Deloitte Access Economics Skill shortages in the resources sector Skills Australia 2 May 2011. Deloitte. Deloitte Access Economics Pty Ltd ACN: 149 633 116 Lindy Ingham Acting Director Labour Market Information Section Skills Australia Level 1, 9 Sydney Ave Barton ACT 2600 PO Box 6334 Kingston ACT 2604 Tel: +61 2 6175 2000 Fax: +61 2 6175 2001 www.deloitte.com.au 2 May 2011 Dear Lindy Skill shortages in the resources sector Deloitte Access Economics has been commissioned to undertake research into the current and future skills needs in the resources sector in Australia. This includes a scan of Australian resource sector reports published in the past 12 months and the skill needs they identify. This report is structured as follows: The overview provides a summary of key findings on skill needs in the resources sector based on the reports examined. Chapter 1 provides individual summaries of the primary sources examined, where primary sources are those where the main purpose of the report Or article is in relation to skill needs in the resources sector. Chapter 2 provides individual summaries of the secondary sources examined, where secondary sources are those which include some discussion of skill needs in the resources sector, but the report itself has a broader coverage. Finally, a bibliography lists reference details for the reports which have been reviewed and other relevant literature. We hope this report provides assistance in Skills Australia's reporting on the status of skill shortages in the resources sector. Yours sincerely, David Rumbens Director Deloitte Access Economics Pty Ltd Liability limited by a scheme approved under Professional Standards Legislation. © 2011 Deloitte Access Economics Pty Ltd Skill Shortages in the resources sector Contents Overview .................................................................................................................................................................. i 1. Primary Sources ............................................................................................................................................. 6 1.1 Birrell and Healy .................................................................................................................................... 6 1.2 Briggs ..................................................................................................................................................... 7 1.3 Energy Skills Queensland "Industry Skills Plan ...................................................................................... 9 1.4 Energy Skills Queensland - Workforce Planning report ...................................................................... 10 1.5 Energy Skills Queensland - Addendum of workforce planning report ................................................ 13 1.6 Energy Skills Queensland - Workforce & Competency Development Plan ......................................... 14 1.7 Grad (article in Engineering and Mining Journal) ................................................................................ 15 1.8 Institute for Minerals and Energy Resources ...................................................................................... 17 1.9 Institute for the Study of Labour ......................................................................................................... 18 1.10 Mining Industry Skills Centre .............................................................................................................. 18 1.11 National Institute of Labour Studies ................................................................................................... 20 1.12 National Resources Sector Employment Taskforce ............................................................................ 22 1.13 Piper (article in Australia's Paydirt) ..................................................................................................... 23 1.14 Resource Engineering Skills Alliance ................................................................................................... 24 1.15 Technology and Industry Advisory Council ......................................................................................... 25 2. Secondary Sources ....................................................................................................................................... 28 2.1 Australian Industry Group ................................................................................................................... 28 2.2 Australian Industry Group / Deloitte ................................................................................................... 29 2.3 Australian National Engineering Taskforce ......................................................................................... 29 2.4 Australian Petroleum Production and Exploration Association .......................................................... 31 2.5 Chamber Of Commerce and Industry of Western Australia ............................................................... 32 2.6 Chamber of Minerals and Energy of Western Australia...................................................................... 33 2.7 ElectroComms & Energy Utilities Industry Skills Council .................................................................... 34 2.8 Queensland Treasury .......................................................................................................................... 36 2.9 SkillsDMC ............................................................................................................................................. 37 2.10 Tolhurst ............................................................................................................................................... 39 2.11 Western Australian Department of Mines and Petroleum - Prospect ................................................ 39 2.12 Western Australian Department of Training and Workforce Development ....................................... 40 2.13 Women in Mining Network ................................................................................................................. 42 Appendix A: Bibliography ..................................................................................................................................... 45 Limitation of our Work................................................................................................................................. 47 Liability limited by a scheme approved under Professional Standards Legislation. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www,deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © 2011 Deloitte Access Economics Pty Ltd Skill Shortages in the resources sector Overview Deloitte Access Economics has been commissioned to undertake research into the current and future skills needs in the resources sector in Australia. This includes a scan of Australian resource sector, reports published in the past 22 months and the skill needs they identify. This report provides individual summaries of key reports examined, split into primary sources (where the main purpose of the report or article is in relation to skill needs in the resources sector), and secondary sources (which include some discussion of skill needs in the resources sector, but the report itself has a broader coverage). The current macroeconomic challenge Australia faces a set of economic challenges to maximise the opportunities the country has available to it at present. In late 2008 when the global financial crisis (GFC) hit, unemployment in Australia was rising rapidly. At that time, the level of investment in the mining sector was still strong, as work on major projects approved prior to the GFC continued. However, new project approvals weren't occurring at that time, and some marginal mining operations were closing down. However, by late 2009 it was a different Story - Australia's economic climate had significantly improved. Jobs growth had returned and, thanks to continued industrial growth out of China, new resources investment projects were once again being approved and proceeding forward. This change in the economic climate was typified by the approval granted for the Gorgon LNG project. Skating through the worst global downturn since the 1930s, there was suddenly a private consortium willing to invest 543 billion into the Australian economy for the one project. since that time, macroeconomic conditions for the resources sector in Australia have continued to improve. One of the best measures of that improvement can be seen in Australia's terms of trade, as shown in Figure 2.1.1, along with the value of engineering construction work yet to be done in Australia (but approved). Deloitte Access Economics Commercial-In-Confidence i Skill Shortages in the resources sector Figure 1.1.1: Australia’s terms of trade and engineering construction work yet to be done The challenge now is to accommodate the various resources projects which are underway or seeking approval. The Deloitte Access Economics-Amp Investment Monitor for March 2011 shows some 18 billion of mining projects underway in Australia and committed to start soon. Beyond that there are a further $236 billion of mining projects in the planning pipeline at present. Investment Monitor notes: Some 46% of projects in the Investment Monitor database by value are from the mining sector, and it has clearly dominated investment growth over recent years. Clearly, commodity prices are very supportive for new investment decisions at present. That's providing mining companies with a powerful motivation to invest, as well as the cash to do so from internal financing. Commodity prices won't stay this strong forever, "but nor would they need to for the vast bulk of investment projects being considered at present to generate a decent return. The key driver here is the rate of economic growth .from China which has potential for at least another good 15 years of strong economic growth on the path to industrialisation. The key constraint is likely to come from a lack of workers. Key themes A clear key theme across the reports is that the resources sector will have a high demand for additional workers over the coming years, Those reports which also examine the expected supply of new' workers to the sector point to shortfalls in supply relative to demand. Deloitte Access Economics Commercial-In-Confidence ii Skill Shortages in the resources sector Some other key themes which are seen across reports include: While the resources sector is experiencing high demand, there is also strong competition for workers from other sectors. A likely greater rate of retirement over the years ahead will compound the problem of a lack of workers. How to supply the required skilled labour to regional areas is a key issue. Concerns that generic competency based training packages don't align with the needs of the resources sector at present. Inadequate capacity of training organisations to respond to a sharp pick-up in student numbers. High wages in the resources sector are encouraging school leavers (particularly in WA) straight into the workforce, rather, than pursuing further training. Techniques used Several of the reports seek to quantify the likely Scale of the problem, and/or report on particular occupations where shortages are apparent or expected. Essentially this reporting stems from either consultation with those in the Sector; some form of economic modelling, or a combination of the two. The consultation approach is led by the National Resources-Sector Employment Taskforce (NRSET) which conducted a public consultation 'process, received 97 submissions on an initial discussion paper and met with key industry stakeholders. NRSET conclude that construction jobs on new Projects could peak at 45,000 in 2012 and 2013 with strong jobs growth for technicians and tradespeople and machinery operators' and drivers. Modelling based approaches include: Use of the Access Economics projections developed for Skills Australia in 2009, and used as part of the Workforce Futures strategy. Queensland Treasury which use the Monash model to project demands On an industry and occupational basis. Modelling undertaken by ACIL Tasman for the Technology and Industry Advisory Council, which estimates that Western Australia's (WA) total job openings will be at least 460,.000 over the next 9-10 years. Modelling undertaken by the