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ENGAGEMENTS AND SEPARATIONS

There were 9097 engagements and 7187 separations of ongoing staff during 2003—04. Engagements were down by almost 40% (from 15,130 the previous year), and separations remained virtually unchanged (up from 7181). Figure 2.16 shows ongoing engagements and separations as a proportion of all ongoing staff for the past 10 years. The narrowing gap between engagements and separations during 2003—04 reflects the lower rate of growth in the APS this year.

Figure 2.16: Ongoing engagements and separations as a proportion of ongoing staff, 1994—95 to 2003—04

Source: ASPED

Figure 2.17 compares the age profile of engagements and separations during 2003—04 with the age profile of the APS overall. As expected, engagements are skewed towards younger age groups. For separations, there are two peaks–in the 25—29 and 50—54 age groups. All age groups under 30 are over-represented in separations. During 2003—04, 21.8% of those who left were aged under 30 years. For further analysis of ageing trends, see Chapter 8.

Figure 2.17: Age profile of ongoing engagements and separations, 2003—04

Source: APSED

ENGAGEMENTS

The drop in engagements during 2003—04 was a reversal of strong growth in the past few years. This was the first year since 1999—00 that engagements had fallen below 10,000. The fall was especially noticeable at lower classifications, and consequently in younger age groups.

Figure 2.18 shows the proportion of engagements by classification for the past 10 years. Engagements at the APS 1—2 levels have dropped dramatically over the decade (from over 40% during 1994—95 to just over 10% during 2003—04). The rate of decline seems to have slowed somewhat, and this group’s representation among total engagements may have stabilised at around 10%.

Most ‘base-level’ recruitment in the APS is now at the APS 3—4 levels and through graduate and other trainee classifications. Both these groups, however, fell as a proportion of total engagements during 2003—04. For the APS 3—4 levels, the number of engagements fell by 48.9%, and for trainees the decrease was 46.4%. These compare with the overall decrease in engagements of 39.9%. Despite this larger than average decline, APS 3—4s still accounted for almost half of all engagements (4239 or 46.6%) during the year. This was more than twice the number of any other classification group. There were 738 trainees or graduate trainees engaged, the lowest in actual number or proportion of total engagements for over a decade. The decline was evident for both graduate and other trainees.

Although data on educational qualifications is incomplete, it does show that the trend for new recruits to also be graduates has increased substantially, from around 30% in 1985—86 to over 60% in 2003—04.

The decrease in total recruitment at the APS 3—4 levels (classifications where women are highly represented) is reflected in the decrease in women’s share of engagements overall; women accounted for 57.7% of ongoing engagements during 2003—04, down from 59.4% the previous year.

Engagements at middle management levels (APS 5—6 and ELs) experienced the strongest proportional growth during 2003—04, rising proportionally by 4.5 and 4.0 percentage points respectively.

Although smallest in number, engagements to the SES classifications were the only ones to grow in real terms during the year, from 43 in 2002—03 to 47 in 2003—04.

Figure 2.18: Ongoing engagements by classification, 1994—95 to 2003—04

Source: APSED

Mobility between the APS and the wider labour market can be gauged by the proportion of positions filled by engagements (i.e. from outside the APS) as a percentage of positions filled by engagements and by promotions. Over the past decade there has been an increase in the proportion of positions filled by engagements, from 31.8% in 1994—95 to 51.3% in 2003—04. Further analysis of this trend, by classification, can be found in Chapter 9.

Engagements fell in absolute numbers in all age groups during 2003—04. Figure 2.19 shows changes in the age profile of engagements to the APS over the past 10 years. After some years of decline, engagements in the under 25 years age group seem to have stabilised at just over 20% of all engagements. During 2003—04, the age groups that grew in proportional terms were the 45—54 age group, which increased by 1.3 percentage points, and the 55 and over age group, which increased by 0.9 percentage points. This continues a trend which has been emerging over the past 10 years. Engagements in the 55 and over age group have tripled over this period, both in actual numbers and as a proportion of total engagements, with most growth following the removal of the compulsory age 65 retirement provision with the introduction of the PS Act.

Figure 2.19: Ongoing engagements by age group, 1994—95 to 2003—04

Source: APSED

During 2003—04, ongoing engagements were concentrated in the three largest agencies: Centrelink (1227), Defence (1064) and ATO (1046). The strong decline in overall engagements to the APS can, in part, be ascribed to decreases in these three agencies: ongoing engagements in Centrelink fell by 64.6%, Defence by 48.4% and ATO by 66.2%, compared with the previous year. These agencies accounted for just over a third of total engagements (36.7%) during 2003—04, although they employ over half of total ongoing staff.

SEPARATIONS

There were 7187 separations of ongoing staff during 2003—04, a very slight increase on 7181 the previous year. Resignations and age retirements⁷ rose (from 4889 to 5017 and from 811 to 970 respectively), and retrenchments fell from 888 to 595. Figure 2.20 shows how the different separation types have varied over the past 10 years.

Figure 2.20: Ongoing separations, 1994—95 to 2003—04

Source: APSED

Women represented 52.9% of separations, down slightly from 53.2% last year. They were particularly overrepresented in resignations (56.1%).

Variation in the number of retrenchments has been the major factor influencing overall trends in separations during the past decade. Older workers were much more likely to be retrenched, especially during the period of high levels of retrenchment in the mid to late 1990s. Figure 2.21 shows the impact of retrenchments on all age groups over the past decade, with the impact on those aged 55 and over particularly noticeable. Retrenchments fell in all age groups again in 2003—04, though older workers are still more highly represented. During 2003—04, 2.0% of those aged 55 and over in the APS were retrenched, compared with 0.7% of those aged 45—54 and 0.3% of those aged 35—44.

Figure 2.21: Retrenchments as a proportion of total ongoing staff by age group, 1994—95 to 2003—04

Source: APSED

Although the overall number of separations remained almost unchanged, there was a significant increase within the 55 and over age group (from 1155 in 2002—03 to 1267 in 2003—04). This increase is consistent with the continuing ageing of the APS. As a proportion of total separations, the 55 and over age group increased its share by 1.5 percentage points. The domination of retirements over retrenchments amongst this age group suggests that the problem of a ‘package culture’ (employees pressing for a redundancy package to supplement retirement benefits) seems to have been overcome.

Figure 2.22 shows the proportion of ongoing staff in the 50 to 55 year age range that separated through resignation or retirement, for the past 10 years. The sharp rise for 54 year olds since 1996—97 is most likely due to the effect of the financial incentive for some members of the Commonwealth Superannuation Scheme (CSS) to resign just before their 55th birthday (the 54/11 effect). The plateau in age 54 resignations in the past two years may be related to the relatively lower return from the CSS in recent years, making the 54/11 option less attractive to affected members.

Figure 2.22: Resignation/retirement rate for selected ages, 1994—95 to 2003—04

Source: APSED

The trend to resignation at age 54 has steadied this year, after falling during 2002—03, although the number of age 54 resignations (559) was still lower than at the peak in 2001—02 (579). The resignation/retirement rate for those aged over 55 fell sharply between 1994—95 and 1996—97, but has remained stable since then. During 2003—04 there was an increase in the number of employees in this age group retiring, but there was also growth in the overall number of employees in this age group.

7 Age retirements includes resignations after age 55.