Labour Market Research – Engineering Professions
Victoria
June 2015
Occupations in cluster
Rating
2332-11,12,14,15
Civil Engineering Professionals (exc. Quantity Surveyor)
No shortage
2333-11
Electrical Engineer
No shortage
2335-12
Mechanical Engineer
No shortage
2336-11
Mining Engineer (exc. Petroleum Engineer) *
No Shortage
2336-12
Petroleum Engineer *
No Shortage
* Occupations assessed at the national level. Separate ratings are not available for Victoria and the specific survey findings
for these occupations are not discussed within this cluster report.
Key issues
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In 2015, all engineering occupations assessed at both the Victorian state and national level retained
a no shortage rating, consistent with the results of the previous year.
Survey results for occupations assessed at the Victorian state level remains strong overall and are
reflective of employer comments reporting an ability to fill most engineering profession vacancies
without difficulty.
Employers frequently commented that there was currently little need to openly advertise for junior
level positions requiring less than two years of experience due to the availability of large numbers of
recent engineering graduates.
Employers reported an increase in the number of experienced engineers returning to Victoria from
mining and resource-related projects in Queensland and Western Australia. Employers reported
that these applicants were largely found to be unsuitable for most Victorian engineering vacancies
(although a limited number of exceptions were identified in the manufacturing sector).
Demand from the manufacturing industry for electrical and mechanical engineers remains subdued
as the Victorian sector continues to experience contractions in activity.
Survey results
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ISSN: 2202-5278
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The Department of Employment June 2015 Survey of Employers who have Recently Advertised
(SERA) found that 80 per cent of Victorian engineering profession vacancies were filled from an
average of 48.0 applicants and 1.8 suitable applicants per vacancy.
Metropolitan employers attracted an average of 56.9 applicants per vacancy whilst regional
employers attracted an average of 24.1 applicants per vacancy. Despite this disparity, both locations
attracted similar numbers of suitable applicants per vacancy (1.8 in metropolitan areas compared to
2.0 in regional areas) and similar vacancy fill rates (78 per cent of vacancies filled in metropolitan
areas compared to 83 per cent in regional areas).
Labour Economics Office Victoria
Department of Employment
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Figure 1: Proportion of vacancies filled (%), average number of applicants and suitable applicants
per vacancy (no.), Engineering Professions, Victoria, 2007-08 to 2014-15
100
60
90
Proportion of vacancies filled - LHS
80
48
70
60
36
(%) 50
40
(no.)
24
Applicants per vacancy - RHS
30
20
12
Suitable applicants per vacancy - RHS
10
0
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
LHS: Left hand side axis, RHS: Right hand side axis
Source: Department of Employment, Survey of Employers who have Recently Advertised
Note: Occupational coverage varies over time series
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All occupations assessed at the state level for Victoria recorded a drop in suitable applicant numbers
compared to 2014 results. While the decrease was relatively minor for civil engineering
professionals and electrical engineers, the average number of suitable applicants per vacancy for
mechanical engineers fell by more than half (5.1 in 2014 down to 2.2 in the current survey).
Despite a drop in suitable applicant numbers, electrical engineers recorded an increase in the
vacancy fill rate and average number of applicants per vacancy (81 per cent of vacancies filled and
64.3 applicants in the current survey compared to 76 per cent and 32.6 applicants in 2014). The
vacancy fill rate and average number of applicants per vacancy for civil engineering professionals
and mechanical engineers both declined, however the reduction was more marked for mechanical
engineers:
o Mechanical engineers recorded a fill rate of 77 per cent, compared to 100 per cent in 2014;
applicants per vacancy fell to 42.5 from 98.6.
Overall however, while mechanical engineer results declined the most out of the occupations
assessed in Victoria compared to 2014 results, employers nonetheless reported an ability to source
suitable applicants and fill most vacancies within a six week period. Additionally, the current survey
results are above longer term trends; SERA results for the mechanical engineering occupation
averaged over the preceding five years from 2009 to 2013 show an annual vacancy fill rate of 68 per
cent, with 33.0 applicants and 1.9 suitable applicants per vacancy.
Victorian Survey Findings
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The vacancies surveyed across the engineering profession cluster related to a variety of engineering
roles including design, project management, reliability engineering, capital works management, and
maintenance and servicing. These positions were distributed broadly across a range of industry
sectors related to land development, municipal services, road and rail transport, utility services,
engineering construction, manufacturing, fabrication, electricity services, railway signaling, building
services and engineering design and consultancy services.
