Labour Market Brief – June Quarter 2015
Key Message
The Northern Territory labour market continues to remain relatively buoyant, with employment growth
continuing its upward trend since the beginning of 2015, the underemployment rate the lowest in Australia,
and the labour force participation rate at an all-time high for all jurisdictions. Within the Territory, the
Greater Darwin region continues to have the strongest labour market, largely driven by ongoing construction
works. Regional labour markets are also strengthening with unemployment rates falling in most major
Territory regions. Ongoing work on the INPEX Ichthys project will continue to stimulate economic activity and
employment opportunities, with record worker numbers expected in 2015.
Introduction
The Northern Territory labour market is characterised by a
relatively young and skilled workforce, high participation and
low unemployment. However, there are also marked
differences between certain cohorts and within different subTerritory regions.
Regional Labour Markets
Region
Mar 2014 Dec 2014 Mar 2015
Alice Springs
Unemployment (no.)
1 442
990
955
Labour Force (no.)
25 115
24 546
24 755
Unemployment Rate (%)
9.3%
6.6%
6.3%
Barkly
Unemployment (no.)
359
267
268
Labour Force (no.)
3 231
3 159
3 186
Unemployment Rate (%)
12.9%
9.8%
9.7%
Daly - Tiwi - West Arnhem
Unemployment (no.)
926
624
626
Labour Force (no.)
8 594
8 392
8 461
Unemployment Rate (%)
13.6%
9.4%
9.3%
East Arnhem
Unemployment (no.)
682
463
465
Labour Force (no.)
7 840
7 654
7 715
Unemployment Rate (%)
8.8%
6.1%
6.0%
Greater Darwin
Unemployment (no.)
2 507
2 560
2 695
Labour Force (no.)
81 366
82 470
82 682
Unemployment Rate (%)
3.1%
3.2%
3.4%
Katherine
Unemployment (no.)
801
613
619
Labour Force (no.)
11 437
11 179
11 274
Unemployment Rate (%)
10.4%
8.2%
8.2%
During the March quarter 2015:

all regions reported a decrease in unemployment rates,
except for Greater Darwin, where the unemployment
rate increased from the previous quarter, and Katherine
where rates remained unchanged over the period.

outside the Greater Darwin region, East Arnhem
experienced the lowest unemployment rate at 6.0%.

the Barkly region has the highest unemployment rate in
the Territory at 9.7%. Generally this region experiences
a higher level of unemployment compared to other
Territory regions, largely due to the lower levels of
economic activity and a less diverse local economy.
It should be noted that many Territory regions consist of
a small population base, which can result in volatility in
labour market figures.
Regional Apprentices and Trainees
Region
Alice Springs
Commencements
Completions
Barkly
Commencements
Completions
West Arnhem
Commencements
Completions
East Arnhem
Commencements
Completions
Darwin
Commencements
Completions
Katherine
Commencements
Completions
YTD Apr 2015
142
72
172
53
62
10
58
4
42
6
14
8
31
37
34
13
800
259
628
176
129
21
150
16
Source: Department of Business

Source: Department of Employment, Australian Government.

Department of Business
YTD Apr 2014
Comparing April 2015 to April 2014, apprentice and
trainee commencements increased in all Territory
regions, except in Barkly, West Arnhem and Darwin.
Completions decreased in all regions, but increased in
West Arnhem.
As there can be significant lags in reporting training
data, the data may be revised in the future.
Apprentice and Trainee Commencements by
Training Funding Group
(year to date to April 2015)
Training Funding Group
2014
Arts, Entertainment, Sports and
Recreation
28
33

Automotive
216
106
110

3.8%
Building and Construction
546
229
89

61.1%
Business and Clerical
201
82
117

42.7%
8
1
2

100.0%
379
132
78

40.9%
Community Services, Health and
Education
Engineering and Mining
32
23
21

8.7%
50
38

24.0%
51
21
21

0.0%
Exceptions - Cookery
57
20
32

60.0%
Food Processing
105
15
52

246.7%
Primary Industry
207
134
170

26.9%
21
6
11

83.3%
306
121
56

53.7%
Science, Technical and Other
11
7
6

14.3%
Textiles, Clothing, Footwear and
Furnishings
21
5
1

80.0%
Tourism and Hospitality
201
59
64

8.5%
Transport and Storage
83
28
33

17.9%
263
139
122

12.2%
2 927
1 206
1 056

12.4%
Finance Banking and Insurance
Process Manufacturing
Sales and Personal Service
Utilities
Total

