Labour market conditions in the Queensland · Web viewSlide 20 Future outlook for the tourism...

Labour market conditions in the Queensland Tourism sector

www.employment.gov.au

Labour market conditions in the Queensland Tourism sector

Ivan NevilleLabour Market Research and Analysis Branch

Tourism overview

Tourism overview

• Over 580,000 workers employed in the Tourism sector across Australia.

• Nationally, employment grew by 5.5 per cent (or 30,100) over the five years to 2015-16 – All industry comparison: 6.9 per cent– More recent signs that the sector may be strengthening

• Approximately 130,900 directly employed in the Queensland tourism industry.

Sources: 2015-16, ABS, Australian National Accounts: Tourism Satellite Account, 2015-16. Queensland Regional Tourism Satellite Accounts 2013-14, Deloitte Access Economics

Tourism visitor nights on the rise

Tourism visitor nights on the rise

Queensland

Source: Tourism Research Australia: State Tourism Forecasts 2016

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Visit

or n

ight

s (‘0

00)

Projected

Are there currently widespread shortages of tourism workers in Queensland? From Deloitte’s report, Queensland

Are there currently widespread shortages of tourism workers in Queensland…?

From Deloitte’s report, Queensland

Sources: Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.

…but 93% of these vacancies are filled.

(Department of Employment)

2015

8%Vacancy rate

Estimated 10,400 vacancies across Queensland.

Deloitte defines this as a ‘shortage’…

But the sector does face a number of significant labour market challenges

… but the sector does face a number of significant labour market challenges

Employers need to source, develop and retain staff who:

• are available to work in their local region

• have the necessary skills and capabilities

• can meet short term seasonal demands

• are available to work the hours required

• are willing to work for the conditions and pay on offer

Current recruitment conditions

Current recruitment conditions

Internet vacancies have remained relatively flat since 2011. Tourism related occupations.

Internet vacancies have remained relatively flat since 2011…

tourism related occupations

Source: Department of Employment, Internet Vacancies Index, December 2016

0

20

40

60

80

100

120

INDE

X

Queensland

Regional variation. Tourism related occupations.

Source: Department of Employment, Internet Vacancies Index, December 2016

…with regional variationtourism related occupations

0

20

40

60

80

100

120

INDE

X

Sunshine CoastGold CoastBrisbaneFar North QueenslandOutback QueenslandCentral Queensland

Most vacancies are filled, but variation between occupations. Queensland, 2015-16

19.4%

17.0%

14.3%

8.6%

5.4%

0.9%0%

5%

10%

15%

20%

25%

Chefs/cooks Transportdrivers

HospitalityManagers

Kitchenhands HospitalityWorkers

Cleaners /Housekeepers

Prop

ortio

n of

vac

anci

es u

nfille

d

Average - all occupations

5.5%

Most vacancies are filled, but variation between occupationsQueensland, 2015-16

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015-16

Chefs consistently in shortage

7.4%

Average – tourism related industries

On average, unfilled vacancies still attract an average of 10 applicants.

Recruitment has become less difficult

Deloitte report 2011 2015 Change

Recruitment difficulties 52% 44% -8% pts

Department of Employment 2010-11

2015-16 Change

Recruitment difficulties 41% 33% -8% pts

Average applicants per advertised

vacancy

12 13 +1

% vacancies unfilled 12.5% 7.4% -5.1% pts

For about two thirds of unfilled vacancies, employers would not compromise on experience.

Higher proportion of students studying at Certificate III and higher. Queensland

Higher proportion of students studying at Certificate III and higher

Queensland

• Student enrolments in Tourism and Hospitality up by around 26% (or 6,300) in past 10 years.

• In 2015, more than two thirds of students enrolled at the Certificate III and higher.

• Enrolments at this level are up by 70% over 10 years.

Source: NCVER, VOCSTATS – Government funded students and courses, 2015

*Fields of education: 1101 Food and Hospitality; 0807 Tourism

Queensland student enrolments in Tourism and Hospitality* - VET

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Stud

ents

('00

0)

Certificate I and II Certificate III and higher

30%

70%48%

52%

Yet many employers are identifying skills deficiencies in their employees. Deloitte report, Queensland

Yet many employers are identifying skills deficiencies in their employees

Deloitte report, Queensland


2015

% of businesses identifying skills deficiencies in employees 68%

Skills deficiencies most commonly

identified for:

Cleaners

Guest service

Hotel receptionists

Reasons for skills deficiencies. Deloitte report, Queensland

Reasons for skills deficienciesDeloitte report, Queensland


1 2 3 4

High dropout from training

Lack of quality training

Training doesn't meet business needs

Lack of accessible training

Lack of opportunity to gain experience

Lack of relevant experience

Lack of applicants due to location

Skills misalignment

To a moderate degree

Not at all To a minimal degree

To a great degree

Staff retention remains a significant challenge. Queensland

2015 Changesince 2011

All industries QLD

Had retention difficulty

(Deloitte)

34% -7% pts N/A

2015-16 Changesince 2010-11

All industries QLD

Retention was a significant problem

(Department of Employment)

15% -12% pts 11%

And is particularly challenging in regional areas.

