ANZSCO 3232-11-12-13 Fitter Victoria December 2014 Current labour market rating No Shortage Previous labour market rating (August 2013) No Shortage Comments There continues to be no shortage for the fitter occupation in Victoria. Employers were able to fill three quarters of surveyed vacancies with qualified, experienced and skilled fitters. Survey results The Department of Employment Survey of Employers who have Recently Advertised (SERA) found that 75 per cent of the surveyed fitter vacancies were filled (compared to 84 per cent in 2013): o There were approximately 30.6 applicants on average per vacancy, of which 1.9 applicants were identified as suitable (compared to 32.4 and 2.9 respectively for 2013). o While regional employers were able to fill a larger proportion of vacancies (83 per cent compared to 70 per cent in metropolitan areas), metropolitan employers attracted a higher number of applicants and suitable applicants on average per vacancy (with 36.9 and 2.2 respectively, compared to 20.2 and 1.3 in regional areas). Advertised vacancies were primarily directed towards maintenance, fabrication, or service and repair based roles related to the manufacturing, industrial engineering and agricultural sectors. All employers were seeking qualified and experienced fitters and placed high expectations on an understanding of Workplace Health and Safety (WHS) principles, the ability to read and interpret technical drawings and strong time management and planning skills: o Due to the variation in skill-sets required by different roles and industry sectors, a high regard was placed on previous experience undertaking related tasks in a similar setting, with heavy emphasis placed on identifying applicants who were able to immediately step into roles and produce high quality output at high rates of productivity. o Employers also identified a variety of desirable additional certificates and tickets for individual vacancies. Maintenance fitter roles were most commonly related to the manufacturing industry, with a notable presence of vacancies in the food manufacturing sector. Employers were seeking fitter and turners and general fitters with the skills to identify and rectify breakdowns on industrial machinery with minimal disruption to operational productivity. Fabrication based roles were related to the manufacturing and industrial engineering sectors. Manufacturing employers generally sought fitter and tuners with the machining and hand-tool skills to produce fabricated components with high levels of productivity. Employers for industrial engineering roles sought fitter-welders with the skill ranges to work across all project phases from fabrication to installation, with particular focus on ticketed MIG and TIG welding capabilities. Labour Economics Office Victoria Department of Employment Employers for service and repair based roles were seeking either general fitters or fitter and turners with the skills to work on a wide variety of industrial and agricultural machinery, with a particular focus on experience with hydraulics. Vacancies which remained unfilled were related to specialty skill areas (such as hydraulics) or positions that involved challenging conditions such as hot, odorous and unclean working environments, laborious work tasks or ongoing shift work. Unsuitable applicants While 91 per cent of applicants were qualified, only 6 per cent were considered to be suitable. The main reason for applicant unsuitability was related to a lack of previous experience and associated skill sets in a related industry area: o Employers noted that newly qualified applicants were commonly considered unsuitable due to concerns surrounding a lack of critical foundational trade skills and experience. o Employers often found these applicants required significant additional on the job training to reach a level of competency that would allow them to work at the productivity levels required. Demand and supply trends Demand for fitters is strongly influenced by activity in the manufacturing industry1, where a range of conditional pressures (such as the persistently high Australian dollar and increasing global competition) have resulted in an ongoing industry drive to lower costs and increase productivity. These conditions have particularly impacted the demand for manufacturing workers across the Victorian sector, which in 2012-13 experienced a 4.2 per cent decline in employment levels (following on from a 1.6 per cent decline in 2011-12)2. Internet Vacancy Index (IVI) data shows that in the year to December 2014, the number of online advertisements for Victorian metal fitters and machinists declined by 10 per cent and is 21 per cent lower than the five year average of online advertisements related to this trade.3 In 2013-14, Victorian apprenticeship training completions in courses relevant to the fitter occupation rose by 6.4 per cent to 686, in comparison to an average of 623 per annum over the last ten years4. The immediate effect of training completions on supply to the trade may however be limited due to the common employer view that suitable candidates are not only qualified but also possess high level trade skills honed through practical experience. Other indicators and issues The Victorian Manufacturing Council (VMC) predicts that an easing Australian dollar is likely to improve the outlook for the food manufacturing sector, as well as high value manufacturing areas such as advanced machinery and equipment and professional and scientific equipment. Given the 4.4 per cent rise in output per manufacturing worker across the Victorian sector in 201213, the current industry focus on capital intensity and productivity is expected to continue as the sector increasingly moves toward higher value activity areas5. 1 ABS, Labour Force Survey, Metal Fitters and Machinists, annual average 2013 ABS, cat. no. 8155.0, Manufacturing Industry, Table 02. States, Territories & Australia by ANZSIC Subdivision, 2012-13 3 Department of Employment, Internet Vacancy Index (IVI), December 2014, 12 month moving average 4 National Centre for Vocational Education Research (NCVER), Apprentices and Trainees, November 2014, estimates 5 Victorian Manufacturing Council, Annual Report 2013, May 2014 2 Labour Economics Office Victoria Department of Employment