17.9%
170
Computing

YTD Change
YTD 2014 YTD 2015
49
Communications
Commencements




In the year to date to April 2015, there were 1056
apprentice and trainee commencements in the Territory.
Compared to the same period last year, there has been
a 12.4% decrease (150) in the number of
commencements, despite increases reported across
most groups.
Due to the natural lag in contracts being registered (up
to 6 months after the commencement date) it is
expected there was a considerably higher number of
actual commencements than at the time of publishing.
The training funding groups with the largest number of
commencements were Primary industry (170), followed
by Utilities (122), and Business and clerical (117).
In the year to date to April 2015, the training funding
groups to experience the largest increases in
commencements compared to the year to date to
April 2014 were Food processing (37), Primary industry
(36), and Business and clerical (35).
In Alice Springs, the largest number of apprentice and
trainee commencements was in Tourism and hospitality
(31). West Arnhem and East Arnhem had the lowest
commencements with 14 and 34 respectively in the year
to date to April 2015.
Apprentice and trainee commencements are an indicator
of employment demand and employer sentiment.
Source: Department of Business
Apprentice and Trainee Completions by
Training Funding Group
(year to date to April 2015)
Training Funding Group
Arts, Entertainment, Sports and
Recreation
2014
Completions

YTD Change
YTD 2014 YTD 2015
29
2
1

50.0%
Automotive
102
38
25

34.2%
Building and Construction
127
45
27

40.0%
Business and Clerical
138
59
28

52.5%
19
12
4

66.7%
196
34
7

79.4%
Communications
Community Services, Health and
Education
Computing
14
3
4

33.3%
Engineering and Mining
72
20
34

70.0%
7
6
6

0.0%
Finance Banking and Insurance
37
17
3

82.4%
Food Processing
11
4
38

850.0%
Primary Industry
80
18
6

66.7%
Process Manufacturing
22
15
3

80.0%
107
41
19

53.7%
Science, Technical and Other
23
4
3

25.0%
Textiles, Clothing, Footwear and
Furnishings
11
7
0

100.0%
Tourism and Hospitality
110
36
26

27.8%
Transport and Storage
37
19
8

57.9%
138
25
28

12.0%
1 280
405
270

33.3%
Exceptions - Cookery
Sales and Personal Service
Utilities
Total





In the year to date to April 2015, there were 270
apprentice and trainee completions in the Territory, a
33.3% decrease (135) compared to the same period last
year.
As with commencements, there are also lags in
completions, as such the magnitude of the decline in
completions is likely significantly less than at the time of
publishing.
The decrease in apprentice and trainee completions has
not been concentrated to any specific industry.
Industries that experienced increases in completions in
the
year
to
date
to
April 2015
include
Food processing (4 to 38), Engineering and mining
(20 to 34), and Utilities (25 to 28).
Industries that experienced large decreases in the year
to April 2015 were Textiles, clothing, footwear and
furnishings (7 to 0), Finance, banking and insurance
(17 to 3), and Process manufacturing (15 to 3).
In Alice Springs, the largest number of apprentice and
trainee completions was in Tourism and hospitality,
accounting for 18 completions out of a total of 53.
Katherine had a total of 16 completions, followed by
East Arnhem with 13. West Arnhem had 8 completions,
and the Barkly region had 4 completions.
Source: Department of Business
Department of Business
2

Unemployment Rate
Chart 1: Unemployment Rate (quarterly average)