National Institute of Labour Studies for the Minerals Council of Australia, based On projected mining production levels in 2020. The report finds that the mining sector will need to employ 86,000 more workers between 2008 and 2020 - an increase of 68 per cent. WA's growth in demand will represent 55 per cent of the increase in national demand making it the State that will contribute the most to demand for labour. The Chamber of Commerce and Industry in Western Australia undertake modelling which suggests an additional 69,000 workers will be required in the WA mining sector by 2020. Given supply trends, this would result in an overall shortfall of 30,000 mining workers. Similarly, an additional 130,000 workers are projected to be required in Skill shortages in the resources sector construction in WA by 2020, with a predicted shortfall of 56,000 construction workers based on current trends. The Western Australian Chamber of Minerals and Energy modelling Which looks at workforce growth required to meet current growth plans in the minerals and energy sector. That study predicted an additional 43,800 workers would be required in minerals and energy in WA by 2012 (above 2009 employment levels). Deloitte Access Economics Commercial-In-Confidence iii Skill Shortages in the resources sector The Western Australian Department of Training & Workforce Development refers to both Access Economics and Monash University modelling to suggest a shortage of between 133,000 to 150,000 workers in WA by 2017 across all sectors). The Energy Skills Queensland modelling considers different workforce scenarios based on different scenarios for the level of mining production over time in Queensland. Within five years the modelling found a shortfall of skilled labour for LNG in Queensland of between 2,083 and 4,394 workers. Energy Skills Queensland also uses a consultation approach for occupation specific information. Occupations at risk Several of the studies provide detailed information of key occupations at risk of shortage in the resources sector. This is generally seen as most severe in the relevant trade qualified areas. Key trade qualified occupations that are reported to be most in demand are: Electricians Drillers Production technicians Mechanical fitters Boilermakers. Significant shortages are also reported or projec.ted for some professional/tertiary qualified staff. These are most notable for a range of engineering related occupations but also include several other roles. These include: Engineers - mining; mechanical; civil; petroleum; chemical; electrical Occupational health and safety professionals Environmental scientists Geologists Mine surveyors. In addition, there is also strong demand for unskilled labour such as construction labourers, particularly for regional WA. Note that the reporting of occupations at risk across reports is not necessarily on a consistent basis, either in terms of classification, or across time or geographic dimensions. The key studies which do report on skill shortages by occupation are: Energy Skills Queensland, which reports on priority occupations for trades and professionals in Queensland based on industry consultations. Energy Skills. Queensland, in a separate study using a modelling based approach, reports key occupations by 4-digit ANZSCO code, with these led by production technicians, driller's assistants and maintenance technicians. An addendum highlights a range of engineering roles in shortage, noting that filling such roles in the LNG sector in Queensland may be particularly difficult given that is a new sector within the State. The Mining Industry Skills Centre has identified five critical skill sets in shortage for the resources sector; geoscientists; mine surveyors; mining engineers; fitter mechanics and electrotechnical trades. It also identified a range of occupations which have been difficult to fill, led by diesel mechanic/ diesel fitter mechanic,, mining engineer and geologist. NRSET noted that emerging present shortages are mainly for engineers and. other I professional` staff with more than five years experience. They warned that the" domestic supply of mining engineers and geoscientists will not be sufficient to meet demand over the next five years with a shortfall of around 1,700 and 3,000 workers respectively. Resource Engineering Skills Alliance noted that shortages in South Australia are being experienced at the technical level for technicians, draftspersons, technical document specialists, Deloitte Access Economics Commercial-In-Confidence iv Skill Shortages in the resources sector schedulers, planners and estimators, and at the professional level for engineers, senior project engineers and managers, metallurgists and geoscientists (preferably experienced). SkillsDMC identify priority workforce requirements by sector within mining, covering drilling, the quarry sector and the coal sector. Key occupations facing recruitment difficulty by 4 digit ANZSCO code are identified. The Western Australian Department of Training & Workforce Development identify priority occupations by 6-digit ANZSCO code. Policy implications Several of the reports draw out policy implications, resulting from the analysis of skill shortages. These include calls for a greater investment in relevant training for the resources sector, though concerns are also raised over the capacity of training providers. In his report, Grad highlights the long lead time for training and hence there is a greater call for increased overseas migration of skilled employees to fill the predicted gap. The Australian Industry Group has also called for an increase in planned migration to at least 190,300, the same level determined in 2008. Birrell and Healy separately focus on the migration program as a whole and conclude that high migration has little to do with the resources industry's skill needs. They argue for a more targeted migration program that is focused on skill shortages in industries which are exportmarket focused. Several reports also note that mining companies are looking at more flexible and innovative approaches to attract and retain workers. These include fly-in fly-out (FIFO) rotation rosters and increased parental leave. Briggs focuses on the FIFO workforce, and the fact that the adoption of such practices leave a relatively limited benefit from mining activity for the local region. Deloitte Access Economics Deloitte Access Economics Commercial-In-Confidence v 1. Primary Sources 1.1 Birrell and Healy Report name: The mineral boom and Immigration Policy: Skills Australia Debunks the Myths Date: 2010 Author: Bob Birrell and Ernest Healy Publisher/Industry/Government affiliation: - Subcontractor involved: Utilises projections from Access Economics for Skills Australia Primary/Secondary research Primary Key sectors Mining across Australia Birrell and Healy review previous modelling conducted by Access Economics on employment demand by industry. They apply this modelling to claims by the Commonwealth Government that a high migration policy is required to support the skills requirements of the resources industry. The authors state that following the 2008 federal election, the new government increased the number of places to the skilled migration program by 33,500. It was claimed that this was to preempt future skills shortages, particularly in the resources industry. The new government feared that such shortages would lead to wages break-outs or bottlenecks in the construction phases of major projects by the resources sector. Following on, the government started to develop a longer-term migration planning framework which would see net overseas migration continue at an annual increase of around 180,000 to 190,000. Birrell and Healy note that the Department of Immigration and Citizenship points to work completed by Peter McDonald and Jeromey Temple of the Australian National University which reports that high migration is necessary to solve shortages in the resource industry. The authors point; however, to recent employment growth rates and state that in trade occupations these have been approximately half of that in professional roles. Deloitte Access Economics Commercial-in-confidence 6 Skill Shortages in the resources sector In delving into this further, Birrell and Healy refer to modelling completed by Access Economics for Skills Australia in 20091. In the case of the main 'Open Doors' scenario, employment in the resources industry was forecasted to grow from 157,000 in May 2009 to just over 240,000 in 2025. In contrast, the predicted demand for the health care and social assistance industry was larger, from 1.17 million to 1.73 million by 2025. As a result, the authors conclude that, based On these lower employment levels, 'employment growth in the mining- industry is of minor significance'. The authors do acknowledge .the impact of the mining industry on employment in the construction phase of major projects..Yet they also note that construction workers are also in major demand in cities across Australia. Recent data illustrates that much of the growth of employment in construction occurred in centres which are 'not major players in the resources boom'. Competition for skilled employees across industries will be fierce. Alongside the expected growth in the mining industry, the expanding services sector will promote further growth in professional and managerial employment which, in turn, will create strong demand for those with degree qualifications. As a result, under the 'Open Doors' scenario, Access Economics predicted that the proportion of employees in. professional occupations with degree qualifications will increase from 68 per cent in 2007 to 81 per cent by 2025. Compared with estimates of the projected supply of domestic residents with such qualifications, this is likely to result in a major shortage of workers with degree qualifications. In contrast, the expected growth in demand for workers with lower level qualifications will be smaller. In conclusion, the authors declare that the government's high-migration policy has little to do with the resources industry's skill needs. Instead, they argue that strong immigration is driving construction in metropolitan regions and, in turn the 'services industry whose growth is linked to these regions' populations. AS a result, demand for skilled labour in the construction and Service industries will likely remain high as migration to metropolitan regions continues. As for the resources industry, the authors argue for a smaller, more targeted migration program that is focused on skill shortages in industries which are export-market focused. 