Employment Outlook

More than 2,675,800 people were employed in Victoria in September 2009. This is a 0.2 per cent increase compared to the pervious month and 0.6 per cent increase to the previous year. Since September 2008, employment has increased by over 15,700 persons.

The number of unemployed people reached 159,600. The unemployment rate decreased to 5.6 per cent. This is a 0.6 per cent decrease compared to the previous month, and a 1.2 per cent increase compared to September 2008.

The participation rate, which shows what proportion of the population aged 15-64 years is participating in the labour market, decreased to 64.5 per cent. This is a 0.4 per cent decrease on the previous month and marks no change compared with September 2008.

Unemployment is not equally distributed across Victoria. In metropolitan Melbourne the Brimbank - Sunshine, Hume - Broadmeadows and Dandenong areas had the highest unemployment rates¹. Unemployment rates in Broadmeadows, Maribyrnong and Sunshine and Dandenong were significantly higher than the Victorian average throughout 2008.

In provincial Victoria, regional centres such as Ballarat, Maryborough, Bendigo and Mildura, and the Gippsland towns of Morwell and Moe recorded the highest unemployment rates. Unemployment rates were high around the Ballarat and Golden Plains region. Agricultural areas with low numbers of people employed such as Moyne, Towong, and the surrounding Shepparton area recorded lower unemployment rates. The western coastal area from Queenscliffe, Surf Coast, Colac-Otway and Corangamite shires also had low unemployment levels, although based on a smaller workforce.

The largest employing industry in Victoria is manufacturing, followed by health care and social assistance, retail trade, and construction. Retail trade and health services have high proportions of part time workers.

Victoria’s employment rose significantly in the health care and social services, accommodation and food services, professional services, arts and recreation services and building and construction industries in the twelve months to August 2009. The larger employment falls were in wholesale trade, manufacturing, public administration and retail trade.

With the events of the global economic downturn, employment prospects have deteriorated. Despite the unemployment rate remaining stable, it is still predicted that unemployment will rise over the next eighteen months. Expectations are that the economic outlook will start to improve from the second half of 2010, which will gradually improve employment prospects.

Some industries and occupations are less sensitive to the global economic downturn than others. In general, people with higher skills and with multiple skill sets are more likely to find and remain in employment.

With the recovery of the economy, demand for new skill sets will also emerge.

Industry outlooks

For detailed information on the outlook for specific industries, go to Where will the jobs be?