Skills & Training Needs 2013 Victorian Mining Industry Published by HESG Department of Education and Early Childhood Development Melbourne April 2014 ©State of Victoria (Department of Education and Early Childhood Development) 2014 The copyright in this document is owned by the State of Victoria (Department of Education and Early Childhood Development), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission. An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering such an institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution. Authorised by the Department of Education and Early Childhood Development 2 Treasury Place, East Melbourne, Victoria, 3002. 2 Skills & Training Needs 2013 – Victorian Mining Industry Content Introduction Industry and data scope Products and services Data Mining industry trends and issues Key messages, issues and challenges Industry trends and outlook Economic contribution Employer profile Labour productivity Mining industry workforce and skills Key messages, issues and challenges Employment Skills composition Job vacancies Labour market characteristics Occupations in demand Specialised and in-shortage occupations Workforce skills needs Mining industry vocational training provision Key messages, issues and challenges Training activity Courses Enrolments by occupation Training providers Funding patterns Regional training activity Student characteristics Appendix A 5 7 7 7 8 8 8 11 11 13 14 14 14 15 16 17 18 20 21 22 22 22 24 24 25 25 26 28 29 Introduction In the context of Victoria’s dynamic economy, a demand-led approach is the best way to ensure a responsive vocational training system that will help as many people as possible build skills that lead to better jobs. This is most evident in the results of the market approach embodied in the Victorian Training Guarantee, which has achieved positive outcomes for both students and the economy. The Refocusing Vocational Training in Victoria reforms are designed to satisfy important criteria for a strong vocational training market. Through these reforms the Government is ensuring that the vocational training system continues to produce positive outcomes for students, businesses and Victoria. Through Refocusing Vocational Training, there is a role for government in monitoring, providing information and responding to the performance of the vocational training system. A key mechanism by which the government exercises this role is through the Industry Participation Model. The Industry Participation Model is based on a new partnership approach between government, industry and training providers. It increases industry influence within the training market by supporting more direct relationships between industry and training providers and by increasing direct consultation with government. An aim of the Industry Participation Model is to seek to improve information sharing about training provision, options, outcomes, gaps and associated barriers between industry, training providers and employers to improve alignment between industry needs and training delivery. A suite of information products and tools are being developed, of which this report is one, to support this aim and an overview of these are provided overleaf. This report describes training and economic activity and developments related to Victoria’s Mining industry, bringing together a range of qualitative and quantitative insights from desk research and industry engagement. It highlights both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. Key metrics used in this report include enrolments by sub-industry, qualification level, occupation, courses, age group, gender, learners facing barriers, provider type, reason for study and completions. The report also covers apprentices and trainees, and an analysis of the alignment between training delivery and specific industry skills needs. The report produces industry, sub-industry and regionspecific findings and, wherever possible, presents comparisons to developments at the State level. The purpose of this report is: 1. To provide a basis for understanding the Mining industry in relation to employment levels, skills shortage occupations, current alignment and responsiveness of the vocational training market to the needs of the sector and to provide an overview of the challenges and opportunities in meeting industry vocational skills needs both now and into the future. 2. To give detailed information around vocational training enrolments by occupation, location, qualification levels and other student characteristics, as it relates to the Mining industry in order to gauge current trends in vocational training delivery. 3. To summarise the context of the Mining industry in relation to the size and scale of the labour and training markets as well as the current policy, economic and social drivers that it is facing. Introduction 5 Suite of Information Products and Tools Victorian Quarterly Training Market Reports On-going series of quarterly reports aimed at providing a summary of Victorian training market performance following the introduction of the student entitlement system. The report covers three sections – the first provides an overview of the performance of the Victorian training market, the second section examines the participation of learners facing barriers and the third examines the alignment of training to industry skills needs. Vocational Training: Victoria’s Regions Annual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building a picture of the relationship between the local training system and regional skills needs, training market performance and responsiveness. http://www.education.vic.gov.au/training/ providers/market/Pages/regionaltrends.aspx Vocational Training: Victoria’s Industry Report Published annually, this report combines industry intelligence and economic analysis with training data to build a picture of the relationship between industry skills needs, employment opportunities and skills training. Each industry training profile provides economic context and a summary of training challenges and highlights from Industry Participation Model initiatives. http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx http://www.education.vic.gov.au/training/ providers/market/Pages/reports.aspx Industry Sub-sector Summary Reports and Industry Factsheets 46 sub-sector summary reports which highlight labour and training market dynamics with an overview of current and forecast employment needs and vocational training patterns across the sectors and at the regional level. A series of factsheets are also available for 19 industries. http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx Business Toolkit and Case Studies Portfolio Industry Reports Toolkit for employers providing information on how to get government subsidised training under the Victorian Training Guarantee; getting the best training for your business, with a helpful checklist; information of Recognition of Prior Learning; and a range of interesting employer and training provider case studies. These reports describe training and economic activity and