1.2 Briggs Report name: The impact of Skilled Labour Shortages on the Pilbara Region Date: 17 September 2010 Author: Gavin Briggs, Research Manager, North Australian Research Programme Publisher/Industry/Government affiliation: Future Directions International, Strategic Analysis Paper Subcontractor involved: - Primary/Secondary research Primary 1 Access Economics, Economic modelling of skills demand, 2009 Deloitte Access Economics Commercial-in-confidence 7 Skill Shortages in the resources sector Key sectors Mining and energy industry with a focus on Western Australia Briggs provides a high level overview of the current labour market situation in the resources sector with a particular focus on the Pilbara region in WA. Rather than conduct his own specific analysis, Briggs surveys recent analysis on the skills shortage, including projections of future demand in the region, and highlights claims by key industry stakeholders on the current situation and future limitations. Briggs highlights that the minerals and energy industry makes a significant contribution to regional Australia yet points out that skilled labour shortages will have a major impact on future growth. He reports that analysis by the Chamber of Commerce and Industry of Western Australia is referenced which predicts that in 2020, the State will likely need an extra 400,000 skilled workers. While some of this demand will be met, there will be an expected shortfall of 150,000 workers. The Western Australian Chamber of Minerals and Energy (CME) conducted a survey in 2008 of minerals and energy companies on their expected workforce demand through to 2020. It was found that projected peak demand would be in 2012 with labour demand for the year of approximately 38,000 workers. The CME reports that the regions with the highest growth in labour demand will be the Mid-West, Goldfields/Esperance and the Pilbara. Gaps across occupations and skills are likely to occur during the construction phases of projects in the Pilbara region. Briggs predicts that such demand for workers will likely be met by FIFO rotations. Briggs goes on to note the somewhat negative impact of FIFO employment on regional communities whereby the wealth created by FIFO workers is often spent in regions outside of those where the mining operations are conducted. To alleviate this, Briggs makes the point that 'it is necessary to look at options that create and support regional workforces that live close to where there is demand for their labour'. Finally, Briggs closes by discussing some of the proposed approaches by different industry groups and stakeholders. These include: Skilled migration Sustainable population growth within the Australia labour force. Increasing indigenous participation and employment The creation of regional workforce Plans which include coordinated responses across government to provide industry and local community assistance Addressing the lack of women working in the industry. Deloitte Access Economics Commercial-in-confidence 8 Skill Shortages in the resources sector 1.3 Energy Skills Queensland "Industry Skills Plan Report name: Energy Industry Skills Plan 2009-2012 Date: September 2009 Author: - Publisher/Industry/Government affiliation: Energy Skills Queensland Subcontractor involved: - Primary/Secondary research Primary Key sectors Energy industry with a focus on Queensland The Energy Industry Skills Plan develops the key Strategic Industry Workforce Development responses to improve the match between the identified skills supply and projected demand in the energy sector in Queensland (QLD). Employers in the sector have, been faced with tight labour market conditions. The loss of skilled Workers to Other industries and greater exits associated with the ageing workforce are contributing to high replacement demand. In addition, employers held concerns about the impact that the global financial crisis might have on investment in workforce development. The top four workforce issues identified from consultations with industry were: Shortages across priority job roles are likely to continue Expected loss of knowledge and experience over the next five to ten years as retirements increase and workers move across industries New entrants to the labour market are unlikely to be sufficient to meet demand Greater competition for certain roles and skills from other industries. Through its consultations and analysis, Energy Skills Queensland then identified the following priority occupations. Deloitte Access Economics Commercial-in-confidence 9 Skill Shortages in the resources sector Table 1.3.1: Priority Occupations identified in QLD Apprenticeships & Traineeships Post Trade Para-Professional & Professional Cross Industry Electrical Tradesperson Electrical Line Worker Electrical Cable Jointer Rail Traction Tradesperson Refrigeration & Air Conditioning Mechanic Electronic/Office Equipment Tradesperson Instrumentation Tradesperson Data Communications Tradesperson Air-conditioning Installer Renewable Energy Tradesperson Data and Voice Communications Tradesperson Appliance Servicing Tradesperson Security Systems/Fire Control Tradesperson Utilities/Gas Tradespeople Production Technicians Drillers Electrical Tradesperson Green Electrician, Renewable Energy Tradesperson Refrigeration & Air Conditioning Mechanic Instrumentation Tradesperson Data And Communications Tradesperson Electrical Fitter Mechanic (Substation Switching Operator) Electrical Fitter Mechanic (Power Systems Operator) Lift Mechanic Gas Operations Supervisor Technical Trainer Photovoltaic System Installer Electrical and Electronics Para-professional Electrical Power Systems Para-professional Refrigeration and Air-Conditioning Para-professional Renewable Energy Para-professional Mechanical Engineering Para-professional Electrical and Electronics Engineer Mechanical Engineer Chemical Engineer Training and Assessment Occupational Health and Safety Project Management Business Management Senior First Aid Cardio Pulmonary Resuscitation The Plan concludes by reinforcing the need for continued investment in workforce development irrespective of an economic downturn. 1.4 Energy Skills Queensland - Workforce Planning report Report name: Deloitte Access Economics Workforce Planning Report Commercial-in-confidence 10 Skill Shortages in the resources sector Part A – Workforce Planning Report to inform the Workforce & Competency Development Strategy Plan for the Queensland Coal Seam Gas / Liquefied National Gas Industry Date: September 2009 Author: Energy Skills Queensland Publisher/Industry/Government affiliation: Energy Skills Queensland Subcontractor involved: - Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on Queensland This report is in response to the development of a strategic workforce plan for the QLD Coal Seam Gas (CSG)/Liquefied Natural Gas (LNG) Skills Taskforce. It reports on the development of three scenarios that consider growth in employment .and skills demand in the industry in Queensland over the next ten years. The three scenarios consider how the workforce may shift under differing economic conditions that impact on the expansion of the CSG/LNG Industry in QLD. Scenario A-Slow Economic Growth at 13/14 Mtpa (4 trains) Scenario B- Moderate Economic Growth at 22/23 Mtpa (6 trains) Scenario C- Rapid Economic Growth at 28/30 Mtpa (8 trains) All scenarios indicated a significant growth in the demand for labour and skills at all levels. The report details that critical skill shortages are occurring across the country and across technical vocational roles and all engineering professional and para-professional roles. Risks associated with an ageing demographic and increased competition across industries are also placing pressure on the CSG/LNG Industry in QLD to recruit and retain skilled workers. The industry's demand for workers in vocational occupations with technical skills is reported to be the greatest when compared to other occupations. In particular, priority technical roles that are required in large numbers by the industry are: Production technicians (ANZSCO: 4987-11) Driller's assistants (ANZSCO: 9911-13) Maintenance technicians (ANZSCO: 4112-11) Electrotechnology(electrical and instrumentation; hazard) (ANZSCO: 4314-11) Logistics technicians/administration (ANZSCO: 7993-11/6152-11) Engineers were then identified as the next key priority occupation grouping for the supply of skills to professional and para-professional roles. These priority roles included: Engineers - chemical, mechanical, petroleum, electrical aid civil Geologists Geophysicists Environmental scientists. Deloitte Access Economics Commercial-in-confidence 11 Skill Shortages in the resources sector The report also provides results from an overall gap analysis that looks at the expected shortfall in skilled labour. The gap analysis takes into account the growth in new jobs and the level of replacement demand arising from natural employment attrition. These results are shown in the following table. Table 1.4.1: Shortfall in skilled labour in QLD for CSG/LNG Industry from the base employment level Forecast period Scenario A Scenario B Scenario C (Slow economic growth) (Moderate economic growth) (Rapid economic growth) 5 years 2,083 3,695 4,394 10 years 2,751 4,697 5,991 The report identifies that the top two critical workforce issues are the supply of labour to regional operations and the shortages in the supply of a competent and skilled workforce. Competition across industries and regions will be intense and will likely result in greater wage pressures. To alleviate the burden on businesses in the future, major investment in education and training will be necessary for future supply and to attract and retain a skilled and competent workforce in regional areas. As a result, the industry will need to invest in various targeted workforce development strategies. Deloitte Access Economics Commercial-in-confidence 12 Skill Shortages in the resources sector 1.5 Energy Skills Queensland - Addendum of workforce planning report Report name: Workforce Planning Report Part B - Addendum Labour Market Analysis Demand and Supply Prepared for the Queensland Coal Seam Gas / Liquefied Natural Gas Industry Date: September 2009 Author: Energy Skills Queensland Publisher/Industry/Government affiliation: Energy Skills Queensland Subcontractor involved: - Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on Queensland The Addendum of the Workforce Planning Report brings together an analysis of key industry trends and pivotal issues likely to impact on the demand for skills and labour as well as the capacity and capability of its future workforce supply. Critical skills shortages are currently faced in the industry by the occupations in Table 1.5.1. QLD S S S S S S S S S S S NSW S S S S S S S S S S S VIC S S S S S S S S S S ACT S S S S D NT S S S S S S S S SA S S S S S S D WA S S S S S S D S S TAS S S S S S AUS S Note: S = State-wide shortages; D = Recruitment difficulties (tend to be State-wide); R = Regional Shortage S S S S S S R S Vocational Education Teachers Drillers Fitter General Electrician Civil Engineering Associates Electrical Engineering Associates Mechanical Engineering Associates Production manager (Mining) Geosciences/Geolog ist Production or Plant Engineer Engineering Manager Petroleum Engineer Electrical Engineer Mechanical Engineer Civil Engineer State & Territory Skill Shortage areas Chemical Engineer Table 1.5.1 - Occupations facing critical skills shortage that are in demand by the QLD CSG/LNG Industry S S S S S S D D The CSG/LNG Industry looks to employ from the regional economies of Mackay-Fitzroy-Central ,West and the Darling Downs-South West. The Addendum highlights that the current capacity of the regional labour force will not be enough to sustain the anticipated workforce growth of the CSG/LNG Deloitte Access Economics Commercial-in-confidence 13 Skill Shortages in the resources sector Industry. It predicts that "competition will be fierce in mining; electricity; gas and water; finance and insurance; transport and storage and manufacturing. With regards to professional engineering and science roles, the Addendum notes that as the requirement for industry experience increases to between 5 to 20 years, it will likely increase the difficulty to recruit from within the State to fill these roles, given the recent emergence of the industry in the State. As a result, QLD will face increased competition from other states to recruit and retain its required workforce. The Addendum then provides an overview of demand and supply conditions for the abovementioned critical skills shortage roles. The conclusion is that all of these occupations are facing significant shortages in available supply over the coming years. 1.6 Energy Skills Queensland - Workforce & Competency Development Plan Report name: Workforce Planning Report Part C – Workforce & Competency Development Strategy Plan Prepared for the Queensland Coal Seam Gas / Liquefied Natural Gas Industry Date: September 2009 Author: Energy Skills Queensland Publisher/Industry/Government affiliation: Energy Skills Queensland Subcontractor involved: - Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on Queensland The CSG/LNG Workforce & Competency Development Plan will assist each future project outline the measures taken to provide employment and training opportunities to the local community for inclusion in its Environmental Impact Study. The strategies presented in the Plan seek to address the common critical workforce issues. Deloitte Access Economics Commercial-in-confidence 14 Skill Shortages in the resources sector The six critical workforce issues are shown in the following table. Table 1.6.1: Critical workforce issues faced by CSG/LNG Industry in QLD Occupational Grouping Critical Workforce Issues 1. 2. 3. 4. 5. 