%
7

6
Australia
5

4
3
Northern Territory
2
In the May quarter 2015, there were 136 950 Territorians
that were employed, an increase of 3200 from the
previous quarter’s revised figure.
Full-time employment increased by 1700 to 110 800
persons. Part-time employment increased by 1500
persons over the period to 26 150 persons.
In the May quarter 2015 in the Territory, male full-time
employment increased by 1.1% while female full-time
employment increased by 2.1%.
At the national level, male employment decreased by
0.6% in the quarter, driven by a 0.3% increase in
full-time employment. Female employment increased by
0.6% over the same period.
Underemployment
1
Underemployment Rate
0
2005
2006
2007
2008
2009 2010 2011
Year ended June
2012
2013
2014
2015


Level
 0.0 ppt
 0.0 ppt
3.9%
8.5%
Source: ABS Cat No 6202.0
Source: ABS Cat No 6202.0

NT
Australia
Quarterly
Change
In the May quarter 2015, the Territory unemployment
rate increased by 0.4 of a percentage point to 4.9%,
from the previous quarter’s revised figure.
There were 6350 unemployed persons in the Territory in
the May quarter 2015, an increase from 5650 persons in
the previous quarter.
In the May quarter 2015, the male unemployment rate in
the Territory increased by 0.4 of a percentage point to
4.9%, while the female unemployment rate increased by
0.3 of a percentage point to 3.9%. Nationally, the male
and female unemployment rates each decreased by 0.1
of a percentage point to 6.1% respectively.


An underemployed person is an employed person
whose hours of work were less than 35 hours in a
particular week, and they were willing and available to
work additional hours if offered.
The Territory underemployment rate is the lowest of the
jurisdictions at 3.9% of total employed persons,
signifying that compared to the rest of Australia, there
are more employed people in the Territory working their
desired number of hours.
The number of underemployed persons in the Territory
increased to 5500 in the May quarter 2015, and has
been generally rising over the past two years.
Hours worked
Quarterly
Change
Resident Employment
Average Weekly Hours
Worked Per Capita
Chart 2: Northern Territory Resident Employment
Index (100 = March 2005
Level
(Hours)
NT
 0.5%
38.2
Australia
 0.2%
34.8
Source: ABS Cat No 6202.0
150
140
Males

130
120
Females

110

100
90
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Average weekly hours worked per capita refers to the
number of hours each employed person works each
week on average.
In the May quarter 2015, average weekly hours worked
per capita in the Territory increased by 0.5% to 38.2
hours per week on average.
Nationally, average weekly hours worked per capita
increased by 0.2% to 34.8 hours per week.
On average, Territory workers work longer hours than
nationally, which may also be a reason the Territory has
the lowest underemployment rate in the nation.
2015
Year ended June
Source: ABS Cat No 6202.0
Department of Business
3
Chart 4: Annual Population Growth Rate
Employment by Industry
Top 5 Industries by Percentage Change
Year on Year
Change
Professional, Scientific and Technical Services
Electricity, Gas, Water and Waste Services
Information Media and Telecommunications
Accommodation and Food Services
Agriculture, Forestry and Fishing
25.6%
18.7%
15.7%
10.7%
7.6%
Source: ABS Cat No 6291.0.55.003
In the year to May 2015, Professional, scientific and
technical services had the highest percentage increase
in employment of all industries (25.6%), followed by
Electricity, gas, water and waste services (18.7%).
 Public administration and safety, the largest employing
industry, which includes activities involving government
legislation, emergency services and border control, had
a year on year decrease of 1.2%.
 Mining is the largest industry in the Territory by value of
production.
However,
Mining
only
employs
approximately 3.9% of the Territory workforce as the
industry is capital intensive, utilising machines instead of
people to perform many tasks. In the year, Mining
employment decreased by 8.0%.
Caution should be exercised when interpreting
employment changes by industry due to data volatility in
small jurisdictions such as the Northern Territory.
Chart 3: Northern Territory Employment by Industry
(year average to May 2015)
Public administration and safety
Health care and social assistance
Construction
Education and training
Retail trade
Professional, scientific and technical services
Accommodation and food services
Transport, postal and warehousing
Other services
Mining
Administrative and support services
Manufacturing
Arts and recreation services
Wholesale trade
Electricity, gas, water and waste services
Rental, hiring and real estate services
Financial and insurance services
Information media and telecommunications
Agriculture, forestry and fishing
2.0
Northern Territory
10 year average
Australia
1.0
0.5
0.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: ABS Cat No 3101.0

Territory annual ERP growth has moderated over the
past 12 months and is now below the Territory 10-year
average growth rate.
Net interstate migration has deteriorated from a net
outflow of 1220 persons in 2012-13 to a net outflow of
3392 persons in 2014.

