State of the Employment Nation

Jobs Australia 2011 National Conference

KEYNOTE SPEECH: STATE OF THE EMPLOYMENT
NATION

Matthew Tukaki, CEO
The Sustain Group

Themes…
- What’s happening in the corporate recruitment
sector?
- What’s happening in the JSA sector?
- Industries rising and industries falling: where
are the jobs at?
- The issue of underemployment
- The challenges of long term unemployment
- The role of innovation in unemployment
- The next 24 months

www.sustaingroup.net

About Matthew Tukaki
Matthew is currently the CEO of the Sustain Group, a Sydney based corporation with a primary focus on
business transformation, education development and employment. Prior to joining the Sustain Group,
Matthew was the Head of Drake Australia. As one of Australia’s best known corporate brands, Matthew led
the business through the heights of the Global Financial Crisis where he was responsible for maintaining
growth and profitability.

Matthew Tukaki is the current Australian Representative to the United Nations Global Compact and
represents business and industry when it comes to Human Rights, the Environment, Anti-Corruption and
Labour. Matthew was elected as the Local Network Representative at the Inaugural Annual Meeting of the
Global Compact Network Australia on 4 June 2010. Since this time Matthew has at the invitation of the
board of directors of the Global Compact Network Australia attended the meetings of directors and has
actively led planning activities for the Australian Network. He is also a member of the Global Working Group
on Governance. Matthew is also the Public Officer of the UNGCNA and its Company Secretary.

Matthew is a current Director on the Board of Suicide Prevention Australia (one of Australia’s Peak Mental
Health Bodies), Chairman of the Living Earth Initiative, (a project seeking to increase the visibility of
backyard ecology in Australian homes) and former Chairman of both the Chief Information Officers Council
and the Government Policy Advisory Panel.


About Sustain Group
The Sustain Group is a business that strives to work with other industry, Government and the community to
transform towards a more sustainable future. As an organisation we recognise that climate change, the
environment and corporate social investment can confuse people when it comes to translating a desire to
change to real outcomes and outputs.

At The Sustain Group we provide a range of services and programs from sustainability recruitment and
learning, through to consulting and research. On the technology front, we work to provide products that are
innovative and forward thinking. Our primary goal is to provide our clients with tangible outcomes, not just
advice. Our consulting division works in partnership with some of the worlds most respected institutions on
everything from the calculation of an organisations carbon output, through to research and development.


Margins are falling
What’s happening in Competition is at its height
Undercutting of margins and contract fees

recruitment sector
Too many players in the marketplace for the
population – the jobs market is overcrowded
Have higher turnover and lower average retention
rates
the corporate
Recruiters moving from business to business
Recruitment companies beginning to diversify
their business models

Increasing competition
from JSA and not-for
profit organisations…


Pressure on cash flows
What’s happening in Unemployment did not reach some forecasted
highs which in turn caused the re-writing of
business plans – we currently have 5.3%
unemployment / based on some predictions we
could have been sitting on between 7 – 8%
the JSA sector
There are still providers who are hurting from the
transition from the old Job Network into the new
arrangements – some providers who were
banking on market share in existing ESA’s won
share in areas that they didn’t have an existing
presence
 Increasingly more intensive management
required for those tagged as long term
unemployed

Limited employment demand is
having an impact – changing
corporate sector models

Same challenges across
the for profit and not for
Tighter labour market
 A perception problem
 Corporate recruiters having already or planning
to enter the market
 JSA providers moving into the corporate
recruitment sector
profit sectors

What is the convergence
between the sectors?


lets take a look at where the jobs are at:
Irrespective of what people say, there are those sectors that are
rising and those that are falling
There are no skill shortages in the IT sector in Australia and it
is a falsehood to suggest there are – if there were then we would
no longer have the same size of taxi fleets in Sydney and
Melbourne
 There is also a false premise that job creation is happening in
our capital cities – there is more job creation opportunities in
the regions than there are in some of our capitals

Next slide: lets take a look at just what industries are creating
and will create jobs, and some of the locations where there are
immense numbers of opportunities….


Where the jobs are in Australia
Social Media Utilities Public policy

Horticulture
Disability services

Small business (2012)
New media
Environment Climate change

Aged care service
Logistics

Infrastructure
Banking & finance The Bowen Basin
Compliance Carbon Auditing
W.A
Training Mining & resources
Renewables Rail Health services
CSG OH&S Primary production
Hospitality

Galilee

Gladstone
Nurses Construction
Trades & vocations
Development
Darwin Northern
Security Territory
Agriculture and horticulture
Energy North Queensland


Lets take a close look at an industry on the
rise and what we mean by the jobs supply
channel, both directly and indirectly….

Example: BHP and the recently announced Olympic Dam
project: what will it mean in terms of jobs?
Example: Agriculture and horticulture


Labour Hire

Consulting 1. Direct job: created by the
+10,000 Direct Jobs employer
Project 2. Indirect Job: created in the
@ Olympic Dam Managers
supply chain of the employer
3. Indirect Channel Job
Training
Creation: services providers
1. Direct Job Mining and Professional
to both the indirect and direct
commodities Services channels
Creation
OH&S Retail 3. Indirect
Example: Project
managers will be Management
Channel Job
needed on the ground Research Building
Creation
to directly manage the
Project
Mining

infrastructure build, Management Sustainability Airlines
trades to build it and Example: 2,000 people FIFO
maintain it, admin to once per month return = 24,000
Trades
pay the wags, caterers Finance Hospitality seats is nearly 112 flights in and
on the ground to feed out – 2 pilots, ground crew and
them and Engineers cabin crew – admin and booking
management to staff
administer – Admin
compliance and risk 2. Indirect Job
managers to ensure
environmental risk Catering creation Example: Increase in the number of
environmental and policy makers required to
ensure compliance


Lets take a close look at an industry on the
slide and consider what needs to be done to
grow and develop, innovate and create….