…and is particularly challenging in regional areas% of tourism related businesses for which retention was a significant problem for the business


29%

25%

21% 21%

17%

10%8% 7%

5%

15%

11%

0%

5%

10%

15%

20%

25%

30%

% o

f em

ploy

ers

Reasons for retention difficulty. Deloitte report, Queensland

Reasons for retention difficultyDeloitte report, Queensland


To a moderate degree

1 2 3 4

Visa restrictions

Other external factors

Recruited by businesses in other industries

Unhappy with wages

Recruited by other tourism businesses

Limited career development opportunity

Leave for personal reasons

Employment conditions

Unsuited for role

Commitment to roles

Short term employment only

Not at all To a minimal degree

To a great degree

Recruitment can be expensive

Recruitment can be expensiveIndirect costs

• Interviewing times• Informal training• Productivity loss

until new employee settles in

Direct costs• Advertising• Consultant fees• Selection process• Training• Payout (if they leave

in the first year)

Employee on $35,000 salary just over 50% of salary

$11,850 $5,900

Source: Workplace Info (http://workplaceinfo.com.au)

Seasonality will remain an ongoing challenge. Remote Queensland

Seasonality will remain an ongoing challengeRemote Queensland

Source: Survey of Employers’ Recruitment Experiences, 2015-16 (remote Queensland)

60% of tourism related businesses recruited seasonally in remote Queensland

26%21%

14%

26%

38%

67%71% 71%

67%

40%

26% 26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

% o

f em

ploy

ers i

mpa

cted

by

seas

onal

ity

Peak months for staffing

Across Australia, more than 200,000 working holiday visas

are issued each year

Why do employers hire a backpacker? Selected regional areas, Australia

Why do employers hire a backpacker?

Selected regional areas, Australia

Sources: Survey of Employers’ Recruitment Experiences, 2015

3%

8%

16%

19%

20%

41%

0% 10% 20% 30% 40% 50%

Other

Most qualified for the job

Good attitude or work ethic

Appropriate for short term orseasonal roles

Ease of recruitment

Not enough suitable local applicants

% of employers (that hired a backpacker)

Future outlook for the tourism industry

Future outlook for the tourism industry

Future recruitment expectations. Tourism Related Businesses, Queensland

Future recruitment expectations

Tourism Related Businesses, Queensland

Source: Department of Employment, Survey of Employers’ Recruitment Experiences, 2015-16; Department of Employment projections to 2020; Deloitte Access Economics; Australian Tourism Labour Force Report: 2015-2020; October 2015.

23% increase

5% decrease

70% remain the same

Expected change to staff numbers in the next 12 months

Deloitte Department of Employment

Projected employment growth to 2020 +85,000 +71,000

Projected tourism growth across Australia:

Future job openings in tourism related occupations.Over the five years to 2020, Australia

19.2

19.0

15.6

11.7

8.4

7.3

5.1

4.5

2.4

2.2

2.1

0.3

55.9

126.8

34.3

97.2

106.1

13.5

33.1

22.8

20.7

14.0

9.9

10.3

0 80 160

Chefs

Waiters

Cafe and Restaurant Managers

Bar Attendants and Baristas

Kitchenhands

Tourism and Travel Advisers

Cafe Workers

Housekeepers

Cooks

Conference and Event Organisers

Transport Services Managers

Bus and Coach Drivers

Projected employment growthAccumulated Turnover

Future job openings in tourism related occupationsover the five years to 2020, Australia

(‘000)

Many current job openings are filled by jobactive placements

Source: Calculated from Department of Employment, 2016 Employment Projections five years to November 2020 and ABS Participation, Job Search and Mobility, Australia, February 2015, Cat. No. 6226.0, custom data request, Department of Employment Gross Replacement Rates

Employers’ greatest concern for the next 12 months. Tourism related businesses, Queensland

Employers’ greatest concern for the next 12 months

Tourism related businesses, Queensland


78%

63% 62%58% 56%

48%41%

24%

50%

6%10% 8%

2%

13% 14% 16%24%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mackay Fitzroy Townsville Wide Bayand

SunshineCoast

Cairns DarlingDowns

Gold Coast GreaterBrisbane

Queensland

Demand/ economyRecruitment or retention difficulty/ skill shortages

Conclusions

Conclusions

Recruitment difficulties have been easing and shortages are not widespread• Most vacancies are filled• On average, employers receive 13 applicants per vacancy• Significant challenges in some regions and occupations

Some widespread challenges• Skills development of recently hired workers• Staff retention, costly and hampers skills development

Employment growth in Tourism projected to pick up in coming years• Employers remain more concerned about the demand for their services than

staffing• Staff turnover will generate many more job opportunities in the sector

Significant regional diversity means that local solutions are likely to be most effective.

Some questions to consider

Some questions to consider

• What can be done to reduce staff turnover to help alleviate skill deficiencies?

• Can the industry play a greater role in skills development?

• Are job seekers aware of the career opportunities in the sector?

• Is there an overemphasis on experience for some occupations (eg cleaners)?

• Are there cases where the industry can better utilise local job seekers and become less reliant on overseas workers?

• Is the industry taking full advantage of Government Employment Services?

Further Information

Further Information

– https://www.employment.gov.au/recruitment-conditions

– www.lmip.gov.au

– www.employment.gov.au/SkillShortages

– www.employment.gov.au/australianjobs

– www.joboutlook.gov.au

Contact

If you have any questions about the presentation please contact the Recruitment and Employer Needs Analysis section on:Email: [email protected]

Labour market conditions in the Queensland · Web viewSlide 20 Future outlook for the tourism...

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