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Australian Labour Market Update - Department of Jobs and Small ...
Au stralian Govern ment, Depart ment of Job s and Sm all Bu sin ess

                                                                                                                         April 2018

                                                               Australian Labour
                                                               Market Update

    Are you looking for a job in Australia?
    The Australian Labour Market Update provides information on the Australian labour market on a quarterly basis. It is intended
    to inform people interested in working in Australia on a temporary or permanent basis.
    Further information on job prospects, earnings and related information is at the Job Outlook website.
    Unless otherwise stated, data are from the Australian Bureau of Statistics (ABS) Labour Force Survey, February 2018.1

Employment
Over the 12 months to February 2018, the strongest employment growth (in trend terms) occurred in Queensland (4.6%), the
Australian Capital Territory (ACT, 4.1%) and New South Wales (NSW, 3.7%).
Employment opportunities and growth varied across industries. Over the 12 months to February 2018, the largest increases in
trend employment occurred in Health Care and Social Assistance (up 127 600), Construction (up 99 100), Retail Trade
(up 68 100) and Education and Training (up 55 500). The largest decrease in trend employment occurred in Public Administration
and Safety (down 81 200). The strongest rates of employment growth were in Arts and Recreation Services (up 17.6%) and
Electricity, Gas, Water and Waste Services (up 10.6%). Increases in trend employment by industry are shown in Figure 1.

        Figure 1: Trend employment growth by industry (’000s persons)—February 2017 to February 2018
                                                                               Decrease Increase 
                   Health Care and Social Assistance
                                          Construction
                                          Retail Trade
                               Education and Training
                        Arts and Recreation Services
                 Transport, Postal and Warehousing
                     Agriculture, Forestry and Fishing
                                       Other Services
         Electricity, Gas, Water and Waste Services
                 Accommodation and Food Services
     Professional, Scientific and Technical Services
            Rental, Hiring and Real Estate Services
                                     Wholesale Trade
                                                Mining
        Information Media and Telecommunications
                Administrative and Support Services
                    Financial and Insurance Services
                                        Manufacturing
                     Public Administration and Safety
                                                          -100 -80 -60 -40 -20              0    20     40    60    80 100 120 140

Source: ABS, Labour Force, Australia, Detailed, Quarterly, February 2018, ABS Cat. No. 6291.0.55.003.

ISSN 1833-413X

1
 The first paragraph of the Employment section and the Unemployment section use trended data from the ABS’ Labour Force, Australia, March 2018
(ABS Cat. No. 6202.0) time series spreadsheets.

Australian Labour Market Update—April 2018                                                                                                                                                         1
Unemployment
The trend rate of unemployment in Australia was 5.5% in
February 2018, compared to 5.8% in February 2017.
                                                                                               Figure 2: Unemployment rates (%) by
                                                                                                  State/Territory—February 2018
In the past year, the trend unemployment rate increased in
the Northern Territory (NT, 3.3% to 4.0%), the ACT (3.8% to                             7
4.1%) and Tasmania (5.8% to 6.0%).
                                                                                        6
Over the same period, the trend unemployment rate
                                                                                        5
decreased in South Australia (SA, 6.7% to 6.0%), Victoria
(6.0% to 5.5%), Queensland (6.3% to 6.0%) and NSW (5.0%                                 4
to 4.9%).
                                                                                        3
In February 2018, the trend unemployment rate was highest
in Western Australia (WA, 6.2%), Queensland, SA and                                     2
Tasmania (all 6.0%), and lowest in the NT (4.0%). See                                   1
Figure 2.
                                                                                        0

                                                                                                                                TAS

                                                                                                                                      NT
                                                                                              NSW

                                                                                                                                            ACT

                                                                                                                                                    AUST
                                                                                                      VIC

                                                                                                                     SA

                                                                                                                           WA
                                                                                                               QLD
Migrant Unemployment
The unemployment rates for people who migrate to Australia vary appreciably. Several factors influence migrant unemployment
rates including skill level, age, English proficiency, recent and relevant work experience, and the period since arrival in Australia.
Data consistently show recently-arrived migrants have a higher unemployment rate on average than those who have lived in
Australia for some years.
Figure 3 below shows the participation and unemployment rates of the Australian-born and migrants by broad country of birth
groups and period of residence in Australia (average of the last 12 months to February 2018).

