1. RCSA Web Survey Round 24 – September 2007

2. Executive Summary Summary  Both business confidence and expected changes in volume of business have dipped slightly to 70.5% (-3.3%) and 5.2% (-1.4%) respectively oSA is more confident that their business will increase in the next three months and NZ estimates that their business will change at about half the rate of Australia  The already tight labour market has tightened slightly more especially skills and number of applicants oAll locations are finding very similar labour market conditions except oSA is least concerned by candidates having work ready attitudes and skills o WA has the most problems finding candidates for positions  Staff turnover has risen 2% to 29% pa and staff growth has dropped by 9% to 11.6% pa. This is consistent with high confidence but expected low growth in business oThere are no substantial locational differences  There has been a substantial increase in permanent full-time employment, and on-hire placements and a fall in contractor placements  The majority of placements are on-hire and the proportion of those placements as part of the total has risen from 89% of all placements to 92%  The proportion of total revenue for all services has remained virtually static oSA & WA get a larger proportion of revenue from on-hired employees oNZ gets a larger proportion of from recruitment services while SA and WA get less Note: If locational differences are not mentioned, the differences are insufficient for comment

3. Executive Summary Summary – issues of most concern  Lack of suitable candidates remains the top concern. Difficulty in finding suitable recruitment staff remains in second place and both have worsened slightly oNSW is close to average on every thing oVIC is more worried about the state of the economy and otherwise average on everything oQLD is less worried about restructuring industries oSA is more worried about retaining and finding recruitment staff and workers compensation and unfair dismissal and less worried about the state of the economy, client hiring intentions, financing growth and advertising costs oWA is more concerned finding and retaining suitable recruitment staff, legal issues with on-hired staff, immigration issues, OH&S and unfair dismissal and less concerned with hiring intentions of clients, financing growth, maintaining profits and price undercutting oNZ is least worried about retaining staff, maintaining profits and industrial relations and more worried about lack of hiring intentions of clients Note: If locational differences are not mentioned, the differences are insufficient for comment

4. Executive Summary - Skills  The top 5 shortages remain as for June with the biggest skills shortages being for engineering professionals and associates with other business professionals in short supply. Trades remain in short supply with electrical trades jumping into 6th place from 11th. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists  The top 12 skills shortages being: oNon-building professional engineers oBusiness professionals oNon-building engineering associates and technicians oBuilding associates and technicians oBuilding professionals oElectrical trades (building) oIT and telecommunications professionals oNon-building electrical/electronic trades oReceptionists and telephonists oHealth professionals oCarpenters and joiners oMetal trades

5. Excutive summary cont’d  Special section - Skilled migration  Slightly less than half of the respondents are involved in using visas to bring in skilled migrants  Of the respondents that use visas (48%) the majority use sub-class 457 o856 visas vary markedly by location, they are used o41% in Qld, 20% in Vic, 17% in NSW and none in other locations  The respondent is involved initiating the idea of sourcing skilled migrants most of the time either alone or with the client  Nearly three quarters believe that temporary skilled migrants are necessary to meet the labour needs of clients and nearly half wish to know more about the visas oWA is most happy with their knowledge and fewer want to know more  Four out of ten respondents understand sufficiently the new laws on employment or referral of illegal workers which commenced on 19 August

6. Process  Web survey oE-mail business heads in both NZ and Australia oData collection began late September 2007 and completed 5 October 2007 oThe total annual revenue of respondent companies is $3.02 billion up from $2.09 billion last round oThe number of sole traders in the sample has dropped 1% to 14%

7. Demographics of sample The number of sole traders in the sample has remained stable

8. Demographics of sample The total annual revenue of respondent companies is $3.02 billion up from $2.09 billion last round Total Annual revenue $m Total Australia=$2.82b Approx 93% of revenue

9. Demographics of sample The proportion of $100m+ companies remains the same as last round at 5%.

10. RCSA members confidence about business improvements in the next three months has declined slightly Differences SA is more confident than average

11. Both business confidence and expected changes in volume of business have dipped slightly to 70.5% (-3.3%) and 5.2% (-1.4%) respectively. Scale: 0=strongly disagree 50=neutral 100=strongly agree Differences SA is more confident that their business will increase in the next three months and NZ estimates that their business will change at about half the rate of Australia

12. Staff turnover has risen 2% to 29% pa and staff growth has dropped by 9% to 11.6% pa. This is consistent with high confidence but expected low growth in business. Differences There are no substantial locational differences

13. The already tight labour market has tightened slightly more especially skills and number of applicants Scale: 0=strongly disagree 50=neutral 100=strongly agree Differences All locations are finding very similar labour market conditions except SA is least concerned by candidates having work ready attitudes and skills WA has the most problems finding candidates for positions

