Centre for the Economics of Education and Tra in in g Fac u l t y o f E d u c a t i o n, Mon a sh Un iversit y AUSTRALIAN TRANSPORT AND LOGISTICS INDUSTRY 2013–17 JUNE 2013 CONTENTS Executive summary Tables and figures 1 79 References83 1 3 Introduction11 Forecasts of employment 2013–17 1.1 1.2 1.3 1.4 3.1 Forecasts of employment – all sectors 3.1.1 Forecasts of employment by industry 3.1.2 Forecasts of employment by occupation 3.1.3 Forecasts of employment by qualification 3.2 Forecasts of employment – Transport and Logistics industries 3.2.1 Forecasts of employment – Logistics and Warehousing 3.2.2 Forecasts of employment – Road Transport 3.2.3 Forecasts of employment – Aviation sector 3.2.4 Forecasts of employment – Rail sector 3.2.5 Forecasts of employment – Maritime and Ports sector Macroeconomic context Measures of education and training Future supply of vocational qualifications The workforce covered by TLISC 15 17 18 19 2 Employment trends 2002–12 21 2.1 Employment trends – all sectors 25 2.1.1 Employment trends by industry 25 2.1.2 Employment trends by occupation 27 2.1.3 Employment trends by qualification 27 2.2 Employment trends – Transport and Logistics industries 29 2.2.1 Employment trends – Logistics and Warehousing sector 31 2.2.2 Employment trends – Road Transport sector 35 2.2.3 Employment trends – Aviation sector 39 2.2.4 Employment trends – Rail sector 43 2.2.5 Employment trends – Maritime and Ports sector 46 49 52 54 54 54 55 58 58 59 59 59 4 Job openings for new entrants, 2013–17 4.1 Job openings for new entrants – all sectors 4.2 Job openings for new entrants – Transport and Logistics industries 4.2.1 Job openings for new entrants – Logistics and Warehousing sector 4.2.2 Job openings for new entrants – Road Transport sector 4.2.3 Job openings for new entrants – Aviation sector 4.2.4 Job openings for new entrants – Rail sector 4.2.5 Job openings for new entrants – Maritime and Ports sector 61 63 65 65 65 65 65 65 Report prepared for TLISC by Michael Long & Chandra Shah, CEET TLISC CEET The Transport and Logistics Industry Skills Council Ltd (TLISC) is an independent, government funded, not-forprofit organisation that works on behalf of the Transport and Logistics Industry to promote investment in skills and workforce development. CEET is the only centre for the economics of education and training in Australia. CEET focuses on the contribution of education and training to economic and social development, undertaking research training, consultancies and dissemination of the economics and finance of education and training. It has extensive experience and expertise in: the finance and economics of education and training; analysis of large data sets; policy development; supply and demand analysis; and working with government authorities in Australia and overseas. TLISC is chartered with driving the skills and workforce development agenda across the entire Transport and Logistics industry which encompasses activities in road transport, warehousing, rail, aviation, maritime, logistics and ports. iii 5 6 Training needs, 2013–17 5.1 5.2 69 Training needs – all sectors Training needs – Transport and Logistics industries 5.2.1 Training needs – Logistics and Warehousing 5.2.2 Training needs – Road Transport 5.2.3 Training needs – Aviation 5.2.4 Training needs – Rail 5.2.5 Training needs – Maritime and Ports Concluding remarks 77 71 73 73 75 75 75 75 Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 Executive summary There are promising signs for the Transport and Logistics industry, and despite an economy in transition, the future looks bright. During the next five years the industry is expected to grow by 73,000 to 870,000, and one of the distinctive features of the past decade has been the fact that Transport and Logistics workforce growth has exceeded growth for the rest of the economy. Nevertheless, there are challenges ahead. A bigger economy and trade with Asia means that pressures on the industry are only expected to increase and in order to meet these demands quality training and up-skilling of the workforce is vital. The total training needs for the Transport and Logistics Industry over the next five years are for 151,000 persons with qualifications. Training needs vary by sector but also by occupation within each sector. Less than half of all needs will be met by new entrants with qualifications and the rest will be met by continuing workers upskilling. This is a huge task, yet there is the added complication of an ageing Australian workforce. Currently 12 per cent of the Transport and Logistics workforce is 60 years or older looking to retire in the next five years. A further 34 per cent is aged 45–59 years. Robert Adams Chief Executive Officer In 2002 around one third of the Transport and Logistics workforce held educational qualifications, but by 2012 this had increased to 45 per cent. And despite this surge, the industry still lags behind the Australian workforce as a whole in which 63 per cent hold formal qualifications. The industry’s commitment to training and upskilling the Transport and Logistics workforce is evident in the growing number of workers who have educational qualifications. Of course, this also translates to greater productivity across the sectors, higher pay for workers and an overall better standard of living. EXECUTIVE SUMMARY Key findings ®® ®® ®® In the five years to 2017, 151,000 job openings for new entrants are forecast in the Transport and Logistics industries. This averages to about 30,000 openings per year. Not surprisingly the highest numbers of openings are expected in the two largest sectors. Almost 90 per cent of all openings are forecast in the Logistics and Road Transport sectors. Employment in the Transport and Logistics industries is forecast to increase by 73,000 persons over the next five years to 870,000 in 2017. The average annual rate of growth in these industries is forecast to be higher than in the rest of the economy, which is consistent with the trends over the past decade. The rate of growth is forecast to vary by sector. For instance, growth in Logistics and Rail Transport is forecast to be above the industries’ average of 1.8 per cent per year. Employment in the two largest sectors – logistics and road transport – is forecast to increase by 67,000 persons. This is more than 90 per cent of the total growth in Transport and Logistics industries. ®® ®® ®® ®® The Transport and Logistics industries’ workforce has aged over the past decade, for instance, the proportion of the workforce aged 55 years or older increased from 13 per cent in 2002 to 22 per cent in 2012. About 12 per cent of the workforce is 60 years or older and will be approaching retirement during the next five years. The overwhelming majority of people working in the Transport and Logistics industries are male—86 per cent in 2012. This proportion has only slightly reduced since 2002. Slightly more than half of the rest of the Australian workforce is male—52 per cent in 2012 compared to 53 per cent in 2002. A minimum of about 2.4 million people will need to be trained across all Australian Industries from 2013– 17 to meet industry demand for skilled workers. This amounts to at least 482,000 completed qualifications per year. The total training needs for the Transport and Logistics Industry over the next five years are for 151,000 persons with qualifications. Training needs vary by sector but also by occupation within each sector. Less than half of all needs will be met by new entrants with qualifications and the rest will be met by continuing workers up-skilling. Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 2 Context The current broader macroeconomic context is relevant in understanding the demand for labour and skills in the Transport and Logistics industries. Macro conditions have a direct or indirect impact on all industry sectors. The Australian economy, like most other economies around the world, experienced the fallout from the global financial crisis. While the impact of the crisis has been rather severe for many countries, Australia has escaped relatively unscathed from the experience. The Government’s stimulus packages together with the continuing demand for Australian resources from China, Japan, South Korea and India cushioned the economy from the worst effects of the crisis. The economy has continued to be resilient despite the winding down of the Australian Government’s initial fiscal stimulus. This was mainly because of continuing global demand for Australian resources. However, prices for iron ore and coal, the two commodities that make up a significant proportion of Australia’s exports, have declined. This has largely been as a result of a softening of the Chinese economy and increasing supplies of these commodities coming on the market. China has also built up large stockpiles of these commodities. The resources boom has improved Australia’s terms of trade. This together with the high interest rates in Australia relative to those in most other developed countries has strengthened the value of the Australian dollar relative to most other major currencies. While the economies and labour markets of the mining states of Western Australia, Queensland and the Northern Territory are expanding rapidly as a result of the resources boom, the traditional manufacturing states of New South Wales, Victoria and South Australia are doing less well, but not as badly as some other parts of the developed world. This patchwork economic progress has become a topic of hot debate more recently because the disparities seem to have increased to well above historic levels. While the average unemployment rate in Australia in the first quarter of 2012 was 5.6 per cent, in some parts of the country it was well above this level. The high Australian dollar has adversely affected the trade-exposed non-resource sectors of the Australian economy (e.g. tourism and manufacturing). Tourism to Australia is not only sensitive to the value of the Australian dollar but it is also affected by the health of economies from which Australia traditionally receives tourists, for example, Europe, Japan and the U.S. Increased numbers of tourists from China and India may offset some of the decline from the traditional sources. The Australian Government has initiated some major economic and social reforms, the pricing of carbon and the construction of the National Broadband Network being the most significant of these. Pricing carbon is however unlikely to have much employment effect, at least in net terms, although additional skill needs may arise from adaptation and mitigation activities. In the Transport and Logistics industries, changing driver behaviour is contributing to mitigation (e.g. improving vehicle fuel efficiency through CleanRun Ecodrive program in Western Australia). Australia’s population is projected to grow to 23.5 million by 2015 and then to 26.8 million by 2025. The ageing of the population presents a significant long-term risk for the economy and sustainability of government finances. The ageing of the population will also affect future labour supply. Reforms that reduce barriers to participation can lift growth and reduce future pressures on labour supply. Improving educational attainment would be one way to lift aggregate labour force participation because people holding qualifications are more likely to participate than those who do not hold qualifications. Improving the skills base of the workforce is thus emerging as a critical factor if Australia is to meet the economic, environmental and social challenges of the future. EXECUTIVE SUMMARY What part of the workforce is covered by TLISC? Workforce profile and trends in employment, 2002–12 TLISC holds responsibility for the training and workforce development needs at the sub-professional level in the following Transport and Logistics sectors: All sectors ®® Road Transport, Logistics and Warehousing ®® Aviation ®® Rail ®® Maritime and Ports. These sectors are defined by a set of occupations, training for which is predominantly delivered using one of the three training packages that TLISC has responsibility for. Employment in Australia reached 11.4 million persons in 2012. Since 2002 it has increased by a quarter, or 2.3 per cent per year. While employment in Agriculture, Forestry and Fishing has continued to decline, in Mining it has trebled, albeit from a low base. The Transport, Postal and Warehousing sector, which overlaps with the TLISC workforce as defined in this report, employed 566,000 persons in 2012. The qualifications profile of the Australian workforce has been changing with a trend toward more people holding qualifications and at higher levels. In 2001, 54.2 per cent of the working population aged 15–64 years held qualifications and 52.6 per cent of these qualifications were at a diploma or higher level. By 2011, 62.7 per cent held qualifications and 59.6 per cent of the qualifications were at the Diploma or higher levels. The number of people with qualifications in the workforce has been increasing at a much higher rate than overall employment—3.7 per cent compared to 2.2 per cent per year. These trends indicate substantial skills deepening in the workforce. 8% th ow r t g d 2. en an 200 m t oy or e pl nsp sinc em Tra ics in gist Lo 2 Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 4 Table E1 Transport and Logistics industries workforce, 2002 Sector Employment (‘000s) % male % aged 45 years or older % working 35 hours or more per week % with qualifications TLISC sectors 623 87 37 74 34 Logistics 251 80 30 71 31 Road Transport 291 94 44 76 31 Aviation 44 81 29 71 69 Rail 22 89 42 77 30 Maritime & Ports 15 97 33 75 62 Non-TLISC sectors 8,521 53 34 64 56 All sectors 9,144 56 34 64 54 Source: Australian Bureau of Statistics (ABS) (2012b). Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. Table E2 Transport and Logistics industries workforce, 2012 Sector Employment (‘000s) % male % aged 45 years or older % working 35 hours or more per week % with qualifications TLISC sectors 797 86 47 75 45 Logistics 351 81 39 78 45 Road Transport 351 93 56 73 40 Aviation 50 80 35 69 76 Rail 29 88 48 76 50 Maritime & Ports 16 96 42 72 64 Non-TLISC sectors 10,635 52 38 63 64 All sectors 11,432 54 39 63 63 Source: Australian Bureau of Statistics (ABS) (2012b). Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. Transport and Logistics industries Employment in the Transport and Logistics industries increased at a faster rate than in the rest of the workforce between 2002 and 2012—2.5 compared to 2.2 per cent per year. In 2012, employment in the industries was about 800,000, having increased by 28 per cent since 2002. Tables E1 and E2 provides a summary of the Transport and Logistics industries’ workforce in 2002 and 2012. Most of the workforce is employed in the Logistics and Road Transport sectors. The workforce is predominantly male, especially in the Maritime and Ports sector. The workforce has a higher percentage of workers aged 45 year or older than the rest of the workforce. There was a 10 percentage point increase in the number in this age group over the last decade. In the Road Transport sector, 56 per cent of all workers were in this age range in 2012. Partly as a result of a mainly male workforce, three out of every four workers in the workforce worked 35 hours or more per week. Only about a third of the workforce held educational qualifications in 2002. The percentage had increased to 45 per cent by 2012. A number of occupations in the Transport and Logistics industries employ large numbers of workers who do not hold any qualifications but possess skills and occupational licenses that allow them to work productively. Examples of such occupations are Truck Driver, Delivery Driver, Forklift Driver and Waterside Worker. The Aviation and Maritime and Ports sectors have relatively high proportions of workers with qualifications, particularly the former in which 76 per cent held qualifications in 2012. The highest employment growth over the past decade has been in the Logistics sector (3.5 per cent per year) and lowest in Aviation (1.5 per cent per year). The largest three occupations in the Transport and Logistics industries, each with more than 50,000 workers in 2012, were that of Storeperson and Forklift Driver in the Logistics sector and Truck Driver in the Road Transport sector. EXECUTIVE SUMMARY All sectors Forecasts of employment, 2013-17 Employment in Australia is forecast to grow by 836,000 persons, or 1.4 per cent per year, from 2012 to 2017. About 30 per cent of this growth is forecast to be in Construction and Retail Trade. The highest rate of employment growth is forecast in the Mining sector. Health Care and Social Assistance is forecast to employ 12 per cent of all workers in 2017, the highest percentage for any sector. In the Transport, Postal and Warehousing sector, employment is forecast to increase by 29,000 persons over this period, which is an annual rate of growth of one per cent. The report uses the MONASH model to generate employment forecasts by industry and occupation. The model is one the most sophisticated and respected models of the Australian economy. Government and other agencies regularly commission forecasting and policy analysis work using the model. For example, the work modelling the impact of the carbon price on the Australian economy on behalf of the Australian Treasury was undertaken using MONASH model. The model has been adapted for use in a large number of developed and developing economies, including the U.S. In 2017, 1.1 million more working people are forecast to hold qualifications than in 2012. This represents an increase of 15.2 per cent. The number of people without qualifications is forecast to decline by 6.4 per cent. Altogether, 68.3 per cent of the working population in Australia in 2017 will hold qualifications. The demand for labour in the economy depends on a number of factors. It depends on the macroeconomic state of the domestic economy and that of its major trading partners. Other factors that influence demand are capital investment and its distribution across industries, the pace of technical change and government policies. Moreover there is a complex interdependency between all these factors. Future growth in demand will depend on assumptions made about the state of these factors and their implications in future periods. All these factors are modelled in a computational general equilibrium framework in the MONASH model. The highest growth in qualifications is forecast at the Diploma and Certificate IV levels. Numbers of workers with higher education qualifications are also forecast to grow strongly. Only a modest increase is forecast for the number of workers holding Certificate III. Fewer workers are forecast to hold qualifications at the Advanced Diploma, Certificate II and Certificate I in 2017 than in 2012. Transport and Logistics industries Table E3 shows the forecasts of employment by level of qualification in the Transport and Logistics industries in 2017. Employment is forecast to increase proportionately more in these industries than in the rest of the economy, reaching 870,000 in 2017. The Logistics sector will employ more workers than any other sector. The proportion of the industries’ workforce with qualifications is forecast to increase substantially, but it will still be much lower than the proportion with qualifications in non-TLISC sectors. The CEET model factors in skills deepening rates into MONASH forecasts to produce forecasts of employment by qualification. The relatively faster increase in the percentage of workers with qualifications than the increase in employment in an occupation is referred to as skill deepening. It can also refer to the qualifications profile of the occupation changing toward higher level qualifications. Table E3 Forecasts of employment in Transport and Logistics industries, 2017 (‘000s) Sector Higher education VET No qualification Total % with qualifications % change from 2012 TLISC sectors 109 355 406 870 53.3 9.2 Logistics 51 144 195 391 50.1 11.2 Road Transport 41 157 180 378 52.4 7.8 Aviation 7 33 13 53 76.1 6.2 Rail 6 13 12 31 60.6 9.6 Maritime & Ports 3 8 6 17 64.5 5.6 Non-TLISC sectors 3,545 4,366 3,488 11,398 69.4 7.2 All sectors 3,654 4,721 3,894 12,269 68.3 7.3 Source: MONASH economic forecasts (CoPS June 2012). Small numbers have relatively large associated standard errors and should be used with caution. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 6 1.1 millio n mo re forec ast to working p eople hold q 2017 a than in 201 ualification re s in 2. Box E1 MONASH model for forecasting employment by occupation MONASH is a computational general equilibrium model for forecasting employment by occupation (Adams et al. 1994; Dixon and Rimmer 1996; Meagher 1997; Dixon and Rimmer 2000). It is maintained by the Centre of Policy Studies (CoPS), Monash University. An intuitive description of the model is contained in Appendix O in Industry Commission (1997)) In brief, the MONASH model is a sequence of singleperiod models, linked through time by the behaviour of capital and labour markets. It has three main elements—a database, theory and parameters—that are embodied in the model’s system of equations. These equations describe how industries and consumers respond to changes in policy. The core of the database is a large input-output matrix, which shows how each sector of the economy is linked to other sectors. These linkages are only for a particular point in time. Behaviour responses of different groups to policy changes are based on economic theory. The model specifies likely responses of producers, consumers, foreigners and investors to policy changes. It also includes a government sector, the revenue and expenditure behaviour of which is modelled separately. While theory guides the model’s broad assumptions (which can be altered to accommodate different scenarios), actual numerical parameters are required to estimate the size of the responses. In MONASH, these parameters are derived either from the input-output database or from other external sources. MONASH converts the forecast for aggregate output to forecasts for output by industry. These are then converted to forecasts of employment by industry, which in turn are converted to employment by occupation. MONASH uses a range of historical data input to estimate the model. These include: ®® national accounts ®® input-output tables ®® state accounts ®® Census data on population ®® foreign trade statistics ®® capital stock statistics ®® income and expenditure surveys ®® other unpublished data from the ABS. To generate forecasts, MONASH has to have access to informed opinion on future changes to variables that are exogenous to the system. The model is adaptable and can incorporate data from a range of sources. Currently it uses the following: ®® ®® ®® ®® ®® Access Economics’ 5-year macro forecasts of output by major industry sector Australian Bureau of Agricultural and Resource Economics and Sciences’ (ABARES) export prices and volumes for primary products Tourism Forecasting Committee’s (TFC) prospects for tourism Productivity Commission’s assessment on changes in protection implied by government industry policy CoPS’ assessment of changes in technology and consumer tastes. EXECUTIVE SUMMARY All industries sectors Job openings for new entrants, 2013–17 About 2.2 million job openings for new entrants are forecast from 2013 to 2017. The job openings are for workers with and without qualifications. The number of job openings depends on growth and replacement needs in the occupation group but also on the current level of employment in it. For instance, the highest job openings are for Professionals which employed 2.7 million workers in 2012, the highest number in all occupation groups. On the other hand, the high number of job openings for Sales workers is mainly because of the high net replacement rate (5 per cent). New jobs from growth in an occupation account for only a portion of all jobs that are expected to be available during the forecast period. Many workers will leave jobs for a variety of reasons, such as death, ill-health, retirement or transfer to another occupation. These departures will create additional opportunities for workers to enter each occupation. In many occupations, the number of workers retiring will rise in coming years due to the ageing of Australia’s baby boomers. These replacement needs, when added to new jobs, create a more complete picture of job openings. While projections of job growth and decline provide the best picture of how occupational employment is expected to change, job openings provide a better description of the labour market that new entrants will face. Transport and Logistics industries Table E4 provides a summary of the job openings for new entrants in the transport and logistics industries from 2013 to 2017. While the employment growth rate in the industries is higher than in other sectors of the economy, the net replacement rate is lower despite the older age profile. More than 150,000 job openings are forecast in the industries during this period, most of them in the Logistics and Road Transport sectors. About the same number of job openings are forecast in these two sectors but for different reasons. While in the Logistics sector the growth rate is high and the net replacement rate is low, in the Road transport sector the opposite is the case. The measure of replacement needs adopted in this report is net replacement, which, when combined with growth in an occupation, best represents the job openings for new entrants to the occupation. The average annual net replacement rate across all occupations for the period 2013–17 was estimated to be 2.1 per cent. By comparison, the growth in employment is forecast to be 1.4 per cent per year for the same period. This highlights the importance of replacement needs relative to employment growth in estimating new entrants to an occupation. Net replacement needs are generally higher for low-skill occupations than high-skill occupations. Table E4 Employment growth rate, net replacement rate and job openings in Transport and Logistics industries, Australia, 2013–17 Sector Employment growth rate (%) Net replacement rate (%) Job openings (‘000s) TLISC sectors 1.8 1.7 151.5 Logistics 2.1 1.5 66.2 Road Transport 1.5 2.0 68.1 Aviation 1.2 1.4 7.8 Rail 1.9 2.1 6.5 Maritime & Ports 1.1 2.0 3.0 Non-TLISC sectors 1.4 2.1 2,002.1 All sectors 1.4 2.1 2,153.6 Source: CEET. Table E5 Training needs in Transport and Logistics industries, Australia, 2013–17 (‘000s) Sector Higher education Advanced diploma/diploma Certificate III/IV Certificate I/II Total TLISC sectors 38.1 42.9 64.1 6.3 151.4 Logistics 15.8 15.2 21.4 3.4 55.8 Road Transport 17.4 22.4 35.8 2.2 77.7 Aviation 1.8 2.5 4.1 0.4 8.8 Rail 2.5 1.4 2.5 0.2 6.5 Maritime & Ports 0.8 1.4 0.4 0.1 2.6 Non-TLISC sectors 884.0 520.6 760.1 91.6 2256.3 All sectors 922.2 563.5 824.2 97.9 2407.7 Source: CEET. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 8 Training needs, 2013–17 Not only is employment forecast to grow over the next five years, but the qualifications profile of the workforce is also expected to change with more workers holding qualifications and increasingly at higher levels. Part of the future demand for skilled labour will be met by skilled workers who are currently working in the industries and who will continue to do so in the next period. However not all workers employed in the current period will be available in the next period because of turnover. The qualifications profile of an occupation will change with the entry of new people and the exit of others, some of whom will hold qualifications and others will not. In some instances the number of new entrants with qualifications will be insufficient to achieve the qualifications profile forecast for the occupation and continuing workers will need to acquire new qualifications to make up the shortfall. Some continuing workers who already have a qualification may up-skill and others who do not have a qualification may acquire their first qualification. The report provides baseline information on the minimum number of qualified workers needed in the transport and logistics industries from 2013 to 2017 due to: ®® changes in the qualifications profile ®® growth in employment ®® turnover of workers. These estimates provide indications of the minimum training needs. Completion of skill sets or licensing requirements are considered additional training and not included in these estimates. Also not included are lower level qualifications completed as a pathway to higher level qualifications in the same year. All industries About 2.4 million people will need to be trained from 2013–17 to meet industry demand for skilled workers. This amounts to 482,000 completed qualifications per year. Slightly more than half of this demand for trained workers will be met by new entrants with qualifications and the rest by continuing workers up-skilling. While new entrants will meet significantly more of the demand for workers with Bachelor and Certificate I-III level qualifications, the demand for postgraduate, diplomas and Certificate IV qualifications will largely be met by continuing workers up-skilling. About 38.3 per cent of all demand is projected for higher education qualifications and almost all demand for VET qualifications is at the Diploma or Certificate III/IV level. Transport and Logistics industries Table E5 shows the summary of the training needs in Transport and Logistics industries. The total needs over the next five years are for 151,000 persons with qualifications. Training needs vary by sector but also by occupation within each sector. Less than half of all needs will be met by new entrants with qualifications and the rest will be met by continuing workers up-skilling. About three-quarters of training needs will be for persons with VET qualifications, 57 per cent of which will be at Certificate III/IV level. The demand for Certificate I/II qualifications will be largely met by new entrants. Concluding comments This report has produced forecasts of labour and qualification needs in transport and logistics industries in Australia from 2013 to 2017. It has used the most robust model for forecasting training and the most recent data to estimate the model. Models are only as good as the quality of the data that are used to estimate them. Even the most reliable data have limitations because they are often derived from sample surveys which contain sampling and measurement errors and also because standard classifications are used for coding the data. Economic forecasts are never precise, especially over the longer term, and always have a certain degree of uncertainty attached to them. It is inevitable that developments that are currently unforseen will eventually render forecasts from any model, not just the ones included in this report, to be inaccurate. This report contains short- to medium-term forecasts and are, therefore, unlikely to have large margins of error. Notwithstanding the limitations outlined above, the forecasts of employment, job openings for new entrants and the training needs in the Transport and Logistics industries included in this report provide sound baseline data that are systematic, comprehensive and consistent for informing policy on workforce development. The forecasts should however be validated and fine-tuned with information from other sources and stakeholder consultation. EXECUTIVE SUMMARY Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 10 The purpose of this report is to provide estimates of the training needs in the occupations covered by the Transport and Logistics Industries Skills Council (TLISC) for the period 2013–17. 1 Introduction The Australian Government’s interest in developing policies on skills and workforce development is ongoing and stems from a desire to sustain economic growth and to ensure Australia continues to remain globally competitive. Investment in education and training has to be appropriate and ongoing to equip the workforce with a capacity to be able to innovate, improve productivity and adapt to structural changes. A better skilled population is more likely to have higher labour force participation. Reforms that improve the quality of educational and training outcomes will also drive productivity growth over the medium term (Australian Government 2010). The link between education and training and innovation, participation, productivity and economic growth is in the first instance indicated by the strong association between higher levels of educational qualifications and higher earnings (wages are deemed to reflect the labour productivity of individuals) and labour force participation (again a reflection of the productivity of individuals). It is also indicated by the more than satisfactory rates of return to education and training (Long and Shah 2008). Statistical analyses show that an individual’s education and training has a significant positive effect on their earnings and likelihood of employment, although higher earnings are more likely for higher level qualifications (Long and Shah 2008; Burke et al. 2003; Ryan 2002). Following job separation, Shah (2009) shows that males with qualifications are less likely to become unemployed and women with qualifications are less likely to leave the labour force. Even the lowest level qualifications (Certificate I/II) seem to be important in keeping people attached to the labour market. 1 | introduction Education and training however affect more than an individual’s earnings and labour market experience. They have positive effects on the individual’s health, investment decisions and consumer behaviour. Society-wide effects range from reduced crime and social welfare expenditure to expansion of general and institutional trust and civic cooperation. Sound development of policies on education and training requires up-to-date information on economic changes and how these changes are likely to affect the future demand for skills. The results of these analyses are also of vital interest to other stakeholders in the labour and education and training markets, including individuals making choices about careers and courses and education and training providers planning course offerings. In a demand-driven system, with education and training entitlements limited for each individual, the need for robust and reliable information that is easily accessible to all parties is even greater. As evidenced by the recent experience in Victoria1, asymmetry in the information available to different parties can lead to problems such as under or over supply of specific skilled labour and sub-standard quality (e.g. anecdotal reports in the media suggest some training providers reduce hours of training delivery to cut costs). The Australian Government has set up eleven national Industry Skills Councils (ISCs) to provide advice on the skills needs of Australian industry. The mandate of Australia’s ISCs is to bring together industry, educators and governments and unite them on a common industry-led agenda for action on skills and workforce development. TLISC is one of eleven Industry Skills Councils and is responsible for the assessment of current and future skills needs in Transport and Logistics industries, which include road, rail, air and water transport; transport support services; postal and courier pickup and delivery services; and warehousing and storage. These services are important for the economy as they underpin a range of other industries and activities, from transporting and storing freight to the movement of people by public and private transport. Their contribution to the gross domestic product (GDP) of Australia, in terms of gross value added (GVA), in 20011-12 was $70,833 million, or 4.9 per cent (ABS 2012). $ 70,833 ross as the G w n o li il m ) that ed (GVA d d A e lu Va y the ibuted b s tr n o c s wa tic and logis 2. 01 transport 2 1 s in 201 industrie 1 Victoria introduced an uncapped ‘entitlement’ model for funding vocational education and training (VET) from 2009 (Government of Victoria 2008). This led to a blowout in the state budget for VET. As a result the Government drastically reduced the funding for a range of courses. Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 14 1.1 Macroeconomic context The current broader macroeconomic context is relevant in understanding the demand for labour and skills in the Transport and Logistics industries. Macro conditions have a direct or indirect impact on all industry sectors. This section provides this context. It also provides a short discussion on some of the longer term demographic and economic challenges facing Australia. The Australian economy, like most other economies around the world, experienced the fallout from the global financial crisis. While the impact of the crisis has been rather severe for many countries, Australia has escaped relatively unscathed from the experience. The Government’s stimulus packages together with the continuing demand for Australian resources from China, Japan, South Korea and India cushioned the economy from the worst effects of the crisis. The economy has continued to be resilient despite the winding down of the stimulus. This was mainly because of continuing global demand for Australian resources. The economy has continued to grow, with the latest gross domestic product (GDP) figures indicating seasonally adjusted growth of 3.7 per cent (trend 3.8 per cent) in the year to June 2012 (ABS 2012a). This is higher than the 3 per cent forecast in the 2012 Federal budget (Australian Government 2012b). The budget forecasts the economy to grow by 3.25 per cent in 2012-13 and by 3 per cent the following year. The seasonally adjusted employment growth for 2011-12 was 0.7 per cent (ABS 2012b), which is slightly higher than the budget forecast. The forecast for 2012-13 is 1.25 per cent and for 2013-14 it is 1.5 per cent. The budget forecasts for the labour force participation rates for these years are constant at 65.3 per cent. The resources boom has improved Australia’s terms of trade. This together with the high interest rates in Australia relative to those in most other developed countries has strengthened the value of the Australian dollar relative to most other major currencies. While the economies and labour markets of the mining states of Western Australia, Queensland and the Northern Territory are expanding rapidly as a result of the resources boom, the traditional manufacturing states of New South Wales, Victoria and South Australia are doing relatively poorly, but not as badly as some other parts of the developed world. This patchwork economic progress is often referred to as the ‘two speed’ economy in the media and has become a topic of hot debate more recently because the geographic disparities seem to have increased to well above historic levels. While the average unemployment rate in Australia in the first quarter of 2012 was 5.6 per cent, in some parts of the country it was well above this level. For instance, in West Moreton in Queensland unemployment was 10.9 per cent and in Mersey-Lyell in Tasmania it was 9.8 per cent (Australian Government 2012a). Such regional disparities in output, employment growth and unemployment rates are not unique to Australia; they exist in many Organisation for Economic Co-operation (OECD) countries, with skills shortages in some regions coexisting with high unemployment in other regions (OECD 2005). The higher Australian dollar has adversely affected the trade-exposed non-resource sectors of the Australian economy (e.g. tourism and manufacturing) although for others it has meant a reduction in the input costs (e.g. costs of imported capital equipment). Tourism to Australia is not only sensitive to the value of the Australian dollar but it is also affected by the health of economies from which Australia traditionally receives tourists, for example, Europe, Japan and the U.S. However a recent report suggests inbound tourism from China is set to increase over the next few years as evidenced by a number of Chinese airlines planning to increase the number of weekly flights to Australia. This may then offset some of the decline from the traditional sources. 23.5 million projected Australian population by 2015. 26.8 million projected Australian population by 2025. 1 | introduction However, prices for iron ore and coal, the two commodities that make up a significant proportion of Australia’s exports, have declined. This has largely been a result of softening of the Chinese economy and increasing new supplies of these commodities coming on the market. China has also built up large stockpiles of these commodities. Partly as a result of these developments there has been some slowing down and some cancellations of resource projects. (e.g. BHP Billiton decision to defer expansion of Olympic Dam project in South Australia and delay Port Headland harbour expansion and Fortescue Metals decision to cut jobs and defer several projects). To ensure growth continues, the Chinese government has launched a new stimulus package worth US$150 billion to be spent on infrastructure. The Australian Government has initiated some major economic and social reforms, the pricing of carbon and the construction of the National Broadband Network being the most significant. Pricing carbon, however, is unlikely to have much employment effect, at least in net terms. However additional skill needs may arise from adaptation and mitigation activities (e.g. improving vehicle fuel efficiency through CleanRun Ecodrive program developed by the Department of Environment and Conservation in Western Australia). The price on carbon has the potential to spur innovation in the more efficient use of resources. The other major reform has been the introduction of the Minerals Resource Rent Tax on iron ore and coal, the intention of which is to provide an improved return to the community from the mineral wealth. Many long-term challenges, however, remain for Australia. The Intergenerational Report 20102 contains population and macroeconomic projections for Australia to 2050 (Australian Government 2010). It identifies ageing (particularly the increase in the old age dependency ratio3) and climate change as presenting significant long-term risks for the economy and sustainability of government finances. IGR (2010) determines long-term projections of economic growth based on the three Ps—population (15 years or older), participation (average hours worked per working person 15 years or older) and productivity (average output per hour worked). The future size of the population is determined on the basis of assumptions made about the future fertility and mortality rates and the level of net migration. The age-gender composition of the population affects the participation rate and future growth in productivity is based on historical experience. On this basis IGR (2010) projects GDP growth to slow to an average of 2.7 per cent per year until 2025 from the 3.3 per cent reported over the last 40 years. Growth in real GDP per capita is also projected to decline from 1.9 to 1.5 per cent per year over the same period which is mainly a result of declining labour productivity. The report expects the labour force participation rate of those aged 15 years or older to decline from about 65 per cent in 2010 to 63 per cent in 2025. IGR (2010) expects the demand for Australian resources from East Asia and India continuing. Australia’s population is projected to grow to 23.5 million by 2015 and then 26.8 million by 2025 (ABS 2008).4 The projections assume net overseas migration averaging 180,000 per year, fertility rate of 1.9 babies per woman and increasing life expectancy. Current Australian Government policy puts a relatively higher emphasis on skilled migration in the overall migration program. Skilled migrants generally have a much higher participation rate in the labour force than other migrants. The skilling of Australian residents must however remain a priority to ensure future growth, improved living standards, social inclusion and equity (Australian Workforce and Productivity Agency 2012). The ageing of the population will also affect future labour supply. Reforms that reduce barriers to participation can lift growth and reduce future pressures on labour supply. Improving educational attainment would be one way to lift aggregate labour force participation because people holding qualifications are more likely to participate than those who do not hold qualifications. Improving the skills base of the workforce is thus emerging as a critical factor if Australia is to meet the economic, environmental and social challenges of the future. Skilled migration may provide a shortterm solution, but a long-term sustainable solution requires continual improvement of the skills of the existing workforce and higher level skills for new entrants. This has to be more than just an increase in the volume of completed qualifications. The more important issue is the quality of the product. If the quality is poor then the confidence in the whole system will be undermined (Australian Workforce and Productivity Agency 2012). Reputation and confidence once damaged can take a long time to rebuild. 