Example: Manufacturing

1. A traditional backbone of the Australian economy that employs more than a million
Australians
2. Under pressure from outside forces such as a high Australian dollar an input cost

Example: Retail

1. Under pressure from new sales channels such as online retail and trade
2. Like manufacturing under pressure from outside forces such as a high Australian dollar
an input cost


Manufacturing 1,000,000 Australians
employed in the sector
“What is happening in our
manufacturing sector is no
different to other developed
Impacts of the
countries such as the
high Australian United States and New
dollar High input Zealand”
costs of raw
materials
Challenge question:
Low wage costs
where jobs are lost such in developing
as the Illawarra with the
steel sector and then
countries
Even though South Korea and
potentially South Australia
Japan are electronics
with car manufacturing ask
innovators, manufacturing
yourself this question:
has gone offshore
what happens to those
workers and how many of
them will transition into
employment within another A carbon price will not cause the loss of tens
sector? of thousands of jobs as has been suggested,
the vast majority of jobs will be lost as a result
of low wages in developing economies, the
high Australian dollar and high input costs


More and more often
Traditional ways of
we are moving online
selling from brick and
 The way people are buying
mortar operations are
is changing
changing …  We live our lives
Retail and shop
increasingly online and it is
Who are making more sense to buy
online
we?  Cheaper to buy online
because of the exchange
rate and the removal of the
Brick and mortar is expensive, less jobs
middle man
because of high input costs
 The devices we use are
leading us online
Online buying is creating jobs in
warehousing and distribution /
traditional jobs are changing /
Australia Post has experienced a
significant increase in parcel deliveries
fronts

while experiencing a decline in
traditional letter sending revenue lines

Business models in the retail sector need to
evolve and so look towards where the jobs
are being created: online retail and trade…

What does this mean for the JSA and
employment sector?
Just as industries are evolving and developing, declining or
contracting, the business models of organisations who provide
them with labour supply, training or employment services also
needs to change. The reality is, when you are in the employment
supply chain you are as equally challenged by supply and
demand as any business or industry sector….

…people also have to be aware of where the
jobs are being created and will be created
tomorrow…for example: lets take a look at
where more future jobs are being created…


The Aged Care sector
 Population shifts from our
major capital cities and into
coastal regions such as the
Gold Coast and the Central
Coast of New South Wales
 Aging population means
an increase in demand for
workers in the sectors that
support aging communities
 Additional ancillary
health workers / nurses /
aged care facility workers /
administrators / social
workers / community care
workers / rest home
managers / funeral services

QLD: The Gold Coast NSW: The Central Coast


The challenges of underemployment / the
silent problem of the Australian employment
market

 While the unemployment rate will remain steady and decline further
in the lead up to the last quarter of 2012 – the reality is tens of
thousands of Australian’s remain underemployed.
 Our workforce is heavily casualised and part time in nature
 More workers remain on less than they earned prior to the GFC
 Cost of living pressures
 Workers who don’t qualify for any support
 Pressure on employment providers by people who are not funded to
seek or utilise the service

Lets take a look at an example: the Nerang Community Centre
in Brisbane and its coordinator Vicky Va’a


Nerang Community Centre and New Zealand
Migration…
ABS Data: The number of NZ-born people living in
Australia increased by 89% over the last two decades,
from 280,200 in 1989 to 529,200 in 2009.

The New Zealand born population living in Australia
who identified themselves as Maori: 15%

Few change their residency status into citizenship
and if they arrived after 2001, they then do not qualify
for a range of social support services – this includes
children born to New Zealand citizens with no
Australian citizenship entitlements

More New Zealanders are struggling, with little or no
access to support services

Little Government support – but more and more are "Since the earthquake on 22 February, the city has
seeking support through employment and training experienced 1,300 more departures and 400 fewer
providers. New Zealanders resident in Queensland arrivals than in the same period of 2010," NZ
Government statistician Geoff Bascand referring to Christchurch
failed to qualify for financial support as a result of the and the increase in departures from NZ
Queensland floods


Social Media Payroll tax

Executive loss
Demographics Political Environment
Invoicing
Cash flow YouTube

Market share
Climate change

Sales performance Gillard’s polling
Coalition policies
Competitors
Carbon Pricing
Suppliers

Productivity
Global Economy
Death
Cost controls The Chinese Economy

Revenue diversity
The Board Skills demand The Banks

Buyer behaviour
US Job Numbers Interest rates
Japans
High wage demand
Increased compliance
recovery
Greece Leadership

The Price of Iron Ore
US Unemployment Early election
Tax Branding

Inflation

Public Relations
Budget
To grow or not to grow
Blow outs
Staff well being Governance
Court
Partners
Rulings
Twitter

Corruption
Trade Barriers
Security IT Systems

Customer Attrition and Gain

Matthew Tukaki

matthew.tukaki@sustaingroup.net


www.unglobalcompact.org.au

Thank you


State of the Employment Nation

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