                  Figure 3: Years since arrival in Australia by labour force participation rates (%) and
                unemployment rates (%) for broad country of birth groups—12 months to February 2018
      90                                                                                                                                              12
      80
                                                                                                                                                      10
      70
      60                                                                                                                                              8
      50
                                                                                                                                                      6
      40
      30                                                                                                                                              4
      20
                                                                                                                                                      2
      10
       0                                                                                                                                              0
             Born in Australia Arrived 20 or more Arrived 15–19                     Arrived 10–14           Arrived 5–9 years Arrived within last
                                    years ago       years ago                         years ago                    ago             5 years

                                             Labour force participation rate of Australia-born persons (left axis)
                                             Labour force participation rate of MESC-born persons (left axis)
                                             Labour force participation rate of OTMESC-born persons (left axis)
                                             Unemployment rate of Australia-born persons (right axis)
                                             Unemployment rate of MESC-born persons (right axis)
                                             Unemployment rate of OTMESC-born persons (right axis)

                                                            MESC: Main English Speaking Countries2
                                                   OTMESC: Other Than Main English Speaking Countries
Source: ABS, Labour Force, Australia, Detailed - Electronic Delivery, February 2018, ABS Cat. No. 6291.0.55.001.

2
    MESC are the United Kingdom, the Republic of Ireland, South Africa, Canada, the United States of America and New Zealand.

Australian Labour Market Update—April 2018                                                                                                                 2
Figure 4 below shows unemployment rates (average of the last 12 months to February 2018) for people resident in Australia born
in major country groups (subcontinent). People born in North-West Europe and Southern and Eastern Europe have relatively low
unemployment rates (3.9% and 4.0% respectively), while unemployment rates for people born in North Africa and the Middle East
(12.0%) and Sub-Saharan Africa (7.5%) are relatively high.

                                     Figure 4: Unemployment rates (%) by major country groups (subcontinent) of birth—
                                                               12 months to February 20183
     14

     12

     10

      8

      6

      4

      2

      0

                                                                                                                                                                   South-East Asia
                                                                                                                           North Africa and the Middle East

                                                                                                                                                                                     North-East Asia
                                              Oceania and Antarctica
            Australia (includes External

                                                                                                                                                                                                                                                                                  OTMESC
                                                                                                                                                                                                                                                                           MESC
                                                                                                                                                                                                                                           Americas

                                                                                                                                                                                                                                                      Sub-Saharan Africa
                                                                                                                                                                                                       Southern and Central Asia
                                                                                           Southern and Eastern Europe
                                                                       North-West Europe
                    Territories)

                                                                                                                         MESC: Main English Speaking Countries
                                                                                           OTMESC: Other Than Main English Speaking Countries

Employment by Occupation4
Over the 12 months to February 2018, the largest increases in trend employment occurred for Technicians and Trades Workers
(up 90 000), Professionals (up 86 800) and Community and Personal Service Workers (up 76 800). Trend employment growth
rates in descending skill order are shown in Table 1 below.
                                           Table 1: Trend employment growth by occupation—12 months to February 2018
    Occupational Group                                                                                                                                        1 Year Change (’000 persons)                                                            1 Year Change (%)
    Managers                                                                                                                                                                                                                       -18.2                                                   -1.2
    Professionals                                                                                                                                                                                                                  86.8                                                    3.0
    Technicians and Trades Workers                                                                                                                                                                                                 90.0                                                    5.3
    Community and Personal Service Workers                                                                                                                                                                                         76.8                                                    6.1
    Clerical and Administrative Workers                                                                                                                                                                                             -6.3                                                   -0.4
    Sales Workers                                                                                                                                                                                                                  63.9                                                    5.8
    Machinery Operators and Drivers                                                                                                                                                                                                63.9                                                    8.3
    Labourers                                                                                                                                                                                                                      13.7                                                    1.1

Additional information on occupational groups is provided in the following section on internet vacancy trends.