6. Professional Cannot fill positions – critical shortfall in labour supply Cannot fill positions – critical shortfall in skills supply Potential for the workforce to not be competent in meeting industry requirement without relevant and demand driven structure learning Current inadequate level of capacity and capability of registered training organisations to respond to rapid accelerated growth in workforce demand (skills and competency) ‘Off the Shelf’ generic competency based training packages – misalignment with industry needs Replacement Demand – loss of skills, experience and knowledge to the industry plus increasing impact of the ageing demographic Technical Non Technical/ Unskilled Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes The industry has advocated for a multi-faceted, systems approach to building the capacity, capability and long-term sustainability of the industry-wide workforce. The paper proposes the following four levels of workforce development to address the critical workforce issues: Level 1- Workforce, Skill Attraction and Retention Level 2-Skill Development Level 3-Skilling Systems Level 4- Skills and Competence Sustainability. The paper then details terms of reference for an industry taskforce to tackle the workforce development issues. 1.7 Grad (article in Engineering and Mining Journal) Report name: Australian Mining Industry's Looming Labour Shortage Date: July/August 2010 Author: Paul Grad Publisher/Industry/Government affiliation: Engineering and Mining Journal Subcontractor involved: - Primary/Secondary research Primary Key sectors Mining Deloitte Access Economics Commercial-in-confidence 15 Skill Shortages in the resources sector Grad provides an overview of the 'looming' skills shortage predicted by the resources industry. The industry currently employs around 1.6 per cent of the total workforce and the Minerals Council of Australia predicts an additional 86,000 workers will be required over the next 10 years. Companies, such as Rio Tinto, are seeking alternative options and incentives to source employees. These include FIFO rotation rosters and increased parental leave. One of the key issues highlighted includes the long lead time for training and hence there is a greater call for increased overseas migration of skilled employees to fill the predicted gap. Key roles highlighted by the Mining Industry Skills Centre that are likely to experience shortages are: Geoscientists Mine surveyors Fitter mechanics Electro-technical tradespeople. The National Centre for Vocational Education Research (NCVER) identifies shortages in: Mechanical fitters (heavy diesel, mechanical technicians, shovel fitters, drill fitters and schedulers) Electricians (particularly those with high-voltage experience) Automotive electricians (heavy vehicles) Boilermakers Explosives operators Instrumentation technicians Supervisory personnel with relevant trade experience. Initiatives recommended by Grad to address the shortage include: Providing apprenticeships to existing and mature-age workers with relevant trade skills and experience . Encouraging school students to undertake technical apprenticeships Using ‘bonded scholarships’ to provide additional incentives during training but which require them to remain in the industry after completion Accelerating apprenticeship training Employing workers from overseas Recruiting from alternative sectors, such as manufacturing Encouraging women to work within the sector. Deloitte Access Economics Commercial-in-confidence 16 Skill Shortages in the resources sector 1.8 Institute for Minerals and Energy Resources Report name: Mining employment in SA – exploration and exports boom but what about jobs? Date: March 2011 Author: John Spoehr & Simon Molloy Publisher/Industry/Government affiliation: Institute for Minerals and Energy Resources Subcontractor involved: - Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on South Australia The authors address the issue in South Australia (SA) that has arisen following the GFC where employment levels in the state haven't recovered to their pre-crisis levels. They offer some suggestions for explaining the relatively low level of employment at a time when mining industry activity is set to increase. In recent years/while employment has more than doubled in the other mining states of WA and QLD, the authors find that this has not been the case in SA despite rising miffing activity. The authors rule out a rise in productivity being a cause of the low employment levels. Instead, they find that productivity in SA has been falling as commodity prices have risen (and hence, mining output measured in monetary terms has risen), mine quality has been depleted and investment has been high. As for skills shortages, the authors contend that current statistics do not represent the true extent of labour demand in the market. Mining employment could be understated with contractors used by the mining industry also being utilised by other industries such as construction and infrastructure which could lead to confusion when the ABS statistics are compiled. Overall, the authors find that there is not enough information available to answer the question on why, ‘in the face of rising activity in the mining sector, do we observe static or declining employment?’. A number of questions are raised which need to be addressed in order to answer this paradox. These revolve around the level of labour productivity, the reliability of available statistics, the extent to which the increase in output value is due to rising commodity prices or physical output. Deloitte Access Economics Commercial-in-confidence 17 Skill Shortages in the resources sector 1.9 Institute for the Study of Labour Report name: Was there a Skills Shortage in Australia Date: December 2009 Author: P.N. (raja) Junankar Publisher/Industry/Government affiliation: Institute for the Study of Labour Subcontractor involved: - Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on Australia, Western Australia and Queensland Junankar explores whether a skills shortage has existed in Australia and, in particular, QLD and WA. He looks at the concept of a skills shortage and the various responses by interested parties. Junankar juggles between alternate definitions of a skills shortage based on theory and what occurs in practice. He also looks at how the market responds to reduce the impact of a skills shortage, whether it is via raising wages, improving longer term working conditions, retraining unskilled workers or becoming more capital intensive. Junankar uses the vacancy to unemployment ratio as an index of the shortages of labour in which he finds that labour shortages were very noticeable in QLD and WA since 2001. In conclusion, Junankar reports that due to the difficulties in defining a skills shortage, government policies on targeting one will not be easy. He recommends that the government should not be focusing on migration as a short-term solution and instead should be relying on appropriate education and training opportunities for current citizens. 1.10 Mining Industry Skills Centre Report name: Resources Industry Heartbeat Project Report Date: 2009 Author: - Publisher/Industry/Government affiliation: Mining Industry Skills Centre Subcontractor involved: - Primary/Secondary research Primary Key sectors Australian Mining Deloitte Access Economics Commercial-in-confidence 18 Skill Shortages in the resources sector The Mining Industry Skills Centre's Heartbeat Project is a national assessment that aims to 'facilitate workforce planning at an industry wide level, so that investments and Strategies can be targeted to ensure a sustainable and productive resources industry workforce for the future'. The report on the project provides an aggregate view of workforce profiles based on consultations and input from nine resources companies across 16 critical job roles. An initial workforce profile was identified and consisted of an assessment of turnover and demographic measures for the 12 months to end-June 2008. Turnover trends identified within the report were: Consistent with the demand for experienced employees, senior electrical engineers had a significantly higher turnover than electrical engineers Employee departures tended to be at the initiation of the employee, not the organisation. Demographic patterns identified included: Electrical engineers, environmental scientists, metallurgists and mine engineers had comparatively lower length of service and younger age profiles than other roles while the demand for experienced professionals in these roles remains strong As a result of increased retirements, several trade roles are likely to lose significant knowledge, skills and experience. Boilermakers were identified as being at the most risk Open cut examiners and training coordinators have the greatest risk of high retirements which is of concern given the amount of experience and training they require. The Centre's Strategic Leaders Group also identified five critical skill sets. Key challenges were identified for these skill sets and are listed below. 1. Geoscientists: a. Low length of service and young age profile combined with industry concerns around experience levels underscores the importance of workforce development strategies to ensure an adequate pool of workers b. The declining number of graduates is a long-term concern. 2. Mine surveyors: a. Small workforce size and low numbers of graduates provides a narrow pool from which future expansions can draw b. Current and ongoing demand growth will create future supply challenges. Deloitte Access Economics Commercial-in-confidence 19 Skill Shortages in the resources sector 3. Mining engineers: a. Low retention of engineers within the industry with 80 per cent of all new job opening having arisen from engineers leaving the occupation and moving into managerial roles b. Limited numbers of experienced engineers. 4. Fitter mechanics and electro-technical trades: a. Moderate risk of loss of productivity due to expected increases in retirements. b. Technological change will require ongoing updating of knowledge and job requirements c. Greater focus on training is complicated by moderate levels of inter-company mobility which may reduce the investment return, The analysis also identified from participating organisations roles that had proved difficult to fill. These are listed (and ranked from most to least permanent vacancies) below in Table 1.10.1. Table 1.10.1: Roles identified as being difficult to fill Rank Skills Set Rank Skills Set 1 Diesel mechanic/diesel fitter mechanic 11 Boilermaker 2 Mining engineer 12 Electrical engineer 3 Geologist 13 Fixed plant fitter 4 Open cut examiner 14 Electrical engineering manager/electrical engineer in charge 5 Dragline operator 15 Deputy/assistant underground mine manager 6 Auto-electrician 16 engineer/engineering geologist 7 Electrical fitter mechanic/electrician 17 Environmental scientist 8 Health & safety personnel 18 Metallurgist 9 Mine Surveyor 19 Instrument fitter 10 Training coordinator/manager 1.11 National Institute of Labour Studies Report name: The Labour Force Outlook in the Australian Minerals Sector: 2008 to 2020 Date: June 2008 Author: Simon Molloy & Dr Yan Tan Publisher/Industry/Government affiliation: National Institute of Labour Studies, Flinders University, Adelaide, Australia Subcontractor involved: Access Economics, Infrastructure 2020 – Can the domestic supply chain match global Deloitte Access Economics Commercial-in-confidence 20 Skill Shortages in the resources sector demand?, 23 May 2008 Primary/Secondary research Primary Key sectors Mineral sector for nine major commodities across Australia The study Projects the demand for labour by the mineral sector for nine major commodities from 2008 to 2020. The labour demand projections, are based on mineral output projections for the major commodities to 2020 and major occupational categories employment levels. The report found that the overwhelming majority of employees at Australian mines are: Managers and administrators Professionals Associate professionals, Trades Persons and related Workers Intermediate production and transport workers Labourers and related workers. The total number of persons in Australia in these occupational categories is expected to grow by 25 per cent by 2020. In addition, the report finds that the mining sector will need to employ an extra 86,000 workers between 2008 and 2020 - an increase of 68 per cent - to achieve currently predicted increases in output. Using a method for predicting labour demand that involves Access Economics' projections of the output Of mineral commodities by state, the authors derive annual growth rates for production which is then applied to a base year employment amount across six occupation groups. As shown below in Table 1.11.1, the state that records the largest increase in demand will be WA. This represents a 55 per cent share-of the increase in national demand. Iron ore and coal projects will be those which demand the greatest increase in required labour and tradespersons and semiskilled workers will be the occupations in the greatest demand. Deloitte Access Economics Commercial-in-confidence 21 Skill Shortages in the resources sector Table 1.11.1: Mineral sector - projected increase in labour demand by state, 2008-2020 Labour increase % of national increase NSW VIC QLD SA WA TAS NT AUS 7,486 1,189 23,035 5,689 47,698 315 1,440 86,851 9% 1% 27% 7% 55% 0% 2% 100% Across commodities, iron ore and coal are foretasted to account for the greatest overall increase in demand across the minerals sector, accounting for 24 and 22 per cent respectively. Table 1.11.2: Mineral sector- projected increase in labour demand by occupational category: 2008-2020 Managers & Admin Professionals Technicians Tradespersons Semiskilled workers Labourers Total Labour increase 4,381 8,952 4,289 31,232 20,155 7,843 86,851 % of national increase 5% 10% 5% 36% 35% 9% 100% Meanwhile across occupations in the minerals Sector, the greatest increase in workers is projected to be in the tradespersons and semi-skilled workers categories. Together these account for an increase in labour demand of 71 per cent over the time period The study also looks at Scenarios that assess the impacts of changes in productivity up to 2020. Under these it suggests two approaches that could be applied to improve overall productivity in the Sector: minimising ongoing labour costs by investing in labour saving technology and increased intensive training and up-skilling of new employees from outside the mining industry. 