ANZSCO 2335-12
Mechanical Engineer
South Australia
June 2015
Current labour market rating
No Shortage
Previous labour market rating (May 2014)
No Shortage
Comments
Due to declining activity in the mining industry and modest growth in the manufacturing and
construction industries, demand for mechanical engineers is currently subdued. Employers received a
high ratio of suitable applicants for their vacancies and positions were filled with few difficulties.
Survey results
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A Department of Employment survey of employers who had recently advertised for mechanical
engineers showed that 86 per cent of vacancies were filled within six weeks. Last year’s survey
revealed a similar outcome.
On average, there was a very high ratio of 79 applicants per vacancy. Although this result was
skewed by a couple of vacancies, using a median measure still yielded a high ratio of 50 applicants
per vacancy.
Nonetheless, most applicants were deemed unsuitable and so the ratio of suitable applicants per
vacancy was considerably lower at 4.1.
Contacts advised that demand for mechanical engineering services was subdued due to declining
activity in the mining industry and weak growth in the manufacturing industry as well as a generally
slow pace of economic growth in South Australia.
Employers reported few difficulties in recruiting mechanical engineers and so the occupation is
rated as being not in shortage.
Unsuitable applicants
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All employers required applicants to be degree-qualified in mechanical engineering and around 97
per cent of all applicants met this minimum criterion.
Despite the high proportion of qualified applicants, employers considered only five per cent of all
applicants to be suitable to employ. This was because many applicants did not have the specific
technical skills or experience relevant to the particular role or industry.
Employers reported receiving a large number of applications from people living interstate, recent
graduates and applications from migrants, some of whom had completed their training in Australia.
However, most of them had limited relevant work experience in Australia.
They also received some applications from individuals considered ‘over-qualified’ i.e. applicants
with substantial engineering experience at more senior or managerial levels which employers
considered inappropriate.
In some instances, suitable applicants weren’t hired due to lack of agreement on remuneration. This
was particularly the case with engineers who worked in the relatively high-paid mining industry.
Labour Economics Office South Australia
Department of Employment
Demand and supply trends
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ABS 2011 Census data shows that the main employing industries for this occupation are
manufacturing (46 per cent) and professional, scientific and technical services (27 per cent).
Mechanical engineers employed in the latter sector provide consulting services to a range of
industries, such as oil and gas, construction and mining.
The Australian Industry Group’s monthly survey of engineering business trends shows activity in SA
manufacturing recovered to some extent over the past six months and are around the long-term
average level.
According to ABS capital expenditure survey data, investment in the SA mining and manufacturing
industries grew by a modest four per cent over the four quarters to March 2015. The value of goods
exported by SA’s mining industry has significantly declined over the past year and manufacturing
industry exports have recorded only modest growth.
The value of SA non-residential building work done in 2014 increased by around five per cent.
However, the value of SA non-residential building approvals, which provides an indication of future
demand, fell by 14 per cent in the year to April 2015.
The Department of Employment’s Internet Vacancy Index (IVI) data for South Australia shows that
the number of internet vacancies for industrial, mechanical and production engineers as a whole
has declined over the past four years and is at the lowest level in at least nine years.
Occupational supply is largely dependent on university training. According to the Australian
Department of Education, the number of undergraduate completions in mechanical engineering
courses in SA fell in both 2012 and 2013. Nonetheless, there was an increase in the number of
course commencements over the same period.
Net overseas migration1 of industrial, mechanical and production engineers to South Australia has
increased over the past four years. However, since 2011-12 there has been a reduction in the
number of Subclass 457 visas granted2 for the occupation of mechanical engineer.
The proportion of full-time employment outcomes3 for SA mechanical engineering graduates fell in
2012. This was followed by a further decline in 2013 to below the long-term average.
https://data.gov.au/dataset/overseas-arrivals-and-departures
https://www.immi.gov.au/media/statistics/statistical-info/temp-entrants/subclass-457.htm
Graduate Careers Australia
Labour Economics Office South Australia
Department of Employment