developments related to key Victoria’s industry sectors. Highlighted are both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. A range of key workforce and training metrics are also provided. There are two tiers of reports; detailed reports representing the focus industries for the Department in 2013, and summary reports covering other industry sectors. http://www.education.vic.gov.au/ training/employers/workforce/Pages/ marketfacilitation.aspx http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx Industry Blog Industry Skills Update - e-Alerts A forum for people interested in industry skills and training issues in Victoria, the blog features a range of topics relevant to stakeholders, information on recent industry events, groups and forums and new initiatives focused on enhancing market performance through facilitation activities. Regular email update featuring the latest news about Industry Participation Model activities; market facilitation and related government initiatives; reports; and training performance information. http://skillsblogvic.wordpress.com/ To subscribe contact: Department of Education and Early Childhood Development, skills.online@edumail.vic.gov.au Web Pages – Industry Training Market Information 19 webpages with information about the skills and training market for Victorian industries. For each industry, there’s a training snapshot, information about skills in demand, training market intelligence reports along with more detailed reporting for each industry sub-sector. Information is updated regularly. http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx Rate Your Training E-Marketplace (in development) Victorian Skills Gateway Ratings tool for industry and employers which is a simple-to-use system where employers can rate the performance of a training provider in a particular study area against selected criteria, and review and compare the ratings of other employers. Website which facilitates connections between employers and training providers. Employers can anonymously post their training requirements and training providers are able to provide structured response online. Employers are then able to review the response with no obligation, create a shortlist and follow up directly with their preferred providers. One-stop-shop of Victorian vocational education and training to help find the best option for students. Searches can be performed on occupations, courses, training providers, video and written case studies. This website is also viewable via a purpose- built smartphone interface. http://rateyourtraining.com.au/ 6 Skills & Training Needs 2013 – Victorian Mining Industry http://www.education.vic.gov.au/ victorianskillsgateway/Pages/home.aspx Industry and data scope This section summarises the scope of the Mining industry1 as well as key data sources. Products and services The Mining industry mainly extracts naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining includes underground or open cut mining; dredging; quarrying; well operations or evaporation pans; recovery from ore dumps or tailings as well as beneficiation activities (i.e. preparing, including crushing, screening, washing and flotation) and other preparation work customarily performed at the mine site, or as a part of mining activity. The industry has two basic activities: mine operation and mining support activities. Mine operation includes businesses operating mines, quarries, or oil and gas wells on their own account, or for others on a contract or fee basis, as well as mining sites under development. Mining support activities include businesses that perform mining services on a contract or fee basis, and exploration (except geophysical surveying). The industry includes businesses that extract natural resources, and/or those that beneficiate the mineral mined. Beneficiation is the process whereby the extracted material is reduced to particles that can be separated into mineral and waste, the former suitable for further processing or direct use. The operations that take place in beneficiation are primarily mechanical, such as grinding, washing, magnetic separation, and centrifugal separation. In contrast, manufacturing operations primarily use chemical and electro-chemical processes, such as electrolysis and distillation. 1 As defined by the Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006. Figure 1.1: Mining ANZSIC breakdown ANZSIC code ANZSIC industry 06 Coal Mining 07 Oil and Gas Extraction 08 Metal Ore Mining 080 09 10 Metal Ore Mining Non-Metallic Mineral Mining and Quarrying 091 Construction Mineral Mining 099 Other Non-Metallic Mineral Mining and Quarrying Exploration and Other mining Support Services 101 Exploration 109 Other Mining Support Services Data The main source of data on vocational training activities is the training activity database referred to as SV Training System (SVTS). The report presents findings for the time period from 2008 to 2013, with an emphasis on developments and patterns in the 2013 calendar year. The 2013 data is based on data extracted from SVTS as at 11 February 2014 and subject to revision. This report includes government subsidised training enrolments and domestic fee for service activities of TAFEs. However, TAFE fee for service activities below Certificate level and those provided by private RTOs and Adult Community Education (Learn Local) providers are not included. Data on completions contain all government subsidised and fee for service enrolments at any course level by all providers. Note that enrolment numbers have been rounded to the nearest ten. Industry and data scope 8 Skills & Training Needs 2013 – Victorian Mining Industry 7 Mining industry trends and issues This section focuses on the Mining industry as a whole. It covers the key issues and challenges, including: industry conditions, regulatory change, new technology/processes, changing consumer preferences, environmental sustainability, industry skills needs. Key messages, issues and challenges • The Victorian Mining industry employs approximately 14,400 people. This figure is expected to grow at well above the Victorian average employment growth rate over the five years to 2017-18. • Despite representing less than one per cent of employment, the industry output is four per cent of the total State output – $11.7 billion in 2012-13. • While the Mining sectors in Queensland and Western Australia have been growing strongly, the industry in Victoria is also forecast to grow over coming years. Industry output is expected to grow by 29 per cent over the five years to 201718, above the State average of 14 per cent. • Labour productivity has fallen in Mining over the past ten years, at -5.9 per cent annually, 7.2 percentage points lower than the State average labour productivity growth rate of 1.3 per cent. • The Mining industry continues to develop and employ new technologies in exploration, mining and transport, aimed at increasing productivity and improving safety and recovery rates. • Changes to government policy around the industry’s regulatory settings and coal reserves allocation could impact on the