Skill Shortages Tasmania
Skill Shortages Tasmania December 2010
Prepared by Labour Economics Office Tasmania Department of Education, Employment and Workplace Relations Further information www.deewr.gov.au/skillshortages Contact [email protected]
© Commonwealth of Australia 2010 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca
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CONTENTS
PREFACE ................................................................................................................... 4 EXECUTIVE SUMMARY ............................................................................................ 6 LABOUR MARKET OVERVIEW ................................................................................ 7 Employment growth and vacancy levels...................................................................................... 8 Results from Survey of Employers who have Recently Advertised ........................................... 10 Skill shortages in brief................................................................................................................ 11
SKILL SHORTAGES IN DETAIL .............................................................................. 13 Automotive trades ...................................................................................................................... 13 Engineering trades..................................................................................................................... 13 Construction trades.................................................................................................................... 14 Electrical trades ......................................................................................................................... 15 Food trades ................................................................................................................................ 15 Child care occupations .............................................................................................................. 16
PREFACE
This is the first in a series of six monthly Skill Shortage reports prepared to provide information about the Tasmanian labour market and to report on the results of ongoing skill shortage research conducted by the Department of Education, Employment and Workplace Relations (DEEWR). This publication is based on research undertaken in the 2009-10 research program and is current at end December 2010. The research is based on a Survey of Employers who have Recently Advertised (SERA) and covers a range of skilled occupations, particularly in the trades and professions. Further information about the methodology and lists of skill shortages is published at www.deewr.gov.au/skillshortages. This report brings together statistics from the Australian Bureau of Statistics Labour Force Survey, information about trends in the level of advertised vacancies prepared by the Department and published in the monthly Vacancy Report www.skillsinfo.gov.au/vacancyreport and results of the skill shortage research. The Department’s skill shortage research has been undertaken continually over the past three decades and listings of historical skill shortages are available. Some occupational labour markets are cyclical, responding relatively quickly to changes in economic conditions, but for some skilled occupations, shortages have been relatively persistent, even in times of economic downturn. Skill shortages can coexist with relatively high levels of unemployment and sometimes shortages are restricted to experienced workers or those who have specialist skills. Shortages can result from a number of factors including low levels of training, high levels of wastage, changes in technology increasing demand for new skills within an occupation and locational mismatch, where workers who have the skills are not in close proximity to the employers seeking those skills.
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Technical notes Occupations in DEEWR skill shortage research are defined according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO). The occupation clusters presented in this publication are not necessarily aligned with ANZSCO groups. DEEWR assigns skill shortage ratings to occupations based on the results of SERA, as well as consideration of a range of labour market indicators. Ratings are for Tasmania as a whole, unless it is indicated that they apply to metropolitan or regional areas only. Some occupations are researched at the national level only. Separate ratings for the States and Territories are not available for these occupations. Occupations may be assigned the following ratings: •
•
•
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Shortage: Skill shortages exist when employers are unable to fill or have considerable difficulty filling vacancies for an occupation, or significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment, and reasonably accessible location. Recruitment Difficulty: Recruitment difficulties occur when some employers have difficulty filling vacancies for an occupation. There may be an adequate overall supply of skilled workers but some employers are unable to attract and recruit a sufficient number of suitable workers for reasons which include: specific experience or specialist skill requirements of the vacancy; differences in hours of work required by the employer and those sought by applicants; or particular location or transport issues. No Shortage: Research has not identified widespread significant difficulty filling vacancies. This does not mean individual employers in some locations or those seeking specialised skills will readily fill their vacancies.
EXECUTIVE SUMMARY
•
The Tasmanian labour market is still recovering from the effects of the global recession, with annual employment growth estimated at 2.3 per cent to December 2010. Nationally, employment grew by 3.3 per cent over the same period. The Tasmanian unemployment rate was 5.5 per cent in December 2010 which was also above the national rate of 5.1 per cent.
•
Despite the sluggish recovery in Tasmania, demand for skilled workers is still strong, although the level of vacancies advertised is still well below the peak recorded in 2007-08 prior to the global recession.
•
Skill shortages are apparent across the trades and professions, with mixed signals across different industries, suggesting that the recovery is not consistent across all aspects of the labour market.
