2014-15 Skill Shortages – Statistical Summary Applicant fields Largest Proportion of vacancies filled Smallest • Occupation • Engineering professions • Accountants • Building technicians • Location • Melbourne • Brisbane • Adelaide Highest • Occupation • Hairdressers • Nurses • Automotive trades • Location • Regional NT • Tasmania • ACT Lowest • Occupation • School teachers • Building technicians • Child care occupations • Location • Regional NT • Brisbane • Hobart • Occupation • Hairdressers • Automotive trades • Food trades • Location • Regional NSW • Regional Victoria • ACT Research undertaken by the Department of Employment shows that there are more than enough applicants with relevant qualifications, or appropriate skills and experience, for vacancies in almost every occupation. That said, employers do not necessarily readily fill their vacancies with workers who meet their needs. In 2014-15, there was an average of 13.6 applicants for each skilled vacancy (15.8 for professions and 12.1 for technicians and trades), of whom an average of 2.2 were considered by employers to be suitable. Most applicants held relevant qualifications, but around three quarters of qualified applicants were considered to be unsuitable. Despite the large applicant numbers, more than a quarter of skilled vacancies remained unfilled four to six weeks after advertising (unchanged from 2013-14). The reasons for the unfilled vacancies are varied, but include: no applicants (5 per cent of employers); no suitable applicants (qualified applicants often lacked experience or other attributes employers sought); and employers being unable to agree on the terms and conditions of employment with the preferred candidates. A small number of occupations remain subject to significant widespread skill shortages, but there has been a marked decline in the extent of skill shortages over recent years (Figure 1). Shortages of technicians and trades workers are more prevalent than those for professionals. National shortages are evident for 21 occupations: 1 manager, 6 professions and 14 trades. Figure 1: Proportion of occupations in shortage, Australia, 2007-08 to 2014-15 Professions 100 90 Technicians and Trades 88% 80 70 All SERA Occupations 97% 71% 76% 60 67% (%) 50 59% 41% 44% 40 30 30% 31% 20 10 17% 17% 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Department of Employment, Skill shortage research, based on a set of around 70 consistently assessed occupations Labour Market Research and Analysis Branch Department of Employment Page 1 of 4 Figure 2: SERA results, Australia, 2007-08 to 2014-15 Applicants per vacancy (RHS) Suitable applicants per vacancy (RHS) Proportion of vacancies filled (LHS) 100 30 90 80 65% 70 50 49% 15 14.7 0 13.6 12.7 10.8 30 10 9.4 7.4 20 25 20 40 10 73% (no.) (%) 60 65% 61% 58% 73% 70% 7.4 5 5.0 1.2 1.7 2.0 1.5 1.9 2.3 2.2 2.2 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 0 Source: Department of Employment, Survey of Employers who have Recently Advertised (SERA) Location While the ability of employers to recruit skilled workers varies by state, territory and region, the differences have narrowed in recent years. In 2014-15, employers in non-metropolitan areas continued to attract fewer applicants than those in metropolitan locations, although there was little difference in their ability to fill their vacancies. o Around 70 per cent of non-metropolitan vacancies were filled compared with 71 per cent of metropolitan vacancies. Employers in New South Wales experienced the most difficulty recruiting in 2014-15, filling 65 per cent of their vacancies and attracting just 1.6 suitable applicants per vacancy. By comparison, employers in South Australia filled 80 per cent of their vacancies and attracted 2.5 suitable applicants per vacancy. There were more than 10 applicants per vacancy, on average, in the mainland states, but employers in Tasmania and the two territories attracted markedly smaller fields of applicants. o Suitable applicant numbers were lowest, though, in New South Wales and Victoria. o While employers in Tasmania and the Northern Territory had small numbers of applicants, they generally had the choice of multiple suitable applicants and filled relatively high proportions of their vacancies. Figure 3: SERA results, States and Territories, 2014-15 Applicants per vacancy (RHS) Suitable applicants per vacancy (RHS) Proportion of vacancies filled (LHS) 100 30 90 80 70 65% 80% 80% 73% 77% 73% 66% 25 20 18.7 50 40 77% 14.9 16.3 13.0 15 14.7 13.6 30 20 6.5 7.5 (no.) (%) 60 71% 10 5 6.8 10 0 1.6 1.9 2.4 2.5 2.7 2.0 2.5 2.2 2.2 NSW VIC QLD SA WA TAS NT ACT Australia 0 Source: Department of Employment, Survey of Employers who have Recently Advertised (SERA) Labour Market Research and Analysis Branch Department of Employment Page 2 of 4 Occupation There are significantly larger numbers of applicants and qualified applicants for vacancies for professionals than for technicians and trades. It is notable, though, that applicant numbers fell slightly in 2014-15 for professional vacancies and rose slightly for technicians and trades worker vacancies. The large candidate fields for professional vacancies are likely to reflect, at least in part, rising numbers of higher education graduates entering the labour market and the recent softer demand for some professionals (such as engineers). Figure 4: SERA results, Professions and Technicians and Trades, 2009-10 to 2014-15 Applicants per vacancy (RHS) 100 Suitable applicants per vacancy (RHS) Professions 70 73% 61% 81% 76% 25 61% 62% 61% 66% 69% 69% 20 19.6 16.5 40 10.7 20 9.2 15 15.8 11.0 10.7 8.9 10.5 11.7 10 12.1 5 6.7 10 1.8 0 