1.12 National Resources Sector Employment Taskforce Report name: Resourcing the Future Date: July 2010 Author: - Publisher/Industry/Government affiliation: National Resources Sector Employment Taskforce Subcontractor involved: - Primary/Secondary research Primary Key sectors Mining across Australia Deloitte Access Economics Commercial-in-confidence 22 Skill Shortages in the resources sector The report analyses the skills needs in the mining industry in relation to major projects and proposes a workforce development plan to address these needs. It was put together after the Taskforce conducted a public consultation process, received 97 submissions on an initial discussion paper and met with key industry stakeholders. Around 184,500 people are directly employed in mining and oil and gas operations, about 1.6 per cent of the Australian workforce. Taskforce analysis shows: Construction jobs on new projects could peak at 45,000 in 2012 and 2013 with strong jobs growth for technicians and tradespeople and machinery operators and drivers. Employment growth in mining operations is expected to be 4.9 per cent per annum over the next five years, creating around 61,500 new jobs by 2015 due to increased production, driven by demand from Asia. In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (e.g. if four new trains are sanctioned and operating in Queensland and six in Western Australia). Around 10 per cent of mining employees leave the sector each year through retirement or transition to other sectors. Replacement demand in mining operations could be around 16,000 persons per annum, including approximately 3,000 retirements. There are emerging shortages at present--mainly engineers and other professional staff with more than five years experience. The domestic supply of mining engineers and geoscientists will not be sufficient to meet demand over the next five years with a Shortfall of around 1,700 and 3,000 respectively. However, there are large numbers of people with these qualifications currently working in other occupations. While there are currently significant numbers of Unemployed tradespeople, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015. If these workers are recruited from other sectors there will be skills shortages in those industries. The number of new jobs in gas operations will be between 1,800 and 3,200. There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians. Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements. 1.13 Piper (article in Australia's Paydirt) Report name: Put people first say recruitment Date: May 2010 Author: Piper, Dominic Publisher/Industry/Government affiliation: Australia’s Paydirt Subcontractor involved: - Primary/Secondary research Primary Deloitte Access Economics Commercial-in-confidence 23 Skill Shortages in the resources sector Key sectors Mining The article reports on the views of Steve Heather, the managing director of mining and minerals processing recruitment firm Mining people. Heather says that as the resources sector re-emerges after the decline in the 18 months to May 2010, labour demand will increase and firms will need to use good human resources retention strategies to retain staff. This is particularly important in small and medium-sized companies which cannot always compete with the higher wages offered by larger companies. Heather says that before the downturn companies were budgeting for wages of $100,000 per annum, but that now they are saying that ‘wages are now $100,000 pa but we will budget for a rise to $130,000 pa in the future’. Contract labour is more popular after the downturn as companies are less hasty in committing to projects. He says the skills shortage is more acute in the trades area than the professional one, as the minerals. Industry has to compete with the oil and gas sector for tradespeople. Finally, Heather suggests that Australia will need to rely on immigration to fill the skills shortages. 1.14 Resource Engineering Skills Alliance Report name: Resource Industry Workforce Action Plan South Australia 2010-2014 Date: 2011 Author: - Publisher/Industry/Government affiliation: Resource Engineering Skills Alliance (RESA) Subcontractor involved: - Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on South Australia Deloitte Access Economics Commercial-in-confidence 24 Skill Shortages in the resources sector RESA consulted with industry to develop a Resources Industry Workforce Action Plan. Key identified challenges addressed in the plan are: Skills in demand/labour supply shortages and gaps Attraction, recruitment and retention Education and training- services and infrastructure Workforce planning and development Skilled migration Industry/government partnerships (funding and support). Skills issues in South Australia are starting to emerge with concerns about the skills required to meet future developments as projects move into their construction and operation phases. Concerns also exist around the apparent inability of current public education and training providers to address such concerns. Key observations from the consultations included: There is no shortage of inexperienced applicants for semi-skilled occupations. The most acute Shortages are in the trades areas, particularly electrical instrumentation and heavy vehicles. The situation for professional staff is acute since many require professional qualifications and industry experience. Shortages are also being experience in o Technical levels for technicians, draftspersons, technical document specialists, schedulers, planners and estimators o Professional level for engineers, senior project engineers and managers, metallurgists and geoscientists (preferably experienced). The major employment opportunities will be in the construction phases. The majority of trade positions will be required by contractors. Innovative approaches will need to be adopted to counter the skills shortage such as mature-age apprenticeships. 1.15 Technology and Industry Advisory Council Report name: Managing Western Australia’s Economic Expansion: The Need for People and Skills Date: March 2010 Author: - Publisher/Industry/Government affiliation: Technology and Industry Advisory Council Subcontractor involved: ACIL Tasman Primary/Secondary research Primary Key sectors Minerals and energy industry with a focus on Western Australia Deloitte Access Economics Commercial-in-confidence 25 Skill Shortages in the resources sector This report by the Technology and Industry Advisory Council documents findings from investigations into the causes and future projections of skilled labour shortages in WA. Key issues that have been highlighted during the current skills shortage include: The ageing labour force, which will play a role in the tight demand-supply balance in the future. Off-shoring of jobs - The scarcity of skilled labour has led to rising real wages so further constraints on commodity prices may place pressure on employers to source labour from elsewhere and this may result in an acceleration of 'off-shoring' jobs to overseas workers. Higher wages have promoted school leavers to forgo higher education and commence employment immediately. As a result, WA has a poor ranking in the proportion of employees working in higher skilled occupations. A need to further adapt and develop the current training system - particularly associated with the ageing labour force. The Council looked at long-run projections of economic growth in the State and the expected impact on labour demand. It found that the demand for labour will grow faster than the State's ability to supply workers from natural population increases and current migration plans. The Council estimated WA's total job openings will be at least 460,000 over the next 9-10 years. Compared to new entrants into the workforce, the demand-supply balance under such conditions is likely to remain tight. Table 1.15.1 below illustrates the required demand by 2016 and assumes a 2 per cent annual growth rate in new jobs. Table 1.15.1 Total new entrants required by 2016 Occupation (Major Groups) Net Replacement New Jobs Total Job Openings Managers and Administrators Professionals 14,509 19,074 33,583 28,286 40,987 69,272 Assoc. Professionals 25,272 28,307 54,059 Tradespersons & Related Workers Advanced Clerical & Service Workers Intermediate Clerical, Sales & Service Workers Intermediate Production & Transport Workers Elementary Clerical, Sales & Service Workers Labourers & Related Workers Total 31,241 30,974,62,216 5,699 7,184 12,883 43,040 37,209 80,250 16,032 20,150 36,182 50,398 20,824 71,222 24,707 19,303 44,010 239,665 224,011 463,676 Deloitte Access Economics Commercial-in-confidence 26 Skill Shortages in the resources sector The Council also found evidence of skills shortages arising from a general labour shortage. This is despite the State's labour supply generally responding well to increased demand for labour. The report detailed that WA has an insufficient skilled workforce across a wide range of key occupations, particularly amongst skilled tradespersons and technical personnel. The Council referred to the job vacancies by major skills groups for selected years, as shown in Figure 1.15.1 below. Figure 1.15.1: Vacancies by skill, WA Note: Skilled occupation groups chosen on the basis of highest average vacancy rate, for 1981-2008. Source: DEEWR The Council thus recognised a long-term dependence on immigration and a need to develop the domestic workforce. As a result it is supportive of increasing immigration with a particular focus on increasing the intake of overseas students. Deloitte Access Economics Commercial-in-confidence 27 Skill Shortages in the resources sector 2. Secondary Sources 2.1 Australian Industry Group Report name: Submission of Immigration Program Planning Levels 2011-12 Date: 5 January 2011 Author: - Publisher/Industry/Government affiliation: Australian Industry Group (AIG) Subcontractor involved: - Primary/Secondary research Secondary Key sectors Overall Australian economy The AIG's submission to the Minister for Immigration and Citizenship contends that the current planning level for the 2010-11 Migration Program, set at 168,700 places, remains significantly below what is required to avoid pressure on Australia's capacity. This view is based on evidence of re-emerging skill shortages which are set to intensify with the combination of an ageing population and labour demands influenced by the resources boom. The submission supports a range of migration strategies with a focus on attracting migrants with relevant skills. Additionally, it suggests that the migration program be used to fill the demand for unskilled workers which is at an all-time high, particularly in WA mines. Five key recommendations were made: The planning for the 2011-12 immigration program needs to take fully into account the intensifying skill shortages forecast for the middle of this decade. The immigration program planning levels should be at least set at 190,300, the same levels determined in 2008. The Government should reduce the English language cut-off entry level to the independent skilled component of the program .from International English Language Testing System 6 (IELTS) to IELTS 5 and change the Scale to begin awarding 5 points at IELTS 6. Consideration should be given to introducing a sliding scale for language requirements in the Points Test based on occupational language needs. There should be no further tightening of eligibility under the 457 program. Deloitte Access Economics Commercial-in-confidence 28 Skill Shortages in the resources sector The submission summarises findings by Skills Australia into the projected jobs growth in the next fifteen years, as well as reports by AIG and the National Resources Sector Employment Taskforce. It advocates balanced migration to address many of the problems giving rise to skills shortages, including long training times for professionals and an ageing population. 