•
Employers recruiting skilled workers generally experienced difficulty attracting the skilled workers they need and in 2009-10 just over half the surveyed vacancies were filled, indicating ongoing skill shortages despite more muted demand.
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LABOUR MARKET OVERVIEW
Employment growth and vacancy trends • •
•
Tasmania has the smallest workforce of all the States at 252,000, with only the ACT and the NT having smaller labour forces. Following declines in employment throughout most of 2009, the labour market in Tasmania has shown signs of improvement, with employment in December 2010 2.3 per cent higher than it was a year before. This rise in employment has yet to make an impact on the numbers of unemployed however, as the number of unemployed people in December 2010 was the same as it was a year earlier. The unemployment rate in December 2010 was 5.5 per cent, compared to 5.6 per cent in December 2009. The national unemployment rate in December 2010 was 5.1 per cent.
Figure 1: Unemployment rate and employment, Tasmania, December 2005 to December 2010 7.0
245.0
6.0
240.0
5.0 235.0 4.0 230.0 3.0 225.0 2.0
Total Employed (000s) UE Rate (%) 220.0
1.0
7
Oct-2010
Dec-2010
Jun-2010
Aug-2010
Apr-2010
Feb-2010
Oct-2009
Source: ABS Labour Force, Australia, Dec 2010, Cat. no. 6202.0, trend data.
Dec-2009
Jun-2009
Aug-2009
Apr-2009
Feb-2009
Oct-2008
Dec-2008
Jun-2008
Aug-2008
Apr-2008
Feb-2008
Dec-2007
Oct-2007
Jun-2007
Aug-2007
Apr-2007
Feb-2007
Oct-2006
Dec-2006
Jun-2006
Aug-2006
Apr-2006
Feb-2006
0.0
Dec-2005
215.0
Employment by industry •
•
•
The health care and social assistance industry was the largest employing industry in Tasmania in November 2010, at 12.9 per cent of industry employment, followed by retail trade (11.5 per cent), manufacturing (8.4 per cent) and education and training (8.1 per cent). Twelve industries increased their employment levels over the year to November 2010 with the largest number of new jobs over the past year created in professional, scientific and technical services (3,200), health care and social assistance (2,500), and education and training (2,000). Seven industries shed jobs, with public administration and safety (5,400) and construction (2,400) showing the largest decreases.
Figure 2: Industry employment growth, year to November 2010 (‘000) 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0
Source: ABS Labour Force Survey, original data
Employment by occupation Employment increased over the year to December 2010 across all occupational areas, in total by 0.9 per cent. • •
The highest employment growth occurred in community and personal service workers, and sales workers; Employment declines were most marked for technicians and trades workers, and machinery operators and drivers.
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Employment by occupation, Tasmania, yearly average to November 2010 Total Employed (000s) Managers Professionals Technicians and Trades Workers Community and Personal Service Workers Clerical and Administrative Workers Sales Workers Machinery Operators And Drivers Labourers All Occupations
Ann Ave 2009 31.8 42.7 35.3 23.6 34.2 22.4 16.0 27.7 233.65
Ann Ave 2010 31.3 44.2 33.5 25.6 34.1 24.1 15.2 27.9 235.8
No. Change -0.6 1.5 -1.9 2.0 0.0 1.7 -0.8 0.3 2.2
% change -1.8% 3.5% -5.3% 8.5% -0.1% 7.6% -4.8% 0.9% 0.9%
Source: ABS Labour Force Survey, original data
Vacancy trends The DEEWR Internet Vacancy Index (IVI) for Australia stood at 93.3 in the December 2010 quarter (2006 = 100), which was an 18.7 per cent increase over the December 2009 quarter. Nonetheless, the IVI remains substantially below its high point of 145 in October 2007, suggesting demand for labour has not yet returned to pre-global recession levels. •
•
On an occupational basis, vacancy growth was strongest nationally for professionals (31.7 per cent) and clerical and administrative workers (27.1 per cent). This suggests demand for these occupational groups is improving after the employment losses of the past year. − Within these groups, the fastest growing sub-groups were engineers (76.8 per cent), and numerical clerks (31 per cent). Vacancy growth over this period was weakest for sales workers (0 per cent) and labourers (2.3 per cent).