Mining industry’s outlook. Industry trends and outlook Industry overview For around a decade, the Mining sector has been an important driver of economic growth in Australia. In 2011–12, exports of mineral and energy commodities were valued at $187 billion, accounting for 60 per cent of the total value of Australian exports. This growth has been driven by strong demand from China, India and other emerging economics. While much of the focus in the Mining industry in recent years has centred on Queensland and Western Australia, the Victorian Mining industry continues to play an important role in the state’s economy. In Victoria, the industry centres on coal and metals. The coal sector consists of five mines: three in the La Trobe Valley, the Anglesea mine and a small brown coal mine at Bacchus Marsh. The La Trobe Valley mines supply five coalfired power stations which produce the majority of electricity in Victoria. The Victorian metals sector includes gold, mineral sands and base metals. Major gold mining takes place in Ballarat, Fosterville, and Stawell, with smaller mines and exploration in areas such as Bendigo, Walhalla, Costerfield, Maldon and Alexandra. Mineral sands mining includes rutile and zircon with exploration and production taking place in the Murray Basin. While no base metals mining currently occurs in Victoria, higher international commodity prices have led to significant exploration. Investors are looking at reopening the copper-zinc mine at Benambra and a commercial iron ore mine at Nowa Nowa is in the environmental approvals phase.2 2 8 Skills & Training Needs 2013 – Victorian Mining Industry Minerals Council of Australia, Victorian Division 2013, Victorian Minerals Industry Economic Fundamentals 2013. Industry conditions Environmental sustainability The Mining industry can be particularly cyclical. The energy aspects are closely linked to economic activity while the other parts of the industry, such as gold, are impacted by movements in global commodity prices. Mining can often have a significant impact on the environment, which the industry and government work together to ameliorate. In Victoria, mining companies establish a rehabilitation bond with the Department of Environment and Primary Industries (DEPI). A rehabilitation bond is a financial security provided by an operator to DEPI prior to commencing work. The purpose of the bond is to ensure that government’s financial liability is limited should the operator be unable to meet their obligations to rehabilitate the tenement. Over recent years, mineral exploration in Victoria has followed national trends, rising in 2011-12, before falling in 2012-13, although the fall in Victoria was larger than the national trend, at around 35 per cent. This fall was led by a reduction in gold exploration.3 Despite this, the number of Exploration and Mining Licences granted has increased annually from 2009, following a rapid decline due to the global financial crisis. 4 In the last few years, uncertain global economic conditions, weakening commodity prices, declining investment and increasing global competition have led to speculation that the Mining sector may face significantly lower growth over the coming years. Despite this the sector in Victoria is forecast to continue to grow strongly with large projects such as the $4.4 billion Kipper-Tuna-Turrum gas project expected to come online over coming years. Climate change policy is likely to impact the coal sector of the industry. While this policy area is in a state of flux at the Commonwealth level, any future policy changes will be important for the Mining industry. Government policy In January 2014, Acting Premier Peter Ryan MP announced a number of regulatory changes, including four related to the Mining industry. These included facilitating native vegetation offsetting on public land, making it cheaper and easier for businesses to meet their native vegetation offsetting obligations. Nationally, at a broad level, the industry is shifting from a construction phase to an operations phase. This will likely necessitate the development of workforces with specialised technical skills and industry experience, to maintain momentum and growth in the sector.5 Rehabilitation bond policy was also changed allowing payment by instalment and streamlining the process for returning bonds. The reforms also introduced online searches for existing mining exploration licences and online applications for new licences.6 Changing consumer preferences In 2012, the Commonwealth and Victorian Governments set up a $90 million fund to help companies develop ‘’precommercial’’ technology to transform Victorian coal into exportable goods such as briquettes, diesel or fertiliser.7 Because brown coal is 60 per cent moisture, in an unprocessed form it is uneconomic and unsafe to export. As most mining in Victoria is for coal, the increase in renewable energy generation is an important trend for the industry. Through both changing consumer preferences and regulation, energy generation is increasingly being sourced from renewable technologies such as wind and solar. Continued changes in this area will be carefully watched by those in the industry. 3 ABS 8412.0, Mineral and Petroleum Exploration, 2013. 4 Minerals Council Of Australia, Victorian Division 2013, Victorian Minerals Industry Economic Fundamentals 2013. 5 Australian Workforce and Productivity Agency 2013, Resources sector skills needs. The Victorian Government is currently in the process of allocating coal reserves in the Latrobe Valley for development. There is likely around 13 billion tonnes of brown coal for allocation. 6 The Hon Peter Ryan MP, ‘Red tape reduced: Victorian Coalition Government announces 36 red tape reforms’, 8 January 2014 7 Gordon, J & Willingham R 2013, ‘Race is on for coal’s super market’, October 24, 2013, http://www.theage.com.au/victoria/race-is-on-for-coals-super-market20131023-2w1pt.html Mining industry trends and issues 9 At a federal level, the recent changes to climate change policy will likely impact the mining sector, though it is not yet clear what the new Commonwealth Government’s new climate change policy will mean for the industry. Industry responses to the changing business environment Mining companies are reporting intensified focus on cost management as a result of the return to long-term pricing trends from the pricesboom of recent years. Cost reduction is also a key focus in the sector due to the high Australian dollar and increasing labour and energy costs affecting international cost competitiveness. 8 The Mining industry continues to develop and employ new technologies in exploration, mining and transport. Many Australian companies provide important technology inputs into the Mining sector.9 These technological solutions are aimed at increasing productivity, improving safety and recovery rates, removing waste and decreasing energy use. The sector’s shift to an operations phase is expected to result in increasing use of remotely controlled and automated systems. Falling commodity prices and rising costs also make introducing new technologies an imperative for sustainable production. Table 2.1: Key trends in Mining industry and their potential impacts on skills Grouping Change drivers Skills impact Coal mining Political Regulatory Settings Climate change policy Economic Performance of economy Commodity prices Social Ageing population Environmental concerns Technological Technological advancement s Skills DMC Environmental Scan, 2013. 