Financial and Insurance Services
Labour Market Snapshot
Workforce Planning Australia | December 2012

The Financial Services Industry employs 426, 900 people, representing around 3.5% of the total Australian workforce.
The Industry plays a critical role as a barometer for the Australian economy in the global environment and as such is highly sensitive to the state of international money markets.
Signs of recovery were evident during 2010 and 2011, however following the downturn experienced in 2008-09, further instability in late 2011 in the United States and Europe has once again impacted on the Australian Financial Services Industry.
The Industry is highly regulated, which provides confidence to local and overseas investors.
The industry ranks second behind mining for gross value added – making it a very important contributor to Australia’s economy, with widespread demand for its services from all industries.
Workforce development needs are being driven by continuing and expanding regulation of occupations in the sector; extension of the reach of existing technology, eg the National
Broadband Network (NBN), and the emergence of new innovations in information technology (IT).
Demand for specialisation continues, combined with an increasing demand for skills converging with IT and business.
Source: IBSA Environmental Scan 2012
2 |

The Financial and Insurance Services industry is divided into nine key sectors:
Central Banking
Depository Financial
Intermediation
Non-Depository
Financing
Auxiliary Insurance
Services
Life Insurance
Health and General
Insurance
Financial Asset
Investing
Superannuation
Funds
Auxiliary Finance and Investment
Services
Source: DEEWR, Australian Jobs, 2011
3 |

•
Arts and Recreation Services is the third smallest of 19 industries classified under
ANZICS. In August 2012 approximately 218,000 people were employed in the industry.
Industry Employment Level February 2012
Source: ABS Labour Force Survey (trend data) cat no 6291.0.55.003, DEEWR, Skills Info 2012 .
5 |

Employment growth has been gradual with some minor fluctuations over the period 1993-
2011. Total employment was 426, 900 people as at May 2012.
Employment is sensitive to factors including macroeconomic, financial regulation, the global economic environment, industry policies and changes in technology.
Figure: Employment Level (‘000)- 1994 to 2012
Financial and Insurance Services - Employment Level ('000s)
February 1994 to 2012
450
407.5
405.8
395.2
400
376.7
365.3
350.8
350.3
344.0
350 337.8
335.8
321.6
312.6
315.5
319.4
311.8
318.7
300
406.7
409.4
424.9
250
200
150
100
50
0
1994 1995 1996 1997 1998 1999 2000 2001
Source: ABS Labour Force Survey cat. no. 6291.0.55.003, (trend data)
6 |
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

•
•
The largest industry sector is
Depository Financial
Intermediation (includes
Banking), accounting for
182, 900 workers (43% of employment at May 2012)
Figure: Employment levels by industry sector 2012
Financial and Insurance Services - Employment Level - Feb 2012 ('000s)
Depository Financial Intermediation
Auxiliary Finance, Investment Services
Health, General Insurance 70.0
105.3
Auxiliary Finance and
Investment Services (Asset brokering etc.) is the second largest employing sector employing 100, 800 workers
(24%) followed by Health and General Insurance
(64, 900 workers or 15%).
Auxiliary Insurance Services
Superannuation Funds
Non-Depository Financing
Financial Asset Investing
Life Insurance
Central Banking 0.4
5.3
3.0
2.4
15.7
14.3
0 20 40 60 80 100 120 140 160
175.7
180 200
Source: ABS Labour Force Survey cat. no. 6291.0.55.003, (trend data
7 |

•
•
•
Project employment growth is expected to vary significantly across the nine industry segments.
Over the next 5 years growth is predicted to be strongest in
Superannuation Funds
(13.1%) followed by Health
General Insurance (6.1%) and Auxiliary Finance and
Investment Services
(5.1%)
Segments predicted to decline include:



Non- Depositary
Financing (-22.4%)
Financial Asset Investing
(-15%)
Life Insurance (-9.4%)
-22.4%
-25 -20
-15.0%
5 year growth to 2016-17 ('000)
-15
-9.4%
-10 -5
-0.3
-0.6
-0.6
0
0.9
0.0
2.0
3.5%
6.2
6.1
5.1%
4.2
6.1%
4.1%
5
Source: DEEWR, Finance and Insurance Services Employment Outlook 2012 ( DEEWR Employment Projections to 2016-17)
8 |
4.6%
10
5 year growth to 2016-17 (%)
13.1%
Superannuation Funds
15
Depository Financial Intermediation
Auxiliary Finance and Investment Services
Health and General Insurance
Auxiliary Insurance Services
Central Banking
Life Insurance
Financial Asset Investing
Non-Depository Financing