1.7 2.2 2.9 3.0 1.5 2.1 2.8 1.7 (no.) 50 (%) 78% 67% 60 30 30 Technicians and Trades 90 80 Proportion of vacancies filled (LHS) 2.1 1.6 1.8 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Department of Employment, Survey of Employers who have Recently Advertised (SERA) Professions Competition for professional jobs from qualified applicants remains strong, but there was a slight tightening in this labour market between 2013-14 and 2014-15. Vacancies for engineering professions attract particularly large numbers of qualified applicants (an average of 33.7 per vacancy), as do those for accountants (22.4). Almost every vacancy for school teacher has been filled in recent years, although there are relatively small numbers of applicants (but most are qualified). Technicians and Trades Candidate fields are generally smaller for technicians and trades worker vacancies than they are for professionals and, since 2011-12, a lower proportion of these vacancies has been filled. Recruitment of hairdressers and automotive trades workers is particularly difficult, with relatively few qualified applicants (3.9 and 1.5 per vacancy, respectively) and small proportions of vacancies filled. Figure 5: SERA results, Selected occupational clusters, 2014-15 Applicants per vacancy (RHS) 92% 90 80 70 60 50 40 30 20 10 0 Suitable applicants per vacancy (RHS) Professions 76% 76% 73% Proportion of vacancies filled (LHS) 60 Technicians and Trades 76% 71% 70% 50 69% 63% 43.7 61% 34.0 40 42% 30 20 21.6 (no.) (%) 100 17.6 12.8 3.2 3.7 2.6 7.0 1.3 9.4 2.9 2.2 2.2 7.9 1.4 9.9 1.7 10 7.3 1.4 3.4 0.7 0 Source: Department of Employment, Survey of Employers who have Recently Advertised (SERA) Labour Market Research and Analysis Branch Department of Employment Page 3 of 4 SERA results summary, 2014-15 SERA results 2014-15 (Annual change) Proportion of vacancies filled Applicants per vacancy Suitable applicants per vacancy no. no. % percentage points Major Groups Professions Technicians and Trades Occupations by cluster Accountants Automotive trades Building professions Building technicians Child care occupations Construction trades Electrotechnology and telecommunications trades Engineering professions Engineering trades Food trades Hairdressers Health professions Nurses School teachers States and Territories New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Region Metropolitan Non-metropolitan Total - All SERA, Australia Labour market annual change 15.8 (-3.8) 12.1 (0.4) 2.8 1.8 (-0.2) (0.2) (-12) (5) (-2) (3) (12) (-2) (0) (-2) (6) (12) (-12) (-3) (-5) (4) 34.0 7.3 21.6 26.4 11.0 7.9 17.3 43.7 17.6 9.9 3.4 9.4 7.0 12.8 (-2.0) (-0.5) (-2.4) (0.0) (2.7) (0.0) (2.3) (5.6) (0.4) (-1.1) (-0.8) (-0.4) (1.1) (-0.4) 2.6 1.4 2.2 2.9 1.8 1.4 2.6 3.7 2.2 1.7 0.7 2.9 1.3 3.2 (-3.2) (0.1) (-1.0) (-0.6) (0.4) (0.1) (0.8) (0.1) (0.2) (0.2) (-0.7) (0.2) (-0.3) (0.7) M M M 65 71 77 80 73 80 77 66 (-1) (-6) (4) (-2) (-5) (3) (6) (-7) 13.0 18.7 14.9 16.3 14.7 6.5 7.5 6.8 (-0.4) (-3.8) (-1.5) (3.7) (-2.0) (-1.1) (1.8) (0.4) 1.6 1.9 2.4 2.5 2.7 2.0 2.5 2.2 (-0.2) (-0.6) (-0.2) (0.2) (0.1) (0.2) (0.9) (0.4) M M M 74 70 73 (-1) (0) (0) 15.3 (-1.0) 9.9 (-1.3) 13.6 (-1.1) 2.3 2.0 2.2 (0.0) (-0.1) (0.0) 78 69 (-3) (0) 76 61 70 81 77 69 74 76 76 63 42 71 73 92 Source: Department of Employment, Survey of Employers who have Recently Advertised (SERA) *Total - All SERA includes management and other occupations Key: = easing = tightening = relatively stable M = mixed indicators Technical Notes This report is a summary of the quantifiable results of the Department of Employment’s skill shortage research programme, based on the Survey of Employers who have Recently Advertised (SERA). It provides a basis for comparison across locations and occupations, as well as an historical perspective. It is important, though, to also understand the qualitative information gathered from the research, which is available at employment.gov.au/skill-shortages. ISSN 1839-5759 The programme assesses the labour market for around 100 skilled occupations, focusing mainly on professions and trades, but it also includes a small number of management, technician and other occupations. The Department measures whether vacancies are filled six weeks after advertising for professions and technicians and four weeks for other occupations. The numbers presented are averages across a large number of employer contacts and it is important to note that employers’ recruitment experiences can vary widely, even within an individual occupation in similar locations. Employers’ requirements can be highly specific and candidates for positions may be regarded as unsuitable even if they hold relevant, formal qualifications. In addition, advertised vacancies can remain unfilled despite attracting suitable applicants as applicants may not take up offers of employment for a variety of reasons. There have been minor revisions to historical SERA data. Information about the SERA methodology, as well as analysis of occupational labour markets and reports and lists of skill shortages, is available at employment.gov.au/skill-shortages. Analysis of the full current time series (starting 2006-07) and figures for states and territories by region are available in Skill Shortages Australia 2014-15. It is important to note that occupational coverage of the research also varies from year to year and the list of occupations by cluster changes accordingly. Results for 2014-15 do not include the large ICT professions labour market. The Department will be undertaking research into the ICT labour market later in 2015. Labour Market Research and Analysis Branch Department of Employment Page 4 of 4