Labour Force

In the May quarter 2015, there were 188 500 persons in
the civilian population (persons aged 15 years and over)
and 143 250 persons in the labour force (employed
persons and those actively pursuing employment). This
is 3850 persons more than in the February quarter 2015.
 Since 2005, the Territory labour force has increased at a
faster pace than the civilian population, implying the
number of people employed or actively looking for a job
increasing at a faster pace than the civilian population,
leading to tighter labour market conditions.
Chart 5: Northern Territory Labour Force and Civilian
Population
140
130
5 000 10 000 15 000
Employed Persons
20 000
25 000
Resident Population
110
Quarterly
Change
Labour Force
120
Source: ABS Cat No 6291.0.55.003
Number of
Persons
NT
 0.3%
244 300
Australia
 0.3%
23 625 600
Source: ABS Cat No 3101.0

2.5
Index (100 = March 2005)
150
0

Northern Territory
3.0
1.5

Population
Annual change (%)
3.5
Civilian Population
100
90
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year ended June
Source: ABS Cat No 6202.0
In the December quarter 2014, the Territory’s estimated
resident population (ERP) decreased by 0.3% to
244 300 persons, while the national population
increased by 0.3% to 23 625 600 persons.
In annual terms the Territory’s ERP increased by 0.4%,
the second lowest of the jurisdictions and lower than the
national annual growth rate of 1.4%.
Department of Business
4
Labour Force Participation Rate
Youth Labour Market (15-19 years old)

In the May quarter 2015, the Territory labour force
participation rate increased by 1.8 percentage points to
76.0% from the previous quarter’s revised figure.
 The Territory reported the highest labour force
participation rate of all-time of the jurisdictions and was
11.2 percentage points above the national rate of 64.8%
in the May quarter 2015.
Chart 6: Participation Rate (quarterly average)
%
Year on
Year
Change
Attending Full-time
Education
Total Employed
Total Unemployed
Labour Force
(15-19 years old)
78
76
Civilian Population
(15-19 years old)
74
72
Unemployment Rate
Northern Territory
70
Participation Rate
68

Australia
64
62
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

Year ended June
Source: ABS Cat No 6202.0




NT
 16.5%
Australia
NT
Australia
NT
Australia





NT
 4.2%
8 600
Australia
 2.0%
797 800
NT
 0.7%
16 300
Australia
NT
Australia
NT
Australia





0.6%
9.1%
0.4%
37.8%
13.8%
0.3%
4.5 ppt
2.0 ppt
1.9 ppt
0.9 ppt
6 600
622 000
7 300
646 100
1 300
151 700
1 475 200
15.0%
19.0%
52.9%
54.1%
Source: ABS Cat No 6202.0
66

Annual
Average
Level
The Territory male workforce participation rate increased
by 1.6 percentage points to 79.3% in the May quarter
2015.
The Territory female workforce participation rate
increased by 2.0 percentage points to 72.5% in the
May quarter 2015.
Historically, male participation in the workforce has been
higher than female participation, in large part due to a
relatively higher proportion of females leaving the
workforce to care for family.
At the national level, the male workforce participation
rate increased by 0.1 of a percentage point to 71.1% in
the May quarter 2015, while the female workforce
participation rate remained unchanged at 58.6%.
Territory workforce participation rates for both males and
females are significantly higher than nationally, reflecting
greater confidence in the Territory economy and job
prospects.
In the year to May 2015 the number of youth (persons
aged 15 to 19 years) employed in the Territory
decreased by 9.1% to 7300 persons.
Over the same period, national youth employment
decreased by 0.4% to 646 100 persons.
Youth labour market data is reported on by averaging
monthly data over a year. This is done to lessen the
variability and volatility of monthly movements.