Figure 3: Internet Vacancy Index, Tasmania and Australia, March 2006 to December 2010 160.0 140.0 Australia 120.0 100.0 80.0 60.0 40.0 20.0 0.0
9
Tasmania
Source: DEEWR Internet Vacancy Index
Results from Survey of Employers who have Recently Advertised Overall, vacancy filling rates and the number of suitable applicants per vacancy did not change significantly between 2009 and 2010. Both these measures show that despite an increase in the number of unemployed people in Tasmania over the last couple of years or so, employers are still having difficulty filling vacancies for skilled positions. Figure 4: Proportion of Vacancies Filled for Professions, Technicians and Trades, and Total, 2007 to 2010 (%)
Source: DEEWR Survey of Employers who have Recently Advertised
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Figure 5: Number of Suitable Applicants per Vacancy for Professions, Technicians and Trades, and Total, 2007 to 2010
Source: DEEWR Survey of Employers who have Recently Advertised
Skill shortages in brief With the improvement in employment and vacancies over the past year, shortages have re-emerged in a range of professional, technical and trade occupations; however, skills shortages are not as prevalent as they were prior to the global recession. DEEWR skill shortage research shows shortages have re-emerged after a fall in the number of occupations identified as being in shortage over 2008-09, and are now apparent in occupations in the following groups. Detailed listings of skill shortages for the States and Territories are available at www.deewr.gov.au/skillshortages. • • • • • •
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automotive trades engineering trades construction trades electrical trades food trades child care occupations.
Technicians and Trades Workers Of the 26 trade and technical occupations researched, 25 were identified as being in some degree of shortage. These were • • • • • • • • • • • • • • • • • • • • • • • •
Automotive Electrician Motor Mechanic (including specialisations) Panelbeater Vehicle Painter Sheetmetal Trades Worker Metal Fabricator Welder (First Class) Fitter (including specialisations) Bricklayer Carpenter Joiner Painting Trades Worker Fibrous Plasterer Solid Plasterer Roof Tiler Wall and Floor Tiler Plumber (including specialisations) Cabinetmaker Electrician (General) Airconditioning and Refrigeration Mechanic Baker Pastrycook Butcher Chef/Cook
Other occupations
• •
Child Care Centre Manager Child Care Worker
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SKILL SHORTAGES IN DETAIL
Automotive trades ANZSCO 32 Occupations in cluster
July-November 2010 Rating
Automotive Electrician
Shortage
Motor Mechanic (including specialisations) Panelbeater
Shortage
Vehicle Painter
Shortage
Shortage
•
Shortages of all the major automotive trades were reported in Tasmania in 2010;
•
Employers advised that competition from higher paying occupations, competition from interstate industries, particularly mining, and an ageing workforce which means people are retiring from the trade at a faster rate than they are entering it, are the most common reasons for shortages;
•
The specialisations of diesel mechanics and motor cycle mechanics also were in shortage. Demand for motor cycle mechanics is relatively low, reflected in the small size of the occupation. Smaller occupations typically are difficult to recruit to, even though vacancies do not occur very often;
•
Panel beaters and vehicle painters often leave the trade to pursue more financially lucrative careers elsewhere. Industry sources report that it is difficult to offer higher wages due to cost structures imposed by insurance companies. It is estimated that around 80 per cent of crash repair work in Tasmania is for insurance claims;
Engineering trades ANZSCO 32 Occupations in cluster
Sheetmetal Trades Worker Metal Fabricator Welder (First Class) Fitter (covers any fitter title)
July-November 2010 Rating
Recruitment difficulty Shortage Shortage Recruitment difficulty
The downturn in the manufacturing industry as a result of the global recession has meant that some previous shortages have eased due to more tradespeople entering the market following redundancies. Metal machinists, for example, are no longer in shortage; however, there is strong evidence that the labour market for skilled metal tradespeople has picked up in the second half of 2010, with shortages or recruitment difficulties across most other metal trades. In some cases, such as sheetmetal workers for example, employers were able to fill their vacancies, but they often had to
13
take people with a lower skill set than they had hoped for, and in some cases employ unqualified people, with experience. •
Sheetmetal workers and fitters were rated as experiencing recruitment difficulties. As in the case of sheetmetal workers, employers were often forced to accept a lower level of applicant than they sought, while there were particular difficulties recruiting fitters in smaller engineering enterprises, and rural areas.