9 Minerals Council of Australia 2013, 2012 Annual Report. 10 Skills & Training Needs 2013 – Victorian Mining Industry Exploration Metal ores Oil/gas extraction = = = = = = = = = = = = = = = = = = = Key: Driver has indirect impact on skills = Driver has low skills impact, and places marginal pressure on skills development Driver has high skills impact, and places upward pressure on skills development $ Driver places downward pressure on skills development 8 Construction material mining Economic contribution Victoria’s Mining industry contributed almost $11.7 billion to the state economy in 2012-13, around four per cent of total output. The industry directly employs approximately 14,400 workers, representing less than one per cent of Victorian employment. Output growth of 29 per cent is anticipated over the five years to 2017-18, to around $15.1 billion. A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for Victorians to access the opportunities of a growing and changing economy, and an increasingly sophisticated and information-rich society. Figure 2.1: Mining output ($ million), Victoria, 2012-13 and 2017-18 16,000 14,000 12,000 10,000 8,000 8,971 6,943 259 6,000 232 473 4,000 3,574 2,000 48 1 4,746 601 452 0 2012-13 2017-18 Exploration and Other Mining Support Non-Metallic Mining and Quarying Metal Ore Mining Oil and Gas Coal Mining Source: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2013 Employer profile At the end of 2012-13, there were an estimated 849 businesses in the Victorian Mining industry. The distribution of Mining businesses by employment level is skewed towards businesses that employ few workers: 91 per cent of Mining businesses employ fewer than 20 employees. Mining has a smaller proportion of non-employing businesses than the state average of 61 per cent. A greater proportion of Victoria’s Mining industry businesses are in the low and very high ranges of turnover (zero to less than $50,000 and $2 million or more) than the average, and fewer in the medium and high ranges of turnover ($50,000 to less than $2 million). In 2012-13, 187 Mining firms reported turnover greater than $2 million, 19 per cent of the total. Across all industries, six per cent of firms reported turnover greater than $2 million. In metropolitan Melbourne, Mining industry firms are concentrated in industrial precincts close to transport, warehousing and manufacturing hubs, in Port Melbourne, Sunshine, Ferntree Gully and Langwarrin. This reflects the importance of minimising transport costs and a desire to have easy access to major transport and freight hubs, as shown in Figure 2.3. In regional Victoria, the industry is generally concentrated in the larger population centres such as Mildura, the Latrobe Valley and Bendigo. Other areas of concentration include Bacchus Marsh, Geelong and Ballarat, relatively large population centres accessible from Melbourne. Mining industry trends and issues 1 1 Figure 2.2: Share of businesses by employment and turnover size, Victoria, 2012 61% 55% 36% 35% 8% 4% Non Employing 1 to 19 1% 0% 20 to 199 200+ Mining All industries 39% 35% 31% 28% 25% 19% 18% 6% Zero to less than $50k $50k to less than $200k $200k to less than $2m $2m or more Mining Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012 12 Skills & Training Needs 2013 – Victorian Mining Industry All industries Figure 2.3: Number of Mining industry establishments in metropolitan and regional Victoria, 2010-11 0 to 5 5 to 10 10 to 50 50 to 100 100 or more Labour productivity Labour productivity is defined as real gross value added per hour worked. Figure 2.4 shows the average annual compound rate of growth in labour productivity for the Mining industry over the period 2003 to 2013. Nationally, the average annual growth rate of labour productivity for Mining was negative: -5.9 per cent. Mining labour productivity growth was negative in all years over the period except for the year to June 2007, when there was growth of 2.5 per cent. Over the same period, the labour productivity growth rate for all industries was 1.3 per cent. Upskilling the workforce continues to be an important focus for increasing productivity, and producing more with less. A welltrained, job-ready workforce is the life-blood of Victoria’s industry and business and the largest determinant of productivity in the State’s economy. Figure 2.4: Labour productivity measured by gross value added (GVA) per hour worked, average annual growth, 2003 to 2013 Mining 1 to 3 3 to 4 4 to 5 5 to 10 10 or more Source: Department of State Development, Business and Innovation (DSDBI), Mining Industry. Business location in Victoria: A decade of change, October 2012 (based on data from WorkSafe Victoria) All industries -5.9% 1.3% Source: Australian Bureau of Statistics (ABS), Australian System of National Accounts, 5204.0 Mining industry trends and issues 1 3 Mining industry workforce and skills This section focuses on the Mining industry’s workforce. It covers employment levels and trends, as well as workforce characteristics such as age and skill level. Key messages, issues and challenges • The Victorian Mining Industry employs approximately 14,400 people, less than one per cent of the Victorian workforce. Employment growth has been far stronger than the average across all industries over the five years to 2012-13, a trend that is expected to continue for the next five years to 2017-18. • Demand for new jobs due to growth and replacement over the period is expected to be approximately 820 jobs annually. • The workforce is expected to gradually move away from lower-skill roles towards higher-skill roles. • The workforce is strongly biased towards males, and slightly biased towards older workers, relative to the Victorian average. The training level of the workforce is relatively high, with a smaller proportion of unqualified workers and a larger proportion of workers with higher degrees than the Victorian average. • While skills shortages are less acute than at the peak of the mining boom, the industry still often struggles to fill some occupations. • There are changes in the breadth of the skills required in a rapidly changing technological environment. • Safety is a very important part of Mining, and continued safety training is central to skilling for the industry. Employment Approximately 14,400 people are employed in Victoria’s Mining industry. Employment in the Mining industry grew by around 45 per cent over the five years to 2012-13, equating to approximately 4,300 employees. Over the next five years to 2017-18, employment is expected to increase by 18 per cent (or 2,600 jobs). In comparison, employment in all Victorian industries grew by 10 per cent over the five years to 2012-13. Statewide