2 IGR (2010) 3 The old age dependency ratio is the number of people aged 65 years or older to the number in the working age population (15–64 years). 4 These are Series B projections. Series A projections are 23.8 million and 28.1 million, respectively and Series C projections are 23.1 million and 25.6 million respectively. Australian Government (2010) projection of population in 2025 is 27.5 million. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 16 1.2Measures of education and training Individuals accumulate human capital through learning which can be formal or informal. While there are measures of formal learning, none exists for informal learning, which means informal learning cannot be included in a model to assess future demand for education and training. The outcomes of formal learning can be completed qualifications or skill sets, which includes certificates of attainment. Skill sets are defined as single units of competency or combinations of units of competency from a nationally endorsed Training Package, which link to a licence or regulatory requirement, or a defined industry need. Regular labour force surveys conducted by the Australian Bureau of Statistics (ABS) collect data only on qualifications and not on skill sets. This is because there is no agreed standard for skill sets for general use although skill sets are already being developed for use in some industries. Notwithstanding the limitations of qualifications as a complete measure of the human capital of an individual, they are nevertheless very important in the labour market for both employers and employees. The signalling theory suggests employers use qualifications to screen and match applicants to jobs. Qualifications can be particularly important for new entrants to the labour market (e.g. young people (15–24 years) and recent migrants) who may lack work experience and acceptable employer references. New entrants generally have a high job turnover and frequently use qualifications to indicate their human capital value to employers (Shah 2009). In this report, therefore, qualifications are used as a measure of education and training. Furthermore, only the highest qualification a person holds is considered even though many people hold multiple qualifications at the same or different levels. Once again, this is because data on multiple qualifications are seldom collected. In the transport industries many people hold occupational licences (e.g. drivers, pilots etc.) which are often not part of a qualification. This is an additional unmeasured demand for training in these industries. 1 | introduction Table 1.1 Population projections by age, Australia, 2013–17 (millions) Age group Year 15–19 20–24 25–34 35–44 45–54 55–64 Total 2012 1.488 1.595 3.194 3.175 3.069 2.621 15.141 2013 1.486 1.616 3.257 3.194 3.086 2.660 15.300 2014 1.487 1.632 3.319 3.208 3.110 2.709 15.465 2015 1.486 1.641 3.383 3.224 3.133 2.756 15.624 2016 1.490 1.642 3.438 3.234 3.168 2.810 15.782 2017 1.492 1.643 3.483 3.255 3.197 2.865 15.935 Change 2012–17 0.004 0.026 0.227 0.061 0.111 0.204 0.635 Change 2012–17 (%) 0.3 1.7 7.1 1.9 3.6 7.8 4.2 Source: ABS (2008) Series B. 1.3 Future supply of vocational qualifications The future supply of people with qualifications will largely be a function of the: ®® ®® number of people who will complete qualifications net migration of people with qualifications to Australia. The two main factors affecting the number of people completing qualifications in the future will be the size and age structure of the population and participation rate in education and training. NCVER (2012) shows the participation rate in VET among the population aged 15–64 years increased from 11.3 per cent to 12 per cent from 2007 to 2011. While the participation rates increased for all age cohorts, the highest increase was for the cohort aged 15–19 years. Part of the increase in the participation rate in 2011 can be attributed to the introduction of the entitlement model in Victoria. The reduction in the funding for VET in the 2012 Victorian budget will see participation rate moderate in coming years. Table 1.1 shows population projections for Australia by age from 2012 to 2017. Under a middle scenario (Series B) the ABS projects Australia’s population aged 15–64 years will increase by about 635,000 people from 2012 to 2017. The largest percentage increase will be in the size of the cohort aged 55–64 5 years followed by the cohort aged 25–34 years. Only a marginal increase is projected in the size of cohort aged 15–19 years. Even if participation rate were to return to the pre-2011 rate, the number of people participating in VET will continue to increase over the next five years because of the expected increase in the population across all age groups. However this will depend on further increases in public funding of the system. While current Australian Government policy is to increase, or at least maintain, the current level of funding, various state governments are keen to reduce funding to help balance their state budgets. The supply of qualifications is also affected by the willingness of employers to take on trainees and apprentices, which in turn depends on the state of the economy. The supply of people with VET qualifications can also be boosted with little additional cost by improving course completion rates which are relatively low compared to completion rates for undergraduate courses.5 Net overseas migration has the potential to increase the supply of people with VET qualifications. The number coming through this source depends on government policy on migrant intake and the proportion of the intake that hold VET qualifications. It also depends on whether the migrants’ qualifications are recognised in Australia. Foyster, Hon and Shah (2000) estimated course completions in TAFE institutes in Australia from 1994 to 1996 to be about 27 per cent. In a more recent study, Mark and Karmel (2010) also estimate course completion of about 27 per cent for students who commenced in 2005. Undergraduate course completions in higher education have been estimated to be at least 65 per cent (Shah and Burke 1999; Urban et al. 1999; Martin, Maclachlan and Karmel 2001). Data on completions of courses provided by private providers are generally available. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 18 1.4 The workforce covered by TLISC TLISC’s main role is skills and workforce development at the sub-professional level in the Transport and Logistics industries. As such it currently manages the development and upgrading of four industry training packages which are used to deliver vocational education training (VET). These packages are: ®® Transport and Logistics ®® Rail ®® Maritime ®® Aviation. The Transport and Logistics industries include a broader workforce than that covered by TLISC. This is because the sector employs many professional workers (e.g. accountants) whose training is outside TLISC’s responsibility. On the other hand, there are workers in other industries (e.g. drivers in the mining industry) whose skills development is the responsibility of TLISC. It is therefore more appropriate to define the TLISC workforce by occupations rather than by industry sectors. Of the 998 occupations listed in the Australian and New Zealand Standard Classification of Occupations (ANZSCO) at the six-digit level, it was found that 61 of them could be considered to be within TLISC’s coverage. They can be grouped as follows: ®® Logistics (15 occupations). ®® Road Transport (16 occupations) ®® Aviation (11 occupations) ®® Rail (12 occupations) ®® Maritime and Ports (7 occupations) Box 1.1Australian and New Zealand Standard Classification of Occupations (ANZSCO) ANZSCO is a skill-based classification of occupations providing a basis for standardised collection, analysis and dissemination of occupation data for Australia and New Zealand. It reflects the contemporary labour market in these two countries. Its scope is all occupations and jobs in the two countries’ labour markets undertaken for pay or profit, including jobs occupied by people working for themselves. ANZSCO is not designed to cover work not undertaken for pay or profit, for example voluntary work. However, this does not preclude ANZSCO from describing such activities. In Australia, ANZSCO replaces the Australian Standard Classification of Occupations (ASCO) Second Edition. The ANZSCO classification has five hierarchical levels: ®® 8 major groups (1-digit) ®® 43 sub-major groups (2-digit) ®® 97 minor groups (3-digit) ®® 358 unit groups (4-digit) ®® 998 occupations (6-digit). The 998 occupations at the 6-digit level are clustered into 358 unit groups. The occupations in each cluster have similar features. Similarly, the 358 unit groups are clustered into 97 minor groups, etc. The conceptual model of the classification uses skill level and skill specialisation to define the groups. Five skill levels are used in the classification. The occupations are distinguished by the tasks performed in occupations. All occupations are at one skill level. 1 | introduction 61 occupations of the Australian and New Zealand Stand ard Classification of Occupation (A NZSCO) at the six-digit level could be cons idered to be within TL ISC’s coverage. Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 20 This chapter describes the profile of the Transport and Logistics workforce in Australia and how it has changed over the last decade. The chapter includes descriptions of the distributions of age, gender, qualifications and hours of workers in these industries as well as descriptions of the regional distribution of employment. These historical trends in employment are useful in providing a context for the analysis of the projections of demand for skilled labour in these industries. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 2 Employment trends 2002–12 The chapter uses ABS data collected through the Labour Force and Education and Work surveys to provide the descriptions. While data at greater detail from Education and Work surveys were publicly available in the past, this is no longer the case since the end of 2011. The ABS changed its policy on the release of these data citing concerns about issues of confidentiality. In the flowing sections all analyses, except that about qualifications which use data from the Education and Work surveys from 2001 to 2011, are based on data from the Labour Force surveys from 2002 to 2012. The Education and Work data for 2012 are not released until the end of 2012. In this report all measures of the workforce are in terms of persons rather than full-time equivalent (FTE). This is because training needs can only be measured in terms of the number of people to be trained. As discussed in chapter 1, the scope of this report is defined in terms of occupations rather than industry sectors. Altogether 61 occupations as defined at the six-digit level in ANZSCO are included in the analysis below. These occupations are grouped into five sectors: ®® Logistics ®® Road Transport ®® Aviation ®® Rail ®® Maritime and Ports A small number of small occupations in some sectors could not be separately identified in the ABS data. Examples of such occupations are Harbour Master and Airport Manager. The number of people employed in these occupations is however likely to be very small. Tables 2.1 to 2.5 show the occupations included in the five sectors and their associated skill level. ABS (2006) defines skill level as a function of the range and complexity of the set of tasks performed in a particular occupation. The skill level of an occupation increases6 with the range and complexity of the set of tasks required. It is measured operationally by: ®® ®® ®® the level or amount of formal education and training the amount of previous experience in a related occupation, and the amount of on-the-job training required to competently perform the set of tasks required for that occupation. While most occupations in the Maritime and Ports require the highest skill level, occupations in the Road Transport generally require lower level skills. 6 For some reason the skill level has a reverse order to one that is logically expected with the one as the highest skill level and five as the lowest level. 2 | Employment trends 2002–12 Table 2.1 Occupations in the Logistics sector and their skill level Occupation Skill level Supply and Distribution Manager 1 Post Office Manager 2 Fleet Manager 2 Transport Company Manager 2 Postal Sorting Officer 5 Stock Clerk 4 Warehouse Administrator 4 Radio Despatcher 4 Despatching and Receiving Clerk 4 Import-Export Clerk 4 Crane, Hoist or Lift Operator 4 Forklift Driver 4 Storeperson 4 Crane Chaser 5 Freight Handler (Rail or Road) 5 Table 2.2 Occupations in the Road Transport sector and their skill level Occupation Skill level Armoured Car Escort 5 Driving Instructor 3 Courier 5 Postal Delivery Officer 5 Chauffeur 4 Taxi Driver 4 Automobile Drivers nec 4 Bus Driver 4 Charter and Tour Bus Driver 4 Passenger Coach Driver 4 Delivery Driver 4 Truck Driver (General) 4 Furniture Removalist 4 Tanker Driver 4 Tow Truck Driver 4 Truck Driver's Offsider 5 Table 2.3 Occupations in the Aviation sector and their skill level Occupation Skill level Aeroplane Pilot 1 Air Traffic Controller 1 Flying Instructor 1 Helicopter Pilot 1 Air Transport Professionals nec 1 Aircraft Maintenance Engineer (Avionics) 3 Aircraft Maintenance Engineer (Mechanical) 3 Aircraft Maintenance Engineer (Structures) 3 Flight Attendant 3 Aircraft Baggage Handler and Airline Ground Crew 4 Aircraft Refueller 4 Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 24 Table 2.4 Occupations in the Rail sector and their skill level Occupation Skill level Railway Station Manager 2 Travel Attendants nec 3 Train Examiner 4 Transport Operations Inspector 4 Transport Conductor 5 Railway Signal Operator 4 Train Controller 4 Railway Track Plant Operator 4 Train Driver 4 Tram Driver 4 Railway Track Worker 4 Railways Assistant 5 Table 2.5 Occupations in the Maritime and Ports sector and their skill level Occupation Skill level Ship's Engineer 1 Ship's Master 1 Ship's Officer 1 Ship's Surveyor 1 Marine Transport Professionals nec 1 Waterside Worker 5 Deck Hand 4 2.1 Employment trends—all sectors Despite the Global Financial Crisis (GFC) employment in Australia has grown each year over the past decade, averaging a two per cent per year growth rate. A big factor for the buoyant economy has been the surge in demand for Australian resources by China, Japan, Korea and India. Australia’s growing population, because of an increase in the fertility rate and high levels of immigration, is also a factor pushing up employment growth. Another factor that has affected employment growth has been increasing participation in the labour force. The participation increased from 63.3 per cent in 20027 to 65.4 per cent in 2012. While the male participation rate barely changed, increasing by 0.1 percentage point to 72 per cent over this period, the female participation rate increased by 3.9 percentage points to 58.9 per cent (ABS 2012b). The participation rate for people aged 55–64 years has also increased over the same period (Plumb, Baker and Spence 2010; ABS 2009). 2.1.1 Employment trends by industry Table 2.6 shows employment by ANZIC defined industry sectors in Australia in 2002, 2007 and 2012. The sector of most interest for TLISC is Transport, Postal and Warehousing. As discussed earlier, there is some overlap of the employment in this sector 7 and employment in the occupations for which TLISC has primary training and workforce development responsibility. Employment in Australia reached 11.4 million persons in 2012. Since 2002 it has increased by a quarter, or 2.3 per cent per year (Table 2.6). While employment declined about 25 per cent in Agriculture, Forestry and Fishing, it increased by 207 per cent in Mining, albeit from a low base. Total employment in Transport, Postal and Warehousing, which constitutes the Transport and Logistics industries, was 566,000 persons in 2012. It has increased by 2.2 per cent per year since 2002, which is slightly below the average rate for all industries. About 165,000 businesses operated in the sector in 2001-12 (Transport and Logistics Skills Council 2012). Road Transport is the largest sector in Transport and Logistics with 40 per cent of employment in 2012. The smallest sector is Water Transport with 11,000 workers. Employment growth across different sectors varied from 9.2 per cent in Warehousing and Storage Services to 0.5 per cent in Road Transport. Strong growth in employment is recorded in Rail Transport, Transport Support Services and Warehousing and Storage. The high growth in Rail Transport can mostly be linked to expansion in infrastructure to service the expanding mining industry. This expansion seems to have occurred after 2007. The year 2002 refers to the financial year ending June 2002. Unless otherwise stated, this is the convention adopted in the rest of this report. 2 | Employment trends 2002–12 Table 2.6 Employment by industry, persons, 2002, 2007 and 2012 (‘000s) Industry sector 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 Agriculture, Forestry & Fishing 438 349 335 -23.5 -2.5 Mining 81 135 248 207.0 12.1 Manufacturing 1,043 1,017 956 -8.3 -0.8 Electricity, Gas, Water & Waste Services 83 105 153 84.5 6.5 Construction 694 936 1,023 47.4 4.0 Wholesale Trade 367 403 412 12.4 1.2 Retail Trade 1,046 1,177 1,217 16.3 1.6 Accommodation & Food Services 641 689 766 19.5 1.8 Transport, Postal & Warehousing1 459 516 566 23.5 2.2 Road Transport 220 233 228 3.6 0.5 Rail Transport 26 28 45 74.9 6.9 Water Transport 11 11 11 2.4 3.1 Air & Space Transport 50 48 54 8.8 1.3 Postal & Courier Pick-up & Delivery Services 80 83 87 9.0 1.1 Transport Support Services 38 46 61 60.0 5.5 Warehousing & Storage Services 24 49 53 121.9 9.2 Information Media & Telecommunications 215 247 217 1.1 0.2 Financial & Insurance Services 347 399 428 23.5 2.2 Rental, Hiring & Real Estate Services 153 199 208 36.0 3.3 Professional, Scientific & Technical Services 594 738 890 49.8 4.1 Administrative & Support Services 326 354 401 23.2 2.2 Public Administration & Safety 528 636 730 38.2 3.3 Education & Training 665 747 869 30.7 2.8 Health Care & Social Assistance 899 1061 1,345 49.7 4.1 Arts & Recreation Services 145 180 210 44.4 3.8 Other Services 422 417 458 8.5 0.9 All industries 9,144 10,305 11,432 25.0 2.3 Source: Australian Bureau of Statistics (ABS) (2012b). Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. The total includes two sectors, Other Transport and Transport and Postal & Warehousing (not fully defined), which are not included in the table because they are relatively small but the employment in these sectors is included in the total. 1 2 The calculation of the average annual growth rate use annual data from 2002 to 2012. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 26 2.1.2 Employment trends by occupation Table 2.7 shows employment generally grew strongly in high-skill occupations such as Managers and Professionals. The highest growth rate however was in Community and Personal Services which includes carers, hospitality workers and protective service workers. 2.1.3 Employment trends by qualification Data on qualifications are from the Education and Work surveys. They relate to the employed population aged 15–64 years from 2001 to 2011 and are about the highest level qualification each person holds. The qualifications profile of the Australian workforce has been changing with a trend toward more people holding qualifications and at higher levels. In 2001, 54.2 per 2 | Employment trends 2002–12 cent of the working population held qualifications and 52.6 per cent of these qualifications were at a diploma or higher level. By 2011, 62.7 per cent held qualifications and 59.6 per cent of the qualifications were at the higher levels. ®® ®® The number of people with qualifications in the workforce has been increasing at a much higher rate than overall employment—3.7 per cent compared to 2.2 per cent per year. In particular, the number of people holding Diploma or Certificate IV increased by about 10 per cent per year. On the other hand, the number holding certificate I level qualification declined by 9 per cent per year. These trends indicate substantial skills deepening in the workforce (Shah (2010). ®® ®® A number of factors could be the cause of skills deepening. They include: Table 2.7 An overall rise in the level of skill and qualification requirements within occupations due to technological and organisational changes. The significant returns to training in the labour market for those who invest in education, as well as reforms to education systems broadening access. The availability of more people with higher level qualifications make it possible for industry to use more skill-intensive technologies which further foster the demand for skills. The relatively higher demand for people with qualifications than the total number required can also be seen as reducing the degree to which there are skill gaps within occupations—the employment of people who are inadequately qualified for the jobs they hold. Employment by occupation, persons, 2002, 2007 and 2012 (‘000s) Occupation group Managers 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 1,159 1,318 1,484 28.1 2.5 Professionals 1,763 2,068 2,493 41.4 3.5 Technicians & Trades 1,365 1,571 1,675 22.7 2.1 Community & Personal Services 756 902 1,095 44.8 3.8 Clerical & Administrative Services 1,480 1,603 1,702 14.9 1.4 Sales 939 996 1,058 12.7 1.3 Machinery Operators & Drivers 629 695 767 22.0 2.1 Labourers 1,052 1,153 1,158 10.1 1.0 All occupations 9,144 10,305 11,432 25.0 2.3 Source: Unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate is based on annual data from 2002 to 2012. Table 2.8 Employment by qualification, persons, Australia, 2001, 2006 and 2011 (‘000s) Level of qualification 2001 2006 2011 Growth 2001-11 (%) Average Total annual rate2 With qualifications 4839 5797 6946 43.5 3.7 Postgraduate 506 638 861 70.1 5.5 Bachelor 1,343 1,716 2,142 59.5 4.8 Advanced diploma 440 502 506 14.9 1.6 Diploma 254 398 634 149.2 9.7 Certificate IV 224 304 550 145.0 9.6 Certificate III 1,394 1,616 1,812 30.0 2.7 Certificate II 389 431 351 -9.9 -0.8 Certificate I 289 192 91 -68.6 -9.0 Without qualification 4,088 4,050 4,136 1.2 0.1 All occupations 8,927 9,847 11,081 24.1 2.2 Source: Unpublished ABS Education and Work (Cat. no. 6227.0) quarterly data. Scope: persons aged 15–64 years. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate use annual data from 2001 to 2011. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 28 800,000 workers employed in the five TLISC sectors in 2012. 2.2Employment trends—Transport and Logistics industries The number of people for whom TLISC is responsible in terms of their skills and workforce development increased at a faster rate than the rest of the workforce—2.5 per cent compared to 2.2 per cent per year (Table 2.9). The calculation of each rate of growth is based on 44 observations—quarterly data from 2002 to 2012. In 2012, employment in the five TLISC sectors was just less than 800,000 having increased by 28 per cent since 2002.8 The workforce covered by TLISC is larger than that represented in the Transport, Postal and Warehousing industry sector (Table 2.6). The two workforces are strictly not comparable though. For instance, the Rail industry grew at 6.9 per cent per year (Table 2.6), but the Rail sector as defined in this chapter grew at only 2.8 per cent year, which is still above average. The five sectors vary in size. Logistics and Road Transport are by far the two biggest sectors, each employing about 350,000 people in 2012. Employment in the Logistics sector increased 3.5 per cent per year, the highest growth rate for any sector. This is hardly surprising given Australia’s heavy reliance on road transport due to its low population density in most regions apart from those on the eastern seaboard. 8 For a very long time there has also been underinvestment in rail. All other sectors are relatively small with only 16,000 people employed in the Maritime and Ports sector in 2012. Employment in Aviation seems to have increased only since 2007, partly because of the growth in outbound tourism and fly-in fly-out type of work in the resources sector. The Australian dollar has been rising against all major currencies since 2006, apart from a brief period during the global financial crisis, and this has positively affected outbound tourism. The resources boom together with higher population growth has meant Australia’s employment distribution has shifted from New South Wales and South Australia to Western Australia and Queensland (Tables 2.10 and 2.11). A similar shift in employment is also evident in the Transport and Logistics industries, with New South Wales’ share decreasing by three percentage points and Western Australia’s share increasing by 2.2 percentage points. The growth in the resources sector in Western Australia is a significant contributor to the increased demand. For example, the use of fly-in fly-out employment contracts in many mining projects has resulted in an increase in employment in the Aviation sector. Aplebaum Consulting Group Pty (2008) estimated the size of the workforce in the transport and logistics industries in 2006 to be about 1.2 million. The report however uses a wider definition of who is included in these industries. It includes all people whose job involves ‘wholly or in part any transport and logistics activities’. For instance, under this definition, all farmers are included in the total presumably because they mostly all drive some motorised vehicle. Similarly travel agency managers, ambulance officers and intensive care ambulance paramedics are also included in the total. 2 | Employment trends 2002–12 Table 2.9 Employment in Transport and Logistics industries by TLISC sector, persons, 2002, 2007 and 2012 (‘000s) Sector 2002 2007 Growth 2002-12 (%) Average Total annual rate2 2012 TLISC sectors 623 722 797 28.0 2.5 Logistics 251 322 351 40.2 3.5 Road Transport 291 318 351 20.4 1.9 Aviation 44 42 50 14.3 1.5 Rail 22 25 29 31.8 2.8 15 15 16 5.9 0.7 Non-TLISC sectors Maritime & Ports 8,521 9,583 10,635 24.8 2.2 All sectors 9,144 10,305 11,432 25.0 2.3 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate use annual data from 2002 to 2012. Table 2.10 Regional distribution of employment in Transport and Logistics industries by sector, Australia, 2002 (%) State/Territory Logistics Road Aviation Rail Maritime & Ports TLISC sectors Non-TLISC sectors All NSW 32.8 34.3 31.4 34.1 31.2 33.4 33.4 33.4 Victoria 25.6 23.3 19.0 21.4 17.3 23.7 25.1 25.0 Queensland 19.2 20.2 24.7 20.8 25.9 20.3 18.7 18.8 South Australia 8.0 7.2 7.4 7.1 8.0 7.6 7.5 7.5 Western Australia 10.5 10.3 12.2 11.2 11.3 10.5 10.2 10.2 Tasmania 1.8 2.3 2.4 2.4 2.1 2.1 2.2 2.2 Northern Territory 0.9 0.9 2.2 1.5 3.3 1.1 1.1 1.1 ACT 1.1 1.5 0.7 1.5 0.9 1.3 1.9 1.9 Australia 100 100 100 100 100 100 100 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. Table 2.11 Regional distribution of employment in Transport and Logistics industries by sector, Australia, 2012 (%) State/Territory Logistics Road Aviation Rail Maritime & Ports TLISC sectors Non-TLISC sectors All NSW 30.1 31.0 28.6 31.6 28.4 30.4 31.5 31.4 Victoria 26.8 22.5 21.4 21.7 20.6 24.3 25.1 25.1 Queensland 20.4 22.7 24.3 21.3 25.6 21.8 20.3 20.4 South Australia 6.6 6.9 5.8 7.2 6.3 6.7 7.2 7.2 Western Australia 12.2 12.8 14.9 14.1 13.1 12.7 10.9 11.0 Tasmania 2.1 2.0 2.1 1.8 2.4 2.0 2.1 2.1 Northern Territory 1.0 1.1 2.3 1.2 3.1 1.1 1.1 1.1 ACT 0.8 1.0 0.5 1.2 0.5 0.9 1.9 1.8 Australia 100 100 100 100 100 100 100 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 30 Table 2.12 Employment in Logistics and Warehousing sector by occupation, persons, 2002, 2007 and 2012 (‘000s) Occupation 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 Storeperson 72 111 119 65.6 5.5 Forklift Driver 52 57 66 27.3 2.5 Supply and Distribution Manager 20 26 30 47.8 4.1 Despatching and Receiving Clerk 21 24 27 28.7 2.8 Stock Clerk 17 20 22 28.6 2.8 Warehouse Administrator 15 17 19 28.7 2.8 Transport Company Manager 11 16 18 55.7 4.7 Crane, Hoist or Lift Operator 10 11 13 28.2 2.7 Postal Sorting Officer 9 11 10 9.4 1.1 Freight Handler (Rail or Road) 8 12 8 4.1 1.0 Import-Export Clerk 6 7 8 28.6 2.8 Post Office Manager 4 4 4 4.5 0.6 Radio Despatcher 3 3 3 31.9 2.9 Fleet Manager 2 2 3 55.3 4.7 Crane Chaser 1 1 1 44.4 4.0 All 251 322 351 40.2 3.5 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate is based on annual data from 2002 to 2012. 2.2.1Employment trends—Logistics and Warehousing sector Occupations that comprise the Logistics sector vary in the number of people employed in them. Table 2.12 shows the changes in the number of people employed in each of these occupations. The occupations are ordered according to the level of employment in 2012. About a third of all people employed in the Logistics sector in 2012 were as Storepersons which is by far the largest occupation in the sector. It is also the fastest growing occupation with an annual growth rate of 5.5 per cent. Forklift Driver is second largest occupation and employed 66,000 people in 2012, an increase of 14,000 since 2002. All other occupations in the sector are relatively small, each employing fewer than 30,000 people in 2012. Most managerial jobs in the sector have increased quite rapidly. The number of Supply and Distribution Managers, Transport Company Managers and Fleet Managers employed almost doubled between 2002 and 2012. On the other hand, employment of Postal Sorting Officers and Post Office Managers seem to have stagnated. The demand for these jobs is probably being affected by the introduction of new sorting technology for mail as well as by the trend towards electronic mail. This is despite the rapid growth of parcel transport as a result of online shopping. The following subsections describe the gender, age and qualification distributions in the occupations that comprise the Logistics sector. As the above table shows, many occupations in the sector are relatively small. In the following analyses these occupations have been grouped with others. Gender distribution The overwhelming majority of people working in the Transport and Logistics industries are male—86 per cent in 2012 (Table 2.13). This proportion has only slightly reduced since 2002. Slightly more than half of the rest of the Australian workforce is male—52 per cent in 2012 compared to 53 per cent in 2002. In 2012, 81 per cent of workers in the Logistics sector were male, which is a little less than in Transport and Logistics industries as a whole. The gender balance however varies with occupation. For instance, almost all Forklift Drivers are male but women make up as much as 41 per cent of all Stock Clerks in 2012. A quarter of all Supply and Distribution Managers are also female. 2 | Employment trends 2002–12 Age distribution The main difference between the age distribution of people employed in the Transport and Logistics industries in 2012 and that of others in the workforce is in the tails (Table 2.14). The Transport and Logistics industries have relatively fewer young (15–24 yearolds) people and relatively more old (55 years or older) people than in the rest of the workforce. per cent of the workforce is 60 years or older and will be approaching retirement over the next five years. People working in the Logistics and Warehousing sector are relatively younger though, mainly because the largest occupation in the sector, Storeperson, employs large numbers of young people. In 2012, more than one in every five Storeperson was aged 15–24 years but in 2002 nearly two out of every five were of this age. More than half of all Supply and Distribution Managers are aged 44 years or younger, which is surprising as one generally expects managers to be older. The Transport and Logistics industries’ workforce has aged over the last decade, for instance, the proportion of the workforce aged 55 years or older increased from 13 per cent in 2002 to 22 per cent in 2012. About 12 Table 2.13 Gender distribution of employment in Logistics and Warehousing sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 Logistics sector 2012 Male Female All Male Female All 80 20 100 81 19 100 Storeperson 81 19 100 83 17 100 Forklift Driver 97 3 100 96 4 100 Stock Clerk1 63 37 100 59 41 100 Supply & Distribution Manager2 74 26 100 75 25 100 Fleet Manager3 75 25 100 89 11 100 97 3 100 99 1 100 87 13 100 86 14 100 Miscellaneous Workers 4 All TLISC sectors Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). Table 2.14 Age distribution of employment in Logistics and Warehousing sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 15-24 2012 25-44 45-54 55-59 60+ All 15-24 25-44 45-54 55-59 60+ All Logistics sector 19 52 19 7 4 100 14 47 22 9 8 100 Storeperson 38 44 13 3 2 100 22 44 20 8 6 100 Forklift Driver 12 62 16 7 3 100 13 51 22 8 6 100 Stock Clerk1 12 53 23 8 4 100 11 48 21 10 9 100 7 52 28 8 5 100 6 50 26 11 8 100 1 45 34 13 6 100 1 37 33 17 13 100 Supply & Distribution Manager Fleet Manager3 Miscellaneous Workers 4 All TLISC sectors 2 15 56 18 7 4 100 13 51 21 7 8 100 12 51 23 8 5 100 11 43 24 10 12 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 32 Qualification distribution The Transport and Logistics workforce has also been affected by the trends in qualifications in the general population. As Table 2.15 shows, the proportion of its workforce with qualifications increased from 34 per cent in 2001 to 45 per cent in 2011, and the proportion with diploma or higher level qualifications increased by 8 percentage points. While the improvement in the qualifications profile in the Logistics sector is slightly above average than in other TLISC sectors, there is considerable variation in the improvement across occupations. In some occupations, for instance Stock Clerk, Supply and Distribution Manager and Fleet Manager, less than 40 per cent held qualifications in 2001 but in 2011 this proportion had increased to between 53 and 65 per cent. The smallest improvement in qualifications has been among Forklift Drivers. Hours worked The ABS Labour Force survey collects data on the actual hours a person worked in the reference week of the survey. The actual hours worked can be different to the usual hours a person works in a week. For instance, if a person is sick or on annual leave during the reference week then there will be a difference between the two measures of hours worked. A person’s full-time/part-time status is generally based on the usual hours worked in a week. The following analysis is based 9 on actual hours worked and 1–34 hours is proxy for part-time work and 35 hours or more for full-time work. The estimates do not include those who report having worked zero hours. People reporting zero hours are usually on some kind of leave during the reference week and, on average, represent between 5 and 6 per cent of the total number of employed people. The proportion of the Australian workforce who reported working more than 34 hours per week remained largely constant at about 64 per cent from 2002 to 2012, but the proportion working 50 hours or more declined by 3 percentage points to 17 per cent.9 The percentage of the TLISC workforce working more than 34 hours per week is however much higher (Table 2.16). It increased from 74 per cent in 2002 to 76 per cent in 2012. The change generally reflects the change in the rest of the workforce. In the Logistics sector, the pattern of hours worked also changed between 2002 and 2012. The proportion of workers who reported working less than 34 hours per week declined from 29 per cent in 2002 to 22 per cent in 2012 and the proportion working 35–49 hours per week increased correspondingly. The occupation which experienced the largest change in hours worked is that of Storeperson, with the proportion working less than 34 hours declining by 18 percentage points to 29 per cent in 2012. Relatively more people report working long hours in managerial occupations than in other occupations. Using the ABS definition of part-time work, the percentage working part-time in 2012 was 29.6 per cent (ABS 2012c). 2 | Employment trends 2002–12 Table 2.15 Qualification distribution of employment in Logistics and Warehousing sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) Occupation 2001 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2011 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Logistics sector 5 4 14 7 69 100 11 8 20 5 55 100 Storeperson 4 3 12 3 79 100 9 8 14 4 64 100 Forklift Driver 2 4 16 8 71 100 2 2 22 7 68 100 Stock Clerk1 6 5 14 11 62 100 15 12 22 4 47 100 Supply & Distribution Manager2 12 6 12 9 61 100 20 12 27 3 38 100 Fleet Manager 8 5 22 3 62 100 20 15 26 4 35 100 Miscellaneous Workers4 1 1 20 3 75 100 5 4 23 5 63 100 All TLISC sectors 5 4 20 6 66 100 9 8 23 5 55 100 3 Source: CEET estimates based on unpublished ABS Education and Work (Cat. no. 6227.0) data and customised tables from the ABS 2006 Census. Scope: persons aged 15–64 years. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). Table 2.16 Distribution of hours worked per week in Logistics and Warehousing sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 1-15 16-34 35-49 50+ All 1-15 16-34 35-49 50+ All Logistics sector 9 20 53 18 100 4 18 60 18 100 Storeperson 21 26 47 6 100 7 22 63 9 100 100 Forklift Driver 3 16 66 15 100 2 16 69 12 Stock Clerk1 5 20 60 15 100 4 20 61 15 100 Supply & Distribution Manager2 2 13 48 37 100 1 12 56 31 100 Fleet Manager3 2 15 37 46 100 3 12 33 52 100 Miscellaneous Workers4 7 20 47 25 100 8 12 47 33 100 All TLISC sectors 7 19 47 27 100 6 19 51 25 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older who reported greater than zero actual hours of work in the reference week. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). 76% orce of TLISC workf n 34 working more tha in 2012. ek we r pe s ur ho Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 34 2.2.2Employment trends—Road Transport sector Truck Driver is the largest occupation in the Road Transport sector (Table 2.17). In 2012, the occupation employed 167,000 persons, which is nearly half the employment in the sector. However the growth rate in employment of Truck Drivers is lower than the average for the sector. Courier and Bus Driver. All other occupations each employed fewer than 20,000 people in 2012. Employment of Delivery Drivers has increased at 3.4 per cent per year. Such a high growth could be associated with the rapid growth in internet shopping over the same period. The rapid increase in Driver Instructor numbers is probably associated with population growth, but may be mainly because of higher migration. Other occupations in the sector that employ relatively large number of people are Delivery Driver, Taxi Driver, Table 2.17 Employment in Road Transport sector by occupation, persons, 2002, 2007 and 2012 (‘000s) Occupation Truck Driver (General) 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 142 152 167 17.5 1.7 Delivery Driver 36 41 47 32.4 3.4 Taxi Driver 27 28 34 26.4 2.5 Courier 22 24 28 26.4 2.5 Bus Driver 24 27 26 9.4 1.1 Postal Delivery Officer 14 16 15 9.4 1.1 Charter and Tour Bus Driver 7 7 9 26.4 2.4 Furniture Removalist 6 6 7 17.5 1.7 Driving Instructor 3 4 5 39.8 3.5 Chauffeur 3 3 3 17.2 1.7 Tanker Driver 2 2 3 26.4 2.4 Passenger Coach Driver 2 2 2 26.4 2.5 Tow Truck Driver 2 2 2 17.3 1.7 Automobile Drivers nec 1 1 2 26.5 2.5 Truck Driver's Offsider 1 2 1 4.1 1.0 Armoured Car Escort 1 1 1 20.0 2.0 All 291 318 351 20.4 1.9 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate is based on annual data from 2002 to 2012. Table 2.18 Gender distribution of employment in Road Transport sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 Male Female All Male Female All Road Transport sector 94 6 100 93 7 100 Truck Driver (General)1 99 1 100 97 3 100 Delivery Driver2 86 14 100 86 14 100 Taxi Driver 3 94 6 100 95 5 100 Bus Driver4 91 9 100 86 14 100 Miscellaneous Workers5 83 17 100 94 6 100 All TLISC sectors 87 13 100 86 14 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. 2 | Employment trends 2002–12 Table 2.19 Age distribution of employment in Road Transport sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 15-24 25-44 45-54 55-59 60+ All 15-24 25-44 45-54 55-59 60+ All Road Transport sector 8 48 27 10 7 100 7 37 27 11 17 100 Truck Driver (General)1 6 53 26 9 6 100 5 42 30 10 14 100 Delivery Driver 15 47 23 10 5 100 12 35 26 12 14 100 3 41 31 16 10 100 7 38 20 10 25 100 1 31 41 14 13 100 2 22 26 17 33 100 2 Taxi Driver3 Bus Driver4 Miscellaneous Workers 5 All TLISC sectors 13 50 23 9 6 100 6 35 31 15 14 100 12 51 23 8 5 100 11 43 24 10 12 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. Gender distribution An overwhelming number of workers in the Road Transport sector are male (Table 2.18). In only two occupations—Delivery Driver and Bus Driver— are there more than 10 per cent female workers. Age distribution The workforce in the Road Transport sector is relatively older than the workforce in the Transport and Logistics industries as a whole (Table 2.19). The proportion of workers aged 60 years or older in the sector increased from 7 per cent in 2002 to 17 per cent in 2012. Within the sector, the age profiles of individual occupations vary. Delivery Driver has the youngest age profile of any occupation. In contrast, Taxi Driver and Bus Driver occupations have the oldest age profile with a high percentage of workers aged 60 years or older. 36 Qualification distribution In the Road Transport sector, only 40 per cent of workers held qualifications in 2011 but this is 9 percentage points higher than in 2001 (Table 2.20). All drivers of road vehicles have to be licenced however and in this sense they are qualified. It just happens that holding any driving licence does entitle a person to a qualification recognised in the Australian Qualifications Framework. driving taxis has provided jobs for many international students while studying in Australia. Some of them have continued driving taxis after graduation because they have been unable to obtain a job in the field related to their qualification. The high proportion of Taxi Drivers holding diploma or higher level qualifications is indicative of this trend. While the qualifications profile of Truck Drivers remained largely unchanged from 2001 to 2011, the profile of other occupations improved. For instance, the proportion of Taxi Drivers holding qualifications increased from 27 per cent to 54 per cent over this period. It is well known that An increasing proportion of Bus Drivers also hold higher level qualifications. Combined with the fact that half of all Bus Drivers in 2012 were 55 years or older, it is possible some Bus Drivers are retrenched workers from other industries that have undergone restructuring. Table 2.20 Qualification distribution of employment in Road Transport sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) Occupation 2001 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2011 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Road Transport sector 3 2 22 5 69 100 7 6 22 5 60 100 Truck Driver (General)1 1 1 24 5 70 100 1 2 22 4 71 100 Delivery Driver 5 1 22 4 68 100 10 10 21 6 53 100 Taxi Driver3 5 5 12 6 73 100 15 9 25 4 46 100 Bus Driver4 4 1 23 8 63 100 15 9 25 4 46 100 2 Miscellaneous Workers 5 All TLISC sectors 5 3 20 6 66 100 9 11 21 4 55 100 5 4 20 6 66 100 9 8 23 5 55 100 Source: CEET estimates based on unpublished ABS Education and Work (Cat. no. 6227.0) data and customised tables from the ABS 2006 Census. Scope: persons aged 15–64 years. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. Table 2.21 Distribution of hours worked per week in Road Transport sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 1-15 16-34 35-49 50+ All 1-15 16-34 35-49 50+ All Road Transport sector 7 17 42 34 100 7 19 42 32 100 Truck Driver (General)1 3 12 44 41 100 3 13 41 43 100 Delivery Driver 11 21 43 25 100 12 25 43 20 100 Taxi Driver3 9 21 29 40 100 7 25 40 27 100 Bus Driver 100 2 10 26 47 18 100 14 27 45 13 Miscellaneous Workers5 9 19 43 29 100 8 28 36 28 100 All TLISC sectors 7 19 47 27 100 6 19 51 25 100 4 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older who reported greater than zero actual hours of work in the reference week. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. 2 | Employment trends 2002–12 Hours worked While the proportion of workers who reported working more than 34 hours per week is about the same in the Road sector as in the TLISC workforce as a whole, a much higher proportion work 50 hours or more per week (Table 2.21). In 2012 almost a third of the workforce in the sector worked 50 hours or more. In particular, 43 per cent of Truck Drivers reported working these hours. A high proportion of Taxi Drivers also reported working long hours in 2002 but the percentage had declined significantly by 2012. 40% of workers held qualifications in the Road Transport sect or in 2011. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 38 Table 2.22 Employment in Aviation sector by occupation, persons, 2002, 2007 and 2012 (‘000s) Occupation 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 Flight Attendant 7 8 10 39.6 3.5 Aeroplane Pilot 8 8 9 15.3 1.5 Aircraft Baggage Handler and Airline Ground Crew 9 7 8 -4.5 0.0 Aircraft Maintenance Engineer (Avionics) 6 7 8 27.4 2.5 Aircraft Maintenance Engineer (Mechanical) 6 6 7 15.4 1.5 Air Traffic Controller 2 2 2 15.0 1.5 Air Transport Professionals nec 2 1 2 -4.5 0.0 Aircraft Maintenance Engineer (Structures) 2 1 2 -4.3 0.0 Helicopter Pilot 1 1 1 -4.6 0.0 Flying Instructor 1 1 1 -3.9 0.1 Aircraft Refueller 1 1 1 16.9 1.6 All 44 42 50 14.3 1.5 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate is based on annual data from 2002 to 2012. 2.2.3Employment trends—Aviation sector The Aviation sector is small with thin distribution of employment across occupations (Table 2.22). The largest two occupations are those of Flight Attendant and Aeroplane Pilot, each employing about 10,000 people in 2012. The changing age profile of Flight Attendants suggests ageism in the occupation may be on the wane—14 per cent are aged 55 years or older in 2012 compared to just 3 per cent in 2002. Despite some jobs for cabin crew going overseas, the trend data indicate the demand for Flight Attendants has grown at above average rate over the last decade. Pressure from the off-shoring of jobs and the introduction of new generation aircraft requiring less maintenance has meant jobs in some types of maintenance work not increasing as much and only modestly in others. The structural changes occurring in aircraft maintenance work in Australia may be affecting the age profile of Aircraft Maintenance Engineers but this needs verification with additional data. Jobs for Aircraft Baggage Handlers and Airline Ground Crew have stagnated partly as a result of the introduction of self and online check-in and automation of baggage handling. Gender distribution The gender distribution in the Aviation sector is slightly less skewed than in the other sectors (Table 2.23). It is however only one occupation—Flight Attendant— which has relatively large number of female workers. Qualifications distribution The qualifications profile of workers in the Aviation sector also improved from 2001 to 2011 (Table 2.25). The improvement is however relatively less compared to some other sectors because the workforce was already highly qualified in 2001 with 69 per cent holding qualifications. Age distribution The most improvement is in the qualifications profile of Flight Attendants. In 2011, 71 per cent held qualifications compared to 53 per cent in 2001. Furthermore, the proportion with diploma or higher level qualifications increased 22 percentage points over the same period. The Aviation sector has a relatively younger workforce (Table 2.24). Only 12 per cent of workers in the sector were aged 55 years or older in 2012 compared to 22 per cent in the Transport and Logistics industries as a whole. The increase in the proportion of Aircraft Maintenance Engineers holding either certificate I/II or holding no qualifications could be due to a recent increase in the recruitment entry level apprentices. 2 | Employment trends 2002–12 Table 2.23 Gender distribution of employment Aviation sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 Male Female All Male Female All Aviation Transport sector 81 19 100 80 20 100 Aeroplane Pilot1 91 9 100 93 8 100 Flight Attendant 32 68 100 31 69 100 Air Traffic Controller 91 9 100 92 8 100 97 3 100 97 3 100 Aircraft Maintenance Engineer2 Miscellaneous Workers 3 All TLISC sectors 96 3 100 90 10 100 87 13 100 86 14 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. Table 2.24 Age distribution of employment in Aviation sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 Aviation Transport sector Aeroplane Pilot 2012 15-24 25-44 45-54 55-59 60+ All 15-24 25-44 45-54 55-59 60+ All 10 62 20 6 3 100 11 54 22 5 7 100 1 6 59 25 7 4 100 7 64 20 3 6 100 Flight Attendant 9 73 15 3 0 100 13 52 21 11 3 100 Air Traffic Controller 5 59 24 7 3 100 7 64 20 3 6 100 Aircraft Maintenance Engineer2 12 60 19 5 4 100 12 50 20 3 14 100 Miscellaneous Workers 3 All TLISC sectors 12 54 21 8 5 100 16 45 29 6 4 100 12 51 23 8 5 100 11 43 24 10 12 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. Table 2.25 Qualification distribution of employment in Aviation sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) Occupation 2001 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2011 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Aviation Transport sector 13 10 39 7 31 100 12 19 39 6 24 100 Aeroplane Pilot1 30 31 12 12 15 100 24 40 20 8 9 100 Flight Attendant 19 6 15 12 47 100 20 27 21 3 29 100 Air Traffic Controller 30 31 12 12 15 100 24 40 20 8 9 100 Aircraft Maintenance Engineer2 4 5 80 0 11 100 3 6 72 5 15 100 Miscellaneous Workers3 0 2 17 6 75 100 1 2 22 6 68 100 All TLISC sectors 5 4 20 6 66 100 9 8 23 5 55 100 Source: CEET estimates based on unpublished ABS Education and Work (Cat. no. 6227.0) data and customised tables from the ABS 2006 Census. Scope: persons aged 15–64 years. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 40 50,000 workers empl oyed in the Aviation sect or in 2012. 2 | Employment trends 2002–12 Hours worked are particularly skewed towards working 34 hours or less although there has been a shift towards working more hours more recently. Almost one in every five Pilots and Air Traffic Controllers reported working 50 hours or more, which could be of concern. The pattern of hours worked changed little in the Aviation sector from 2002 to 2012 (Table 2.26). Typically workers in the sector are less likely to be working 50 hours per week or more than in the other sectors. On the other hand, they are more likely to be working 16–34 hours per week. The hours worked by Flight Attendants Table 2.26 Distribution of hours worked per week in Aviation sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 1-15 16-34 35-49 50+ All 1-15 16-34 35-49 50+ All Aviation Transport sector 5 24 51 19 100 7 24 51 19 100 Aeroplane Pilot1 8 25 49 19 100 9 24 47 20 100 Flight Attendant 6 53 31 11 100 11 41 37 11 100 Air Traffic Controller 8 25 49 19 100 9 24 47 20 100 Aircraft Maintenance Engineer2 1 14 67 18 100 2 14 67 17 100 Miscellaneous Workers3 7 15 45 33 100 5 21 46 28 100 All TLISC sectors 7 19 47 27 100 6 19 51 25 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older who reported greater than zero actual hours of work in the reference week. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 42 2.2.4 Employment trends—Rail sector Age distribution The Train Driver is the largest occupation in the Rail sector. It employed 12,000 people in 2012. All other occupations in the sector employed 5,000 or fewer people (Table 2.27). Employment in most other occupations seems to have grown strongly albeit from a low base. The age profile of the Rail sector workforce generally mirrors that of the Transport and Logistics industries as a whole (Table 2.29). Between 2002 and 2012 the proportion of workers aged 25–44 years in the sector declined from 53 per cent to 39 per cent. Consequently, in 2012 there are relatively more young as well as old workers in the sector than in 2002. Gender distribution The percentage of Train Drivers aged 15–24 years increased from one per cent to 11 per cent from 2002 to 2012; and the percentage aged 55 years or older increased from 16 per cent to 34 per cent over the same period. The percentage of Railway Track Workers aged 15–24 years is nearly double that of a decade ago. Most occupations in the Rail sector have more than 90 per cent male workers (Table 2.28). However the Miscellaneous Workers occupation group there are equal numbers of male and female workers. Table 2.27 Employment in Rail sector by occupation, persons, 2002, 2007 and 2012 (‘000s) Occupation 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 Train Driver 9 10 12 26.4 2.5 Railway Track Worker 3 5 5 44.8 4.0 Railways Assistant 2 2 3 37.8 3.4 Railway Signal Operator 2 2 2 28.5 2.7 Tram Driver 1 1 2 25.8 2.4 Train Controller 1 1 1 27.9 2.7 Transport Operations Inspector 1 1 1 55.3 4.7 Railway Station Manager 1 1 1 31.6 2.9 Travel Attendants nec 1 1 1 39.7 3.5 Transport Conductor 0 0 0 29.0 2.7 Railway Track Plant Operator 0 0 0 3.2 0.5 Train Examiner 0 0 0 33.3 3.0 All 22 25 29 31.8 2.8 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate is based on annual data from 2002 to 2012. 2 | Employment trends 2002–12 Table 2.28 Gender distribution of employment in Rail sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 Male Female All Male Female All Rail Transport sector 89 11 100 88 12 100 Train Driver1 96 4 100 94 6 100 Railway Track Worker 90 10 100 92 8 100 Railway Signal Operator3 95 5 100 93 7 100 Miscellaneous Workers4 50 50 100 56 44 100 All TLISC sectors 87 13 100 86 14 100 2 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. Table 2.29 Age distribution of employment in Rail sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 15-24 25-44 45-54 55-59 60+ All 15-24 25-44 45-54 55-59 60+ All Rail Transport sector 5 53 29 6 7 100 14 39 24 11 13 100 Train Driver 1 50 33 8 8 100 11 35 21 15 19 100 Railway Track Worker2 12 53 24 5 6 100 21 40 25 6 8 100 Railway Signal Operator3 5 59 30 3 3 100 11 38 30 10 11 100 Miscellaneous Workers4 9 57 25 7 3 100 8 50 25 10 7 100 All TLISC sectors 12 51 23 8 5 100 11 43 24 10 12 100 1 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 44 Table 2.30 Qualification distribution of employment in Rail sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) Occupation 2001 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual Rail Transport sector 6 2 16 6 Train Driver1 1 0 17 6 Railway Track Worker All 2011 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 70 100 11 8 26 5 50 100 75 100 15 9 25 4 46 100 9 2 11 2 76 100 3 5 27 4 61 100 Railway Signal Operator3 5 1 23 11 61 100 4 4 29 7 56 100 Miscellaneous Workers4 16 9 15 11 49 100 22 17 20 5 36 100 All TLISC sectors 5 4 20 6 66 100 9 8 23 5 55 100 2 Source: CEET estimates based on unpublished ABS Education and Work (Cat. no. 6227.0) data and customised tables from the ABS 2006 Census. Scope: persons aged 15–64 years. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. Table 2.31 Distribution of hours worked per week in Rail sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 1-15 16-34 35-49 50+ All 1-15 16-34 35-49 50+ All Rail Transport sector 6 16 58 20 100 6 18 51 25 100 Train Driver 5 15 60 20 100 2 17 52 29 100 12 15 55 19 100 13 18 49 21 100 100 1 Railway Track Worker2 3 14 61 22 100 0 15 60 25 Miscellaneous Workers4 5 29 47 19 100 6 26 47 22 100 All TLISC sectors 7 19 47 27 100 6 19 51 25 100 Railway Signal Operator 3 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older who reported greater than zero actual hours of work in the reference week. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. 2 | Employment trends 2002–12 Qualifications distribution Hours worked The qualifications profile of the Rail workforce improved from 2001 to 2011 with the proportion with qualifications increasing by 20 percentage points (Table 2.30). Overall a few changes have occurred in the pattern of hours worked in the Rail sector from 2002 to 2012, the most notable being a 7 percentage points decline in the proportion working 35–49 hours per week and a 5 percentage points increase in the proportion working 50 hours or more per week (Table 2.31). The changes mean the sector is more closely aligned with the rest of the Transport and Logistics workforce. The largest shift towards working longer hours was among Train Drivers. In some occupations the improvement has been much more than in others, for instance, the proportion of Train Drivers holding qualifications increased by 29 percentage points. Although Train Drivers may not have held qualifications in 2001, this does not mean that they were unqualified or unlicensed to drive trains. It seems that the skills that Train Drivers require for doing their jobs have increasingly been codified into qualifications over the last decade. The proportion of people in the occupation holding diploma or higher level qualifications increased from 1 to 24 per cent. This is most likely to be a supply-side effect. Migrants with higher education qualifications frequently work in such jobs because either their qualifications are not recognised or their English is less than adequate. They often experience a downward occupational shift in the early period of their settlement in Australia. 2.2.5 Employment trends —Maritime and Ports sector The trend data indicates employment in most occupations in the Maritime and Ports sector to be stagnant or in decline (Table 2.32). Waterside Worker is the only occupation in which employment has grown strongly. This is a shore-based occupation which is less susceptible to off-shoring but more exposed to mechanisation on the waterfront. The demand for ship-based workers has been affected by increasing imports of seafood to Australia; increasing conservation of Australia’s own fisheries and the growth in the aquaculture industry. Also, most cargo and passenger ships servicing Australian ports are foreign-owned and crewed. Table 2.32 Employment in Maritime and Ports sector by occupation, persons, 2002, 2007 and 2012 (‘000s) Occupation 2002 2007 2012 Growth 2002-12 (%) Average Total annual rate2 Waterside Worker 3 3 4 38.5 3.4 Ship's Master 4 3 4 -4.5 0.0 Deck Hand 4 5 4 4.0 1.0 Ship's Engineer 3 2 2 -4.4 0.0 Ship's Officer 1 1 1 -4.3 0.1 Ship's Surveyor 1 0 1 -3.5 0.1 Marine Transport Professionals nec 0 0 0 -5.3 -0.1 All 15 15 16 5.9 0.7 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 2 The calculation of the average annual growth rate is based on annual data from 2002 to 2012. Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 46 Gender distribution However there has been a shift towards diploma or higher level qualifications and away from certificate I/II in this sector. This shift is most evident among Ship’s Engineers, with the proportion holding diploma or higher level qualifications increasing from 41 per cent to 64 per cent. Almost all workers in the Maritime and Ports sector in Australia are men and the gender distribution in the sector has changed little over at least the last decade (Table 2.33). Age distribution Deck Hand is the only occupation in which the proportion without a qualification increased. However the percentage of Deck Hands who hold Certificate III or higher level qualifications has also increased which means fewer of them hold Certificate I/II qualifications. While the age profile of the Maritime and Ports workforce is reasonably close to the age profile of the Transport and Logistics workforce as a whole, the profile of individual occupations in the sector tend to vary significantly (Table 2.34). For instance, Waterside Workers and Deck Hands are relatively younger than professional workers (Ship’s Engineer, etc.). Almost one in every five professional worker is aged 60 years or older. Hours worked Maritime and Ports sector has the largest proportion of workers working long hours. In 2012, 35 per cent reported working 50 hours of more, down from 43 per cent in 2002 (Table 2.36). The long hours of work is mainly among Ship’s Engineers and Deck Hands, but a high proportion in the latter occupation also reported working 34 hours or less. Qualification distribution The proportion of workers with qualifications remained largely unchanged in the Maritime and Ports sector from 2001 to 2011 (Table 2.35). A little less than two-thirds of the workforce holds qualifications, which is much higher than among the rest of the TLISC workforce. Table 2.33 Gender distribution of employment in Maritime and Ports sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 2012 Male Female All Male Female All Maritime & Ports sector 97 3 100 96 4 100 Waterside Worker 96 4 100 99 1 100 Ship’s Engineer1 97 3 100 96 4 100 Deck Hand 95 5 100 94 6 100 All TLISC sectors 87 13 100 86 14 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine transport Professionals nec. Table 2.34 Age distribution of employment in Maritime and Ports sector by occupation, Australia, 2002 and 2012 (%) Occupation 2002 15-24 2012 25-44 45-54 55-59 60+ All 15-24 25-44 45-54 60+ All Maritime & Ports sector 12 55 17 8 8 100 14 43 20 8 14 100 Waterside Worker 36 51 11 0 0 100 30 42 14 5 9 100 Ship’s Engineer1 3 56 20 10 11 100 3 50 21 6 19 100 Deck Hand 27 53 12 6 3 100 24 27 25 16 8 100 All TLISC sectors 12 51 23 8 5 100 11 43 24 10 12 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older. Small numbers have relatively large associated standard errors and should be used with caution. 1 55-59 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine Transport Professionals nec. 2 | Employment trends 2002–12 35% e and of the the Maritim ported re Ports workforce more. or s working 50 hour Table 2.35 Qualification distribution of employment in Maritime and Ports sector by occupation, Australia, 2001 and 2011 (%) Occupation 2001 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2011 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Maritime & Ports sector 12 15 21 14 38 100 16 23 20 6 36 100 Waterside Worker 3 2 14 3 78 100 7 4 14 2 74 100 Ship’s Engineer1 18 23 22 15 23 100 24 40 20 8 9 100 Deck Hand 0 2 26 25 47 100 6 6 25 4 59 100 All TLISC sectors 5 4 20 6 66 100 9 8 23 5 55 100 Source: CEET estimates based on unpublished ABS Education and Work (Cat. no. 6227.0) data and customised tables from the ABS 2006 Census. Scope: persons aged 15–64 years. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine Transport Professionals nec. Table 2.36 Distribution of hours worked per week in Maritime and Ports sector by occupation, Australia, 15–64 year-olds, 2002 and 2012 (%) Occupation 2002 1-15 2012 16-34 35-49 50+ All 1-15 16-34 35-49 50+ All Maritime & Ports sector 7 18 32 43 100 9 18 37 35 100 Waterside Worker 12 28 45 15 100 13 23 44 20 100 Ship’s Engineer1 6 14 32 48 100 7 14 41 38 100 Deck Hand 10 22 19 49 100 10 22 16 52 100 All TLISC sectors 7 19 47 27 100 6 19 51 25 100 Source: CEET estimates based on unpublished ABS Labour Force (Cat. no. 6202.0) quarterly data and customised tables from the ABS 2006 Census. Scope: persons aged 15 years or older who reported greater than zero actual hours of work in the reference week. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine Transport Professionals nec. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 48 This chapter provides forecasts of employment by occupation and level of qualification in various sectors of the Transport and Logistics industries for the period 2013–17. The forecasts are derived from economy-wide forecasts for Australia. The demand in these industries is interconnected with demand in the rest of the economy and, therefore, it is only appropriate that a model that incorporates the linkages among different sectors of the whole economy is used for the purpose of forecasting demand for labour in the Transport and Logistics industries. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 3 Future demand for skilled labour depends on the future occupational structure of employment and the trends in the skills profiles of each occupation. Forecasts of employment 2013–17 The occupational structure of employment depends on the industrial structure which in turn depends on a number of factors such as expected aggregate demand, national and global macroeconomic developments, prospects in international trade, industry policy and changes in technology and household tastes. Growth in population and labour force participation also affect demand for skilled labour. The distribution of demand for labour by industry and occupation can change even when total demand does not increase. This is because of constant economic restructuring as a result of changes in technology and consumer tastes. Structural adjustments also occur when economies undergo reform, for instance, the reduction in tariffs or the introduction of a price on carbon. Structural adjustment can have an impact on the mix of skills that are required. The introduction of new occupational regulations can also affect the types of skills required for a job. Appropriate higher level skills have the potential to improve productivity, but they also assist in a more optimal allocation of labour through labour mobility. Exposure to international competition and new technologies, including the internet, are affecting the distribution and level of employment across a wide range of industries, including Transport and Logistics. The effects vary according to the extent to which a particular industry is vulnerable to, positively exposed to, or insulated from global competition.10 Unlike jobs in low-skill manufacturing industries, jobs in some sectors of the Transport and Logistics industries are less vulnerable to global competition. Jobs in aviation and shipping are more vulnerable to pressures of globalisation than are jobs in logistics and Warehousing, road and rail sectors. While the general effect of technological change is known to increase demand for employees with higher skills, its net effect on demand for all skill types can be mixed if new technologies lead to de-skilling in some occupations. 10 See Maglen and Shah (1999); Maglen (2001); and Shah and Burke (2003). 