time and part-time) six months after completing their training. Labour Market Research and Analysis Branch Department of Employment Page 7 Other indicators and issues Demand for nurses is expected to increase strongly in coming years due to population growth, an ageing population and rising demand for health services. The Department of Employment19 projects that over the five years to November 2019 employment of o registered nurses will increase by 17.9 per cent (or 41,400), well above the average for all occupations (10.0 per cent) o midwives will increase by 7.0 per cent (or 1100) o enrolled and mothercraft nurses will decrease by 4.4 per cent (or 800). The former Health Workforce Australia20 published longer term projections. Under every modelled scenario, they projected a significant shortage of registered nurses by 2025 (although the degree of shortage varies considerably across scenarios, from a low of 14,800 to a high of 147,300). 19 Department of Employment, Employment projections to November 2019 HWA, Health Workforce 2025, March 2012 Note: HWA closed in August 2014, with essential functions transferring to the Department of Health. 20 Labour Market Research and Analysis Branch Department of Employment Page 8