ANZSCO 2333-11 Electrical Engineer Victoria June 2015 Current labour market rating No Shortage Previous labour market rating (June 2014) No Shortage Comments The survey found that employers were generally able to fill their advertised vacancies with qualified and experienced electrical engineers. Survey results The Department of Employment Survey of Employers who have Recently Advertised (SERA) in June 2015 for electrical engineers found that 81 per cent of vacancies were filled within the survey period from an average of 64.3 applicants per vacancy, with 1.4 applicants per vacancy found to be suitable: o The 2014 survey found that 76 per cent of vacancies were filled from an average of 32.6 applicants and 2.1 suitable applicants per vacancy. SERA results averaged over the preceding five years from 2009 to 2013 show an annual vacancy fill rate of 54.2 per cent, with 20.3 applicants and 2.4 suitable applicants per vacancy. Regional vacancies attracted less than half the average number of applicants per vacancy (29.7) than metropolitan employers (72.3); nevertheless, regional employers recorded a 100 per cent fill rate compared to 77 per cent in metropolitan areas. Regional vacancies attracted a similar number of suitable applicants at an average of 1.3 applicants per vacancy, to metropolitan employers who averaged 1.4 suitable applicants per vacancy. The surveyed vacancies related to a wide variety of electrical engineering roles including design, maintenance and support services, project management and reliability engineering. These positions were distributed broadly across a range of industry sectors including manufacturing, electricity services, railway signaling, building services and engineering design and consultancy services. All vacancies required a bachelor degree qualification in electrical engineering, while the levels of experience commonly desired by employers ranged upward from three years for intermediate level roles, through to five to ten years and above for senior level roles. Employers frequently commented that they currently had little need to openly advertise for junior level positions requiring less than three years of experience. This was due to the large number of readily available recent graduates. The electrical engineering skill sets required by employers were highly particularised to specific industry areas and as such, transferability across sectors was found to be limited and high levels of technical acumen gained through experience in a similar role was considered essential. Labour Economics Office Victoria Department of Employment Capabilities which were commonly desired for most roles included a detailed understanding of Victorian state electrical regulatory standards and building codes and a high level of engagement with Workplace Health and Safety (WH&S) practices. Proficiency with a variety of Computer Aided Drafting (CAD) software was also considered to be highly desirable. More broadly, commonly desired employability skills included leadership, time management, planning, analysis and problem solving skills, as well as attention to detail and accuracy when undertaking technically complex tasks. Significant focus was also placed on interpersonal and communication skills and the ability to liaise with internal and external stakeholders in multidisciplinary environments. Those vacancies which remained unfilled at the time of survey were all metropolitan based and were largely represented by senior roles calling for over ten years of experience and advanced technical skills. In most cases, although employers had been able to identify suitably skilled and experienced applicants, offers of employment had been declined due to wage related considerations. Unsuitable applicants Overall, 12 per cent of the total applicant field was unqualified. Employers noted that while many of these applicants were often found to be highly experienced in relevant industry areas at the technician or trade level, a bachelor degree in electrical engineering was nonetheless considered to be the minimum qualification required for all vacancies surveyed. Of the 88 per cent of applicants who were qualified, 97 per cent were found to be unsuitable. The most common reason for the unsuitability of these applicants was due to a lack of experience for the desired duration, or a lack of experience undertaking similar electrical engineering functions within a related industry sector: o A large proportion of applicants who lacked the desired duration of experience were recent graduates who had been unable to secure positions within a dedicated graduate development programme. o Employers also noted a significant volume of applications received from electrical engineers returning to Victoria from roles based in the Queensland and Western Australian mining and resources sectors. Other than a small number of exceptions, employers considered transferability from the mining sector to be limited in relation to the skill sets required for most Victorian vacancies. Otherwise, employers were unlikely to consider overseas applicants as suitable due a lack of communication skills and familiarity with local regulatory conditions. Demand and supply trends 1 Demand for electrical engineers in Victoria is largely driven by activity within the engineering design and consulting services sector, the manufacturing industry and the electricity services sector.1 ABS, 2011 Census, Persons, Place of Work; Electrical Engineers by Industry of Employment, Victoria Labour Economics Office Victoria Department of Employment Indications suggest that activity within the engineering design and consulting services industry sector remains stable. The most recent available data from the Australian Bureau of Statistics (ABS) shows there were 7,378 businesses operating under this category in Victoria at the end of the 201314 financial year, an increase of less than 1 per cent over the twelve month period. This followed a 4 per cent decline during the previous 2012-13 financial year.2 Activity in the Victorian manufacturing industry shows signs of ongoing contraction; Australian Bureau of Statistics capital expenditure survey data shows investment in the Victorian manufacturing industry declined by approximately 19 per cent over the four quarters to March 2015. Annual figures show over the five years from March 2010 show investment has decreased by nearly 30 per cent.3 For the electricity services sector, the ABS data indicates that activity will remain stable over the next year or so, with the value of work yet to be done for engineering projects involving electricity generation, transmission and distribution likely to remain on par with average levels observed over the past decade.4 The Internet Vacancy Index (IVI) shows that online advertisements for electrical engineers decreased in the twelve months to May 2015, a trend consistent with the decline in online vacancies observed over the five year period from May 2010.5 Entry to the occupation is most commonly based on the completion of a bachelor degree in electrical engineering. In terms of supply, the most recent available figures from the Australian Government Department of Education and Training shows that over the five years to 2013, the number of persons completing electrical engineering bachelor degree qualifications in Victoria has decreased, falling from 391 completions in 2009 to 283 in 2013.6 Other indicators and issues Despite recent easing in the Australian dollar which was predicted to improve the manufacturing industry outlook (particularly in relation to export opportunities)7, there has been little indication of any flow-on effects resulting in increased industry activity. The Australian Industry Group (AIG) Australian Performance of Manufacturing Index for June 2015 dropped by 8.1 points to 44.2 points, well below the 50 reading that separates sector-wide expansion from contraction.8 The Victorian manufacturing sector accounts for around 30 per cent of the total industry employment nationally.9 2 ABS, Cat. no. 81650, Counts of Australian Businesses, including Entries and Exits, Jun 2010 to Jun 2014, Businesses by Main State by Industry Class by Employment Size Ranges, June 2014 3 ABS, Cat. no. 5625.0, Private New Capital Expenditure and Expected Expenditure, Australia, TABLE 7B. Actual and Expected Capital Expenditure by Industry - Victoria: Current Prices $m, March 2015 4 ABS, Cat. no. 8762.0, Engineering Construction Activity, Australia, TABLE 17. Value of Work Yet To Be Done, by Sector, Victoria, Original, March 2015 5 Department of Employment, Internet Vacancy Index, May 2015, 3 month moving average 6 Department of Education and Training, Higher Education Student Data Collection, 2013, customised tables 7 Victorian Manufacturing Council, Annual Report 2013, May 2014 8 Australian Industry Group, Australian Manufacturing Index, June 2015 9 ABS, Cat. no. 6291.0, Labour Force, Australia, Detailed; Table 05. Employed persons by State and Industry, May 2015 Labour Economics Office Victoria Department of Employment