•
•
•
The distribution of industry employment tends to correspond with population distribution, as most households and businesses use finance & insurance services.
Figure 4: Employment Change by State (‘000) – five years to May 2012
New South Wales
Victoria
N.S.W dominates employment
(42% or 180, 000 workers), with the Greater Sydney region alone accounting for 36% of total employment.
Queensland
South Australia
Northern Territory
Tasmania
Victoria accounts for another
27% (or 113, 800 people) of employment with the vast majority of those workers located in the Melbourne area.
Australian Capital Territory
Western Australia
-4
-1.6
-2
-0.6
0
0.1
0.1
2 4
4.7
6
5.9
6.8
8
10.3
10 12
Source: DEEWR, Finance and Insurance Services Employment Outlook 2012
9 |

•
•
•
Financial and Insurance Services
- Top 20 Employing Occupations in 2012 ('000s)
Employment is concentrated in three occupational groups: Bank Workers
Financial Investment Advisers and Managers
1.
Clerical /Administrative (44%)
Insurance, Money Market and Statistical …
Credit and Loans Officers
25.5
24.1
2.
Professionals (35%)
22.3
Financial Brokers
3.
Managers (16%).
Financial Dealers 18.2
20.2
Accountants 18.0
Over the last decade, there has been a decline in Clerical /
Administrative Workers and growth in the proportion of
Professionals.
Finance Managers
Insurance Agents
General Clerks
Software and Applications Programmers
Advertising and Sales Managers
Accounting Clerks
Personal Assistants 7.4
9.7
9.4
8.7
11.3
11.0
10.1
Occupations projected to generate
Call or Contact Centre Workers
Inquiry Clerks
7.3
7.2
growth over the next 5 years include Accountants (11 400),
Other Hospitality, Retail and
Service Managers (3,300),
Management and Organisation Analysts
Keyboard Operators
ICT Business and Systems Analysts
0
6.1
5.9
5.6
10 20 30
Finance Managers (3,100) and
Financial Investment Advisers and
Managers (3,100)
•
40
39.7
50
Employment of Bank Workers (the single largest occupation in the industry) is projected to decline slightly (by 1000 workers) in the coming five years.
54.9
60
Source: DEEWR, Finance and Insurance Services Employment Outlook 2012 (
10 |

DEEWR analysis has identified that recruitment difficulty is not particularly widespread in the Financial and Insurance Services industry, but that vacancies for a number of the industry’s largest employing occupations are considered difficult to fill by employers.
Hard to fill jobs include:
Table 1: Occupations Difficult to Fill in the Financial and Insurance Services Industry by Skill Level
Higher Skill, Qualifications or Experience
Financial Investment Advisers and Managers
Personal Assistants
Financial Brokers
Lower Skill, Qualification or Experience
Bank Workers
Credit and Loans Officers
Insurance Agents
Other Hospitality, Retail and Service Managers
General Clerks*
Insurance, Money Market and Statistical Clerks
Source: DEEWR, Finance and Insurance Services Employment Outlook 2012
11 |

The following occupations and job roles were reported as in demand in the Financial
Services industry at IBSA’s Escan industry consultation and validation forums conducted in
2011:
Accountant/
Manager
Accounts
Assistant/
Accounts
Officer/Senior
Supervisor
Auditor
Officer/Accounts
Debt Collector
Financial
Investment
Advisor
Financial
Investment
Planner/Adviser/
Insurance Broker
Insurance
Consultant Claims
Insurance Officer –
Health and Life
Insurance
Financial
Investment
Technical
Specialist
Financial Planning
Manager –
Development
Relationship and
Client Service
Compliance
Financial Services
– Call Centre/Card
Services
Officer/Customer
Service/Business
Source: IBSA Environmental Scan 2011
12 |
Relationship
Development
Superannuation
Advisor
Superannuation
Funds Manager/
Administrator

Workforce development challenges identified by the IBSA Financial Services Environmental scan include:
Financial Services Workforce Development Challenges
Increasing regulation and compliance
Managing and monitoring compliance to mitigate risk and minimise impact on effective and efficient delivery of services and products
Skills convergence Blurring of the lines between job roles and skill requirements
Maximising high speed broadband use capability
Having the skills and knowledge to develop innovative products and services to meet client needs.
Source: IBSA Environmental Scan 2011
13 |