14. Labour market scores have remained stable except that it has become harder to find applicants +10% -5% -9%

15. Staff placed and on-hired workers There has been a substantial increase in permanent full-time employment, and on- hire placements and a fall in contractor placements. June 2007 September 2007 Note: variability may arise because of a few large numbers – this is a problem of small data sets

16. The majority of placements are on-hire and the proportion of those placements as part of the total has risen from 89% of all placements to 92%

17. The proportion of total revenue for all services has remained virtually static Difference from average SA & WA get a larger proportion of revenue from on-hired employees NZ gets a larger proportion of from recruitment services while SA and WA get less

18. A substantial proportion of companies have neither contractors nor on-hire employees.

19. Concerns for the present and near future (all respondents) Lack of suitable candidates remains the top concern. Difficulty in finding suitable recruitment staff remains in second place and both have worsened slightly.

20. Concerns for the present and near future (National issues) In Australia concerns about employment issues have dropped 9% and has returned to second concern behind legal issues about on-hired staff while in NZ immigration issues have risen 9% and remain the top issue

21. Location differences Note: <50=less than neutral 50=neutral >50 = greater than neutral Compared to average NSW is close to average on every thing VIC is more worried about the state of the economy and otherwise average on everything QLD is less worried about restructuring industries SA is more worried about retaining and finding recruitment staff and workers compensation and unfair dismissal and less worried about the state of the economy, client hiring intentions, financing growth and advertising costs WA is more concerned finding and retaining suitable recruitment staff, legal issues with on-hired staff, immigration issues, OH&S and unfair dismissal and less concerned with hiring intentions of clients, financing growth, maintaining profits and price undercutting NZ is least worried about retaining staff, maintaining profits and industrial relations and more worried about lack of hiring intentions of clients

22. Skills issues

23. Skills shortages by occupation – top 20 The top 5 shortages remain as for June with the biggest skills shortages being for engineering professionals and associates with other business professionals in short supply. Trades remain in short supply with electrical trades jumping into 6 th place from 11 th. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists Total shortage

24. Skills shortages by occupation – bottom 20 Total shortage

25. Top 10 skill shortages by location  NSW 1.Non-building professional engineers 2.Business professionals 3.IT and telecommunications professionals 4.Non-building engineering associates and technicians 5.Building associates and technicians 6.Building professionals 7.IT and telecommunications technicians 8.IT and telecommunications trades 9.Electrical trades (building) 10.Receptionists and telephonists  VIC 1.Business professionals 2.Non-building professional engineers 3.Non-building engineering associates and technicians 4.Building associates and technicians 5.Building professionals 6.IT and telecommunications professionals 7.Electrical trades (building) 8.Receptionists and telephonists 9.IT and telecommunications technicians 10.Non-building electrical/electronic trades

26. Top 10 skill shortages by location  Queensland 1.Business professionals 2.Non-building professional engineers 3.Non-building engineering associates and technicians 4.IT and telecommunications professionals 5.Building associates and technicians 6.IT and telecommunications technicians 7.Building professionals 8.IT and telecommunications trades 9.Health professionals 10.Electrical trades (building)  South Australia 1.Business professionals 2.Non-building professional engineers 3.Building professionals 4.Health professionals 5.Building associates and technicians 6.Non-building engineering associates and technicians 7.IT and telecommunications professionals 8.IT and telecommunications technicians 9.Electrical trades (building) 10.Non-building electrical/electronic trades

27. Top 10 skill shortages by location  Western Australia 1.Non-building professional engineers 2.Building professionals 3.Building associates and technicians 4.Non-building engineering associates and technicians 5.Business professionals 6.Electrical trades (building) 7.Non-building electrical/electronic trades 8.IT and telecommunications professionals 9.Carpenters and joiners 10.Drivers  New Zealand 1.Non-building professional engineers 2.Business professionals 3.Non-building engineering associates and technicians 4.Building professionals 5.Building associates and technicians 6.Electrical trades (building) 7.Non-building electrical/electronic trades 8.Health professionals 9.Carpenters and joiners 10.Plumbers

28. Special section Skilled migration

29. Slightly less than half of the respondents are involved in using visas to bring in skilled migrants Difference from average None

30. Visa sub-classes used Of the respondents that use visas (48%) the majority use sub-class 457 Difference from average 856 visas vary markedly by location, they are used 41% in Qld, 20% in Vic, 17% in NSW and none in other locations

31. The respondent is involved initiating the idea of sourcing skilled migrants most of the time either alone or with the client Difference from average None

32. Nearly three quarters believe that temporary skilled migrants are necessary to meet the labour needs of clients and nearly half wish to know more about the visas Difference from average WA is most happy with their knowledge and fewer want to know more

33. Estimates of numbers of skilled migrant visas recommended and sponsored Difference from average None

34. Four out of ten respondents understand sufficiently the new laws on employment or referral of illegal workers which commenced on 19 August Difference from average None