3
  From October 2015, Figure 3 of the Australian Labour Market Update uses major country groups (subcontinent) of birth data from the Standard Australian
Classification of Countries (SACC), 2011 (ABS Cat. No. 1269.0). In SACC, ‘Australia (includes External Territories)’ is included within ‘Oceania and Antarctica’.
4
  This section is based on February 2018 Department of Jobs and Small Business trend data derived from ABS Labour Force Survey data. Occupational Groups are
from the Australian and New Zealand Standard Classification of Occupations (ANZSCO) (ABS Cat. No. 1220.0).

Australian Labour Market Update—April 2018                                                                                                                                                                                                                                                    3
Internet Vacancy Trends
The Department of Jobs and Small Business produces the monthly Vacancy Report which contains the Internet Vacancy Index
(IVI)5 (see Figure 5). Over the year to February 2018, the IVI (trend) increased by 10.5% with increases recorded for seven of the
eight occupational groups.
The largest occupational group increases were for Technicians and Trades Workers (up 16.1%), Professionals (up 13.8%) and
Managers (up 12.0%).
At the more detailed occupation level, vacancies increased in 41 of the 48 occupation clusters over the year to February 2018,
with the strongest increases for Science Professionals and Veterinarians (up 33.5%), Engineers (up 30.2%), Automotive and
Engineering Trades Workers (up 26.7%), ICT Professionals (up 25.0%) and Electrotechnology and Telecommunications Trades
Workers (up 23.8%). The strongest decrease over this period was for Sales Representatives and Agents (down 6.9%).
Over the year to February 2018, vacancies rose in all states and territories. The strongest rises were in WA (up 14.8%), followed
by the NT (up 14.4%, albeit from a low base) and Victoria (up 13.0%).

                                Figure 5: Internet Vacancy Index, January 2006 to February 2018

    180

    160                                                                                                              Australian Total

                                                                                                                     Professionals
    140
                                                                                                                     Technicians and Trades Workers
    120

    100

     80

     60

     40
       Jan-06      Jan-07      Jan-08      Jan-09      Jan-10      Jan-11      Jan-12      Jan-13      Jan-14      Jan-15      Jan-16      Jan-17      Jan-18

Source: Department of Jobs and Small Business, Vacancy Report (March 2018), Trend Index data.

Future Employment Change
The Labour Market Information Portal contains information on projected future employment change over the five years to
May 2022 for different occupations and industries. As there may be significant variation between and within states, information on
future employment change should be used with caution.
Future employment change estimates are indicative only and are intended to provide a guide to opportunities likely to be available
over the five years to May 2022. It is important to note that these estimates do not provide any guidance about the number of
people looking for opportunities in each occupation. As the Australian labour market can change quickly, information should be
re-assessed prior to making a decision to lodge a visa application.
Queries on the Australian Labour Market Update publication should be emailed to migration@jobs.gov.au.

5
  See Department of Jobs and Small Business Vacancy Report (February 2018 and (for Figure 5) March 2018). The IVI is based on a count of online job advertisements
newly lodged on SEEK, CareerOne and Australian JobSearch during the month. Duplicate advertisements are removed before IVI vacancies are coded by the now
Department of Jobs and Small Business (former Department of Employment) to occupations based on ANZSCO. The data are seasonally adjusted and trended, then
indexed (January 2006=100).

Australian Labour Market Update—April 2018                                                                                                                      4
Au stralian Govern ment, Depart ment of Job s and Sm all Bu sin ess

                                                                                                                                                     April 2018
                                                                                                                                             Australian Labour
                                                                                                                                                Market Update
                                                                                       HOT TOPIC                                           HOT TOPIC

Australia—States and Territories
    This Hot Topic focuses on the Australian states and territories (the States), and provides an overview of the Australian
    population, its regional distribution and relative economic performance. It is an annual publication included in the April edition
    of the Australian Labour Market Update.
    Unless otherwise stated, data are from the Australian Bureau of Statistics (ABS) Labour Force Survey, February 2018.