3 | Forecasts of employment 2013–17 While the resources boom might have created additional demand for workers in the Transport and Logistics industries, technical change is dampening demand. For instance, driverless trains and dump trucks have already reduced the demand for train and truck drivers that one would have normally expected with the boom. Most recently there have been reports of completely doing away with dump trucks at some mine sites (Kerr 2012). The internet is changing the buying and communication habits of consumers. It provides a borderless environment for shopping and has seen to the decline in the use of physical mail. Maiden (2012) notes that physical mail volumes delivered by Australia Post have been falling at 5 per cent per year, and are down by 17 per cent since 2008. At the same time the parcel delivery business has been rapidly expanding. Another industry that is growing rapidly is that of internet shopping for food, groceries and ready-to-eat meals. The growth of such businesses increases demand for delivery drivers and workers in logistics. These trends affect the structure of employment in the Transport and Logistics industries. 3.1 Forecasts of employment — all sectors industries, the pace of technical change and government policies. Moreover there is a complex interdependency between all these factors (Meagher, Adams and Horridge (2000)). Future growth in demand will depend on assumptions made about the state of these factors and their implications in future periods. All these factors are modelled in a computational general equilibrium framework in the MONASH model, which is maintained by the Centre of Policy Studies (CoPS), Monash University. A brief description of MONASH is included in Box E1 on Page 7. MONASH considers the ‘business as usual’ case for the Australian economy when producing economy-wide forecasts of employment growth by occupation. The ‘business as usual’ case is more than just extrapolation of past trends. It includes assessment of the future economy from a number of expert organisations and also CoPS’ own assessment of changes in technology and consumer tastes. CEET derives forecasts of employment in the Transport and Logistics industries from the forecasts produced by the MONASH model. The forecasts included in this report are the version dated June 2012 and released in October 2012. They incorporate the five-year macro forecasts of the Australian economy released by Access Economics in June 2012. The demand for labour in the economy depends on a number of factors. It depends on the macroeconomic state of the domestic economy and that of its major trading partners. Other factors that influence demand are capital investment and its distribution across Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 52 Table 3.1 Employment forecasts by major industry group, persons, Australia, 2012 (actuals), 2013–17 (forecasts) (‘000s) Occupation Agriculture, Forestry & Fishing Actual Forecast 2012 2013 2014 2015 2016 2017 Growth 2012-17 (%) Average Total annual 335 346 349 364 380 392 16.9 3.2 Mining 248 267 280 289 294 306 23.5 4.3 Manufacturing 956 969 982 995 1,011 1,019 6.6 1.3 Electricity, Gas, Water & Waste 153 147 145 147 151 152 -0.7 -0.1 Construction 1,023 1,017 1,064 1,099 1,122 1,169 14.2 2.7 Wholesale Trade 412 449 468 475 476 487 18.2 3.4 Retail Trade 1,217 1,266 1,285 1,299 1,310 1,326 8.9 1.7 Accommodation & Food 766 753 755 759 763 763 -0.4 -0.1 Transport, Postal & Warehousing1 Road Transport 566 569 574 581 588 595 5.1 1.0 228 241 249 255 259 267 17.2 3.2 Rail Transport 45 47 49 49 50 51 13.1 2.5 Water Transport 11 13 12 13 13 13 16.4 3.3 Air & Space Transport 54 56 56 57 58 58 7.2 1.4 Postal & Courier Pick-up & Delivery 87 87 83 83 84 83 -4.8 -1.0 Transport Support Services 61 63 62 62 62 62 1.1 0.2 53 53 53 53 52 52 -1.9 -0.4 Information Media & Telecommunications Warehousing & Storage 217 219 215 215 217 215 -1.0 -0.2 Financial & Insurance Services 428 434 438 443 451 459 7.2 1.4 Rental, Hiring & Real Estate 208 207 209 208 207 207 -0.6 -0.1 Professional, Scientific & Tech 890 906 923 931 928 935 5.1 1.0 Administrative & Support 401 405 411 417 421 425 5.9 1.2 Public Administration & Safety 730 730 732 748 763 772 5.7 1.1 Education & Training 869 871 892 910 926 944 8.7 1.7 Health Care & Social Assistance 1,345 1,339 1,341 1,366 1,396 1,413 5.0 1.0 Arts & Recreation Services 210 212 211 213 216 217 3.2 0.6 Other Services 458 453 456 462 469 474 3.5 0.7 All industries 11,432 11,560 11,728 11,920 12,087 12,268 7.3 1.4 Source: MONASH economic forecasts (CoPS June 2012). Small numbers have relatively large associated standard errors and should be used with caution. The total includes two sectors, Other Transport and Transport and Postal & Warehousing (not fully defined), which are not included in the table because they are relatively small but the employment in these sectors is included in the total. 1 Table 3.2 Employment forecasts by major occupation group, persons, Australia, 2012 (actuals), 2013–17 (forecasts) (‘000s) Occupation Actual Forecast 2012 2013 2014 2015 2016 2017 Growth 2012-17 (%) Average Total annual Managers 1,479 1,511 1,541 1,580 1,616 1,652 11.7 2.2 Professionals 2,490 2,530 2,576 2,631 2,679 2,729 9.6 1.8 Technicians & Trades 1,672 1,685 1,719 1,749 1,771 1,804 7.9 1.5 Community & Personal Services 1,101 1,105 1,111 1,127 1,145 1,157 5.0 1.0 Clerical & Administrative 1,711 1,714 1,724 1,740 1,753 1,765 3.2 0.6 Sales 1,057 1,066 1,073 1,075 1,076 1,079 2.1 0.4 Machinery Operators & Drivers 764 779 799 815 828 847 10.9 2.1 Labourers 1,160 1,169 1,185 1,203 1,219 1,236 6.6 1.3 All 11,432 11,560 11,728 11,920 12,087 12,268 7.3 1.4 Source: MONASH economic forecasts (CoPS June 2012). Small numbers have relatively large associated standard errors and should be used with caution. 3 | Forecasts of employment 2013–17 Table 3.3 Employment forecasts by qualification, persons, Australia, 2012 (estimates), 2013–17 (forecasts) (‘000s) Level of qualification With qualifications Estimate Forecast 2012 2013 2014 2015 2016 2017 Growth 2012-17 (%) Average Total annual 7,272 7,454 7,668 7,907 8,134 8,375 15.2 2.9 Postgraduate 917 949 983 1,022 1,058 1,096 19.4 3.6 Bachelor 2,236 2,294 2,359 2,430 2,494 2,558 14.4 2.7 Advanced Diploma 506 501 497 494 489 484 -4.3 -0.9 Diploma 736 792 854 923 995 1,071 45.6 7.8 Certificate IV 591 638 690 747 807 872 47.6 8.1 Certificate III 1,842 1,855 1,877 1,899 1,913 1,929 4.8 0.9 Certificate II 364 354 345 336 327 319 -12.4 -2.6 Certificate I Without qualification 80 71 64 57 51 45 -43.4 -10.8 4,160 4,106 4,060 4,013 3,953 3,894 -6.4 -1.3 7.3 1.4 All 11,432 11,559 11,728 11,920 12,087 12,269 % with qualifications 63.6 64.5 65.4 66.3 67.3 68.3 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The number of people with qualifications in 2012 is an estimate as the data on this will not be available until the end of year. 3.1.1 Forecasts of employment by industry Employment is forecast to grow by 1.4 per cent per year, or 836,000 persons, from 2012 to 2017 (Table 3.1). About 30 per cent of this growth is forecast to be in Construction and Retail Trade. The highest rate of employment growth is forecast in Mining. Health Care and Social Assistance sector is forecast to employ the highest number of people in 2017–12 per cent of the total. In the Transport, Postal and Warehousing sector, employment is forecast to increase by 29,000 persons from 2012 to 2017. This translates to an annual rate of growth of one per cent, well below average across all industries. While employment is forecast to increase at above average rate in the Road, Rail, Water and Air and Space Transport, it is forecast to remain generally unchanged in Transport Support Services and Warehousing and Storage but decline slightly in the Postal and Courier Pick-up and Delivery sector. 3.1.2 Forecasts of employment by occupation Table 3.2 show the employment forecasts by major occupation groups. Employment of Managers and Machinery Operators and Drivers is forecast to increase at more than 2 per cent per year, which is significantly higher than average rate. About 29 per cent of total growth in employment is however forecast to be in Professional occupations. 3.1.3 Forecasts of employment by qualification The previous chapter showed evidence of skills deepening in the Australian workforce over last decade. The trends in qualifications often vary by occupation. Current government policies and industry demand suggest these trends are generally likely to continue. Models for forecasting demand for qualifications should, therefore, incorporate these trends. In this report the qualification trends (skills deepening) from 2001 to 2011 are integrated with the forecasts of employment by occupation from the MONASH model to produce forecasts of employment by occupation and qualification. Forecasts of qualifications factor in not only the expected industrial and occupational restructure of employment but also the trends in skills deepening. In 2017, 1.1 million more working people are forecast to hold qualifications than in 2012 (Table 3.3). This represents an increase of 15.2 per cent. The number of people without qualifications is forecast to decline by 6.4 per cent. Altogether, 68.3 per cent of the working population in Australia in 2017 will hold qualifications. The highest growth in qualifications is forecast at the Diploma and Certificate IV levels, with the numbers of people with such qualifications forecast to increase by about half as much over the next five years. Numbers of workers with higher education qualifications are also forecast to grow strongly. In 2017, 43.6 per cent of workers are forecast to hold higher education qualifications, 30 per cent of them at the postgraduate level. Only a modest increase is forecast for the number of workers holding Certificate IIIs. Fewer workers are forecast to hold qualifications at the Advanced Diploma, Certificate II and Certificate I level in 2017 than in 2012. The number of people holding Certificate I is forecast to almost halve. These forecasts are in terms of the highest qualification of a person. Hence qualifications such as Certificate I and II may still continue to be completed and be relevant, but as a pathway to a higher level qualification. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 54 3.2 Forecasts of employment —Transport and Logistics industries Figures 1-3 show historical and forecasted employment in the Transport and Logistics industries. While Figure 1 is about aggregate employment in these industries, Figures 2 and 3 are about employment in the different sectors in these industries. to be higher than in the rest of the economy, which is consistent with the trends over the past decade. Employment in the Transport and Logistics industries is forecast to increase by 73,000 persons over the next five years to 870,000 in 2017 (Table 3.4). The average annual rate of growth in these industries is forecast Employment in the two largest sectors—Logistics and Road Transport—is forecast to increase by 67,000 persons. This is more than 90 per cent of the total growth in Transport and Logistics industries. Table 3.4 The rate of growth is forecast to vary by sector. For instance, growth in Logistics and Rail Transport is forecast to be above the industries’ average of 1.8 per cent per year. Forecasts of employment in Transport and Logistics industries, persons, Australia, 2012 (actuals), 2013–17 (forecasts) (‘000s) Sector Actual Forecast 2012 2013 2014 2015 2016 2017 Growth 2012-17 (%) Average Total annual TLISC sectors 797 803 822 838 852 870 9.2 1.8 Logistics 351 356 366 374 381 391 11.2 2.1 Road Transport 351 353 360 366 371 378 7.8 1.5 Aviation Transport 50 50 51 52 53 53 6.2 1.2 Rail Transport 29 29 29 30 31 31 9.6 1.9 16 16 16 16 16 17 5.6 1.1 Non-TLISC sectors Maritime & Ports 10,635 10,756 10,906 11,082 11,235 11,398 7.2 1.4 All sectors 11,432 11,559 11,728 11,920 12,087 12,269 7.3 1.4 Source: Derived from MONASH economic forecasts (CoPS June 2012). Small numbers have relatively large associated standard errors and should be used with caution. Figure 1 Employment in Transport and Logistics industries, persons, Australia, 2002-12 (historical) 2013-17 (forecasts) EMPLOYMENT ‘000 900 850 800 Historical 750 Forecasts 700 650 600 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEAR Source: MONASH economic forecasts (CoPS June 2012). 2011 2012 2013 2014 2015 2016 2017 3 | Forecasts of employment 2013–17 EMPLOYMENT ‘000 Figure 2 Employment in Logistics and Warehousing and Road Transport, persons, Australia, 2002-12 (historical) 2013-17 (forecasts) 400 380 360 340 320 300 280 260 240 220 200 Historical 2002 2003 2004 2005 2006 2007 2008 2009 Forecasts 2010 2011 2012 2013 2014 2015 2016 2017 YEAR Logistics Source: Derived from MONASH economic forecasts (CoPS June 2012). Road Transport EMPLOYMENT ‘000 Figure 3 Employment in Aviation Transport, Rail Transport and Maritime and Ports, persons, Australia, 2002-12 (historical) 2013-17 (forecasts) 60 55 50 45 40 35 30 25 20 15 10 5 0 Historical 2002 2003 2004 2005 2006 2007 2008 2009 Forecasts 2010 2011 2012 2013 2014 2015 2016 2017 YEAR Source: Derived from MONASH economic forecasts (CoPS June 2012). Aviation Transport Rail Transport Maritime & Ports Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 56 Table 3.5 Forecasts of employment in Transport and Logistics industries by qualification, persons, Australia, 2012 (estimates), 2013–17 (forecasts) (‘000s) Occupation With qualifications Estimate Forecast 2012 2013 2014 2015 2016 2017 Growth 2012-17 (%) Average Total annual 368 381 401 421 441 464 26.1 4.8 Postgraduate 18 19 21 23 25 27 52.5 8.8 Bachelor 61 64 69 73 77 82 32.8 5.8 Advanced diploma 30 30 31 32 34 35 16.7 3.1 Diploma 40 44 50 56 62 69 73.0 11.6 Certificate IV 37 41 47 53 59 67 83.1 12.9 Certificate III 147 148 150 151 152 152 3.3 0.7 Certificate II 29 28 28 28 28 28 -4.2 -0.8 Certificate I Without qualification 6 6 5 5 4 4 -30.8 -7.1 429 422 421 417 411 406 -5.3 -1.1 9.2 1.8 All 797 803 822 838 852 870 % with qualifications 46.2 47.4 48.8 50.2 51.8 53.3 Source: CEET forecasts. Small numbers have relatively large associated standard errors and should be used with caution. The number of people with qualifications in 2012 is an estimate as the data on this will not be available until the end of year. Table 3.6 Forecasts of employment in Transport and Logistics industries by sector and qualification, persons, Australia, 2012 (estimates), 2017 (forecasts) (‘000s) Sector 2012 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2017 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Logistics 38 31 73 15 194 351 51 43 87 14 195 391 Road Transport 28 24 82 15 202 351 41 43 101 13 180 378 Aviation 7 9 19 3 13 50 7 10 21 2 13 53 Rail 4 2 7 1 13 29 6 3 8 1 12 31 Maritime & Ports 3 4 3 1 6 16 3 4 3 1 6 17 All TLISC sectors 79 70 184 35 429 797 109 104 220 32 406 870 Source: CEET forecasts. Small numbers have relatively large associated standard errors and should be used with caution. The number of people with qualifications in 2012 is an estimate as the data on this will not be available until the end of year. The number of people with qualifications in the Transport and Logistics industries is forecast to increase faster than total employment (Table 3.5). In 2017, 96,000 more workers in these industries will have qualifications than did in 2012. Consequently, the proportion with qualifications will increase from 46.2 per cent in 2012 to 53.3 per cent, which is still significantly lower proportion than in the workforce as a whole. Just less than a quarter of all qualifications people hold in 2017 will be at the higher education level and the rest at VET level. More than half the total increase in qualifications is forecast at the Diploma and Certificate IV levels, which is consistent with the general trends. Workers with Certificate I level qualifications are forecast to be fewer in number in 2017 than 2012 but the number with Certificate II is forecast to remain largely unchanged. The increase in the number of people with qualifications will vary by sector (Table 3.6). The increase in the Logistics sector will be 39,000, which proportionately is higher than in any other sector. Only about half the workforce in the two largest sectors will hold qualifications in 2017. In all other sectors the proportion with qualifications will range from 61 per cent in Rail to 76 per cent in Aviation. 3 | Forecasts of employment 2013–17 3.2.1 Forecasts of employment—Logistics and Warehousing While employment in most occupations in the Logistics sector is forecast to increase by more than 10 per cent over the next five years, the demand for Stock Clerks and Fleet Managers is forecast to increase by relatively smaller numbers (Table 3.7). Table 3.7 The qualifications profile of the sector is expected to change but these changes are expected to vary by occupation. Minimal change is expected in the profiles for Forklift Driver and Miscellaneous Workers. On the other hand the percentage of Stock Clerks without a qualification is forecast to decline by 10 percentage points. Forecasts of employment in Logistics sector by qualification, persons, Australia, 2012 (estimates), 2017 (forecasts) (‘000s) Occupation 2012 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2017 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Storeperson 9 7 19 5 79 119 14 8 25 6 83 135 Forklift Driver 2 2 15 4 43 66 3 2 18 4 48 74 Stock Clerk1 10 10 14 3 33 71 14 15 16 2 27 75 Supply & Distribution Manager2 11 8 14 2 18 53 15 13 15 1 16 60 Fleet Manager3 5 3 5 1 7 21 4 3 7 0 6 21 1 1 5 1 14 22 1 2 6 1 15 25 All (‘000) 38 31 73 15 194 351 51 43 87 14 195 391 All (%) 11 9 21 4 55 100 13 11 22 4 50 100 Miscellaneous Workers 4 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The number of people with qualifications in 2012 is an estimate as the data on this will not be available until the end of year. The numbers in the table have been rounded to the nearest thousand. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). 3.2.2 Forecasts of employment—Road Transport In the Road Transport sector, Taxi Driver and Bus Driver numbers are forecast to increase by more than 10 per cent over the next five years (Table 3.8). Only minimal increase is forecast in Delivery Driver numbers. Table 3.8 The qualifications profile of the sector is expected to change substantially with the number of workers without qualifications forecast to decline by 10 percentage points. The profile for Delivery Drivers is expected to improve the most—15 percentage point decline in the number without qualifications. Forecasts of employment in Road Transport sector by qualification, persons, Australia, 2012 (estimates), 2017 (forecasts) (‘000s) Occupation 2012 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2017 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 4 5 44 6 113 171 6 6 61 7 107 187 Delivery Driver2 5 10 18 4 51 88 7 24 17 3 39 90 Taxi Driver 3 9 4 8 2 16 39 13 6 9 1 13 43 Bus Driver4 9 4 9 2 16 39 13 6 10 1 13 44 Truck Driver (General) 1 1 2 3 1 7 14 2 2 4 0 7 14 All (‘000) 28 24 82 15 202 351 41 43 101 13 180 378 All (%) 8 7 23 4 58 100 11 11 27 4 48 100 Miscellaneous Workers 5 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The numbers in the table have been rounded to the nearest thousand. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 58 3.2.3 Forecasts of employment —Aviation sector Only a small increase in employment is forecast in the Aviation sector. More than half the increase will be for Aircraft Maintenance Engineers. The qualifications profile of the sector is expected to improve by a small amount. Slightly more workers will hold qualifications and more of them will be at higher levels. 3.2.4 Forecasts of employment —Rail sector Employment in the Rail sector is forecast to increase by just less than 3,000 persons. Most of this increase will be for Train Drivers. The percentage of people in the sector holding qualifications is forecast to increase by 8 percentage points. Among Train Drivers, 31 per cent are forecast to hold higher education qualifications in 2017 3,000 compared to the estimate of 23 per cent in 2012. This does not necessarily mean that there is a demand for train drivers who have higher education qualifications. What it is reflecting is the historical trend of people with higher education qualifications offering to work as trend drivers. In other words it is a supply-side effect, as discussed in chapter 2. 3.2.5 Forecasts of employment —Maritime and Ports sector Most of the small growth in employment forecast in the Maritime and Ports sector is expected to be Waterside Workers. A small overall improvement is forecast in the qualifications profile in the sector. While about 93 per cent of Ship’s Engineers are expected to hold qualifications in 2017, the percentage of Waterside Workers with qualifications is expected to be only 30 per cent. person increase is forecasted in the Rail sector by 2017. 3 | Forecasts of employment 2013–17 Table 3.9 Forecasts of employment in Aviation sector by qualification, persons, Australia, 2012 (estimates), 2017 (forecasts) (‘000s) Occupation 2012 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2017 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 1 3 4 2 1 1 11 3 5 2 0 1 10 Flight Attendant 2 3 2 0 3 10 2 3 2 0 2 10 3 Aeroplane Pilot Air Traffic Controller 1 1 1 0 0 3 1 2 1 0 0 Aircraft Maintenance Engineer2 1 1 12 1 3 18 1 1 15 1 3 20 Miscellaneous Workers3 0 0 2 0 5 8 0 0 2 0 6 9 All (‘000) 7 9 19 3 13 50 7 10 21 2 13 53 All (%) 13 18 37 5 26 100 14 19 39 4 24 100 Ad Dip/ Dip Cert III/IV Cert I/II No qual All Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. Table 3.10 Forecasts of employment in Rail sector by qualification, persons, Australia, 2012 (estimates), 2017 (forecasts) (‘000s) Occupation Train Driver 1 Railway Track Worker2 Railway Signal Operator Miscellaneous Workers4 3 2012 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2017 Higher edu 3 1 3 1 5 13 5 2 3 1 5 15 0 0 2 0 5 8 0 1 3 0 4 8 0 0 1 0 2 4 0 0 1 0 2 4 1 1 1 0 1 4 1 1 1 0 1 4 All (‘000) 4 2 7 1 13 29 6 3 8 1 12 31 All (%) 15 9 25 5 47 100 20 11 26 4 39 100 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The numbers in the table have been rounded to the nearest thousand. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. Table 3.11 Forecasts of employment in Maritime and Ports sector by qualification, persons, Australia, 2012 (estimates), 2017 (forecasts) (‘000s) Occupation 2012 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All 2017 Higher edu Ad Dip/ Dip Cert III/IV Cert I/II No qual All Waterside Worker 0 0 0 0 Ship’s Engineer1 2 3 1 1 3 4 0 0 0 0 3 4 1 8 2 4 1 0 1 8 Deck Hand 0 0 1 0 2 4 0 1 1 0 2 4 All (‘000) 3 4 3 1 6 16 3 4 3 1 6 17 All (%) 17 22 17 6 38 100 18 27 16 4 35 100 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The numbers in the table have been rounded to the nearest thousand. 1 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine Transport Professionals nec. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 60 This chapter provides estimates of job openings for new entrants in Transport and Logistics industries over the period 2013–17 resulting from: growth turnover of workers. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 Job openings for new entrants, 2013–17 v 4 The previous chapter provided forecasts of employment growth in the Transport and Logistics industries. New jobs from growth in an occupation account for only a portion of all jobs that are expected to be available during the forecast period. Many workers will leave jobs for a variety of reasons, such as retirement, ill-health or death. They also leave to work in another occupation, more so from some occupations than others. These departures will create additional opportunities for workers to enter each occupation. Even if employment is falling in an occupation, workers who leave create demand or job opportunities for new workers. The pattern of turnover varies by occupation. While in some occupations (e.g. airline pilots) the main reasons for turnover are events such as retirement, ill-health or death, in other occupations (e.g. railways assistant) the main reason is net outflows to other occupations. In many occupations, the number of workers retiring will rise in coming years due to the ageing of Australia’s baby boomers. These replacement needs, when added to new jobs, create a more complete picture of job openings. While projections of job growth and decline provide the best picture of how occupational employment is expected to change, job openings provide a better description of the labour market that new entrants will face. Projections of job openings also serve as an estimate of the minimum number of workers who will need to be trained for occupations that require pre-employment education or training (Lockard and Wolf 2012). 4.1 Job openings for new entrants—all sectors The starting point for the calculations of job openings for new entrants is the forecasts of employment growth in Chapter 3. Any anticipated industrial and occupational structural changes in the economy are factored into these forecasts. The measurement of turnover or replacement needs is complex because of the continuous movement of workers into and out of occupations. Although there are a number of measures for turnover, the one adopted in this report is net replacement (see Shah and Burke 2001; Bureau of Labor Statistics 2006; Shah and Long 2010; Shah 2010). Net replacement when combined with growth in an occupation, best represents the job openings for new entrants to the occupation. The estimates for net replacement cited in this report are derived using a cohort-component method which is based on the patterns of past demographic changes in each occupation. 4 | JOB OPENINGS FOR ENTRANTS 2013–17 The CEET model for net replacement combines time series methods to project future net replacement needs. Although the model does make corrections for changes in the future size of the labour force by age and sex, it is largely based on past trends. Therefore projected replacement needs may be fewer should future turnover trends change, for instance, if older Australians choose or forced to delay their retirement over the next five years. skill occupations than high-skill occupations. The highest net replacement rate is for sales workers who are generally young people, often studying, and who stay in these jobs for relatively short periods. About 2.2 million job openings for new entrants are forecast from 2013 to 2017 (Table 4.2). The number each year varies between 420,000 and 443,000. The number of job openings not only depends on the growth and net replacement rates in the occupation but also on the current level of employment in it. For instance, the highest job openings are for Professionals which employed 2.7 million workers in 2012, the highest number in all occupation groups. On the other hand, the high number of job openings for Sales workers is more because of the very high net replacement rate than any other factor. Table 4.1 shows the employment growth rates and the net replacement rates for major occupation groups.11 The employment growth rates are brought forward from Table 3.2. The table highlights the importance of replacement needs relative to employment growth in estimating new entrants to an occupation. It also shows that net replacement needs are generally higher for low- Table 4.1 Employment growth and net replacement rates by major occupation group, Australia, 2013–17 (%) Major occupation group Employment growth rate Net replacement rate Managers 2.2 1.8 Professionals 1.8 1.4 Technicians & Tradespersons 1.5 1.6 Community & Personal Services Workers 1.0 2.3 Clerical & Administrative Workers 0.6 1.8 Sales Workers 0.4 5.0 Machinery Operators & Drivers 2.1 1.7 Labourers 1.3 2.8 All 1.4 2.1 Source: MONASH economic forecasts (CoPS June 2012) (growth) and CEET (net replacement rates). Table 4.2 Forecasts of job openings for new entrants by major occupation group, Australia, 2013–17 (‘000s) Major occupation group 2013 2014 2015 2016 2017 Total Managers 66 60 67 66 65 324 Professionals 84 80 87 80 81 412 Technicians & tradespersons 43 61 57 49 62 272 Community & personal services workers 41 33 40 41 38 192 Clerical & administrative workers 51 47 50 48 48 243 Sales workers 63 62 60 59 61 305 Machinery operators and drivers 27 33 30 26 33 150 Labourers 49 50 52 51 53 255 All 423 426 443 420 441 2,154 Source: CEET. 11 The estimates of net replacement rates may vary according the level of aggregation in the original input data. The estimates in Table 4.1 were calculated at the 3-digit ANZSCO level and then aggregated up. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 64 4.2 Job openings for new entrants—Transport and Logistics industries The net replacement rate for the Transport and Logistics industries is lower than for all other industries (Table 4.3). The impact of the low rate will be lower future training needs in these industries. The net replacement rates for the Logistics and Aviation sectors are much lower than for other sectors, reflecting the relatively younger workforce in these two sectors. The net replacement rates for the other sectors are not very different to the average rate for the whole workforce. In the table, employment growth rates are brought forward from Table 3.4. In the five years to 2017, 151,000 job openings for new entrants are forecast in the Transport and Logistics industries (Table 4.4). This averages to about 30,000 openings per year. Not surprisingly the highest numbers of openings are expected in the two largest sectors. Almost 90 per cent of all openings are forecast in the Logistics and Road Transport sectors. 4.2.1 Job openings for new entrants —Logistics and Warehousing sector Table 4.5 shows the forecasts of job openings for new entrants for the five years to 2017 in the main occupations in the Logistics sector. The highest number of openings is forecast for Storepersons and least for Fleet Managers. 4.2.2 Job openings for new entrants —Road Transport sector About 44 per cent of all job openings in Road transport sector are expected for Truck Drivers (Table 4.6). Most of the rest of the openings are expected to be for Delivery Drivers, Taxi Drivers and Bus Drivers in about equal numbers. 4.2.3 Job openings for new entrants —Aviation sector Just less than half the job openings for new entrants in the Aviation sector are expected for Aircraft Maintenance Engineers with the least number of openings for Aircraft Traffic Controllers (Table 4.7). 4.2.4 Job openings for new entrants —Rail sector About two-thirds of all job openings for new entrants in the Rail sector are expected for Train Drivers Table 4.8). 4.2.5 Job openings for new entrants —Maritime and Ports sector About half of all job openings for new entrants in the Maritime and Ports sector will be Waterside Workers (Table 4.9). 4 | JOB OPENINGS FOR ENTRANTS 2013–17 Table 4.3 Employment growth and net replacement rates in Transport and Logistics industries, Australia, 2013–17 (%) Sector Employment growth rate Net replacement rate TLISC sectors 1.8 1.7 Logistics 2.1 1.5 Road Transport 1.5 2.0 Aviation Transport 1.2 1.4 Rail Transport 1.9 2.1 Maritime & Ports 1.1 2.0 Non-TLISC sectors 1.4 2.1 All sectors 1.4 2.1 Source: MONASH economic forecasts (CoPS June 2012) (growth) and CEET (net replacement rates). Table 4.4 Forecasts of job openings for new entrants in Transport and Logistics industries, Australia, 2013–17 (‘000s) Sector 2013 2014 2015 2016 2017 Total TLISC sectors 26.3 32.9 30.8 28.2 33.4 151.5 Logistics 11.3 14.6 13.6 12.2 14.5 66.2 Road Transport 12.1 14.7 13.5 12.5 15.2 68.1 Aviation Transport 1.3 1.5 1.7 1.6 1.6 7.8 Rail Transport 1.0 1.5 1.3 1.2 1.6 6.5 Maritime & Ports 0.6 0.5 0.7 0.7 0.6 3.0 Non-TLISC sectors 396.8 393.4 412.5 392.1 407.3 2002.1 All sectors 423.0 426.3 443.3 420.3 440.7 2,153.6 Source: CEET. Table 4.5 Forecasts of job openings for new entrants in Logistics and Warehousing sector, Australia, 2013–17 (‘000s) Occupation 2013 2014 2015 2016 2017 Total Storeperson 3.6 5.5 5.0 4.5 5.4 24.0 Forklift Driver 1.6 2.8 2.6 2.5 2.9 12.4 Stock Clerk 2.1 1.9 1.9 1.6 1.7 9.2 Supply & Distribution Manager2 2.2 2.5 2.3 2.0 2.4 11.3 Fleet Manager3 0.3 0.8 0.8 0.8 0.8 3.4 Miscellaneous Workers 1.5 1.2 1.1 0.9 1.2 5.9 All 11.3 14.6 13.6 12.2 14.5 66.2 1 4 Source: CEET. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 66 Table 4.6 Forecasts of job openings for new entrants in Road Transport sector, Australia, 2013–17 (‘000s) Occupation 2013 2014 2015 2016 2017 Total Truck Driver (General)1 5.2 7.0 5.9 5.1 6.6 29.8 Delivery Driver2 2.9 2.0 2.5 2.7 2.3 12.4 3 Taxi Driver 1.8 2.7 2.3 2.1 2.9 11.8 Bus Driver4 1.8 2.7 2.4 2.2 2.9 12.0 Miscellaneous Workers5 0.4 0.5 0.4 0.4 0.5 2.1 All 12.1 14.7 13.5 12.5 15.2 68.1 Source: CEET. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. Table 4.7 Forecasts of job openings for new entrants in Aviation sector, Australia, 2013–17 (‘000s) Occupation 2013 2014 2015 2016 2017 Total Aeroplane Pilot1 0.2 0.2 0.3 0.4 0.2 1.3 Flight Attendant 0.1 0.2 0.2 0.2 0.2 0.8 Air Traffic Controller 0.1 0.1 0.1 0.1 0.1 0.4 Aircraft Maintenance Engineer2 0.8 0.8 0.7 0.6 0.7 3.6 Miscellaneous Workers3 0.2 0.4 0.3 0.3 0.4 1.5 All 1.3 1.5 1.7 1.6 1.6 7.8 Source: CEET. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. 4 | JOB OPENINGS FOR ENTRANTS 2013–17 Table 4.8 Forecasts of job openings for new entrants in Rail sector, Australia, 2013–17 (‘000s) Occupation 2013 2014 2015 2016 2017 Total Train Driver1 0.6 0.9 0.8 0.7 1.0 4.1 0.1 0.3 0.3 0.2 0.3 1.2 Railway Signal Operator 0.2 0.2 0.1 0.1 0.2 0.8 Miscellaneous Workers4 0.1 0.1 0.1 0.1 0.1 0.4 All 1.0 1.5 1.3 1.2 1.6 6.5 Total Railway Track Worker2 3 Source: CEET. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. Table 4.9 Forecasts of job openings for new entrants in Maritime and Ports sector, Australia, 2013–17 (‘000s) Occupation 2013 2014 2015 2016 2017 Waterside Worker 0.4 0.3 0.3 0.2 0.3 1.4 Ship’s Engineer1 0.1 0.1 0.3 0.3 0.2 1.0 Deck Hand 0.1 0.1 0.1 0.1 0.1 0.6 All 0.6 0.5 0.7 0.7 0.6 3.0 Source: CEET. 1 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine Transport Professionals nec. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 68 This chapter provides estimates of training needs in the workforce, for the period 2013–17, as a result of: the changing qualifications profile employment growth turnover of workers. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 Training needs 2013–17 v 5 The estimates provide indications of the minimum training needs, in terms of the number of qualifications needing to be completed, to ensure industries’ demand for skilled workers, as forecast in the previous chapter, is met. Additional demand for training may also arise as a result of workers undertaking qualifications at the same level or lower than they currently hold (skills broadening) but these are not included in the estimates below. Chapter 3 provided forecasts of employment by qualifications in the Transport and Logistics industries. It showed that not only is employment forecast to grow in these industries but the qualifications profile of the workforce is also expected to shift upwards, with more workers holding qualifications and at increasingly higher levels. Part of the future demand for skilled labour will be met by skilled workers who are currently working and who will continue to do so in the future. However not all workers employed currently will be available in the next period because of turnover. The qualifications profile of an occupation will change with the entry of new people and the exit of others, some of whom will hold qualifications and others will not. In some instances the number of new entrants with qualifications will be insufficient to achieve the qualifications profile forecast for the occupation and continuing workers will need to acquire new qualifications to make up the shortfall. Some continuing workers who already have a qualification may up-skill and others who do not have a qualification may acquire their first qualification. 5.1 Training needs—all sectors The calculations of training needs begin with the forecasts of growth and the changing qualifications profile provided in Chapter 3. Industrial and occupational structural changes and skills deepening are all factored into these forecasts. Table 5.1 shows the training needs by qualification for the period 2013–17. The estimates are made at the occupation level and then aggregated. They include only the need for qualified workers.12 The derivation of these estimates assumes that in each occupation: ®® ®® 12 the qualifications profile of new entrants will reflect the average qualifications profile of the youngest workers in the occupation over the past few years the qualifications profile of those leaving will reflect the qualifications profile of the oldest workers in the occupation over the past few years. Job openings will also exist for workers without qualifications, but these are additional to what is presented in this chapter. 5 | training needs 2013–17 The table shows a minimum of about 2.4 million people will need to be trained from 2013–17 to meet industry demand for skilled workers. This amounts to at least 482,000 completed qualifications per year. Training needs are projected to generally increase over time except 2016 when there is a slight decline. About 38.3 per cent of all demand is projected for higher education qualifications and almost all demand for VET qualifications is at diploma or Certificate III/IV level. The estimates are for the minimum number of qualifications to be completed. This is because some people may complete a lower level qualification as a pathway to a higher qualification in the same year. Therefore, to the extent that some people complete multiple qualifications, the estimates provided in this chapter will underestimate the total demand for qualifications. The number of people who complete multiple qualifications in any one year is unlikely to be very large though. Non-accredited training, such as product- or firm-specific training, that continuing workers undertake is outside the scope of this report. Slightly more than half of this demand for trained workers will be met by new entrants with qualifications and the rest by continuing workers up-skilling. While new entrants will meet significantly more of the demand for workers with Bachelor and Certificate I-III level qualifications, the demand for postgraduate, diplomas and Certificate IV qualifications will largely be met by continuing workers up-skilling. Table 5.1 Training needs by qualification, persons, Australia, 2013–17 (‘000s) Level of qualification 2013–17 2013 2014 2015 2016 2017 Total Average annual 15 15 15 14 17 76 15 New Entrants Postgraduate Bachelor 85 86 95 89 94 449 90 Advanced diploma 9 8 8 8 8 41 8 Diploma 30 29 33 34 36 161 32 Certificate IV 21 22 24 25 27 119 24 Certificate III 56 64 63 59 65 307 61 Certificate II 15 15 14 12 14 70 14 Certificate I 2 2 2 2 2 10 2 Total 232 239 255 243 263 1232 246 Continuing workers Postgraduate 42 46 51 50 47 235 47 Bachelor 29 31 33 35 33 162 32 Advanced diploma 13 13 12 12 13 63 13 Diploma 53 60 62 62 61 298 60 Certificate IV 39 44 49 51 54 237 47 Certificate III 31 31 34 33 32 161 32 Certificate II 4 4 4 4 3 18 4 Certificate I 0 0 0 0 0 0 0 Total 211 229 245 248 244 1176 235 57 61 66 64 64 311 62 Total Postgraduate Bachelor 114 117 128 124 127 611 122 Advanced diploma 22 20 21 20 21 104 21 Diploma 83 88 95 96 98 459 92 Certificate IV 60 65 73 76 82 356 71 Certificate III 86 96 97 93 97 469 94 Certificate II 19 18 18 16 17 88 18 Certificate I 3 2 2 2 2 10 2 Total 443 468 499 491 507 2408 482 Source: CEET. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 72 About 40 per cent of all training needs are for Managers and Professionals (Table 5.2). These two groups also have the highest need for workers with higher education qualifications. More than 10 per cent of higher education needs are for Clerical and Administrative occupations. Less than half of all needs will be met by new entrants with qualifications and the rest will be met by continuing workers up-skilling. About three-quarters of training needs in the Transport and Logistics industries will be VET qualifications, 57 per cent of which will be at Certificate III/IV level. The demand for Certificate I/II qualifications will be largely met by new entrants. Only about 5 per cent of training needs are for Machinery Operators and Drivers, which is less than for Labourers. Even though the net replacement rate for Sales workers is very high, this does not translate into high training needs because only a small proportion hold qualifications. 5.2.1 Training needs —Logistics and Warehousing The minimum training needs in the Logistics sector for the five years to 2017 are estimated to be 56,000 people with qualifications (Table 5.4). The needs for workers with Certificate III/IV qualifications will be highest. At the higher education and diploma levels, needs are projected to be about 15,000 persons each. Almost 80 per cent of all training needs will be for three occupations: Storeperson, Stock Clerk and Supply and Distribution Manager. 5.2 Training needs—Transport and Logistics industries Table 5.3 shows that a minimum of about 151,000 workers with qualifications will be needed in the Transport and Logistics industries in the five years to 2017. Training needs will generally increase over time. Table 5.2 Training needs by occupation and qualification, persons, Australia, 2013–17 (‘000s) Occupation group Postgrad Bachelor Ad Dip Diploma Cert IV Cert III Cert II Cert I Total Managers 49 93 20 90 47 53 6 1 359 Professionals 154 282 10 88 39 24 3 1 601 Technicians & Trades 14 56 17 64 105 130 23 3 411 Community & Personal Services 10 33 10 57 44 74 8 1 237 Clerical & Administrative 34 63 12 75 44 63 14 1 306 Sales 24 43 26 31 21 41 11 2 199 Machinery Operators & Drivers 7 19 5 18 30 31 12 0 122 Labourers 18 22 6 37 26 52 11 2 173 All 311 611 104 459 356 469 88 10 2,408 Source: CEET. 5 | training needs 2013–17 Table 5.3 Training needs in Transport and Logistics industries by qualification, persons, Australia, 2013–17 (‘000s) Level of qualification 2013–17 2013 2014 2015 2016 2017 Total Average annual 2.9 4.3 4.1 3.8 5.1 20.3 4.1 New Entrants Higher education Advanced diploma/diploma 2.2 2.8 3.0 3.0 3.6 14.6 2.9 Certificate III/IV 4.7 6.1 5.7 5.2 6.3 27.9 5.6 Certificate I/II 0.9 1.1 1.0 0.9 1.0 5.0 1.0 Total 10.7 14.4 13.8 12.9 16.1 67.7 13.5 3.3 3.2 3.7 4.1 3.7 17.9 3.6 Continuing workers Higher education Advanced diploma/diploma 4.4 5.3 5.7 6.1 6.8 28.3 5.7 Certificate III/IV 5.5 6.6 7.3 8.0 8.8 36.1 7.2 Certificate I/II 0.3 0.3 0.3 0.3 0.3 1.3 0.3 Total 13.5 15.3 16.9 18.4 19.5 83.7 16.7 Total Higher education 6.2 7.5 7.8 7.9 8.8 38.2 7.6 Advanced diploma/diploma 6.6 8.1 8.6 9.1 10.4 42.9 8.6 Certificate III/IV 10.2 12.7 12.9 13.1 15.1 64.1 12.8 Certificate I/II 1.2 1.4 1.3 1.1 1.3 6.3 1.3 Total 24.2 29.7 30.7 31.3 35.6 151.4 30.3 Source: CEET. Table 5.4 Training needs in Logistics and Warehousing sector by qualification, persons, Australia, 2013–17 (‘000s) Occupation Higher Education Ad Dip/Dip Cert III/IV Cert I/II All Storeperson 5.0 2.0 7.2 1.3 15.5 Forklift Driver 1.3 0.2 3.7 0.7 5.9 Stock Clerk 4.3 6.2 3.2 0.5 14.2 Supply & Distribution Manager2 4.2 5.3 4.1 0.2 13.9 Fleet Manager3 0.6 0.7 1.8 0.1 3.2 Miscellaneous Workers 0.4 0.7 1.5 0.6 3.2 All (‘000) 15.8 15.2 21.4 3.4 55.8 All (%) 28.3 27.2 38.3 6.1 100.0 1 4 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The number of people with qualifications in 2012 is an estimate as the data on this will not be available until the end of year. The numbers in the table have been rounded to the nearest thousand. 1 Includes Postal Sorting Officer, Despatching and Receiving Clerk, Import-Export Clerk, Radio Despatcher. 2 Includes Post Office Manager and Warehouse Administrator. 3 Includes Transport Company Manager. 4 Includes Crane, Hoist and Lift operator, Crane Chaser and Freight Handler (Road and Rail). Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 74 5.2.2 Training needs—Road Transport 5.2.4 Training needs—Rail Despite employing a similar number of people as the Logistics sector, the training needs in the Road Transport sector are significantly higher. This is partly because the sector has a workforce with an older age profile than the Logistics sector, which means that replacement needs are likely to be higher, all else equal. Table 5.5 shows that 78,000 people with qualifications will be needed in the sector in the next five years. About two-thirds of the training needs will be for Truck Drivers and Delivery Drivers. Demand will be highest for people with Certificate III/IV level qualifications. Training needs for qualified workers in the Rail sector are projected to be about 6,500 over the next five years (Table 5.7). Two-thirds of these needs will be for Train and Tram Drivers. The needs for workers with higher education qualifications in the Train Drivers occupation is high and is a result of recent trends in the qualifications profile of workers in this occupation. As discussed earlier, the trends reflect supply-side factors and do not necessarily reflect the qualifications required to work in the occupation. 