•
Vacancy fill rates for metal fabricators and welders were low, reflecting the shortages that exist in these trades. There are definitional issues with these trades in that the terms welder, metal fabricator, or boilermaker/welder for example are often used interchangeably in Tasmania. In general though, metal fabricator or boilermaker/welder is more likely to refer to a qualified tradesperson, while welder may also include lesser qualified people, and those who have learnt on the job.
Construction trades ANZSCO 33 Occupations in cluster
July-November 2010 Rating
Bricklayer
Shortage
Carpenter and joiner
Recruitment difficulty
Joiner
Shortage
Painting trades worker
Shortage
Fibrous plasterer
Recruitment difficulty
Solid plasterer
Shortage
Roof tiler
Shortage
Wall and floor tiler
Shortage
Plumber
Shortage
Cabinet maker
Shortage
Demand for construction trades remained high during 2010, at least in part due to the Australian Government’s fiscal stimulus packages, particularly the Building the Education Revolution (BER) package. As a result shortages were experienced across most trades; however, a decline in housing construction since mid-2009, and the completion of BER projects in late 2010 and early 2011, may see an easing of demand over the second half of 2011 and into early 2012.
•
Construction carpenters were relatively easy to recruit in the last six months or so, but specialist joinery skills were particularly difficult to source. Fibrous plasterers who worked as sub-contractors were relatively easy to source, but employers who tried to recruit trades people to work for wages were less successful.
•
A number of employers highlighted impending issues with the ageing of the workforce in some trades. Bricklayers and roof tilers were singled out as needing to recruit more young people to the trades to replace the baby boomers likely to retire over the next five to ten years.
•
Retention to some trades, such as cabinet making, was identified as an issue, as wages were not as high as in some other competing occupations.
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Electrical trades ANZSCO 34 Occupations in cluster
July-November 2010 Rating
Electrician
Regional recruitment difficulty
Refrigeration and air conditioning mechanic
Shortage
Although the vacancy filling rate for electrical trades was higher this year than it has been over the last few years, most employers reported that their vacancies were difficult to fill. According to ABS 2006 Census data, 55.5 per cent of electricians were employed in the construction industry while the next largest group at 16.3 per cent were employed in the manufacturing industry. Industry sources report increasing specialisation within the occupation to specific industry sectors, potentially reducing portability of skills. • •
There were particular difficulties in recruiting electricians and refrigeration and air conditioning mechanics to regional areas. Employers also reported a reasonable degree of interest from overseas; however, these applicants presented difficulties in terms of registration and licensing issues.
Food trades ANZSCO 35 Occupations in cluster
• • • •
Baker Pastrycook Butcher Chef/Cook
July-November 2010 Rating
Shortage Shortage Shortage Shortage
One of the main problems employers reported in the food trades was attracting and retaining staff. The unsociable hours involved in working as a baker and as chefs or cooks is one of the reasons for this. Competition from other, better paid occupations was given as one of the main difficulties resulting in shortages of butchers. Declining demand for pastry cooks as a result of mass produced factory products has reduced the size of the skilled labour pool in Tasmania, which means that when vacancies do occur they are difficult to fill. • •
•
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Both the number of people employed as pastry cooks and the number of apprentices being trained have declined in recent years, supporting the view that demand for pastry cooks is falling. The number of specialist butchers’ shops has declined over recent years, as the major supermarket chains have increased their share of meat retailing. In the view of the industry, the trade is not attractive to young people, and wages are not as competitive as other occupations, particularly during apprenticeship training Even though there are significant numbers of people undergoing training as chefs and cooks, the rate at which people leave the industry is very high.
Child care occupations ANZSCO 13411-11, 4211-11 Occupations in cluster
• •
Child care centre manager Child care worker (qualified)
July-November 2010 Rating
Shortage Shortage
The child care industry has experienced persistent shortages of qualified staff for a number of years now. The wage levels compared to other occupations is one of the most commonly offered reasons for the existence of shortages • • •
Perceptions about uncompetitive wages, and a fall in the number of people undertaking relevant training are the main reasons for shortages of child care workers. For child care centre managers, the issue with wages is not just about relativity to other occupations, but also about the level of remuneration compared to the level of responsibility a child care manager has. Shortages appear to be more acute in regional Tasmania compared to the major population centres.
