Adelaide’s youth unemployment rate plummets amid huge competition between employers for staff

Youth unemployment rates have plummeted to pre-pandemic levels while companies report facing stiff competition for staff.

Youth unemployment has plummeted across Adelaide to levels well below what it was before the pandemic, amid fierce competition among employers in a tight labour market.

The latest data from the Australian Bureau of Statistics shows the unemployment rate was just 10.1 per cent among people aged 15-24 in Greater Adelaide during October.

That compares with 13.6 per cent in April 2019 and 15.7 per cent 12 months ago.

Adelaide’s west saw a huge drop, recording a 7 per cent youth unemployment rate, compared with 16 per cent in October 2020.

Dave Nagy, executive manager of recruitment services at Maxima, said the figures matched a national trend towards a tightening of the labour market.

The closure of national borders was a major factor, he said, taking new migrants out of the jobs market, along with heavy restrictions on interstate travel.

“I think it’s a great time to be a young person looking for work,” Mr Nagy said.

“There’s lots of opportunities in apprenticeships and traineeships because the Commonwealth has provided a 50 per cent wage subsidy to take on trainees and apprentices. So it’s half price to hire someone.”

The state’s unemployment rate among all working age people now sits at 5.3 per cent.

Mr Nagy suspected competition would slowly increase for jobs as international workers returned.

Hunter Careers managing director Samantha Badcock agreed jobs growth was high across multiple sectors.

But she believed employers’ difficulties filling roles was also tied to many people’s reluctance to change jobs because they saw uncertainty in the market and might feel vulnerable taking on a new role.

Amid the competition for workers, employers were needing to show flexibility and a “true level of care for employees”, as people reassessed their work and life priorities.

Across the state, the youth unemployment rate sat at 10.6 per cent in October, down from 14.7 12 months ago and 11.6 in October 2019.

In the state’s South-East, the unemployment rate among those aged 15-24 sat at just 6.1 per cent in October – the state’s lowest.

Skills shortages have long been an issue in the regions, as businesses and communities struggle to attract new residents, and suffer the “brain drain” of young people moving to bigger cities for work and study.

David Wheaton, chief executive of Regional Development Australia (RDA)’s Limestone Coast branch, expected that amid the migration gap, employers were focusing more strongly on young candidates.

“Young people are paying attention to the labour market and what opportunities they might have rather than being hellbent on getting to the city,” he said.

Dion Dorward, chief executive of the RDA’s Eyre Peninsula branch, said skills shortages were also a major issue locally.

He said the RDA was working with primary industries to connect people from beyond the region with jobs, and councils were investing in their towns to make them more attractive.

BAE Systems apprentices John and James were among 16 school students who will become full-time apprentices in 2022 at the Osborne Naval Shipyard.

BAEsigns up school-based apprentices full-time

By Chris Russell

The first group of school students working on the Hunter-class frigate program have become full-time apprentices at BAE Systems Maritime Australia.

The 16 students have finished their South Australian Certificate of Education, during which they completed a certificate II in engineering pathways in 2020 and began a certificate III in engineering and fabrication this year as part-time apprentices while still at school.

“It’s been great to track the progress of our first apprentices on the Hunter-class frigate program and see them develop professionally and personally,” BAE Systems Maritime Australia managing director Craig Lockhart said.

“Next year, we’ll have our apprentices working full-time in the shipyard alongside our seasoned and experienced naval shipbuilders who have built some of the most capable warships in our nation’s fleet.”

BAE Systems now employs 34 apprentices on the Hunter-class frigates, the first tranche of what will be 1000 apprentices and graduates needed by the multi-decade program to build nine anti-submarine warfare frigates for the Royal Australian Navy.

An artist's impression of a BAE Systems SEA 5000 Hunter class frigate

Student John, 18, who graduated from St Patrick's Technical College, said he loved the diversity of the apprenticeship program.

“Being at the shipyard and seeing new things happen almost every day is a big attraction for me,” he said. “It makes me want to come back and learn more.”

James, 19, who graduated from Salisbury High School, said he was confident about a long-term career in shipbuilding in SA. “It’s good work and it’s something that will be here for generations,” he said.

Premier Steven Marshall said the state was committed to creating a skilled workforce.

Defence Industries Minister Melissa Price said it was “fantastic” to see the apprentices forging a career.