employment is expected to grow at eight per cent in the next five years to 2017-18, significantly more slowly than the expected growth in Mining employment. Figure 3.1: Mining employment, Victoria, 2012-13 and 2017-18 18,000 16,000 14,000 12,000 6,500 5,200 10,000 8,000 6,000 1,800 3,200 4,300 3,400 4,000 2,700 2,000 3,200 0 700 500 2012-13 2017-18 Exploration and Other Mining Support Non-Metallic Mining and Quarrying Metal Ore Mining Oil and Gas Coal Mining Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 14 Skills & Training Needs 2013 – Victorian Mining Industry Skills composition Shown in Figure 3.2 are the relative proportions of high and low skill jobs in the Mining industry. After almost converging in 200708, the forward projection is for high-skill roles to become increasingly important at the expense of low skill roles. By 2020-21, high skill roles are expected to make up 46 per cent of the Mining industry workforce, only a slight increase from 45 per cent in 2012-13, but a significant increase from 35 per cent in 2007-08. Low skill roles are expected to fall to 36 per cent, from 45 per cent in 2007-08. Figure 3.2: Mining industry skill levels, Victoria, 2004-05 to 2020-21 Forecast 2012-13 to 2020-21 50% 40% 30% 20% 10% 0% 2004-05 2006-07 2008-09 201011 2012-13 2014-15 2016-17 High Skill 2018-19 Medium Skill 2020-21 Low Skill Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Note: High skill—managers and professionals. Medium skill—technicians and trades workers, community and personal service workers. Low skill—clerical and administrative workers, sales workers, machinery operators, drivers and labourers. Mining industry workforce and skills 1 5 Job vacancies The figure below highlights the number of vacancies posted online in Victoria over the two years to September 2013 for selected key Mining occupations. The number of online job advertisements across the larger Mining occupations has fallen steadily over the period, consistent with the decreasing trend seen in the national Internet Vacancy Index.10 There were approximately 2,300 newly lodged vacancies in key Mining occupational groupings in September 2013. Truck Drivers and Production Managers were the largest occupations in terms of vacancies (356 and 214 vacancies respectively). Figure 3.3: Number of newly lodged online vacancies in Mining occupations in Victoria, 2011-2013 Truck Drivers 800 Production Managers 700 Metal Fitters & Machinists 600 Chief Exec. & Mgr Director 500 Earthmoving Plant Operators 400 Mining Engineers 300 Drillers/Miners/Shot Firers Geologists & Geophysicists 200 Other Construction/Mining Labours 10 0 0 Mar11 Jun11 Sep11 Dec11 Mar-12 Jun12 Sep12 Dec12 Mar-13 Jun13 Sep-13 Source: Department of Education, Employment and Workplace Relations (DEEWR) Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK, My Career, CareerOne and Australian JobSearch), major advertising occupations only. Note: caution advised when using monthly occupation data as it is susceptible to fluctuation from month to month 10 Department of Education, Employment and Workplace Relations, DEEWR Vacancy Report, February 2013 1 6 Skills & Training Needs 2013 – Victorian Mining Industry Labour market characteristics Figure 3.4: Proportion of employment by age, Victoria, 2012-13 Employment by age Younger workers aged 15-24 years are under-represented in the Mining industry workforce, making up only seven per cent of the workforce compared with the State average of 16 per cent. Workers aged 25-44 years are slightly overrepresented in the Mining workforce, as are workers aged 45 years and over. Mining 7% 24% All industries 16% 15-24 24% 25-34 27% 22% 23% 35-44 21% 21% 17% 45-54 55+ Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Employment by gender The Mining Industry employs a significantly higher proportion of men (78 per cent) than women (23 per cent). While all industries in the State employ on average more men than women (54 per cent men), the Mining industry is strongly biased towards employment of men. Figure 3.5: Proportion of employment by gender, Victoria, 2012-13 Mining All industries 23% 46% 78% 54% Females Males Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Mining industry workforce and skills 1 7 Employment by qualification level Figure 3.6: Proportion of employment by qualification level, Victoria, 2012-13 While a significant proportion of the Mining industry workforce has no post-school qualifications (33 per cent), this is a smaller proportion than the State average (40 per cent). Mining As with the State average, a small proportion of the workforce has Certificates I and II as highest qualifications. The Mining industry is weighted towards the higher level Certificates (III and IV – 22 per cent) and higher degrees (34 per cent), relative to the State average. All industries No post school quals 33% 40% Certificate I or II 2% 22% 3% 18% Certificate III or IV 10% 11% 34% 29% Diploma Higher Education Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Occupations in demand Table 3.1 highlights the occupations at four-digit ANZSCO level (Australian and New Zealand Standard Classification of Occupations) that align to the Mining industry. Note that while some occupations also align to other industries, the figures shown are specific to the Mining industry. Forecasts presented in the table estimate the annual demand for employment from growth and replacement, in terms of the average number of jobs required for each occupation annually up to 2017-18. Employment growth is the net number of new jobs that the occupation is currently forecasting within the industry. Replacement demand is the number of existing workers required to replace those that are forecast to leave each occupation through attrition, either via retirement or other movement out of the occupation. Across all occupations in the Mining industry (including office support occupations such as book-keepers, receptionists etc.), projected average annual employment needs between 2012-13 and 2017-18 are for around 820 workers each to satisfy employment growth and replacement demand. The occupation forecast to grow most strongly is Mining Engineers, followed by Drillers, Miners and Shot Firers. The latter of these occupations had the largest total employment in 2012-13, and is expected to require the most new jobs annually due to growth and replacement demand (190 jobs annually). The former – Mining Engineers – had the second largest total employment in 2012-13, and is expected to require the second most new jobs annually due to growth and replacement demand (110 jobs annually). Several occupations – Geologists and Geophysicists, Earthmoving Plant Operators, and Office Managers – are expected to experience negative employment growth to 2017-18. Office Managers, due to the combination of negative annual growth and low attrition rates, are expected to require no new jobs annually to 2017-18. 