The Australian Population
Australia’s population is concentrated in New South Wales (NSW) and Victoria (with 32.0% and 25.7% of the total population
respectively). The States which experienced the strongest population growth over the 12 months to 30 June 2017 were Victoria
(up 2.3%), the Australian Capital Territory (ACT, up 1.7%), Queensland (up 1.6%) and NSW (up 1.6%). The Northern Territory
(NT) experienced the weakest growth (0.1%).
                                 Table A: Distribution of the Australian Resident Population at 30 June 2017*
                                          NSW             VIC            QLD           SA                    WA           TAS             NT               ACT                                                        AUST
Population                               7 861 068       6 323 606       4 928 457 1 723 548                2 580 354     520 877        246 105          410 301                                          24 598 933
Share of Australian
                                                 32.0           25.7           20.0         7.0                   10.5           2.1           1.0            1.7                                                                         100.0
Population (%)
Population growth (%)**                           1.6            2.3            1.6         0.6                    0.8           0.6           0.1            1.7                                                                               1.6
Capital City (%)                                 65.3           76.7           48.9        77.4                   79.2          43.6        59.6            100.0                                                                              67.3
Balance of State (%)                             34.7           23.3           51.1        22.6                   20.8          56.4        40.4              0.0                                                                              32.7
* Estimated resident population at 30 June 2017 is preliminary.
** Percentage growth in the 12 months from 30 June 2016 to 30 June 2017. Estimated resident population at 30 June 2016 is preliminary
   rebased (based on the results of the 2016 Census).
Source: ABS (2018), Australian Demographic Statistics, September Quarter 2017, ABS Cat. No. 3101.0; and ABS (2018), Regional Population
        Growth, Australia, 2016-17, ABS Cat. No. 3218.0.

State and Territory Employment
       Figure A: Employment by State/Territory (trend),                                     Figure B: Employment for Skilled Occupations by
              February 2017 and February 2018                                               State/Territory, February 2017 and February 2018

                    5000                                                                                   2500
                                                           February 2017                                                                             February 2017
                    4000                                                                                   2000
                                                           February 2018                                                                             February 2018
     '000 persons

                                                                                            '000 persons

                    3000                                                                                   1500
                    2000                                                                                   1000
                    1000                                                                                   500
                      0                                                                                      0
                                           QLD

                                                                                                                                   QLD
                                                    SA

                                                                                                                                          SA
                                                                   TAS

                                                                                                                          VIC

                                                                                                                                                             TAS
                                   VIC

                                                           WA

                                                                                                                                                     WA
                           NSW

                                                                                                                    NSW
                                                                                 ACT

                                                                                                                                                                                                                                         ACT
                                                                          NT

                                                                                                                                                                                        NT

Trend employment increased in Queensland (up 4.6%), the ACT (up 4.1%), NSW (up 3.7%), Victoria (up 2.7%), Tasmania
(up 2.5%), Western Australia (WA, up 2.4%) and South Australia (SA, up 2.0%) over the 12 months to February 2018. Trend
employment fell in the NT (down 2.9%). See Figure A.1
Figure B shows NSW (2.07 million), Victoria (1.67 million) and Queensland (1.15 million) employ the largest number of workers
in skilled occupations2 (Managers, Professionals, and Technicians and Trades Workers) (trend data). The ACT recorded the
strongest employment growth in skilled occupations (up 12.8%), followed by NSW (up 4.0%) and WA (up 3.7%) over the
12 months to February 2018.3

1
  This paragraph, Figure A and the State and Territory Labour Force section use trend data from the ABS’ Labour Force, Australia, March 2018 (ABS Cat. No. 6202.0)
time series spreadsheets.
2
  ANZSCO Major Groups 1 to 3 includes most occupations where the indicative skill level for employment in the Australian labour market is aligned to an Australian
Qualifications Framework Certificate III (including at least two years of on-the-job training) or higher qualification.
3
  This paragraph and Figure B are based on February 2018 Department of Jobs and Small Business trend data derived from ABS Labour Force Survey data.

Australian Labour Market Update—April 2018                                     Hot Topic                                                                                                                                                         1
State and Territory Labour Force
The labour force participation rate is calculated by expressing the labour force as a percentage of the civilian population aged 15
and over. The labour force is based on employed persons plus unemployed persons.
Over the 12 months to February 2018, the labour force
participation rate for Australia (trend data) increased by                    Figure C: Labour force participation rates (trend)
0.9 percentage points to 65.6% (see Figure C). The ACT                                          by State (%)
and Queensland recorded the largest increases in the
                                                                               80
participation rate over this period (2.0 and 1.7 percentage
points respectively), with the NT recording the largest                        70
decrease (1.8 percentage points).                                              60
                                                                               50
Full-time employment (trend data) increased by 3.6% while
part-time employment also increased by 2.6%.                                   40
                                                                               30
Male full-time employment (trend data) increased by 2.6%
while female full-time employment increased by 5.4%. Male                      20
part-time employment increased by 2.4% while female part-                      10
time employment increased by 2.7%.                                              0