Labour Economics Office Victoria
Department of Employment
Page 2
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The levels of experience commonly desired by employers ranged from two to three years for
intermediate level roles, through to five to ten years for senior level roles; there were also a number
of specialist senior level positions calling for experience above 10 years.
Employers frequently noted that there was currently little need to openly advertise for junior level
positions requiring less than two years of experience due to the large number of readily available
recent graduates.
All vacancies required a relevant bachelor degree level engineering qualification as a minimum.
While senior roles for civil engineering professionals (generally in the 10 year and above experience
range) also commonly required applicants to possess additional certification as a Certified Practicing
Engineer (CPEng), this was less common for electrical and mechanical engineering roles.
The technical skill sets required by employers were highly particularized to specific industry areas
and by consequence transferability across sectors was found to be limited. Accordingly, high levels
of technical acumen gained through similar role functions within a related industry sector were
considered to be essential.
Capabilities which were commonly desired for most roles included proficiency with various
Computer Aided Drafting (CAD) software systems and detailed understanding of national and state
regulatory conditions relevant to the industry sector. Particular focus was also placed on Workplace
Health and Safety (WH&S) practices.
More broadly, commonly desired employability skills included strong time management, planning,
analysis and problem solving abilities, as well as attention to detail and accuracy when undertaking
technically complex tasks. Significant focus was also placed on interpersonal and communication
skills and the ability to liaise with internal and external stakeholders in multi-disciplinary
environments. Leadership skills and the ability to provide mentoring support were also identified as
areas of focus for senior level roles.
The vacancies which remained unfilled at the time of survey for civil engineering professionals
related to both metropolitan and regional locations, while unfilled electrical and mechanical
engineer vacancies largely related to metropolitan areas. The unfilled vacancies across all
occupations were for the most part represented by senior roles calling for over ten years of
experience with highly specialised skill related to niche industry sectors:
o For civil engineering professionals and electrical engineers, employers had been able to
identify suitably skilled and experienced candidates for most unfilled vacancies however
employment offers had been declined by applicants due to wage related considerations.
o The role requirements for unfilled mechanical engineering vacancies were noted as particularly
demanding due to the uncommon nature of the highly specialized skill-sets involved. Given the
rarity of these capabilities within the general labour market, employer expectations of sourcing
suitable applicants from broad scale advertising exercises was generally low.
Employers across all occupations were however confident that they would be able to source
suitable applicants for most unfilled vacancies in the near future via targeted recruitment
approaches, noting that online professional networks such as LinkedIn were an increasingly
common method of identifying potential candidates with specialized capabilities.
Employers generally noted a low level of interest in overseas applicants due to the wide availability
of qualified and experienced Australian-based applicants.
Labour Economics Office Victoria
Department of Employment
Page 3
Reasons applicants were unsuitable
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22 per cent of applicants for mechanical engineer vacancies and 12 per cent of applicants for
electrical engineer vacancies were not qualified engineers. Employers noted that while many of
these applicants were often found to be highly experienced in relevant industry areas at the
technician or trade level, a bachelor degree in engineering was nonetheless considered to be the
minimum qualification level required for all vacancies surveyed.
As a proportion of the 87 per cent of applicants who were qualified engineers, 95 per cent were
found to be unsuitable. The most commonly identified reasons for unsuitability related to a lack of
experience at the desired duration, followed by a lack of experience undertaking similar functions
within a related industry sector:
o A large proportion of applicants who lacked the desired duration of experience were recent
graduates who had been unable to secure positions within a dedicated graduate development
programme.
For mechanical and electrical engineer vacancies, employers noted a significant volume of
applications received from engineers returning to Victoria from roles based in the Queensland and
Western Australian mining and resources sectors. Other than a small number of exceptions related
to reliability engineering roles in the manufacturing sector, for the most part employers generally
considered transferability from the mining sector to be limited in relation to the skill sets required
for most Victorian vacancies.
For civil engineering professionals, employers stated a preference for Victorian based applicants
over interstate applicants for road related projects due to the requirement for familiarity with
VicRoads regulatory standards.
Employers reported that some overseas applicants were found to be unsuitable if they lacked
sufficient English language skills and/or a lack of familiarity with local regulatory conditions.
