ANZSCO 2335-12
Mechanical Engineer
New South Wales
June 2015
Current labour market rating
Recruitment difficulty
Previous labour market rating (June 2014)
No shortage
Comments
A minority of employers had difficulty recruiting mechanical engineers with several years of design
experience, especially for building services but also for heavy industry and the underground mining
environment.
Survey results
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The Department of Employment survey of employers who had recently advertised for mechanical
engineers found that 67 per cent of vacancies were filled. In 2014 all surveyed vacancies were either
filled within the survey period or were withdrawn or suspended before the recruitment exercise
was completed.
o There was an average of almost 60 qualified applicants per vacancy, with an average of two
applicants being considered suitable by employers. This compares with an average of 45
qualified applicants per vacancy last year, and over three suitable applicants per vacancy.
Employers were able to fill vacancies for mechanical engineers for a number of engineering skills
concerned with design, heating and airconditioning equipment, cogeneration and wastewater
plants, underwater acoustic systems, logistics and handling services, and project management.
Employers were generally successful in recruiting mechanical engineers at most skill levels ranging
from recent graduates to senior level engineers.
A number of employers commented that advertisements attracted a large number of highly
qualified and experienced mechanical engineers from mining and other resources projects, and
from industry redundancies.
However, a minority of employers had difficulty in filling their vacancies, seeking to recruit
mechanical engineers with several years of relevant design experience, especially for building
services, but also for heavy industry and the underground mining environment.
o While such vacancies typically attracted numerous applications from qualified mechanical
engineers, their industry background was usually inappropriate or their level of relevant
experience did not match that required for the position. Other applicants were overseasqualified but without sufficient experience in Australian building codes and standards.
Labour Economics Office NSW
Department of Employment
Unsuitable applicants
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The main reasons applicants were considered unsuitable were that they did not have relevant
experience in the employer’s particular industry sector, they lacked the needed level of experience,
they were not qualified mechanical engineers, or they interviewed poorly for a client-facing
position.
Demand and supply trends
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Demand for mechanical engineers has been mixed over the past year due to more subdued
manufacturing and mining activity. This has been only partially offset by strong building activity.
o Demand in the manufacturing industry has been constrained by falling orders from miningrelated industries.
o NSW construction activity was virtually unchanged in the year to March 2015 compared to the
previous year. This followed a decline of 2.8 per cent in the year to March 2014. Strong growth
in residential and non-residential building in the year to March 2015 of 12.5 per cent was
offset by a decline of 14.1 per cent in engineering construction.1
o Coal mining output decreased slightly in the year to April 2015. Lower prices for coal and other
key commodities have led to labour-shedding in mining and related industries and production
employment in the NSW coal industry has fallen by almost 10 per cent in the two years to
March 2015.2
Supply to the occupation from university completions and overseas immigration has fallen in recent
years. However, anecdotal evidence suggests an increase in the number of mechanical engineers
returning to NSW due to the downturn in the resources sector and related construction activity,
particularly in Western Australia.
o It is estimated that about 350 persons completed bachelor degree courses in mechanical
engineering from NSW universities in 2013. The number of completions is now fairly stable.3
Net overseas immigration of industrial, mechanical and production engineers to NSW averaged 270
per annum in the five years to 2013-14.4 Net immigration fell again slightly in 2013-14 but remains a
significant supply source.
1
ABS Construction Work Done, Preliminary, March 2015 (8755.0). Annual average of original data, chain volume measure.
Coal Services, NSW Raw Coal Production and Production Employment at NSW Coal Mines.
3
Department of Employment estimates based on data supplied by Department of Education. Data refers to domestic
students completing bachelor degree courses in mechanical engineering or mechanical/industrial engineering from NSW
universities.
4
Department of Immigration and Border Protection, Overseas arrivals and departures by ANZSCO Unit Group. Data refers to
net permanent and long-term arrivals.
2
Labour Economics Office NSW
Department of Employment