1 8 Skills & Training Needs 2013 – Victorian Mining Industry Table 3.1: Estimated annual employment growth and replacement demand for the top 20 occupations in the Mining sector, Victoria Occupation 2012-13 employment total Average annual employment needs Overall employment growth to 2017-18 Drillers, Miners and Shot Firers 1,110 190 140 Mining Engineers 920 110 260 Metal Fitters and Machinists 770 60 80 Production Managers 710 50 110 Geologists and Geophysicists 600 50 -60 Accountants 500 30 70 Truck Drivers 490 20 50 Earthmoving Plant Operators 440 10 -20 Other Construction and Mining Labourers 440 60 0 Structural Steel Construction Workers 310 40 10 Chief Executives and Managing Directors 310 20 30 Other Building and Engineering Technicians 290 50 90 Human Resource Managers 280 20 40 Chemical, Gas, Petroleum and Power Generation Plant Operators 270 50 30 Structural Steel and Welding Trades Workers 270 20 20 Electricians 240 10 30 Office Managers 200 0 -10 Contract, Program and Project Administrators 190 10 40 General Clerks 170 10 10 Management and Organisation Analysts 170 10 30 Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 VET occupations highlighted in green. Mining industry workforce and skills 1 9 The Mining industry is also affected by skills shortages primarily aligned to other industries, for example: Specialised and in-shortage occupations This section focuses on current skills shortages in specific occupations related to the Mining industry as well as those occupations that are specialised.11 The Department’s analysis of skill shortages considers both quantitative evidence and intelligence gathered through industry consultation. Highlighted below are occupations directly aligned to the Mining industry that are deemed to be experiencing skills shortages in Victoria. Table 3.2 then highlights key occupations within Victoria’s Mining industry (based on employment size), along with a summary of their specialised and in-shortage status. This table also includes occupations traditionally associated with other industries. Geophysicist This occupation is experiencing high employment growth, as well as strong replacement demand and growing vacancies. Demand is expected to continue for geoscience roles over the coming years.12 Current shortages are exacerbated by intense competition within the Mining sector skilled workers; the Victorian industry also needs to compete with the mining boom states of Queensland and Western Australia. Geophysicist Skills Shortage Specialised Occupation 11 DEECD uses the Australian Workforce and Productivity Agency (formerly Skills Australia) list of specialised occupations. These occupations have a long lead- time for training, high economic value and a significant match between training and employment. 12 Skills DMC Environmental Scan, 2013 20 Skills & Training Needs 2013 – Victorian Mining Industry • Fitter (General), Fitter and Turner and Metal Machinist (First Class): primarily associated with the Manufacturing industry, these three occupations are involved in the development and maintenance of equipment in the Mining industry. Ongoing shortages have been identified at both a State and national13 level, with skills shortages expected to continue out to 2018.14 The skills deficit associated with Metal Fitters and Machinists appears to be declining, however, with advertised vacancies decreasing from previous levels alongside reduced pressure from replacement demand (i.e. workers needed to replace those leaving the occupation, for example due to retirement or career change). • Truck Driver: this occupation is experiencing ongoing shortages, both in Victoria and nationally.15 Shortages are primarily for experienced Truck Drivers with specific skills (for example, dangerous goods drivers). Table 3.2: Occupations ‘in-shortage’ or ‘specialised’ Occupation name In shortage Specialised Drillers, Miners and Shot Firers No No Mining Engineers No Yes Metal Fitters and Machinists Yes Yes Production Managers (Mining) No Yes Geologists and Geophysicists Yes No Accountants No Yes Truck Drivers Yes No Earthmoving Plant Operators No No Other Construction and Mining Labourers No No Structural Steel Construction Workers No No 13 Skills DMC Environmental Scan, 2013 14 Australian Workforce and Productivity Agency 2013, Resources sector skills needs. 15 Skills DMC Environmental Scan, 2013. Workforce skills needs The acute skills shortages experienced by the Mining industry in recent years have now eased and the number of occupations in shortage nationally is at its lowest level since 2007. While skills shortages are no longer as acute, increased mechanisation and the need for productivity improvements mean the industry continues to struggle to meet its workforce skills needs. The workforce needs of the Mining industry differ at the different stages of a mining project. These stages are exploration, project planning, construction, operations, decommissioning. As noted in the ‘Industry trends and outlook section’ above, at a national level, the Mining industry is moving from a construction phase to an operations phase. As a result, the industry will be looking to develop workers with the right skills and experience to manage this transition. There are also changes in the breadth of the skills required in the Mining industry due to the rapidly changing technological environment. While the impact of automation is not expected to significantly reduce employee numbers, it will present skills challenges, with a shift in demand to high level specialists and away from lower skills areas. Innovations such as driverless trucks, trains and drill rigs will continue to drive the need for workers improve their skills to take on a more diverse range of tasks within the industry. Safety is a very important part of Mining, and continued safety training is central to skilling for the industry. Safety training leads to better work practices, increased safety in the workplace, fewer accidents and a reduction in lost work time – all of which can aid productivity.16 Some of the industry’s existing workforce could benefit from foundation skills development necessary to enable further training. Foundation training in core language, literacy and numeracy skills can allow current workers the chance to undertake more technical, job-specific training and aids safety. The Mining industry has a predominantly male workforce that is demographically ageing. The ageing workforce means that there is a need for up skilling at later points in employees’ career. The industry is also aiming to encourage new employees into the industry to address workforce ageing. The industry has, however, made considerable inroads in engaging underrepresented groups in the workforce, including women, Indigenous Australians and mature aged workers. This engagement has been driven by the sector’s increasing need for skilled workers and in some cases by a strong sense of corporate social responsibility.17 The increasing implementation of remotely controlled and automated systems means that an increasing number of mining jobs are likely to be located in capital cities. The urbanisation of the mining workforce, reduced reliance on long-distance commuting, more flexible shifts, less physically demanding work and a more professional workplace culture may help to increase workforce participation of women and older workers and retention of the existing workforce.18 While the Mining industry is an attractive career option to some young people due to the relatively high wages on offer in some firms, many young people are not engaging with the industry due to negative perceptions of a physically demanding, geographically remote and male dominated work environment. Further, industry forecasts indicate that the number of students graduating from Mining industry related courses is not sufficient to meet future skills needs.19 While there are programs promoting resources careers and preparing students for careers in the industry, some argue that more needs to be done through the provision of accurate career information underpinned by up-to-date labour market intelligence and a ‘real life’ perspective of the industry.20 17 Australian Workforce and Productivity Agency 2013, Resources sector skills needs. 