In the year to May 2015, 6600 out of the 16 300 youths
(40.5%) were undertaking full time education in the
Territory, an increase from 39.6% in the previous
quarter. In comparison, 42.2% of the national youth
population were undertaking full time education.
Chart 7: Youth Unemployment Rate (annual average)
%
25
20
Australia
15
10
Northern Territory
5
0
2005
2006
2007
2008
2009 2010 2011
Year ended June
2012
2013
2014
2015
Source: ABS Cat No 6202.0

In the year to May 2015 the average youth
unemployment rate in the Territory was 15.0%. This is
below the corresponding national rate of 19.0%.
Department of Business
5
Chart 8: Youth Participation Rate (annual average)
Average Weekly Earnings
%
6 Monthly
Change
65
Average Weekly Full Time
Adult Ordinary Time
NT
Earnings
Australia
60
Australia
55
Average Weekly Full Time
NT
Adult Total Earnings
Northern Territory
50
Australia
45
2006
2007
2008
2009 2010 2011
Year ended June
2012
2013
2014
2015
In the year to May 2015, the average youth participation
rate in the Territory was 52.9% and 54.1% nationally.
Of the total 16 300 youth in the Territory, 93.0% were
employed or actively looking for work or were in full-time
education, compared to 96.3% of youth nationally.

Wage Price Index
Wage Price Index
NT
Australia
Quarterly
Change
Level
 0.5%
 0.4%
121.7
120.7

Source: ABS Cat No 6345.0
In the March quarter 2015, the WPI increased by 0.5%
in the Territory and by 0.4% nationally.
In annual terms, the Territory WPI increased by 2.4% in
the year to March 2015, above the growth nationally,
which increased by 2.3% over the same period.

 1.5%
$1 476
 2.8%
$1 565
 1.4%
$1 539
Chart 10: Northern Territory Average Weekly Earnings
$
The Wage Price Index (WPI) measures changes in the
price of wages and salaries and excludes changes in
overtime and bonus payments.

$1 447
Average weekly full-time adult ordinary time earnings
(ordinary earnings) and average weekly full-time adult
total earnings (total earnings) includes earnings for all
wage and salary earners, except some groups such as
overseas consulates and Australian Defence personnel.
For a full list see Labour Force Terms and Information.
In the six months to November 2014, ordinary earnings
in the Territory increased by 1.3% to $1447. Over the
same period, average weekly total earnings (which
includes overtime payments) increased by 2.8% to
$1565. At the national level, ordinary earnings increased
by 1.5% to $1476, and average weekly total earnings
increased by 1.4% over the period to $1539.
Territory weekly total earnings are now $26 higher than
nationally, compared to being $48 higher in May 2014.
Source: ABS Cat No 6202.0

 1.3%
Source: ABS Cat No 6302.0
40
2005

Level
Chart 9: Wage Price Index (annual percentage change)
Ordinary Earnings
1550
1500
1450
1400
1350
1300
1250
1200
1150
%
1100
5.5
1050
5.0
Total Earnings
1000
Northern Territory
Nov 2013
4.5
4.0
May 2014
Nov 2014
Source: ABS Cat No 6302.0
3.5
3.0
Australia
2.5
2.0
1.5
1.0
0.5
0.0
2005
2006
2007
2008
2009
2010 2011 2012
Year ended June
2013
2014
2015
Source: ABS Cat No 6345.0
Department of Business
6

Newstart and Youth Allowance
Quarterly
Change
Newstart and Youth
NT
Allowance
Australia
Persons
 2.8%
6 268
The fall in job vacancies in the Territory may indicate
that employment growth will decrease in the short term.
Chart 12: Northern Territory Job Vacancies
Number (000s)
4.5
 4.1%
435 698
Source: Department of Social Services, Australian Government.