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Prepared by Labour Economics Office Tasmania Department of Education, Employment and Workplace Relations Further information www.deewr.gov.au/skillshortages Contact [email protected]
© Commonwealth of Australia 2010 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca
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3
CONTENTS
PREFACE ................................................................................................................... 4 EXECUTIVE SUMMARY ............................................................................................ 6 LABOUR MARKET OVERVIEW ................................................................................ 7 Employment growth and vacancy levels...................................................................................... 8 Results from Survey of Employers who have Recently Advertised ........................................... 10 Skill shortages in brief................................................................................................................ 11
SKILL SHORTAGES IN DETAIL .............................................................................. 13 Automotive trades ...................................................................................................................... 13 Engineering trades..................................................................................................................... 13 Construction trades.................................................................................................................... 14 Electrical trades ......................................................................................................................... 15 Food trades ................................................................................................................................ 15 Child care occupations .............................................................................................................. 16
PREFACE
This is the first in a series of six monthly Skill Shortage reports prepared to provide information about the Tasmanian labour market and to report on the results of ongoing skill shortage research conducted by the Department of Education, Employment and Workplace Relations (DEEWR). This publication is based on research undertaken in the 2009-10 research program and is current at end December 2010. The research is based on a Survey of Employers who have Recently Advertised (SERA) and covers a range of skilled occupations, particularly in the trades and professions. Further information about the methodology and lists of skill shortages is published at www.deewr.gov.au/skillshortages. This report brings together statistics from the Australian Bureau of Statistics Labour Force Survey, information about trends in the level of advertised vacancies prepared by the Department and published in the monthly Vacancy Report www.skillsinfo.gov.au/vacancyreport and results of the skill shortage research. The Department’s skill shortage research has been undertaken continually over the past three decades and listings of historical skill shortages are available. Some occupational labour markets are cyclical, responding relatively quickly to changes in economic conditions, but for some skilled occupations, shortages have been relatively persistent, even in times of economic downturn. Skill shortages can coexist with relatively high levels of unemployment and sometimes shortages are restricted to experienced workers or those who have specialist skills. Shortages can result from a number of factors including low levels of training, high levels of wastage, changes in technology increasing demand for new skills within an occupation and locational mismatch, where workers who have the skills are not in close proximity to the employers seeking those skills.
4
Technical notes Occupations in DEEWR skill shortage research are defined according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO). The occupation clusters presented in this publication are not necessarily aligned with ANZSCO groups. DEEWR assigns skill shortage ratings to occupations based on the results of SERA, as well as consideration of a range of labour market indicators. Ratings are for Tasmania as a whole, unless it is indicated that they apply to metropolitan or regional areas only. Some occupations are researched at the national level only. Separate ratings for the States and Territories are not available for these occupations. Occupations may be assigned the following ratings: •
•
•
5
Shortage: Skill shortages exist when employers are unable to fill or have considerable difficulty filling vacancies for an occupation, or significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment, and reasonably accessible location. Recruitment Difficulty: Recruitment difficulties occur when some employers have difficulty filling vacancies for an occupation. There may be an adequate overall supply of skilled workers but some employers are unable to attract and recruit a sufficient number of suitable workers for reasons which include: specific experience or specialist skill requirements of the vacancy; differences in hours of work required by the employer and those sought by applicants; or particular location or transport issues. No Shortage: Research has not identified widespread significant difficulty filling vacancies. This does not mean individual employers in some locations or those seeking specialised skills will readily fill their vacancies.
EXECUTIVE SUMMARY
•
The Tasmanian labour market is still recovering from the effects of the global recession, with annual employment growth estimated at 2.3 per cent to December 2010. Nationally, employment grew by 3.3 per cent over the same period. The Tasmanian unemployment rate was 5.5 per cent in December 2010 which was also above the national rate of 5.1 per cent.
•
Despite the sluggish recovery in Tasmania, demand for skilled workers is still strong, although the level of vacancies advertised is still well below the peak recorded in 2007-08 prior to the global recession.
•
Skill shortages are apparent across the trades and professions, with mixed signals across different industries, suggesting that the recovery is not consistent across all aspects of the labour market.