2.2 Australian Industry Group / Deloitte Report name: Submission of Immigration Program Planning Levels 2011-12 Date: 5 January 2011 Author: - Publisher/Industry/Government affiliation: Australian Industry Group (AIG) Subcontractor involved: - Primary/Secondary research Secondary Key sectors Overall Australian economy The report presents the results of AIG's survey on business skilling intentions for 2009-10. The study aims to gain an understanding of the impact of global economic conditions in 2009 on company demand for skilled labour, the capacity of companies to engage in workforce skills development and the extent of skills shortages. The manufacturing sector provided the highest number of participants (76.1 per cent of all. respondents) followed by services (13.4 per cent) and construction (8.5 per cent). Some 48 per cent of companies surveyed were small companies employing up to 25 people, The most prominent categories of expected skills shortages are technicians and trades (reported by 28.1 per cent of companies) followed by engineers (15.3 per cent). Skills shortages for technicians and trades were particularly prevalent for medium sized entities while shortages for engineers were particularly high for large entities. 2.3 Australian National Engineering Taskforce Report name: Scoping Our Future: Addressing Australia’s Engineering Skills Shortage Date: October 2010 Author: Alicia Pearce, Karinda Flavell & Natacha DaoCheng Publisher/Industry/Government affiliation: Australian National Engineering Taskforce (ANET) Subcontractor involved: - Deloitte Access Economics Commercial-in-confidence 29 Skill Shortages in the resources sector Primary/Secondary research Secondary Key sectors Engineering Skills This report provides background to the work of ANET, a partnership directed to rebuilding, growing and maintaining Australia's professional engineering capacity. The report states that professional engineers, engineering technologists and technicians have been in short supply in construction, road, rail, power generation, local government and other industries over a period of several decades. The report cites several surveys and other sources, such as government reviews, to provide the evidence for this claim. ANET's December 2009 survey of more than 2000 engineering professionals showed that 60 per cent of respondents identified an engineering skills shortage in their work section. Also, 54 per cent of respondents identified a loss of capability in their workplace, which was identified by respondents as impacting on their ability to undertake core work. The survey also found that the single, largest obstacle to recruitment, retention and growth in engineering consultancies is the shortage of engineers. Recent evidence from ANET partner organisations and their members has shown that overall the downturn in engineering related industries has not proven to be long-term. Smaller organisations particularly are struggling to retain capacity as the economy picks up. In addition, the AIG's 2010 National CEO survey identified a key shortage of engineers, with nearly 50 per cent of businesses giving the management of skills shortages high or top priority. Consult Australia's 2010 Skills Survey shows that three quarters of Australian engineering Consulting firms face critical skills shortages, with two-thirds of consulting firms facing shortages of civil engineers. Engineering skills shortages are considered to be an issue of supply. Engineering skills shortages are not cyclical but chronic and systemic, and linked to identifiable, cross-sectoral supply-side issues. For example, there is an identified supply mismatch between the number and specialisations of engineering graduates produced by Australian Universities and the VET sector, and the identified needs of industry and the community. There are also concerns about the recruitment and retention of female engineers, an ageing workforce, and the sustainability of Australia's reliance on offshore recruitment and international students given that engineers are in short supply the world over. Deloitte Access Economics Commercial-in-confidence 30 Skill Shortages in the resources sector 2.4 Australian Petroleum Production and Exploration Association Report name: State of the Industry 2010 Date: 2010 Author: - Publisher/Industry/Government affiliation: Australian Petroleum Production and Exploration Association (APPEA) Subcontractor involved: - Primary/Secondary research Secondary Key sectors Petroleum The report provides an overview Of Australia's oil and gas industry, highlighting recent developments, Changes in the operating environment and key trends. It also reviews factors limiting the industry's performance and actions being taken to address the impediments to growth identified in the strategy's initial report, Platform for Prosperity, published in 2007. As Australia recovers from the GFC public infrastructure investment and private investment (particularly in resources) will rebound and skilled labour shortages will re-emerge. Australian projects are not only competing amongst themselves for LNG markets, capital, skilled labour and construction capability but also face strong competition from lower-cost projects overseas, particularly in Qatar. The report summarises findings by the National Resources Sector Employment Taskforce in their report Resourcing the Future. Suggestions to address the upcoming skills shortages and actions already taken by state governments are discussed, with particular focus on the response of WA and QLD. The WA government responded by creating a new Resources Industry Training Council to better address industry advice on its training needs, established a new WA Department of Training and workforce Development and developed a WA Workforce Development Plan to guide workforce development policy and training delivery. In QLD, the CSG-LNG industry and Energy Skills Queensland have formed a taskforce to work with the state government and other stakeholders to develop the workforce to meet the needs of the industry. A CSG-LNG Workforce and Competency Development Plan has been developed around four strategies for skills attraction, skills development, skilling systems and skills sustainability. Deloitte Access Economics Commercial-in-confidence 31 Skill Shortages in the resources sector The industry is currently considering a proposal by Adelaide University's Australian School of Petroleum for it, the University of New South Wales and Curtin University to develop a stronger, coordinated tertiary education program to produce larger numbers of better qualified petroleum professionals. The industry has been working with the Department of Immigration and Citizenship to ensure that skilled migration programs meet the industry's needs and that companies are aware of options available to them to access those schemes to meet short or long term skilled labour requirements. 2.5 Chamber Of Commerce and Industry of Western Australia Report name: Building Western Australia’s Workforce for Tomorrow Date: June 2010 Author: - Publisher/Industry/Government affiliation: Chamber of Commerce and Industry of Western Australia (CCIWA) Subcontractor involved: - Primary/Secondary research Secondary Key sectors Western Australian Industry The report focuses on WA's workforce needs for the decade from 2010-2020, covering expected skills shortages and strategies for addressing the shortages. CCIWA estimates an additional 488,500 workers will be required in the WA economy over the next 10 years if economic growth is to be maintained at the average rate experienced since the beginning of last decade. This will result in a shortfall of more than 210,000 workers in WA by 2020. A Significant share of these workers will be required in the construction and mining sectors. Based on CCIWA modelling, by 2020 the number Of jobs available in the mining sector is expected to increase by 93.6 per cent, with an additional 69,000 workers required. Given supply trends, this would result in an overall shortfall of 30,000 mining workers. Similarly, the number of jobs available in the construction sector is expected to increase by 104 per cent, with an additional 129,753 workers required by 2020. This will lead to overall shortfall of 56,000 construction workers. Deloitte Access Economics Commercial-in-confidence 32 Skill Shortages in the resources sector Overall, by 2020 there will be an additional 488,500 jobs available in WA, a 44 per cent increase on the current levels of 1,110,400. Of these, approximately 75 per cent of jobs will be in Perth. There will also be strong demand for workers in the north of the State. By 2020, the Pilbara region will require almost 10,000 additional workers, while the Kimberley will need more than 8,000. However, they are expected to fall short of this target by more than 4,000 and 3,000 workers respectively. CCIWA recommends population growth (particularly through skilled migration) and increasing workforce participation and productivity to raise the capacity of the State's human capital. 2.6 Chamber of Minerals and Energy of Western Australia Report name: WA State Growth Outlook Date: April 2011 Author: - Publisher/Industry/Government affiliation: Chamber of Minerals and Energy of Western Australia Subcontractor involved: - Primary/Secondary research Secondary Key sectors Western Australian resources sector This report provides an outlook for the demand for people, water, and energy in the WA resources industry, based on the development intentions and plans of the industry and government in WA. The total workforce required to meet current growth plans in the minerals and energy sector is expected to reach a peak of over 119,500 people in 2012 - around 43,800 above the 2009 sector workforce of 75,600. The operations workforce will continue to increase over the period with the State requiring an additional 27,000 operations staff by 2015. The construction workforce will peak in 2012 and then reduce by 2015 as operations are commissioned. Areas of highest labour growth are the Pilbara, Mid West, and Perth/Peel regions. The majority of the additional workforce will be driven by projects in the Pilbara. Current planned projects indicate an additional 34,000 workers in 2012 in the region, reducing to 21,000 above the 2009 workforce by 2015. The Mid West will require an additional 7,500 workers by 2012. Deloitte Access Economics Commercial-in-confidence 33 Skill Shortages in the resources sector Incremental FIFO demand sourced from the Perth/Peel region is expected to peak at around 30,000 in 2012, remaining at around 16,500 by 2015. The report finds that there is a forecast deficit in workforce requirements based on current ABS population projections and current workforce participation rates (see Figure 2.6.1 below). Figure 2.6.1: Minerals and Energy Workforce Outlook Source: Chamber of Minerals and Energy (2011) 2.7 ElectroComms & Energy Utilities Industry Skills Council Report name: 2011 Environmental Scan Date: 31 March 2011 Author: - Publisher/Industry/Government affiliation: ElectroComms & Energy Utilities Industry Skills Council Subcontractor involved: - Primary/Secondary research Secondary Deloitte Access