Jobs Australia 2011 National Conference KEYNOTE SPEECH: STATE OF THE EMPLOYMENT NATION Matthew Tukaki, CEO The Sustain Group
Aug 20, 2015
Jobs Australia 2011 National Conference
KEYNOTE SPEECH: STATE OF THE EMPLOYMENT
NATION
Matthew Tukaki, CEO
The Sustain Group
www.sustaingroup.net
www.sustaingroup.net
- 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
Themes…
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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.
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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.
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Wh
at’s h
ap
pe
nin
g in
the
co
rpo
rate
recru
itm
ent secto
r
Margins are falling
Competition is at its height
Undercutting of margins and contract fees
Too many players in the marketplace for the
population – the jobs market is overcrowded
Have higher turnover and lower average retention
rates
Recruiters moving from business to business
Recruitment companies beginning to diversify
their business models
Increasing competition
from JSA and not-for
profit organisations…
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Wh
at’s h
ap
pe
nin
g in
the
JS
A s
ecto
r
Pressure on cash flows
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%
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
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Sa
me
ch
alle
ng
es a
cro
ss
the
fo
r p
rofit
an
d n
ot
for
pro
fit se
cto
rs
Tighter labour market
A perception problem
Corporate recruiters having already or planning
to enter the market
JSA providers moving into the corporate
recruitment sector
What is the convergence
between the sectors?
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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….
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Disa
bilit
y ser
vices
Environment
Primary production
Ho
sp
itali
ty
Banking & finance
Renewables
Nurses
Carbon Auditing
Training
Aged c
are
serv
ice
Mining & resources
Trades & vocations
Rail
Compliance
Infr
astr
uct
ure
OH&S
Health services
Climate change
Development
Logistics
CSG
Sm
all b
usin
es
s (2
01
2)
Utilities
Hortic
ultu
re
Construction
Social Media
Security
Ne
w m
ed
ia
Energy Agriculture and horticulture
Public policy
Northern
Territory
North Queensland
The Bowen Basin G
lad
sto
ne
W.A
Darwin
Galilee
Where the jobs are in Australia
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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
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Min
ing
Mining and commodities
Labour Hire
Consulting
Project Managers
Training
Professional Services
OH&S Retail
Research Building
Sustainability Airlines
Finance Hospitality
Management
Project Management
Trades
Engineers
Admin
Catering
1. Direct Job
Creation
2. Indirect Job
creation
3. Indirect
Channel Job
Creation
+10,000 Direct Jobs
@ Olympic Dam
1. Direct job: created by the
employer
2. Indirect Job: created in the
supply chain of the employer
3. Indirect Channel Job
Creation: services providers
to both the indirect and direct
channels
Example: 2,000 people FIFO
once per month return = 24,000
seats is nearly 112 flights in and
out – 2 pilots, ground crew and
cabin crew – admin and booking
staff
Example: Project
managers will be
needed on the ground
to directly manage the
infrastructure build,
trades to build it and
maintain it, admin to
pay the wags, caterers
on the ground to feed
them and
management to
administer –
compliance and risk
managers to ensure
environmental risk Example: Increase in the number of
environmental and policy makers required to
ensure compliance
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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
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Man
ufa
ctu
rin
g
Impacts of the
high Australian
dollar
Low wage costs
in developing
countries
High input
costs of raw
materials
1,000,000 Australians
employed in the sector “What is happening in our
manufacturing sector is no
different to other developed
countries such as the
United States and New
Zealand”
Even though South Korea and
Japan are electronics
innovators, manufacturing
has gone offshore
Challenge question:
where jobs are lost such
as the Illawarra with the
steel sector and then
potentially South Australia
with car manufacturing ask
yourself this question:
what happens to those
workers and how many of
them will transition into
employment within another
sector?
A carbon price will not cause the loss of tens
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
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Business models in the retail sector need to
evolve and so look towards where the jobs
are being created: online retail and trade…
Brick and mortar is expensive, less jobs
because of high input costs
Who are
we?
The way people are buying
is changing
We live our lives
increasingly online and it is
making more sense to buy
online
Cheaper to buy online
because of the exchange
rate and the removal of the
middle man
The devices we use are
leading us online
Re
tail a
nd
sh
op
fr
on
ts
Traditional ways of
selling from brick and
mortar operations are
changing …
More and more often
we are moving online
Online buying is creating jobs in
warehousing and distribution /
traditional jobs are changing /
Australia Post has experienced a
significant increase in parcel deliveries
while experiencing a decline in
traditional letter sending revenue lines
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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…
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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
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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
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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
seeking support through employment and training
providers. New Zealanders resident in Queensland
failed to qualify for financial support as a result of the
Queensland floods
"Since the earthquake on 22 February, the city has
experienced 1,300 more departures and 400 fewer
arrivals than in the same period of 2010," NZ
Government statistician Geoff Bascand referring to Christchurch
and the increase in departures from NZ
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Carb
on Pr
icing
Bra
nd
ing
Cash flow
Increased compliance
Hig
h w
ag
e d
em
an
d
Global Economy
US Job Numbers
Greece US Unemployment
Th
e P
rice o
f Ir
on O
re
The Chinese Economy G
illard
’s p
ollin
g
Staff well being
Sa
les p
erf
orm
an
ce
Skills demand
To grow or not to grow
Interest rates
Inflation
Ta
x
Cost controls
Bu
yer
beh
avio
ur
The Board
Governance
Japans
recovery
Demographics
Executive loss
Climate change
Corruption
Competitors
Partners
Suppliers
The Banks
Early election
Co
alit
ion
po
licie
s
Reve
nu
e d
ive
rsity
Payroll tax
Pro
du
ctiv
ity
Leadership
YouTube
Social Media
Trade Barriers
Tw
itte
r
Invoicing
IT Systems
Budget
Blow outs
Security Public
Rela
tions
Mark
et s
hare
Death
Court
Rulings
Customer Attrition and Gain
Political Environment
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Matthew Tukaki
www.sustaingroup.net
www.unglobalcompact.org.au
Thank you