ANZSCO 3223-13 Welder (First Class) 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 this occupation in Victoria. Employers were able to fill most of the surveyed vacancies with qualified, experienced and skilled first class level welders. Survey results The Department of Employment Survey of Employers who have Recently Advertised (SERA) found that overall, 89 per cent of surveyed welder (first class) vacancies were filled, compared to the 2013 fill rate of 73 per cent: o There were approximately 36.8 applicants on average per vacancy, of which 2.1 applicants were identified as suitable (in comparison to 68.9 and 1.7 respectively for 2013). o Employers in regional areas experienced a higher fill rate than metropolitan vacancies (with 100 per cent of vacancies filled compared to 88 per cent) as well as higher numbers of applicants and suitable applicants on average per vacancy (with 45.5 and 2.5 respectively, compared to 35.7 and 2.0 in metropolitan areas). Surveyed vacancies were primarily related to roles involving large scale commercial and infrastructure construction, as well as a variety of sectors within the manufacturing and agricultural industries. All employers were seeking experienced and qualified first class welders. MIG welding certificates were commonly sought across the majority of vacancies, while additional demand for TIG, OXY and ARC welding certificates were more likely to be particularised to individual roles. A minimum of 2 to 3 years of previous trade level experience in a related role was generally considered by employers to be critical due to the wide variation in welding skill-sets called for by different industries (such as structural engineering, manufacturing production, agricultural equipment service and repairs and industrial engineering) and the types of material being used (such as stainless steel, sheetmetal, light and heavy gauge steel, carbon steel and aluminium). More broadly, employers required applicants to have a strong understanding of Workplace Health and Safety (WHS) principles and the ability to read and interpret technical drawings. Additionally, most employers desired applicants to hold a current drivers licence and have their own transport as well as basic hand tools and personal protection equipment (such as welding masks and gloves). First Aid Certification and Forklift Licences were also regarded as highly desirable. The primary reason vacancies remained unfilled was due to suitable applicants rejecting wage offers or gaining alternate employment. Labour Economics Office Victoria Department of Employment Unsuitable applicants While 47 per cent of applicants were qualified, only 6 per cent of the total applicant pool was considered suitable. The main reason for applicant unsuitability was a lack of relevant first class level welding certificates, followed by a lack of experience and associated trade skill-sets in a previous related role (including the industry area and particular material types). Other significant reasons were related to a lack of broader employability skills with employers noting they placed particularly high expectations upon reliability and work ethic. Demand and supply trends Demand for first class welders is strongly influenced by activity in the construction and manufacturing industries1. Australian Bureau of Statistics (ABS) data shows that non-residential construction in Victoria grew by 5.8 per cent in the year to June 2014, following a decrease of 2.3 per cent the previous year. Engineering construction decreased by 7.2 per cent in the year to June 2014 and follows a decrease of 9.0 per cent in the previous year2. For the manufacturing industry, 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 improve productivity; these conditions have impacted demand for manufacturing workers within the Victorian sector particularly, 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)3. Internet Vacancy Index (IVI) data shows that in the year to December 2014, the number of online advertisements for Victorian structural steel workers declined by 12 per cent, which is also 28 per cent lower in comparison to the five year average of online advertisements for this trade.4 Apprenticeship training completions in courses relevant to the welder occupation in Victoria for 2013-14 rose by 22 per cent to 505; by comparison, completions have averaged 529 per annum over the last ten years5. Supply to the trade is largely domestic as 457 visas continue to be a negligible source of first class welders in Victoria, averaging only 32 persons per annum over the last five years6. 1 ABS, Labour Force Survey, annual average 2013 ABS, cat. no. 8755.0, Construction Work Done, Tables 04 and 08, Chain Volume Measures, States and Territories, Sept. 2014 3 ABS, cat. no. 8155.0, Manufacturing Industry, Table 02. States, Territories & Australia by ANZSIC Subdivision, 2012-13 4 Department of Employment, Internet Vacancy Index (IVI), December 2014, 12 month moving average 5 National Centre for Vocational Education Research (NCVER), Apprentices and Trainees, November 2014, estimates 6 Department of Immigration and Border Protection, 457 visas granted 2013-14, June 2014 2 Labour Economics Office Victoria Department of Employment