2006 vs. 2011 Census Data
Moira
159 (2006)
156 (2011)
G Shepparton
555 (2006)
474 (2011)
Strathbogie
50 (2006)
59 (2011)
Benalla
75 (2006)
69 (2011)
Indigo
71 (2006)
79 (2011)
Wangaratta
219 (2006)
217 (2011)
Wodonga
404 (2006)
338 (2011)
Alpine
58 (2006)
77 (2011)
Mitchell
234 (2006)
294 (2011) Murrindindi
58 (2006)
67 (2011)
Source: ABS Census Data 2006 and ABS Census Data 2011
15 |
Mansfield
27 (2006)
38 (2011)
Total Industry
1,949 (2006)
1,904 (2011)
2.3%
Towong
39 (2006)
36 (2011)
Hume Region Boundary
Sub-region Boundary
Local Government Area
(LGA) Boundary

According to Monash projections employment is expected to decline steadily over the period to 2014-5 and level out over the 2015-6 period.
Employment will recover slightly in 2016-7 but will not return to previous levels.
3,580
3,560
3,540
3,520
3,500
3,480
3,460
3,440
3,420
3,400
3,380
Finance/insurance employment
2012-3 2013-4 2014-5 2015-6 2016-7
Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria.
Source: Monash Centre of Policy Studies, 2011 (Hume Employment: by ANZSCO occupation, '000 persons, 2010-1 to 2017-8)
16 |

The top employing occupations employment levels in the region are as follows:
Finance & Insurance Services (Top 10 occupations by employment level Hume)
ANZSCO ID Occupation Employment (2011-12)
K
552
222
149
221
132
Finance/insurance employment
Financial/Insurance Clerks
Finan.l Brokers etc
Misc Hospitality Retail Managers
Accountants/Auditors etc
Business Admin Managers
3.490
1.119
0.572
0.252
0.129
0.111
551
611
531
Acc Clerks & Bookkeepers
Insurance Agents etc
General Clerks
0.108
0.101
0.093
224 Info & Organisation Profs 0.076
521 Personal Assistants etc 0.074
Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria .
Source: Monash Centre of Policy Studies, 2011 (Hume Employment: by ANZSCO occupation, '000 persons, 2010-1 to 2017-8)
17 |

•
Monash projections show variable growth in Finance and Insurance occupations.
•
The largest occupations Financial / Insurance Clerks / Brokers will decline.
Personal Assistants etc
Info & Organisation Profs
General Clerks
Insurance Agents etc
Acc Clerks & Bookkeepers
Business Admin Managers
Accountants/Auditors etc
Misc Hospty Retail Managers
Finan.l Brokers etc
Financial/Insurance Clerks
0,000
2012-3
2016-7
0,500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria.
Source: Monash Centre of Policy Studies, 2011 (Hume Employment: by ANZSCO occupation, '000 persons, 2010-1 to 2017-8)
18 |

Book keeper
Accountant
Bank Worker

•
The Hume Finance and Insurance services industry has experienced an increase in VET course enrolments across all age groups.
•
Significant growth has been experienced in those aged 35-49.
60
50
40
30
20
10
0
15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 and over
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
20 |
Not stated
2008
2011

300
•
Growth in VET course enrolments is attributable to increased enrolments in the Certificate IV level qualification.
•
The diploma level course has experienced a decrease in enrolments.
•
The diversity of students enrolled in
VET courses has been variable.
•
There has been an increase in the proportion of disabled students while
CALD students have decreased.
•
There has been a very small increase in the proportion of Indigenous students (1%>).
250
200
150
100
50
0
12%
10%
8%
Advanced
Diploma
Certificate
II
Certificate
III
Certificate
IV
Diploma
6%
4%
2%
0%
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
21 |
Disabled Indigenous CALD
2008
2011
2008
2011

:
•
Book Keepers in Hume have experienced an increase in VET course enrolments across all age groups.
•
The strongest growth has experienced in those aged 45-49.
40
35
30
25
20
15
10
5
0
15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 and over
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
23 |
Not stated
2008
2011

:
120
100
•
Growth in VET course enrolments is attributable to increased enrolments in the Certificate IV level qualification in Financial Services (Bookkeeping).
80
60
40
•
The Certificate IV level qualification in
Financial Services (Accounting) has also experienced growth.
20
0
•
The diversity of students enrolled in
VET courses has been variable.
Certificate IV in Accounting
Certificate IV in Bookkeeping
Certificate IV in Financial
Services
(Accounting)
•
There has been a significant decrease in the proportion of CALD students enrolled in VET courses.
30%
25%
20%
•
The proportion of disabled students has been stable.
15%
•
There has been a very small increase in the proportion of Indigenous students (1%>).
10%
5%
0%
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
24 |
Disabled Indigenous
Certificate IV in Financial
Services
(Bookkeeping)
CALD
2008
2011
2008
2011

•
Accountants VET course enrolments have declined over the period from 2008-2011(from
118 to 86).
•
The decline has been variable across age groups with a significant drop in those aged
35-39 and 35-39.
•
The only age group to experience minor growth was those aged 15-19.
25
20
15
10
5
0
15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
26 |
45 to 49 50 to 54 55 to 59 60 to 64
2008
2011