16 Skills DMC Environmental Scan, 2013. 18 McNab K, Onate B, Brereton D, Horberry T, Lynas D and Franks DM, 2013, Exploring the social dimensions of autonomous and remote operation mining: applying social licence in design, csrm.uq.edu.au/publications?task=downloa d&file=pub_link&id=501, accessed 19 November 2013, p. 19–20. 19 Australian Workforce and Productivity Agency 2013, Resources sector skills needs. 20 Australian Workforce and Productivity Agency 2013, Resources sector skills needs. Mining industry workforce and skills 2 1 Mining industry vocational training provision This section focuses on training provided for the Mining industry. It covers training activity (including a regional analysis), courses, providers and student characteristics. Training activity Table 4.1 opposite gives a summary of training activity for the Mining industry over the period 2008 to 2013. Key messages, issues and challenges Enrolments • In 2013, there were 370 government-subsidised enrolments in Mining-related VET courses in Victoria. This was down from 530 in 2012, but up from 280 in 2011. The small number of enrolments in Mining courses generally means that enrolment trends should be interpreted with caution. Between 2008 and 2013, Government subsidised enrolments in Mining courses have been relatively steady, except for 2012, which saw a large increase. This was driven by a large increase in enrolments in Certificate IV in Surface Extraction Operations. • Beginning in 2012, the Certificate IV in Surface Extraction Operations, aligned to the occupation of Miner, has been the Mining-related qualification with the highest number of enrolments. • Most training is provided by TAFE providers, although 2013 saw a large increase in the proportion of enrolments delivered by private training providers. • Most enrolments in Mining courses fall within Band A, the highest band for government subsidies. • In 2013, the largest region in terms of Mining training delivery was Hume, accounting for 37 per cent of industry enrolments. • The majority of enrolments in Mining industry training were by students 25 years of age or older (over two-thirds of the student base). Over the same period, TAFE fee for service enrolments have fallen from around 400 in 2008 to 140 in 2013. In 2013 Mining courses accounted for 0.1 per cent of all government subsidised enrolments in Victoria, the smallest number of the 19 main industries. Apprentices and trainees In 2013, around 90 Government subsidised Mining enrolments were by trainees. This number represents 28 per cent of enrolments, a significantly higher proportion that in the preceding five years. There are no apprentices in courses specifically associated with the Mining industry. Qualification level In 2013, the majority of the Mining enrolments were at the Certificate III-IV level with less than 15 per cent at the Certificate I-II level. This is similar to the VET sector generally where 75 per cent of Government subsidised enrolments are at the Certificate III-IV level. Mining had less than 10 enrolments at the Diploma level or above. Specialised or in shortage occupations There were no enrolments in Mining qualifications aligned to specialised or in-shortage occupations in 2013. Completed qualifications Over the last five years, completions in Mining-related qualifications have fluctuated. Completions rose in 2009, before halving in 2010 to 80. The number of completions rose again in 2011 and 2012, peaking at 260, before falling back to 110 in 2013. 22 Skills & Training Needs 2013 – Victorian Mining Industry Table 4.1: Key training activity in the Mining Industry, 2008 to 2013 Government Subsidised Enrolments Industry sub-sector 2008 2009 2010 2011 2012 2013 30 20 20 30 50 10 Metal Ore Mining 110 200 240 40 50 30 Mining nfd 240 150 50 210 430 320 Total 390 370 320 280 530 370 2008 2009 2010 2011 2012 2013 40 50 20 20 30 90 - - - - - - 40 50 20 20 30 90 2008 2009 2010 2011 2012 2013 Exploration and Other Mining Support Services 20 20 10 10 40 10 Metal Ore Mining 80 70 60 30 80 40 Mining nfd 20 100 10 70 140 60 Total 120 190 80 110 260 110 Cert.I-II Cert.III-IV Dip.+ Exploration and Other Mining Support Services 10 - - Metal Ore Mining 10 20 - Exploration and Other Mining Support Services Apprentice or trainee Apprentice trainee status Trainee Apprentice Total Completed qualifications Industry subdivision Qualification levels – 2013 Industry Subdivision Mining nfd 30 280 <10 Total 50 300 <10 nfd = not further defined Mining industry vocational training provision 23 Courses Table 4.2 sets out the courses in Mining by enrolments. The Certificate IV in Surface Extraction Operations attracted the most enrolments in 2013, and represents around 40 per cent of all enrolments. The number of enrolments in this course is down from 270 in 2012. Table 4.2: Mining qualifications ranked by 2013 enrolments, government subsidised, 2008 to 2013 Course Name 2008 2009 2010 2011 2012 2013 Certificate IV in Surface Extraction Operations - - - 30 270 150 Certificate III in Surface Extraction Operations - - - 20 50 110 Certificate II in Surface Extraction Operations - - <10 100 50 20 Certificate III in Resource Processing - - - 10 <10 20 Certificate II in Resource Processing - - - 20 50 20 Certificate III in Underground Metalliferous Mining - - - 10 10 20 Certificate II in Mining Field/Exploration Operations 30 20 20 30 50 10 - - - 30 40 10 <10 10 10 - - 10 - - - 10 10 10 Certificate II in Underground Metalliferous Mining Certificate III in Mine Emergency Response and Rescue Diploma of Surface Operation Management Note: course totals include equivalent superseded courses. Enrolments by occupation Four Mining related occupations take in all of the Mining industry’s enrolments. Miner is the largest occupational grouping and has seen significant fluctuations over the 2008 to 2013 period. Engineering Production Systems Worker is the second largest occupation in 2013. Surveyor’s Assistant is the third largest occupation and has fallen from 50 enrolments in 2012 to 10 in 2013. Table 4.3: Mining occupations ranked by 2013 enrolments, government subsidised, 2008 to 2013 Occupation Miner Engineering