National unemployment rate currently stands at 5.2% . Unemployment pictures at the regional level are vastly different from the national average. ACT currently grapples with an unemployment rate of 2.4%. Chances are many employers in ACT are wondering where their next staff will come from, even as the national media screams ‘recession’.
A fascinating study by the university of Newcastle add credence to the fact that recruitment is predominately a local affair, dictated by demand and supply of labour within the local economy. The Employment Vulnerability Index estimates the likelihood of someone being unemployed across 2953 metropolitan suburbs in Australia (covering 75% of the Australian population). Of course, unemployment rates varies widely. Even in the same city, some suburbs are highly vulnerable to unemployment while many remains unscathed. For instance, Cabramatta struggles with an unemployment rate of 15.6%, while Wollstonecraft is 2.9%. To residents (employers and job seekers) of both suburbs, the national unemployment average of 5.2% doesn’t mean much.
Recruitment is a direct result of the health of local economies; to plan and conduct a recruitment strategy based on a national average is unlikely to be fruitful.