ANZSCO 2335-12 Mechanical Engineer Queensland June 2015 Current labour market rating No Shortage Previous labour market rating (May 2014) No Shortage Comments This year, employers filled all but the most specialised mechanical engineer vacancies with little difficulty. Respondents reported high numbers of applicants due to the contraction of the manufacturing industry and decreasing activity in the resources sector. Survey results In this year’s survey, the majority of vacancies were with private engineering consultancies, general engineering firms, manufacturers and construction companies. o Vacancies were across various industries including sugar milling, manufacturing, building services, construction, mining and the minerals sector. o Employers sought engineers with experience in project management, mechanical design, materials handling, reliability testing, water processing and engineers with Registered Professional Engineer of Queensland (RPEQ) endorsements. Most employers required mechanical engineers with a minimum of five years’ experience although several sought engineers with between eight and twenty years’ experience. In this year’s survey, 67 per cent of vacancies were filled within six weeks of advertising. o While this was lower than the 80 per cent fill rate of May 2014, unfilled vacancies were either o o o for very senior or niche positions (such as theme park maintenance) or suitable applicants declined the positions. There were 66.6 applicants per vacancy with little variation between metropolitan and regional areas. Regional vacancies attracted 2.7 suitable applicants per vacancy compared to 1.6 suitable applicants for metropolitan vacancies. Contacts reported that many applicants were returning from employment in the resources sector, increasing the pool of applicants. Unsuitable applicants Around 32 per cent of all applicants were not qualified. Of those applicants who were qualified, 93 per cent were considered unsuitable mostly due to issues around experience. o Most unsuitable applicants did not have the specific experience sought by an employer or did not have enough experience in that field such as recent graduates. o Many mechanical engineers with experience in the oil and gas industries were regarded as lacking transferable skills by some employers. Labour Economics Office Queensland Department of Employment o Other applicants lacked experience in leadership, management or site work. Numerous regional employers were unwilling to consider applicants from out of the local area due to concerns about retention. Some engineers did not have an RPEQ endorsement. Several respondents advised that unsuitable applicants lacked the communication skills or personality wanted by the employer, particularly in positions involving client liaison. Demand and supply trends Although predominantly employed in engineering consultancies, demand for mechanical engineers generally depends on activity levels in the manufacturing and resource industries. Employment in these industries has fallen by 5.7 per cent and 15.1 per cent respectively over the year to May 2015, indicating a slowdown in activity.1 The Bureau of Resources and Energy Economics estimates that the value of committed resource and energy projects in Queensland fell from almost $75 billion to $73 billion over the year to April 2015. This included $68.7 billion worth of LNG projects that are scheduled for completion this year, leaving $4.6 billion in the pipeline. 2 Spending on mineral exploration in Queensland has declined by almost two thirds since March 2012, falling below $3.5 billion for the first time since 2007.3 The Department’s Internet Vacancy Index shows that vacancies for mechanical, industrial and production engineers have fallen by almost 78 per cent over the three years to May 2015.4 Formal entry to this profession is via the completion of a four-year Bachelor of Engineering (Mechanical) degree. o Unless working under the supervision of a registered engineer, mechanical engineers must register with the Board of Professional Engineers of Queensland. As of 30 June 2015, there were 1734 mechanical engineers registered to work in Queensland by the Board of Professional Engineers of Queensland.5 Exact commencement numbers for these courses are not available as some universities offer a year of general engineering study before students select a discipline. o Available figures from the Australian Government Department of Education and Training show an average of 25 students commencing mechanical engineering bachelor degrees between 2007 and 2010 before gradually increasing to 62 students in 2013. 1 ABS, 6291.0.55.003 - Labour Force, Australia, Detailed, Quarterly, Four quarter average, May 2015, http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003May%202015?OpenDocument 2 Department of Industry and Science, Office of the Chief Economist, Resources and Energy Major Projects List, April 2015, http://www.industry.gov.au/Office-of-the-Chief-Economist/Publications/Pages/Resources-and-energy-major-projects.aspx 3 ABS, 8412.0 Mineral and Petroleum Exploration, Australia, Table 4. Mineral Exploration, (Other than for petroleum) Expenditure by state and territory, http://www.abs.gov.au/AUSSTATS/abs@.nsf/allprimarymainfeatures/7008565B2DD42E23CA25718C00151590?opendocum ent 4 Department of Employment, Labour Market information Portal, Vacancy Report, 12 month average, May 2015 5 Board of Professional Engineers of Queensland, Search Register, June 2015, http://www.bpeq.qld.gov.au/imis15/BPEQ/Finding_an_RPEQ/Search_Register/BPEQ/Navigation/SearchRegister/Directory.a spx?hkey=0914fde4-8f61-4cf5-97a3-c477456e8e0f Labour Economics Office Queensland Department of Employment The average number of students graduating from Bachelor of Mechanical Engineering courses in Queensland fell from an average of 178 annually between 2007 and 2008 before dropping to 103 in 2009. Graduations then increased with 183 engineers graduating in 2013.6 Information from the Department of Immigration and Border Protection indicates that immigration as a source of supply to this profession has declined each year since 2011-12. Other indicators and issues 6 Almost $61 billion worth of major resource projects are at the feasibility stage with estimated commencement times over the next five years. As some of these projects may not proceed, shortages are not expected to re-emerge in the medium term. Department of Education and Training, Higher Education Student Data Collection, 2013, customised tables Labour Economics Office Queensland Department of Employment