5.2.5 Training needs—Maritime and Ports 5.2.3 Training needs—Aviation Training needs in the Aviation sector are projected to be about 9,000 people with qualifications from 2013 to 2017 (Table 5.6). Two-thirds of these needs will be in just two occupations: Aeroplane Pilot and Aircraft Maintenance Engineer. About 140 Air Traffic Controllers with qualifications will be needed each year. The need for Aeroplane Pilots and Air Traffic Controllers will be mainly at the Diploma or higher level. In contrast, the need for Aircraft Maintenance Engineers will be predominantly at Certificate III/IV levels. Table 5.5 Training needs in the Maritime and Ports sector total 2,600 people with qualifications over the next five years, with more than half of these for Ship’s Engineer occupations (Table 5.8). Despite Waterside Workers comprising a substantial proportion of the sector’s workforce, training needs for the occupation are not that high because most workers in the occupation do not hold qualifications. Overall most qualification needs in the sector are for Diploma or higher level qualifications. Training needs in Road Transport sector by qualification, persons, Australia, 2013–17 (‘000s) Occupation Higher Education Ad Dip/Dip Cert III/IV Cert I/II All Truck Driver (General)1 3.1 1.1 24.4 1.4 30.0 Delivery Driver2 1.8 15.4 2.8 0.5 20.5 3 Taxi Driver 6.0 2.7 3.6 0.1 12.4 Bus Driver4 6.1 2.8 3.7 0.1 12.6 Miscellaneous Workers 0.4 0.5 1.2 0.1 2.2 All (‘000) 17.4 22.4 35.8 2.2 77.7 All (%) 22.3 28.9 46.0 2.8 100.0 5 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The numbers in the table have been rounded to the nearest thousand. 1 Includes Tanker Driver and Tow Truck Driver. 2 Includes Courier and Postal Delivery Officer. 3 Includes Chauffeur and Automobile Driver nec. 4 Includes Charter and Tour Bus Driver and Passenger Coach Driver. 5 Includes Driving Instructor, Furniture Removalist, Truck Driver’s Offsider and Armoured Car Escort. 5 | training needs 2013–17 Table 5.6 Training needs in Aviation sector by qualification, persons, Australia, 2013–17 (‘000s) Occupation Higher Education Ad Dip/Dip Cert III/IV Cert I/II All Aeroplane Pilot1 0.8 1.3 0.1 0.0 2.1 Flight Attendant 0.5 0.7 0.3 0.0 1.5 Air Traffic Controller 0.3 0.4 0.0 0.0 0.7 Aircraft Maintenance Engineer2 0.1 0.1 3.2 0.3 3.8 Miscellaneous Workers3 0.2 0.0 0.5 0.1 0.8 All (‘000) 1.8 2.5 4.1 0.4 8.8 All (%) 20.3 28.7 46.7 4.2 100.0 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. 1 Includes Flying Instructor and Helicopter Pilot. 2 Includes Avionics, Mechanical and Structures. 3 Includes Aircraft Baggage Handler and Airline Ground Crew and Aircraft Refueller. Table 5.7 Training needs in Rail sector by qualification, persons, Australia, 2013–17 (‘000s) Occupation Higher Education Ad Dip/Dip Cert III/IV Cert I/II All Train Driver 2.1 1.0 1.3 0.0 4.3 Railway Track Worker2 0.1 0.2 0.7 0.1 1.1 Railway Signal Operator 0.0 0.1 0.3 0.1 0.5 Miscellaneous Workers4 0.2 0.2 0.2 0.0 0.6 All (‘000) 2.5 1.4 2.5 0.2 6.5 All (%) 37.8 20.9 37.6 3.5 100.0 All 1 3 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The numbers in the table have been rounded to the nearest thousand. 1 Includes Tram Driver. 2 Includes Railways Assistant and Railways Track Plant Operator. 3 Includes Train Controller. 4 Includes Railway Station Manager, Travel Attendant nec., Train Examiner, Transport Operations Inspector and Transport Conductor. Table 5.8 Training needs in Maritime and Ports sector by qualification, persons, Australia, 2013–17 (‘000) Occupation Higher Education Ad Dip/Dip Cert III/IV Cert I/II Waterside Worker 0.1 0.2 0.2 0.1 0.6 Ship’s Engineer1 0.6 1.0 0.1 0.0 1.6 Deck Hand 0.1 0.2 0.1 0.0 0.4 All (‘000) 0.8 1.4 0.4 0.1 2.6 All (%) 29.0 54.4 13.5 3.1 100.0 Source: CEET. Small numbers have relatively large associated standard errors and should be used with caution. The numbers in the table have been rounded to the nearest thousand. 1 Includes Ship’s Master, Ship’s Officer, Ship’s Surveyor and Marine Transport Professionals nec. Australian Australian transport transport andand logistics logistics industry industry Forecasts Forecasts ofof labour labour and andskill skillrequirements requirements 2013–17 76 This report provides forecasts of labour and qualification needs in Transport and Logistics industries in Australia from 2013 to 2017. The report has used the most recent data and the most advanced models for this purpose to produce robust results. Models are always a simplification of reality. They can never capture the full range of complex behaviour of governments, individuals and firms that make up an economic system or their interactions with each other. They try to model what is known about individual and firm behaviour but cannot model what is unknown or is not understood. Therefore all models contain assumptions about complex behaviour of individuals and firms. Models can be sensitive to small changes in the assumptions made, but good models are generally more robust. Models are only as good as the quality of the data that are used to estimate them. Even the most reliable data have limitations because they are often derived from sample surveys which contain sampling and measurement errors and also because standard classifications are used for coding the data. Currently some types of data, such as skill sets, are not collected in the regular ABS surveys. Many workers in the transport and logistics industries hold occupational licenses (e.g. truck drivers) but because these licenses are not embodied in a formal qualification they are not identified in the official data collections. Yet workers holding such licenses are highly productive people. It is inevitable that developments that are currently unforseen will eventually render forecasts from any model, not just the ones included in this this report, to be inaccurate. This report contains short- to mediumterm forecasts and are, therefore, unlikely to have large margins of error. Notwithstanding the limitations outlined above, the forecasts of employment, job openings for new entrants and the training needs in the Transport and Logistics industries included in this report provide sound baseline data that are systematic, comprehensive and consistent for informing policy on workforce development. These forecasts are clearly a better alternative to ad hoc and partial evaluation of the labour market for Transport and Logistics industries that ignore inter-industry interactions with the rest of the economy. The forecasts should however be validated and fine-tuned with information from other sources and stakeholder consultation. It is also important to update the forecasts on a regular basis as new data become available and as improvements are made in forecasting models. Economic forecasts are never precise, especially over the longer term, and always have a certain degree of uncertainty attached to them. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 Tables and figures Table E1 5 Workforce profile in transport and logistics industries, 2002 5 Table E2 6 Table E3 Forecasts of employment in transport and logistics industries, 2017 (‘000) 8 Employment growth rate, net replacement rate and job openings in transport and logistics industries, Australia, 2013–17 8 18 Table 2.1 24 Occupations in the Logistics sector and their skill level Table 2.2 Occupations in the Road Transport sector and their skill level Table 2.3 24 Occupations in the Aviation sector and their skill level Table 2.4 Occupations in the Maritime and Ports sector and their skill level 31 Employment in Logistics sector by occupation, persons, 2002, 2007 and 2012 (‘000) Table 2.13 32 Gender distribution of employment in Logistics sector by occupation, Australia, 2002 and 2012 (%) 25 Occupations in the Rail sector and their skill level Table 2.5 30 Regional distribution of employment in transport and logistics industries by sector, Australia, 2012 (%) Table 2.12 24 30 Regional distribution of employment in transport and logistics industries by sector, Australia, 2002 (%) Table 2.11 Population projections by age, Australia, 2013–17 (millions) 30 Employment in transport and logistics industries by TLISC sector, persons, 2002, 2007 and 2012 (‘000) Table 2.10 Training needs in transport and logistics industries, Australia, 2013–17 (‘000) 28 Employment by qualification, persons, 2001, 2006 and 2011 (‘000) Table 2.9 Table E5 28 Employment by occupation, persons, 2002, 2007 and 2012 (‘000) Table 2.8 Table E4 26 Employment by industry, persons, 2002, 2007 and 2012 (‘000) Table 2.7 Workforce profile in transport and logistics industries, 2012 Table 1.1 Table 2.6 25 Table 2.14 32 Age distribution of employment in Logistics sector by occupation, Australia, 2002 and 2012 (%) Table 2.15 Qualification distribution of employment in Logistics sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) 34 TABLES AND FIGURES Table 2.16 34 Distribution of hours worked per week in Logistics sector by occupation, Australia, 2002 and 2012 (%) 35 Table 2.17 35 36 Table 2.19 37 Table 2.20 44 Age distribution of employment in Road sector by occupation, Australia, 2002 and 2012 (%) 37 Table 2.21 44 Gender distribution of employment in Rail sector by occupation, Australia, 2002 and 2012 (%) Table 2.29 Qualification distribution of employment in Road Transport sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) 43 Employment in Rail sector by occupation, persons, 2002, 2007 and 2012 (‘000) Table 2.28 Age distribution of employment in Road Transport sector by occupation, Australia, 2002 and 2012 (%) 42 Distribution of hours worked per week in Aviation sector by occupation, Australia, 2002 and 2012 (%) Table 2.27 Gender distribution of employment in Road Transport sector by occupation, Australia, 2002 and 2012 (%) 40 Qualification distribution of employment in Aviation sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) Table 2.26 Employment in Road Transport sector by occupation, persons, 2002, 2007 and 2012 (‘000) Table 2.18 Table 2.25 Distribution of hours worked per week in Road Transport sector by occupation, Australia, 2002 and 2012 (%) Table 2.30 45 Qualification distribution of employment in Rail sector by occupation, 15–64 year-olds, Australia, 2001 and 2011 (%) 39 Table 2.22 Employment in Aviation sector by occupation, persons, 2002, 2007 and 2012 (‘000) Gender distribution of employment Aviation sector by occupation, Australia, 2002 and 2012 (%) Age distribution of employment in Aviation sector by occupation, Australia, 2002 and 2012 (%) Table 2.32 46 Employment in Aviation sector by occupation, persons, 2002, 2007 and 2012 (‘000) 40 Table 2.24 45 Distribution of hours worked per week in Rail sector by occupation, Australia, 2002 and 2012 (%) 40 Table 2.23 Table 2.31 Table 2.33 47 Gender distribution of employment in Maritime and Ports sector by occupation, Australia, 2002 and 2012 (%) Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 80 Tables and figures (cont.) Table 2.34 47 Age distribution of employment in Maritime and Ports sector by occupation, Australia, 2002 and 2012 (%) Table 2.35 48 48 Table 4.3 53 Forecasts of employment in transport and logistics industries, persons, Australia, 2012 (actual), 2013–17 (forecasts) (‘000) Table 3.5 Forecasts of employment in transport and logistics industries by qualification, persons, Australia, 2012 (estimate), 2013–17 (forecasts) (‘000) Table 3.6 57 Table 3.7 58 Forecasts of employment in Rail Transport sector by qualification, persons, Australia, 2012 (estimate), 2017 (forecasts) (‘000) 68 Table 5.1 72 Training needs by qualification, persons, Australia, 2013–17 (‘000) Table 5.2 58 60 74 Training needs in transport and logistics industries by qualification, persons, Australia, 2013–17 (‘000) Table 5.4 60 73 Training needs by occupation and qualification, persons, Australia, 2013–17 (‘000) Table 5.3 Forecasts of employment in Aviation Transport sector by qualification, persons, Australia, 2012 (estimate), 2017 (forecasts) (‘000) Table 3.10 68 Forecasts of job openings for new entrants in Maritime and Ports sector, Australia, 2013–17 (‘000) Forecasts of employment in Road Transport sector by qualification, persons, Australia, 2012 (estimate), 2017 (forecasts) (‘000) Table 3.9 67 Forecasts of job openings for new entrants in Rail Transport sector, Australia, 2013–17 (‘000) Table 4.9 Forecasts of employment in Logistics sector by qualification, persons, Australia, 2012 (estimate), 2017 (forecasts) (‘000) Table 3.8 67 Forecasts of job openings for new entrants in Aviation Transport sector, Australia, 2013–17 (‘000) Table 4.8 Forecasts of employment in transport and logistics industries by sector and qualification, persons, Australia, 2012 (estimate), 2017 (forecasts) (‘000) 66 Forecasts of job openings for new entrants in Road Transport sector, Australia, 2013–17 (‘000) Table 4.7 57 66 Forecasts of job openings for new entrants in Logistics sector, Australia, 2013–17 (‘000) Table 4.6 55 66 Forecasts of job openings for new entrants in transport and logistics industries, Australia, 2013–17 (‘000) Table 4.5 54 Employment forecasts by qualification, persons, Australia, 2012 (estimate), 2013–17 (forecasts) (‘000) Table 3.4 64 Employment growth and net replacement rates in transport and logistics industries, Australia, 2013–17 (%) Table 4.4 53 Employment forecasts by major occupation group, persons, Australia, 2012 (actual), 2013–17 (forecasts) (‘000) Table 3.3 Table 4.2 Forecasts of job openings for new entrants by major occupation group, Australia, 2013–17 (‘000) Employment forecasts by major industry group, persons, Australia, 2012 (actual), 2013–17 (forecasts) (‘000) Table 3.2 64 Employment growth and net replacement rates by major occupation group, Australia, 2013–17 (%) Distribution of hours worked per week in Maritime and Ports sector by occupation, Australia, 15–64 year-olds, 2002 and 2012 (%) Table 3.1 60 Forecasts of employment in Maritime and Ports sector by qualification, persons, Australia, 2012 (estimate), 2017 (forecasts) (‘000) Table 4.1 Qualification distribution of employment in Maritime and Ports sector by occupation, Australia, 2001 and 2011 (%) Table 2.36 Table 3.11 74 Training needs in Logistics sector by qualification, persons, Australia, 2013–17 (‘000) Table 5.5 Training needs in Road Transport sector by qualification, persons, Australia, 2013–17 (‘000) 75 TABLES AND FIGURES Table 5.6 76 Training needs in Aviation sector by qualification, persons, Australia, 2013–17 (‘000) Table 5.7 76 Training needs in Rail sector by qualification, persons, Australia, 2013–17 (‘000) Table 5.8 76 Training needs in Maritime and Ports sector by qualification, persons, Australia, 2013–17 (‘000) Figure 1 55 Employment in transport and logistics industries, persons, Australia, 2002-12 (historical) 2013-17 (forecasts) Figure 2 56 Employment in Logistics and Road Transport, persons, Australia, 2002-12 (historical) 2013-17 (forecasts) Figure 3 Employment in Aviation, Rail and Maritime and Ports, persons, Australia, 2002-12 (historical) 2013-17 (forecasts) 56 82 References Adams, P, Dixon, P, McDonald, D, Meagher, G & Parmenter, B 1994, 'Forecasts for the Australian economy using the MONASH model', International Journal of Forecasting, vol. 10, pp. 557-571. Australian Workforce and Productivity Agency 2012, Australia's skills and workforce development needs, Australian Workforce and Productivity Agency, Canberra. Aplebaum Consulting Group Pty 2008, Workforce participation in Australian transport and logistics, Report prepared for the Australian Logistics Council, Queensland Transport and Transport and Logistics Industry Skills Council, Melbourne. Bureau of Labor Statistics 2006, Occupational Projections and Training Data, 2006-07 Edition, Bulletin 2602, U.S. Department of Labor, Washington DC. Australian Bureau of Statistics (ABS) 2006, Australian and New Zealand Standard Classification of Occupations (ANZSCO), Cat. No. 1220.0, ABS, Canberra. Burke, G, Ferrier, F, Keating, J & Long, M 2003, Human and Social Capital, the contribution of education and training to the formation and accumulation of human and social capital and the implications for Victoria, Report to Department of Education and Training, Melbourne. Australian Bureau of Statistics (ABS) 2008, Population Projections, Australia, 2006-2101, Cat. no. 3222.0, ABS, Canberra. Dixon, P & Rimmer, M 1996, 'MONASH forecasts of output and employment for Australian industries', Australian Bulletin of Labour, vol. 22, pp. 235-264. Australian Bureau of Statistics (ABS) 2009, Labour Force, Australia, May 2010, Cat. no. 6202.0, ABS, Canberra. Dixon, P & Rimmer, M 2000, 'Forecasting and Policy Analysis with a Dynamic CGE Model of Australia', pp. 363-405, in G Harrison, S Jensen, L Pedersen & T Rutherford (eds), Using Dynamic GE Model for Policy Analysis, North-Holland, Amsterdam. Australian Bureau of Statistics (ABS) 2012, Australian system of national accounts 2011-12, Cat. no. 5204.0, ABS, Canberra. Australian Bureau of Statistics (ABS) 2012a, Australian National Accounts: National Income, Expenditure and Product, Jun 2012, Cat. no. 5206.0, ABS, Canberra. Australian Bureau of Statistics (ABS) 2012b, Labour Force, Australia, June 2012, Cat. no. 6202.0, ABS, Canberra. Australian Bureau of Statistics (ABS) 2012c, Labour Force, Australia, May 2012, Cat. no. 6202.0, ABS, Canberra. Australian Government 2010, Australia to 2050: future challenges, Australian Treasury, Canberra. Foyster, J, Hon, KF & Shah, C 2000, Student flows through Australian TAFE courses, NCVER, Adelaide. Government of Victoria 2008, Securing jobs for your future: Skills for Victoria, Melbourne, viewed 30 May 2011, <http://www.skills.vic.gov.au/__data/assets/ pdf_file/0003/15969/SecuringJobsforYourFutureSkillsforVictoria.pdf> Industry Commission 1997, The Textiles, Clothing and Footwear Industries (2 Volumes), No. 59, Industry Commission, Canberra. Kerr, P 2012, 'BHP aims to dump trucks', The Age, 1 November 2012. Australian Government 2012a, Australian regional labour markets March quarter 2012, DEEWR, Canberra. Lockard, C & Wolf, M 2012, 'Occupational employment projections to 2020', Monthly Labor Review, vol. January 2012, pp. 84-108. Australian Government 2012b, Budget 2011-12, Australian Treasury, Canberra. Long, M & Shah, C 2008, Private returns to vocational education and training qualifications, NCVER, Adelaide. REFERENCES Maglen, L 2001, 'Australians working in a global economy and what this means for education and training', Working paper No. 39, Monash UniversityACER Centre for the Economics of Education and Training, Monash University, Melbourne. Maglen, L & Shah, C 1999, 'Emerging occupational patterns in Australia in the era of globalisation and rapid technological change: Implications for education and training', Working paper no. 21, Monash UniversityACER Centre for the Economics of Education and Training, Monash University, Melbourne. Maiden, M 2012, 'Fahour's strategy wins the stamp of approval', The Age, 12 October 2012. Mark, K & Karmel, T 2010, The likelihood of completing a VET qualification: A model-based approach, Technical Paper, NCVER. Martin, YM, Maclachlan, M & Karmel, T 2001, Undergraduate completion rates: an update, Occasional Paper 01/F, Higher Education Group, Department of Education, Science and Training, Canberra. Meagher, G 1997, 'Changes in the demand for labour in Australia', in Proceedings of Workshop on Changing Labour Markets: Prospects for Productivity Growth, Industry Commission, Melbourne. Meagher, G, Adams, P & Horridge, M 2000, 'Applied general equilibrium modelling and labour market forecasting', Working paper no. IP-76, Centre of Policy Studies, Melbourne. National Centre for Vocational Education Research (NCVER) 2012, Students and courses: Australian vocational education and training statistics 2011, NCVER, Adelaide, SA. OECD 2005, Employment Outlook 2005, OECD, Paris. Plumb, M, Baker, M & Spence, G 2010, The labour market during the 2008-2009 downturn, Bulletin - March Quarter 2010, Reserve Bank of Australia. Ryan, C 2002, Individual returns to vocational education and training: Their Implications for lifelong learning, NCVER, Leabrook, SA. Shah, C 2009, 'Determinants of job separation and occupational mobility in Australia', Working paper no. 66, ACER-Monash University Centre for the Economics of Education and Training, Monash University, Melbourne. Shah, C 2010, Demand for qualifications and the future labour market in Australia 2010 to 2025, Report to the Department of Education, Employment and Workplace Relations (DEEWR), Canberra. Shah, C & Burke, G 1999, 'An undergraduate student flow model: Australian higher education', Higher Education, vol. 37, pp. 359-375. Shah, C & Burke, G 2001, 'Occupational replacement demand in Australia', International Journal of Manpower, vol. 22:7, pp. 648-663. Shah, C & Burke, G 2003, 'Changing skill requirements in the Australian labour force in a knowledge economy', Working paper no. 48, Monash University-ACER Centre for the Economics of Education and Training, Monash University, Melbourne. Shah, C & Long, M 2010, Forecasts of labour and skills requirements in the service industries, 2010-2015, Report to Services Skills Australia, Canberra. Transport and Logistics Skills Council 2012, Environmental Scan 2012, Transport and Logistics Skills Council, Canberra. Urban, M, Jones, E, Smith, G, Evans, C, Maclachlan, M & Karmel, T 1999, Completions: Undergarduate academic outcomes for 1992 commencing students, Occasional Paper Series 99G, Higher Education Division, Department of Education, training and Youth Affairs, Canberra. Australian transport and logistics industry Forecasts of labour and skill requirements 2013–17 84 AUSTRALIAN TRANSPORT AND LOGISTICS INDUSTRY 2013–17 Transport & Logistics Industry Skills Council P: 03 9604 7200 F: 03 9629 8903 E: enquiries@tlisc.org.au tlisc.org.au Ce ntre for the Economics of Education and Tra i n i n g Fa c u l t y o f E d u c a t i o n , Mo n a s h U n i v e r s i t y