                                                                                                                              TAS

                                                                                                                                    NT
                                                                                       NSW

                                                                                                                                            ACT

                                                                                                                                                  AUST
                                                                                             VIC

                                                                                                                       WA
                                                                                                                SA
                                                                                                         QLD
                                                                                                   February 2017              February 2018

Industry by State and Territory
Table B below shows the industry share of total employment in each State (original data). It shows the ACT (27.5%) and the NT
(13.5%) have a relatively large proportion of employed persons in Public Administration and Safety; WA (6.8%) in Mining; the ACT
(12.0%) and Victoria (9.4%) in Professional, Scientific and Technical Services; NSW (4.6%) in Financial and Insurance Services;
and Victoria (8.9%) and SA (8.0%) in Manufacturing. The industries that employ the largest number of persons in Australia are
Health Care and Social Assistance (13.6%) followed by Retail Trade (10.5%) and Construction (9.6%).
      Table B: Employment Distribution by Industry and State/Territory to February 2018 (% of persons)
 Industry                                      NSW          VIC       QLD           SA        WA               TAS            NT     ACT          AUST
 Agriculture, Forestry and Fishing                1.8        2.7        2.6          5.3           3.2           5.3          1.6        0.2*            2.6
 Mining                                           1.0        0.4        2.4          1.1           6.8           1.9          3.3        0.0*            1.8
 Manufacturing                                    6.7        8.9        6.8          8.0           5.7           7.5          3.3         1.8            7.2
 Electricity, Gas, Water and Waste                1.0        1.0        1.3          1.3           1.6           1.7          1.5         1.3            1.2
 Services
 Construction                                    10.0        9.2        9.7          7.9      10.6               8.8         10.1         6.4            9.6
 Wholesale Trade                                  3.2        3.3        2.7          2.9           2.7           1.7          1.5         0.8            3.0
 Retail Trade                                    10.2       11.1       10.8         11.0           9.1          11.7          8.6         7.7        10.5
 Accommodation and Food Services                  7.0        7.2        7.2          6.3           7.1           7.6          6.8         7.3            7.1
 Transport, Postal and Warehousing                5.3        5.3        5.9          4.9           4.6           4.4          5.5         2.2            5.2
 Information Media and                            2.3        1.8        1.1          1.6           1.2           1.6          1.1         2.1            1.7
 Telecommunications
 Financial and Insurance Services                 4.6        3.7        2.4          2.4           2.3           2.2          1.3         1.5            3.4
 Rental, Hiring and Real Estate                   1.9        1.6        2.1          1.7           1.5           1.6          1.7         0.8            1.8
 Services
 Professional, Scientific and                     9.3        9.4        6.6          6.1           6.9           4.5          4.7        12.0            8.2
 Technical Services
 Administrative and Support                       3.3        3.0        3.5          3.7           3.0           2.8          3.7         3.0            3.3
 Services
 Public Administration and Safety                 4.8        4.5        5.8          6.7           6.0           6.1         13.5        27.5            5.7
 Education and Training                           8.4        8.3        8.1          7.1           8.8           7.8          8.8         8.8            8.3
 Health Care and Social Assistance               13.3       12.5       14.8         16.1      12.5              15.3         15.6        11.0        13.6
 Arts and Recreation Services                     1.9        2.1        1.8          1.5           2.3           3.0          3.1         2.4            2.0
 Other Services                                   4.0        3.9        4.4          4.5           4.1           4.5          4.3         3.3            4.1
 Total                                         100.0       100.0      100.0      100.0       100.0             100.0        100.0    100.0        100.0
Source: ABS, Labour Force, Australia, Detailed, Quarterly, Cat. No. 6291.0.55.003, trend data. The State-level data are trended by the Department
        of Jobs and Small Business. The Australia-level data are trended by the ABS.
*         This estimate may be subject to high sampling variability.

Australian Labour Market Update—April 2018                   Hot Topic                                                                                     2
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