Economics Commercial-in-confidence 34 Skill Shortages in the resources sector Key sectors Electricity and gas The intent Of the report is to alert key government and industry stakeholders of potentially significant issues at a product, operational and systemic level in the Electrotechnology, Communications, Electricity Generation, Transmission and Distribution, Rail Traction and Gas Supply Industries. Skills shortages at post-trade level (Certificate IV to Advanced Diploma and above) are more prevalent than ever before, and industry intelligence indicated that a further 23,000 tradespeople will be required across all sectors of the industry. All four industry sectors are suffering severe skills shortages and an ageing workforce of technical trainers. Registered Training Organisations report that they are unable to compete with industry to recruit skilled tradespeople into training roles. Energy Skills Queensland has identified the 'priority job roles' as: Drilling assistants Production technicians Maintenance technicians Electrical and instrumentation technicians Logistics technicians/administrators Petroleum, chemical and mechanical engineers Geologists and geophysicists. The gas industry has suffered from skills shortages arising from a number of factors, including: Industry rationalisation/potential takeovers. In an uncertain environment training effort is generally reduced. Splintering/specialisation of workforce due to a trend towards outsourcing and subcontracting in recent years. Limited training opportunities in organisations. An ageing workforce. By 2013, 47 per cent of gas industry operatives and 65 per cent of those in gas management or leadership roles will be at, or nearing, retirement age. Deloitte Access Economics Commercial-in-confidence 35 Skill Shortages in the resources sector 2.8 Queensland Treasury Report name: Queensland Employment Projections by Industry and Statistical Division, 2009-10 to 2011-12 Date: August 2010 Author: - Publisher/Industry/Government affiliation: Office of Economic and Statistical Research, Queensland Treasury Subcontractor involved: - Primary/Secondary research Secondary Key sectors All sectors in Queensland, including mining and construction This report presents employment projections by industry, region and occupation for QLD. The projections are derived from the Monash Multi Regional Forecasting model (MMRF), and are consistent with the macroeconomic forecasts and assumptions in the 2010-11 Queensland State Budget. Note that the projections are shown on an ANZSIC 1993 basis. In 2010-11, total O, LD employment is forecast to grow by 2.75 per cent (equivalent to 63,000 jobs). • Employment in mining is projected to recover, growing by 5.6 per cent, while employment in construction is expected to grow by 6.0 per cent. Employment in the Moreton, Fitzroy, Mackay and Northern regions is expected to grow faster than the state average, reflecting strong population growth and increases in construction and mining activity. By occupation, higher levels of construction and mining activity will support a range of trade occupations. For example, the number of jobs for construction tradespersons and mining construction and related labourers is projected to increase by 5.6 and 4.9 per cent respectively in 2010-11. In 2011-12, total QLD employment growth is forecast to strengthen to 3.25 per cent (equivalent to 73,900 jobs). A sharp increase in employment in Mining (up 9.9 per cent) is expected to contribute an additional 4,500 jobs in 2011-12, while employment in construction is expected to grow by 8 per cent. Employment in Mackay and Fitzroy is expected to grow strongly due to the high presence of mining and construction in those regions. Deloitte Access Economics Commercial-in-confidence 36 Skill Shortages in the resources sector By occupation, the strongest growth is projected for construction and mining related occupations. Demand for structural construction tradespersons, final construction tradespersons, plumbers and intermediate mining and construction workers is likely to be strong with employment projected to increase by at least 7 per cent (a combined increase of 9,100 jobs). 2.9 SkillsDMC Report name: Environmental Scan 2011 Date: 2011 Author: - Publisher/Industry/Government affiliation: SkillsDMC Subcontractor involved: - Primary/Secondary research Secondary Key sectors Resources and infrastructure This report outlines the expected key economic conditions and issues for Vocational Education and Training delivery to the resources and infrastructure industry sectors in 2011. It aims to provide advice on the skilling needs of the sectors, and is based on input from companies and representative bodies. The report states that skills issues have again become critical for the resources and infrastructure sectors as demand has returned to levels not seen since before the global financial crisis. The majority of companies engaged in the drilling industry reported that they would most likely be expanding their operations in the near future. Employment in the quarry sector was down by 20-25 per cent in 2009-10. This sector will need to recover these jobs in addition to the jobs that will be required to meet the future demands of the industry. Production requirements are expected to remain consistent over the coming years in quarry markets such as civil grade aggregate, gravel, sand, dimensional stone and agricultural limestone. The quarry sector faces challenges from an ageing workforce and from other sectors that look to poach employees in the quarry sector during times of increased demand. The coal sector-is assessing growth options including expansion of existing operations as well as the development of new mines. This is in response to expected .increased demand particularly from India and China. Demand for the workforce will need to be managed to a higher degree than has previously occurred. Deloitte Access Economics Commercial-in-confidence 37 Skill Shortages in the resources sector Identified priority workforce requirements for the coal and metalliferous mining sectors included: Surface and underground operators Mineworkers and assistants Process operators Other professionals Tradespersons Training and development personnel Managers Mines rescue personnel. Overall, the majority of companies engaged reported that they would most likely be expanding their operations in the near future. The ramp-up in resources investment is expected to continue and this will lead to quite severe skills shortage ahead. There is already effectively 'full employment' among the qualified trades and therefore sourcing people for the expansion of activity will prove extremely difficult. The occupations assessed as facing skills shortages and recruitment difficulty are presented in Table 2.9.1 (6-level ANZSCO code in brackets). Table 2.9.1: Occupations identified as facing skills shortages and recruitment difficulty Project manager(133111) Civil engineering draftsperson and technician (312211,12) Engineering manager(1332-11) Electrical engineering draftspersons and technicians (3123-11,12) Production manager (mining) (1335-13) Mine deputy, statutory officials, underground mine managers, open-cut examiners (3129-13) Geologist (2112-11) Motor mechanic (general) (3212-11 Surveyor (2322-11) Fitter (general), fitter and turner (3232-11 Civil engineer infrastructure engineers (2332-11) Supervisors / Team leaders / line manager / Foreman (330000 - construction trades workers) Electrical engineer (2333-11) Pipe layer, bridge constructor, road construction and maintenance (399999 - technical and trades workers NEC) Mechanical engineer (2335-12) Shotfirers (712200-drillers, miners and shotfirers) Mining engineer (excluding petroleum) (2336-11) Drillers (712211 – driller) Geologist (2344-11) Plant operator, underground miner (coal), underground miner (metalliferous) (712212 - miner) Estimators (312114) Plant operators (721999 - mobile plant operators NEC) Deloitte Access Economics Commercial-in-confidence 38 Skill Shortages in the resources sector 2.10 Tolhurst Report name: Developing a Comprehensive Approach to Minerals Industry Education Date: 2009 Author: Ray Tolhurst Publisher/Industry/Government affiliation: University of Wollongong Subcontractor involved: - Primary/Secondary research Secondary Key sectors Mining across Australia This report considers minerals industry education, particularly the requirements from education in the minerals industries from Various Stakeholders. The report presents the results of a survey of site employers. The report notes that a higher volume of education may be needed for the minerals industries than other sectors, simply due to the relatively high number of job Vacancies typically Created by staff leaving the industry, compared with job vacancies created by employees changing positions within the industry. This is particularly true for the core discipline of mining professionals. A national survey of site employers across commodity groups in the mining sector (nickel, gold, metal mining: quarrying, coal) conducted during late 2007 to the end of 2008 received 118 responses. The survey found that the need for technically trained graduates and para-professionals Was highest in the coal industry/ (27.9 to 34.7 per cent), followed by metal mining (20.5 to 23,3 per cent) and then quarrying (17.3 per cent). Further, the results showed that within each of the eight regions, the turnover rates were relatively constant for all Staff categories. Turnover rates did vary across regions but the results were not comparable due to methodological issues with the survey. The results also demonstrated that the demand for technical professional and para-professional skills is greatest in non-residential and remote regions. 2.11 Western Australian Department of Mines and Petroleum - Prospect Report name: Developing a Comprehensive Approach to Minerals Industry Education Date: 2009 Author: Ray Tolhurst Publisher/Industry/Government affiliation: University of Wollongong Subcontractor involved: - Deloitte Access Economics Commercial-in-confidence 39 Skill Shortages in the resources sector Primary/Secondary research Secondary Key sectors Mining across Australia The Prospect is an industry magazine with a variety of articles giving an overview of the WA resources sector, including sector growth, major projects, events and human interest stories. Over the decade to 2010, the value of private capital investment in the State's resources sector totalled A$109 billion, and the sector's annual output trebled to more than A$70 billion. Employment in mining and energy also trebled and the construction workforce more than doubled.. One article, BHP Billiton Investing in WA's Future Workforce, describes the strategies BHP Billiton (BHPB) has in place to encourage Indigenous employment to help counter skills shortages in the region. Currently around 900 Indigenous people are employed at BHPB's operations in the Pilbara, including those employed by contractors who provide services to BHPB. BHPB currently has 40 Indigenous students on its BHP Billiton Indigenous Scholarships, with the aim of 80 students participating in the program by 2012. It directly employs 60 apprentices and has partnered with other organisations across the region to encourage more Indigenous youth to take up apprenticeships. Finally, in conjunction with Ngarda Civil and Mining, BHP Billiton Iron Ore launched the Purarrka Indigenous Mining Academy (PIMA) in October 2008 to provide sustainable training and development for communities. 