Production Systems Worker 2008 2009 2010 2011 2012 2013 330 310 290 200 420 320 - - - 40 60 30 Surveyor's Assistant 30 20 20 30 50 10 Mine Deputy 30 40 <10 10 <10 <10 Please see Appendix A for occupations/associated qualifications with funding bands (available for 2012 and 2013) 24 Skills & Training Needs 2013 – Victorian Mining Industry Training providers Eight training providers delivered government subsidised Mining industry training in 2013. The majority of training is with TAFE providers, who accounted for around 73 per cent of industry enrolments in 2013. This is a large fall from 2008 to 2012 where TAFE providers accounted for 92 to 98 per cent enrolments. Table 4.4: Proportion of enrolments by provider type, government subsidised, 2008 to 2013 Provider Type 2008 2009 2010 2011 2012 2013 TAFE 92% 95% 99% 98% 96% 73% Private 8% 5% 1% 2% 4% 27% Funding patterns From July 2012 funding bands for government subsidised training were introduced. The allocation of funding within these bands is designed to better target areas of greatest public benefit and future jobs growth. Where there is not a strong need for Government support the training subsidies are lower. Courses by funding band Enrolments by funding band In 2013, 60 per cent of Mining courses were within Band A; the remaining courses were in either Band B or C. No Mining courses were in the lower subsidy bands – Bands D and E. The vast majority of enrolments in Mining industry courses in 2013 were in subsidy Band A (82 per cent, increasing from 63 per cent in 2012). Most of the rest were in Band B with a small number in Band C. Table 4.5: Mining courses by funding subsidy band, 2013 Subsidy Band 2013 % total Band A 9 60% Band B 4 27% Band C 2 13% Band D - - - - Band E See Appendix A for a list of courses with associated subsidy bands for 2012 and 2013. Figure 4.1: Enrolments by subsidy band, government subsidised, 2012 and 2013 2% 82% 2013 2012 16% 63% 35% 1% Band A Band B Mining industry vocational training provision Band C 25 Regional training activity In 2013, the largest region in terms of Mining training delivery was Hume, accounting for around 35 per cent of industry enrolments. Hume experienced a large increase in enrolments between 2011 and 2012, before declining in 2013. Other significant regions for enrolments in Mining related courses include Loddon Mallee with 30 per cent and Western Metropolitan with 15 per cent. Eastern Metropolitan has seen a large decrease in the number of enrolments since 2008 – from 210 to 30 in 2013. Table 4.6: Victorian regions ranked by 2013 enrolments, government subsidised, 2008 to 2013 Region 2008 2009 2010 2011 2012 2013 - - - <10 250 140 Loddon Mallee 140 210 140 220 220 110 Western Metropolitan 30 <10 <10 - 10 60 Eastern Metropolitan Hume 210 110 40 50 50 30 Gippsland - - - - - 20 Grampians - - - - - 20 Note: regional enrolment figures sum to slightly more than the overall Victoria-wide figures due to a small number of students undertaking training in campuses in more than one region 26 Skills & Training Needs 2013 – Victorian Mining Industry Figure 4.2: Mining training providers and enrolments, 2013 Loddon Mallee <10 providers 110 enrolments Grampians <10 providers 20 enrolments Hume <10 providers 140 enrolments See metro inlay Barwon South West 0 providers 0 enrolments Gippsland <10 providers 20 enrolments Northern metro 0 providers 0 enrolments Western metro (inc. CBD) <10 providers 60 enrolments Eastern metro <10 providers 30 enrolments Southern metro <10 providers 0 enrolments Mining industry vocational training provision 27 Student characteristics Throughout 2008 to 2013, the majority of enrolments in mining-related courses were by students aged 25 years or older, except for 2011 when the proportion dropped to 30 per cent. In all other years at least two thirds of enrolments were by learners in the 25+ age group. In 2013, around a quarter of enrolments were by unemployed students, a fall from 2011 and 2012 where around 40 per cent did not have a job. In 2013, 10 per cent of enrolments were by students from a CALD background, and less than five per cent were by students with a disability. The proportion of enrolments by Indigenous students has been low across 2008 to 2013, not rising above two per cent in any year. Table 4.7: Learners Facing Barriers enrolments, government subsidised, 2008 to 2013 Learner Groups 2008 2009 2010 2011 2012 2013 - <10 <10 <10 <10 <10 10 10 10 30 30 10 Indigenous Disability CALD 20 20 50 20 50 50 Unemployed 60 60 60 150 190 90 Aged 25+ 330 290 260 120 330 290 At the time of enrolment, students enrolling in Mining were typically less qualified than the average across all industries. Within the sector, 20 per cent of students had a highest prior qualification of Certificate III or above, compared with 22 per cent across all vocational training students (see Figure 4.3). Figure 4.3: Enrolments by highest prior qualification, government subsidised, 2013 The main reasons students were enrolling in vocational training related to Mining were ‘I wanted extra skills for my job’ (32 per cent), ‘To get a job’ (18 per cent) or ‘It was a requirement of my job’ (16 per cent). Figure 4.4: Enrolments by reason for study, government subsidised, 2013 I wanted extra skills for my job Bachelor Degree or 1% Higher Degree level 1% Advanced Diploma, Diploma or Associate Degree 32% 17% 20% Certificate III - IV 7% Other 42% 1% 16% 1% 18% 45% Year 11 or below 35% Mining 28 It was a requirement of my job For personal interest or self-development 34% Year 12 or Certificate II Certificate I To get a job 27% 2% 2% Skills & Training Needs 2013 – Victorian Mining Industry All industries Note: ‘Other’ includes To get a better job or promotion, To try for a different career, To start my own business, To develop my existing business, To get into another course of study. Appendix A Table 5.1: Enrolments by occupation, course and subsidy band 2012 and 2013 Occupation Course name Earth Science Technician Certificate III in Mining Exploration Funding band 2012 2013 Band A <10 - <10 20 Total Engineering Production Worker Certificate II in Resource Processing Band B 50 Certificate III in Resource Processing Band A <10 20 Certificate IV in Resource Processing Band A <10 <10 60 30 Total Mine Deputy Advanced Diploma of Extractive Industries Management Band C <10 <10 Diploma of Surface Operation Management Band C <10 <10 <10 <10 Total Miner Certificate II in Surface Extraction Operations Band B 50 20 Certificate II in Underground Metalliferous Mining Band B 40 10 Certificate III in Metalliferous Mining Operations Processing Band A <10 - Certificate III in Mine Emergency Response and Rescue Band A - <10 Certificate III in Surface Extraction Operations Band A 50 100 Certificate III in Underground Metalliferous Mining Band A <10 20 Certificate IV in Metalliferous Mining Operations (Underground) Band A <10 <10 Certificate IV in Surface Extraction Operations Band A 240 150 400 300 50 10 50 10 Total Surveyor's Assistant Certificate II in Mining Field/Exploration Operations Total Band B Mining industry vocational training provision 29