In the April quarter 2015, the number of Newstart and
Youth Allowance recipients that are ready and available
to work in the Territory increased by 2.8% to 6268.
 In the April quarter 2015, all jurisdictions recorded an
increase in the number of Newstart and Youth
Allowance recipients except for Tasmania (reported a
0.9% decrease). Queensland had the highest increase
(6.6%), followed by Western Australia (5.4%), and South
Australia (4.8%).
 At the national level the number of recipients increased
by 4.1% to 435 698.
Chart 11: Newstart and Youth Allowance Recipients
Persons (000s)
Persons (000s)
10
4.0
Total
3.5
3.0
2.5
Private
2.0
1.5
Public
1.0
0.5
0.0
2010
2011
2012
2013
2014
Source: ABS Cat No 6354.0
Other Economic Indicators
500
Northern Territory (LHS)
9
8
400
7
6
Australia (RHS)
5
300
4
No single indicator can give a comprehensive view of the
labour market. There are a number of economic indicators
that can impact on or explain changes in the Northern
Territory labour market that are not considered in this
publication. These may include gross state product, inflation,
retail sales, international trade, business and consumer
sentiment and housing affordability.
For consideration of broader economic indicators please see
NT key business statistics: http://www.dob.nt.gov.au/busines
s/economics/key-statistics/Pages/default.aspx.
3
2
2009
200
2010
2011
2012
2013
2014
2015
Year ended December
Source: Department of Social Services, Australian Government
Job Vacancies
Year on Year
Change
Job Vacancies
Vacancies
NT
 2.1%
2 800
Australia
 5.2%
152 600
Source: ABS Cat No 6354.0
Job vacancies are a leading indicator for future jobs
growth, with an increase indicating increased demand
for workers.




2015
Year ended June
Territory job vacancies decreased by 2.1% to 2800
vacancies in the year to February 2015. This was
primarily driven by a 2.4% decrease in the number of
private sector job vacancies to 2100 vacancies.
Public sector job vacancies in the Territory increased by
11.1% in the year to 700 vacancies.
At the national level, job vacancies increased by 5.2% to
152 600 vacancies in the year to February 2015.
The increase nationally was mainly the result of both
private and public sector vacancies rising by 4.2% and
18.3% respectively in the year.
Department of Business
7
Northern Territory Resident Employment
Chart 13: Resident Employment
Index (100 = March 2010)
120
115
Northern Territory
110
105
Australia
100
95
90
2010
2011
2012
2013
Year ended June
2014
2015
Source: ABS Cat Nos 6202.0
Since INPEX’s final investment decision in January 2012, Territory resident employment has grown 2.8 times
faster than nationally (see Chart 13). This figure is likely to understate the actual number of workers in the
Territory as resident employment only captures persons usually living in the Territory, and does not capture
fly-in-fly-out or other non-resident workers.
This period of strong employment growth has been underpinned by the construction of the INPEX’s LNG
plant, stimulating economic activity in key Territory industries such as construction and retail trade, which are
large industry employers.
Following the construction phase of the INPEX project and with it the period of strong resident employment
growth, the Territory is expected to enter a period of consolidation, with the less labour intensive production
phase of the project. Resident employment growth is expected to return to longer term sustainable levels,
and is forecast by the Department of Treasury and Finance to increase by 1.5% in 2015-16 and 0.7% for the
following two years.
Notes
All data referred to are in original terms except for unemployment rate, participation rate, employment, labour force, and civilian population.
For information on the data sources used and a glossary of labour market terms please see Labour Market Terms and Information.
Data Sources
Australian Bureau of Statistics, catalogue numbers 3101.0, 6202.0, 6220.0, 6291.0.55.003, 6302.0, 6345.0, 6354.0
Department of Business (NT Government)
Department of Employment (Australian Government)
Department of Social Services
Enquiries
Strategic Policy and Research, Department of Business
Email: employment.strategy@nt.gov.au
Disclaimer
The Northern Territory of Australia gives no warranty of assurance, and makes no representation as to the accuracy of any information or
advice contained in this publication, or that it is suitable for your intended use. You should not rely upon information in this publication for the
purpose of making any serious business or investment decisions without obtaining independent, professional advice in relation to your
particular situation.
Department of Business