•
Employers recruiting skilled workers generally experienced difficulty attracting the skilled workers they need and in 2009-10 just over half the surveyed vacancies were filled, indicating ongoing skill shortages despite more muted demand.
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LABOUR MARKET OVERVIEW
Employment growth and vacancy trends • •
•
Tasmania has the smallest workforce of all the States at 252,000, with only the ACT and the NT having smaller labour forces. Following declines in employment throughout most of 2009, the labour market in Tasmania has shown signs of improvement, with employment in December 2010 2.3 per cent higher than it was a year before. This rise in employment has yet to make an impact on the numbers of unemployed however, as the number of unemployed people in December 2010 was the same as it was a year earlier. The unemployment rate in December 2010 was 5.5 per cent, compared to 5.6 per cent in December 2009. The national unemployment rate in December 2010 was 5.1 per cent.
Figure 1: Unemployment rate and employment, Tasmania, December 2005 to December 2010 7.0
245.0
6.0
240.0
5.0 235.0 4.0 230.0 3.0 225.0 2.0
Total Employed (000s) UE Rate (%) 220.0
1.0
7
Oct-2010
Dec-2010
Jun-2010
Aug-2010
Apr-2010
Feb-2010
Oct-2009
Source: ABS Labour Force, Australia, Dec 2010, Cat. no. 6202.0, trend data.
Dec-2009
Jun-2009
Aug-2009
Apr-2009
Feb-2009
Oct-2008
Dec-2008
Jun-2008
Aug-2008
Apr-2008
Feb-2008
Dec-2007
Oct-2007
Jun-2007
Aug-2007
Apr-2007
Feb-2007
Oct-2006
Dec-2006
Jun-2006
Aug-2006
Apr-2006
Feb-2006
0.0
Dec-2005
215.0
Employment by industry •
•
•
The health care and social assistance industry was the largest employing industry in Tasmania in November 2010, at 12.9 per cent of industry employment, followed by retail trade (11.5 per cent), manufacturing (8.4 per cent) and education and training (8.1 per cent). Twelve industries increased their employment levels over the year to November 2010 with the largest number of new jobs over the past year created in professional, scientific and technical services (3,200), health care and social assistance (2,500), and education and training (2,000). Seven industries shed jobs, with public administration and safety (5,400) and construction (2,400) showing the largest decreases.
Figure 2: Industry employment growth, year to November 2010 (‘000) 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0
Source: ABS Labour Force Survey, original data
Employment by occupation Employment increased over the year to December 2010 across all occupational areas, in total by 0.9 per cent. • •
The highest employment growth occurred in community and personal service workers, and sales workers; Employment declines were most marked for technicians and trades workers, and machinery operators and drivers.
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Employment by occupation, Tasmania, yearly average to November 2010 Total Employed (000s) Managers Professionals Technicians and Trades Workers Community and Personal Service Workers Clerical and Administrative Workers Sales Workers Machinery Operators And Drivers Labourers All Occupations
Ann Ave 2009 31.8 42.7 35.3 23.6 34.2 22.4 16.0 27.7 233.65
Ann Ave 2010 31.3 44.2 33.5 25.6 34.1 24.1 15.2 27.9 235.8
No. Change -0.6 1.5 -1.9 2.0 0.0 1.7 -0.8 0.3 2.2
% change -1.8% 3.5% -5.3% 8.5% -0.1% 7.6% -4.8% 0.9% 0.9%
Source: ABS Labour Force Survey, original data
Vacancy trends The DEEWR Internet Vacancy Index (IVI) for Australia stood at 93.3 in the December 2010 quarter (2006 = 100), which was an 18.7 per cent increase over the December 2009 quarter. Nonetheless, the IVI remains substantially below its high point of 145 in October 2007, suggesting demand for labour has not yet returned to pre-global recession levels. •
•
On an occupational basis, vacancy growth was strongest nationally for professionals (31.7 per cent) and clerical and administrative workers (27.1 per cent). This suggests demand for these occupational groups is improving after the employment losses of the past year. − Within these groups, the fastest growing sub-groups were engineers (76.8 per cent), and numerical clerks (31 per cent). Vacancy growth over this period was weakest for sales workers (0 per cent) and labourers (2.3 per cent).