Demand and supply trends
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Demand for engineering professions in Victoria is largely driven by activity within the engineering
design and consulting services sector, the construction industry, manufacturing industry and the
electricity services sector.1
Industry indicators suggest that activity within the engineering design and consulting services
industry sector remains stable. The most recent available data from the Australian Bureau of
Statistics (ABS) shows the number of businesses operating under this category in Victoria at the end
of the 2013-14 financial year increased by less than 1 per cent over the twelve month period
(following a 4 per cent decline during the previous 2012-13 financial year).2
1
ABS, 2011 Census, Persons, Place of Work; Engineering Professionals by Industry of Employment, Victoria
ABS, Cat. no. 81650, Counts of Australian Businesses, including Entries and Exits, Jun 2010 to Jun 2014, Businesses by Main
State by Industry Class by Employment Size Ranges, June 2014
2
Labour Economics Office Victoria
Department of Employment
Page 4
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The Victorian manufacturing industry shows signs of ongoing contraction. The Australian Bureau of
Statistics (ABS) capital expenditure survey data shows investment in the Victorian manufacturing
industry declined by approximately 19 per cent over the four quarters to March 2015. On a longer
term basis, annual figures show investment has decreased by nearly 30 per cent over the five years
dating from March 2010.3
For the construction industry and electricity services sector, ABS data indicates that activity will
remain stable over the next year or so, with the value of work yet to be done on relevant
engineering projects likely to remain on par with average levels observed over the past decade.4
In terms of the supply of new engineers, entry to the occupation is most commonly based on the
completion of a bachelor degree. The most recent available figures show that over the five years to
2013, the number of persons completing relevant engineering bachelor degree qualifications in
Victoria has increased modestly, rising from 887 completions in 2009 to 981 in 20135:
o On an occupational level, bachelor degree completions for both the civil engineering and
mechanical engineering professions both increased in 2013 in line with ongoing annual growth
over the preceding five years.
o Whilst electrical engineer bachelor degree completions increased to 283 in 2013 (up from 221
in 2012), degree completions for this occupation had previously experienced ongoing annual
declines dating from 2009.
Data from the Department of Immigration and Border Control shows that 457 visas have been a
limited source of supply for the engineering professions in Victoria. In the twelve months to March
2015, 59 persons were issued with 457 visas under relevant occupational categories, a 34 per cent
decrease from 2014 where 89 visas were issued.6
Other indicators and issues
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Information gathered by the Department of Employment suggests that engineers are currently
being impacted by the initial phase-out of design engineering functions within the automotive
industry prior to the cessation of car assembly operations (with the exception of Ford which intends
to retain and expand its local design engineering capacity). There are an estimated 3000 design
engineers employed within the sector by Victorian supply chain firms and motor vehicle producers.7
3
ABS, Cat. no. 5625.0, Private New Capital Expenditure and Expected Expenditure, Australia, TABLE 7B. Actual and Expected
Capital Expenditure by Industry - Victoria: Current Prices $m, March 2015
4
ABS, Cat. no. 8762.0, Engineering Construction Activity, Australia, TABLE 17. Value of Work Yet To Be Done, by Sector,
Victoria, Original, March 2015
5
Australian Government Department of Education and Training, Higher Education Student Data Collection, 2013, customised
tables
6
Department of Immigration and Border Control, Subclass 457 visas granted 2014-15, 31 March 2015
7
Victorian Government, Submission to the Productivity Commission Inquiry: Review of the Australian Automotive
Manufacturing Industry, November 2013
Labour Economics Office Victoria
Department of Employment
Page 5
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Notwithstanding the recent easing of the Australian dollar (which was predicted to improve the
manufacturing industry outlook)8 there has been little indication of any flow-on effects resulting in
increased industry activity. The Australian Industry Group (AIG) Australian Performance of
Manufacturing Index (PMI) in June 2015 dropped by 8.1 points to 44.2 points, indicating that activity
across the manufacturing industry has continued to remain subdued An index score of 50 or above
is the benchmark indicating industry expansion as opposed to industry contraction which is
evidenced by a score below 50).9 The Victorian manufacturing sector accounts for around 30 per
cent of total employment within the industry nationally.10
8
Victorian Manufacturing Council, Annual Report 2013, May 2014
Australian Industry Group, Australian Manufacturing Index, June 2015
10
ABS, Cat. no. 6291.0, Labour Force, Australia, Detailed; Table 05. Employed persons by State and Industry, May 2015
9
Labour Economics Office Victoria
Department of Employment
Page 6