2.12 Western Australian Department of Training and Workforce Development Report name: Skilling WA – a workforce development plan for Western Australia Date: 2010 Author: - Publisher/Industry/Government affiliation: Western Australian Department of Training & Workforce Development Subcontractor involved: - Primary/Secondary research Secondary Key sectors Western Australian labour force Deloitte Access Economics Commercial-in-confidence 40 Skill Shortages in the resources sector The report analyses the growth in labour demand and the reasons behind it. It also sets out strategic priorities to respond to the increased demand for labour. Between 2010 and 2017, Access Economics and Monash University forecast that employment in WA will grow between 222,000 and 239,000 jobs respectively. The majority of new jobs are expected to be in the professional, technical trades and management professions with 16.7. per cent of jobs in the mining and construction Sector. An additional 186,000 workers are forecast to retire, leading to a net estimated 408,000 to 425,000 new workers required in WA by 2017. Analysis by the Department of Training and Workforce Development indicates that approximately 275,000 workers will be provided through natural population and migration, leading to an Overall shortage of between 133,000 to 150,000 workers by 2017 (see Figure 2.12.1). Figure 2.12.1: Labour supply and demand (2002-2020) According to modelling done by Monash University, from 2010 to 2017, employment in mining is expected to grow by another 18,200 jobs, the sixth biggest growth sector during this period. The industry is expected to grow by 26.4 per cent. The most substantial increases in new jobs are forecast to be in the following areas in Table 2.12.1. Deloitte Access Economics Commercial-in-confidence 41 Skill Shortages in the resources sector Table 2.12.1: Increases in new jobs Occupation type Number of persons required Office and practice managers 7,100 Store persons 6,400 Construction and mining labourers 6,400 Engineering professionals 6,300 Business administration managers 5,900 Fabrication engineering trades workers 5,900 Chief executives,' general managers and legislators 5,300 Building and engineering technicians 5,300 Through the last resources boom of 2004-08 WA experienced the negative effects of skills shortages in the 'crowding out' effect; workers were attracted to higher paying industries (such as mining and construction) away from lower paying industries such as health and human services. Pit Crew Management and Consulting has forecasted that the demand for construction labour in WA's major projects will increase by 73 per cent by January 2013, leading to shortages across occupations in the construction industry. The following occupations in Table 2.12.2 have been classified as top priority in the State priority occupation list, the highest of three categories. Table 2.12.2: Top priority occupations (6-digit ANZSCO codes in brackets) Construction project manager with experience (133111) Mining engineer (experienced mining/process engineer) (233611) Geologist (geoscientist/geophysicists) (234411) Petroleum engineer (reservoir engineer/petrophysicist) (233612) Geotechnical engineer (civil engineering professionals) (233212) Surveying or spatial science technician (surveyor/cartographic assistant) (312116) The occupations listed are characterized by a combination of one or more of the following factors: very large levels of employment, high forecast growth and evident wage pressures, high levels of skill, longer education or training lead times, clear education and training pathways and/or a clear and evident skills shortage. 2.13 Women in Mining Network Report name: Gender Pay Equity and Work Practices in the Minerals & Metallurgy Sector Date: November 2010 Author: - Publisher/Industry/Government affiliation: Australasian Institute of Mining & Metallurgy (AusIMM); Women in Mining Network Deloitte Access Economics Commercial-in-confidence 42 Skill Shortages in the resources sector (WIMNet) Subcontractor involved: - Primary/Secondary research Secondary Key sectors Minerals & Metallurgy Sector This report provides an analysis of results from a Gender Pay Equity and Work Practices Survey, jointly conducted in 2008 by AuslMM and WIMNet. The survey was conducted to shed light on the reasons for a gender pay gap in the mining industry, after a 2008 AuslMM survey revealed a gender pay gap beginning at 8 per cent at graduate level, and reaching 32.3 per cent at senior management level. A total of 694 survey responses were received from AuslMM and WlMNet members under the key themes of pay equity, organisational gender diversity strategies and initiatives, and participation of carers, within the minerals sector. Of the survey respondents: 67 per cent were female 70 per cent worked in mining companies 25 per cent identified as Geologist/Geoscientist, 16 per cent as Mining Engineer, 16 per cent as Management, 8 percent as Metallurgist, 6 per cent as HR Professional, and 6 per cent Environmental Engineer/Scientist. Perceptions of pay equity: Overall, the majority of male and female respondents viewed that they were being paid about the same as others performing a comparable role, although responses did vary by organisation and occupational role and females were more likely to believe that they were paid less. Drivers of the gender pay :gap were commonly perceived to be issues related to workplace culture, such as historical attitudes, and a male dominated culture or leadership. Those who felt they were paid less cited reasons such as gender stereotypes and employer perceptions of women's capabilities. Another factor cited was a lack of negotiation power and/or knowledge, and failure to negotiate pay. Perceptions of gender diversity Respondents perceived that organisations are generally supportive of, and promote, gender diversity and professional development opportunities for female employees. Deloitte Access Economics Commercial-in-confidence 43 Skill Shortages in the resources sector Most respondents were not aware of supportive measures in their organisation. Those who were aware commonly identified flexible work practices. Other key measures suggested for introduction were cultural change and attraction and recruitment activities to increase gender diversity. Care giver responsibilities Female respondents were more likely than males to not have caring responsibilities but those who did were more likely to identify as the primary carer. Female respondents were also more likely to alter their work practices and career progression due to their caring responsibilities. Survey respondents strongly indicated that implementation of financial assistance and supportive workplace provisions for carers would have some impact on gender equity. Most respondents (70 per cent) believed that prospects for professional development and promotion were poorer for people with caring responsibilities than those without. Deloitte Access Economics Commercial-in-confidence 44 Skill Shortages in the resources sector Appendix A: Bibliography Primary Sources Birrell, B. & Healy, E. (2010), 'The Mineral Boom and Immigration Policy: Skills Australia Debunks the Myths', People and Place, vol. 18, no. 2, pp. 39-50. Briggs, G. (2010), The impact of skilled labour shortages on the Pilbara region, Future Directions International, 17 September. Energy Skills Queensland (2009), Energy Industry Skills Plan: 2009-2012, Brisbane, September. Energy Skills Queensland (2009), Part A - Workforce Planning Report to inform the Workforce & Competency Development Strategy Plan for the Queensland Coal Seam Gas / Liquefied National Gas Industry, Brisbane, September. Energy Skills Queensland (2009), Part B - Addendum Labour Market Analysis - Demand and Supply, Brisbane, September. Energy Skills Queensland (2009), Part C -: Workforce & Competency Development Strategy Plan, Brisbane, September. Grad, P. (2010), 'Australian Mining Industry's Looming Labor Shortage', Engineering and Mining Journal, vol. 212, no. 6, pp. 76. Junankar, P.N. (2009), 'Was there a Skills Shortage in Australia?', Institute for the Study of Labour, Discussion Paper 4651, Bonn, December. Mining Industry Skills Centre Inc. (2009), Resources Industry Heartbeat Project Report, Brisbane. Molloy, S. & Tan, Y. (2008), The Labour Force Outlook in the Australian Minerals Sector: 2008 to 2020', Minerals Council of Australia, June. National Resources Sector Employment Taskforce (2010), Resourcing the Future, Canberra, July. Piper, D. (2010), 'Put people direct, say recruitment', Australia's Paydirt, vol. 1, issue 2, pp. 55. Resource Engineering Skills Alliance (2011), Resources Industry Workforce Action Plan: South Australia 20102014. Spoehr, J. & Molloy, S. (2011), 'Mining employment in SA – exploration and exports boom but what about jobs?’, Australian Institute for Social Research, Adelaide, March. Technology and Industry Advisory Council (2010), Managing Western Australia Economic Expansion: The Need for People and Skills, East Perth, March. Secondary Sources Australasian Institute of Metals & Mining and Women in Mining Network (2009), Gender Pay Equity and Work Practices in the Minerals & Metallurgy Sector, November. Australian Industry Group (2011), Submission on Immigration Program Planning Levels 2011-12, North Sydney, 5 January. Australian Industry Group & Deloitte (2009), National CEO Survey - Skilling Business in Tough Times, North Sydney, October. Australian Petroleum Production & Exploration Association (2010), State of the industry 2010, Canberra. Chamber of commerce and Industry of Western Australia (2010), Building Western Australia's Workforce for Tomorrow Discussion Paper, June. Chamber of Minerals and Energy of Western Australia (2011), State Growth Outlook, Perth. ElectroComms and Energy Utilities Industry Skills council (2011), 2011 Environmental Scan, 31 March. Office of Economic and Statistical Research (2010), Queensland Employment Projections by Industry and Statistical Division - 2009-10 to 2011-12, Queensland Treasury, Brisbane, August. Pearce, A., Flavell, K., & Dao-Cheng, N. (2010), Scoping our future: Addressing Australia's engineering skills shortage, Australian National Engineering Taskforce, October. SkillsDMC (2011), Environmental Scan 2011, Sydney. Tolhurst, R. (2009), ‘Developing a Comprehensive Approach to Minerals Industry Education’, Presented at the 20th Australasian Association for Engineering Education Conference, University of Adelaide, December. Western Australian Department of Mines and Petroleum (2011), Prospect April 2011, April, Perth. Western Australian Department of Training and Workforce Development (2010), Skilling WA - A workforce development plan for Western Australia, East Perth. Deloitte Access Economics Commercial-in-confidence 45 Skill Shortages in the resources sector Supplementary reports not summarised AAP General News Wire (2011), 'WA union boss calls for migration boost;, Sydney, 14 April. Department of Education, Employment and Workplace www.deewr.gov.au/skillshortages, Accessed 28 April 2011. Relations (2010), Skill Shortage List, Australia, Dymock, D. & Billett, S. (2010), ‘Skilling Australians: Lessons from World War II national workforce development programs', Australian Journal of Adult Learning, vol. 50, no. 3, pp. 468-496. Engineers Australia (2009), Submission to the Victorian Education and Training committee: Inquiry into Skills Shortages in the Rail Industry, North Melbourne, May. Engineers Australia (2010), The Engineering profession in Australia - A profile from the 2006 Population Census, September Lampard, M., et al. (2010), Minerals and Energy, Major Development projects - April 2010 listing, ABARE, Canberra, May. Phillips, K. (2008), 'How the government and unions help maintain Australia's skills shortage', Institute of Public Affairs Review, March, pp. 16-19. Piper, D. (2010), 'Hire more women, industry urged', Australia's Paydirt, vol. 1, issue 2, pp. 54. Shreeve, R. (2010), The Workforce of the Future', Australian TAFE Teacher, vol.44, no. 1, Autumn, pp 13-15. Tarrant, D. (2009), 'A shared sacrifice', In the Black, September, file:///H:/CLIENTS/Skills%20Australia/2%20%20Background%20research/Research%20reports/Secondary%20Sources/Tarrant_A%20shared%20sacrifice 20 09.htm, Accessed 28 April 2011. Watson, I. (2009), Skills in Use - Labour Market and Workplace Trends in Skills Usage in Australia, New South Wales Department of Education and Training, Sydney. Deloitte Access Economics Commercial-in-confidence 46 Limitation of our Work General use restriction This report is prepared solely for the use of Skills Australia. This report is not intended to and should not be used or relied upon by anyone else and we accept no duty of care to, any other person or entity. The report has been prepared for the purpose of Skills Australia. You should not refer to or use our name or the advice for any other purpose. Deloitte Access Economics Commercial-in-confidence 47 Contact us Deloitte Access Economics is Australia's pre- Deloitte Access Economics ACN: 49 633 116 eminent economics advisory practice and a member of Deloitte's global economics group. The Directors and staff of Access Economics joined Deloitte in early 2011. 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