Figure 3: Internet Vacancy Index, Tasmania and Australia, March 2006 to December 2010 160.0 140.0 Australia 120.0 100.0 80.0 60.0 40.0 20.0 0.0
9
Tasmania
Source: DEEWR Internet Vacancy Index
Results from Survey of Employers who have Recently Advertised Overall, vacancy filling rates and the number of suitable applicants per vacancy did not change significantly between 2009 and 2010. Both these measures show that despite an increase in the number of unemployed people in Tasmania over the last couple of years or so, employers are still having difficulty filling vacancies for skilled positions. Figure 4: Proportion of Vacancies Filled for Professions, Technicians and Trades, and Total, 2007 to 2010 (%)
Source: DEEWR Survey of Employers who have Recently Advertised
10
Figure 5: Number of Suitable Applicants per Vacancy for Professions, Technicians and Trades, and Total, 2007 to 2010
Source: DEEWR Survey of Employers who have Recently Advertised
Skill shortages in brief With the improvement in employment and vacancies over the past year, shortages have re-emerged in a range of professional, technical and trade occupations; however, skills shortages are not as prevalent as they were prior to the global recession. DEEWR skill shortage research shows shortages have re-emerged after a fall in the number of occupations identified as being in shortage over 2008-09, and are now apparent in occupations in the following groups. Detailed listings of skill shortages for the States and Territories are available at www.deewr.gov.au/skillshortages. • • • • • •
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automotive trades engineering trades construction trades electrical trades food trades child care occupations.
Technicians and Trades Workers Of the 26 trade and technical occupations researched, 25 were identified as being in some degree of shortage. These were • • • • • • • • • • • • • • • • • • • • • • • •
Automotive Electrician Motor Mechanic (including specialisations) Panelbeater Vehicle Painter Sheetmetal Trades Worker Metal Fabricator Welder (First Class) Fitter (including specialisations) Bricklayer Carpenter Joiner Painting Trades Worker Fibrous Plasterer Solid Plasterer Roof Tiler Wall and Floor Tiler Plumber (including specialisations) Cabinetmaker Electrician (General) Airconditioning and Refrigeration Mechanic Baker Pastrycook Butcher Chef/Cook
Other occupations
• •
Child Care Centre Manager Child Care Worker
12
SKILL SHORTAGES IN DETAIL
Automotive trades ANZSCO 32 Occupations in cluster
July-November 2010 Rating
Automotive Electrician
Shortage
Motor Mechanic (including specialisations) Panelbeater
Shortage
Vehicle Painter
Shortage
Shortage
•
Shortages of all the major automotive trades were reported in Tasmania in 2010;
•
Employers advised that competition from higher paying occupations, competition from interstate industries, particularly mining, and an ageing workforce which means people are retiring from the trade at a faster rate than they are entering it, are the most common reasons for shortages;
•
The specialisations of diesel mechanics and motor cycle mechanics also were in shortage. Demand for motor cycle mechanics is relatively low, reflected in the small size of the occupation. Smaller occupations typically are difficult to recruit to, even though vacancies do not occur very often;
•
Panel beaters and vehicle painters often leave the trade to pursue more financially lucrative careers elsewhere. Industry sources report that it is difficult to offer higher wages due to cost structures imposed by insurance companies. It is estimated that around 80 per cent of crash repair work in Tasmania is for insurance claims;
Engineering trades ANZSCO 32 Occupations in cluster
Sheetmetal Trades Worker Metal Fabricator Welder (First Class) Fitter (covers any fitter title)
July-November 2010 Rating
Recruitment difficulty Shortage Shortage Recruitment difficulty
The downturn in the manufacturing industry as a result of the global recession has meant that some previous shortages have eased due to more tradespeople entering the market following redundancies. Metal machinists, for example, are no longer in shortage; however, there is strong evidence that the labour market for skilled metal tradespeople has picked up in the second half of 2010, with shortages or recruitment difficulties across most other metal trades. In some cases, such as sheetmetal workers for example, employers were able to fill their vacancies, but they often had to
13
take people with a lower skill set than they had hoped for, and in some cases employ unqualified people, with experience. •
Sheetmetal workers and fitters were rated as experiencing recruitment difficulties. As in the case of sheetmetal workers, employers were often forced to accept a lower level of applicant than they sought, while there were particular difficulties recruiting fitters in smaller engineering enterprises, and rural areas.