120
•
The decline in Accountants VET course enrolments is attributable to a significant decrease in enrolments in the Diploma of Accounting.
100
80
60
•
The Advanced Diploma of Accounting has experienced some minor growth.
40
20
•
Despite a decrease in enrolments the diversity of students enrolled in VET courses has increased.
0
Advanced Diploma of Accounting
Advanced Diploma of Business
(Accounting)
•
•
There has been growth in the proportion of Disabled and CALD students enrolled in VET courses.
There are no indigenous students in
VET courses.
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
27 |
Disabled Indigenous
Diploma of
Accounting
CALD
2008
2011
2008
2011

•
Bank worker VET course enrolments have grown slightly over the period from 2008-2011
(46 to 63)
•
The growth in Hume Bank Workers enrolments has been variable across age groups.
•
There has been significant growth in those aged 15-19 and 20-24.
•
There has been a decline in the 45-49 age group.
25
20
15
10
5
0
15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 Not stated
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
29 |
2008
2011

•
•
Growth in Bank Worker VET course enrolments is attributable to a significant increase in enrolments in the Certificate IV in Financial Services qualification. There has also been minor growth in the Cert III level
Financial services course.
The diversity of students enrolled in
VET courses has increased with growth in both Disabled and CALD students.
5%
5%
4%
4%
3%
3%
2%
2%
1%
1%
0%
60
50
40
30
20
10
0
Certificate II in
Financial Services
Certificate III in
Financial Services
Certificate IV in
Financial Services
Disabled Indigenous CALD
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
30 |
2008
2011
2008
2011

•
Finance Broker VET course enrolments have grown slightly over the period from 2008-
2011 (1 to 12)
•
The growth in Broker enrolments has been variable across age groups.
•
There has been a decline in the 20-24 year old age group.
1,5
1
0,5
0
3
2,5
2
4,5
4
3,5
15 to 19 20 to 24 25 to 29 30 to 34 35 to 39
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
32 |
40 to 44 55 to 59 65 and over
2008
2011

•
•
Growth in Broker VET course enrolments is attributable to a significant increase in enrolments in both Diploma of Financial Services qualifications.
The diversity of students enrolled in
VET courses has decreased with a reduction in the proportion of CALD
Broker students.
7
6
3
2
5
4
1
0
120%
Diploma of Financial Services Diploma of Financial Services
(Finance/Mortgage Broking
Management)
100%
80%
60%
40%
20%
0%
Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.
33 |
Disabled Indiginous CALD
2008
2011
2008
2011

35 |
The Financial Services Industry employs 426, 900 people, representing around 3.5% of the total Australian workforce.
Employment growth has been gradual with some minor fluctuations over the period 1993-
2011. Total employment was 426, 900 people as at May 2012.
Over the next 5 years growth is predicted to be strongest in Superannuation Funds
(13.1%) followed by Health General Insurance (6.1%) and Auxiliary Finance and
Investment Services (5.1%)Segments predicted to decline include:

Non- Depositary Financing (-22.4%)


Financial Asset Investing (-15%)
Life Insurance (-9.4%)
Total industry employment in Hume is around 3,560 people. According to Monash CoPS projections Hume employment is expected to decline to 2014-5 and recover slightly in
2016-7, although it is not predicted to return to previous levels.
The Hume industry has experienced an increase in VET course enrolments across all age groups. Growth in VET course enrolments is attributable to increased enrolments in the
Certificate IV level qualification and an increase in the proportion of disabled students. The proportion of CALD students declined.

The data challenges included:
1.
Different definitions of industries / occupations between ABS, Industry Skills Councils and Monash.
2.
3.
4.
5.
6.
7.
Different Time periods used by different sources
Old Data - ABS Census is now 6 years old. 2011 ABS Census data has been used where available.
Lack of HUME region industry data particularly for industries where employers are predominantly private sector (e.g. Retail, manufacturing and Transport and Logistics)
Lack of regional Skills Shortage Data – DEEWR lists are at the State level
Changes in name and level of VET qualifications (training packages)
Poor sourcing of data – The data source and date were unclear for some data sources.
Limitation of Liability
This Labour Market Snapshot has been compiled using data which, to the best of Workforce Planning
Australia’s knowledge, was current and correct at the time of printing.
WPA gives no warranty as to the accuracy of the information contained herein nor its applicability to any specific circumstances. It is intended as a guide only and Workforce Planning Australia will not be liable to any person as a result of any actual or perceived inaccuracy contained in this report.