•
Vacancy fill rates for metal fabricators and welders were low, reflecting the shortages that exist in these trades. There are definitional issues with these trades in that the terms welder, metal fabricator, or boilermaker/welder for example are often used interchangeably in Tasmania. In general though, metal fabricator or boilermaker/welder is more likely to refer to a qualified tradesperson, while welder may also include lesser qualified people, and those who have learnt on the job.
Construction trades ANZSCO 33 Occupations in cluster
July-November 2010 Rating
Bricklayer
Shortage
Carpenter and joiner
Recruitment difficulty
Joiner
Shortage
Painting trades worker
Shortage
Fibrous plasterer
Recruitment difficulty
Solid plasterer
Shortage
Roof tiler
Shortage
Wall and floor tiler
Shortage
Plumber
Shortage
Cabinet maker
Shortage
Demand for construction trades remained high during 2010, at least in part due to the Australian Government’s fiscal stimulus packages, particularly the Building the Education Revolution (BER) package. As a result shortages were experienced across most trades; however, a decline in housing construction since mid-2009, and the completion of BER projects in late 2010 and early 2011, may see an easing of demand over the second half of 2011 and into early 2012.
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Construction carpenters were relatively easy to recruit in the last six months or so, but specialist joinery skills were particularly difficult to source. Fibrous plasterers who worked as sub-contractors were relatively easy to source, but employers who tried to recruit trades people to work for wages were less successful.
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A number of employers highlighted impending issues with the ageing of the workforce in some trades. Bricklayers and roof tilers were singled out as needing to recruit more young people to the trades to replace the baby boomers likely to retire over the next five to ten years.
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Retention to some trades, such as cabinet making, was identified as an issue, as wages were not as high as in some other competing occupations.
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Electrical trades ANZSCO 34 Occupations in cluster
July-November 2010 Rating
Electrician
Regional recruitment difficulty
Refrigeration and air conditioning mechanic
Shortage
Although the vacancy filling rate for electrical trades was higher this year than it has been over the last few years, most employers reported that their vacancies were difficult to fill. According to ABS 2006 Census data, 55.5 per cent of electricians were employed in the construction industry while the next largest group at 16.3 per cent were employed in the manufacturing industry. Industry sources report increasing specialisation within the occupation to specific industry sectors, potentially reducing portability of skills. • •
There were particular difficulties in recruiting electricians and refrigeration and air conditioning mechanics to regional areas. Employers also reported a reasonable degree of interest from overseas; however, these applicants presented difficulties in terms of registration and licensing issues.
Food trades ANZSCO 35 Occupations in cluster
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Baker Pastrycook Butcher Chef/Cook
July-November 2010 Rating
Shortage Shortage Shortage Shortage
One of the main problems employers reported in the food trades was attracting and retaining staff. The unsociable hours involved in working as a baker and as chefs or cooks is one of the reasons for this. Competition from other, better paid occupations was given as one of the main difficulties resulting in shortages of butchers. Declining demand for pastry cooks as a result of mass produced factory products has reduced the size of the skilled labour pool in Tasmania, which means that when vacancies do occur they are difficult to fill. • •
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Both the number of people employed as pastry cooks and the number of apprentices being trained have declined in recent years, supporting the view that demand for pastry cooks is falling. The number of specialist butchers’ shops has declined over recent years, as the major supermarket chains have increased their share of meat retailing. In the view of the industry, the trade is not attractive to young people, and wages are not as competitive as other occupations, particularly during apprenticeship training Even though there are significant numbers of people undergoing training as chefs and cooks, the rate at which people leave the industry is very high.
Child care occupations ANZSCO 13411-11, 4211-11 Occupations in cluster
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Child care centre manager Child care worker (qualified)
July-November 2010 Rating
Shortage Shortage
The child care industry has experienced persistent shortages of qualified staff for a number of years now. The wage levels compared to other occupations is one of the most commonly offered reasons for the existence of shortages • • •
Perceptions about uncompetitive wages, and a fall in the number of people undertaking relevant training are the main reasons for shortages of child care workers. For child care centre managers, the issue with wages is not just about relativity to other occupations, but also about the level of remuneration compared to the level of responsibility a child care manager has. Shortages appear to be more acute in regional Tasmania compared to the major population centres.
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