Industry Atlas of Victoria 2013
Department of State Development, Business and
Innovation
State Government of Victoria
Australia
Industry Atlas of Victoria 2013
1
Credits
Industry Atlas of Victoria
Published by the Department of State Development, Business and Innovation, December 2013.
Also published on dsdbi.vic.gov.au
Content
Policy and Research Branch, Department of State Development, Business and Innovation. Major
contributors to this project include Mr Serey Thir (Project Leader - Policy Adviser), Mr Jolyon EllisJones (Senior Policy Adviser), Mr TJ Hong (Policy Adviser), Mr Toby Motoi (Senior Policy Adviser),
Ms Bettina Neira (Senior Policy Adviser), Mr Pin Ng (Senior Policy Adviser), Mr Stephen Ryan
(Policy Adviser) and Ms Stephanie Gregory. Special thanks to Mr Tony Pensabene (Director,
Policy and Research) for his steadfast support and encouragement.
Design and production
Designed by Richard McKellar Design,
No. 1 Rochester Road, Canterbury, VIC 3126. Australia.
Telephone +61 3 9836 7277 | design@richardmckellardesign.com
Print managed by Finsbury Green.
Photography
Front cover, Melbourne and Yarra River at night.
Back cover, Twelve Apostles, Great Ocean Walk.
Images courtesy of Visions of Victoria, Brand Victoria, Indigenous Economic Development Unit,
Major Projects Victoria, Regional Development Victoria and Shutterstock Images.
This document is also available in an accessible format on the internet at dsdbi.vic.gov.au
© Copyright State of Victoria 2013. This publication is copyright. No part may be reproduced by any
process except in accordance with the provisions of the Copyright Act 1968.
Authorised by the Victorian Government, Department of State Development, Business and
Innovation.
121 Exhibition Street, Melbourne, VIC 3000.
PO Box 4509, Melbourne, VIC 3001.
Tel: 03 9651 9999
Fax: 03 9651 9129
ISBN 978-1-921572-94-4 (Print)
ISBN 978-1-921572-95-1 (Online)
Industry Atlas of Victoria 2013
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Contents
Ministers’ Foreword ......................................................................................................................... 5
1
2
3
4
5
6
7
About the Industry Atlas ........................................................................................................... 6
1.1
Why an Industry Atlas? .................................................................................................... 6
1.2
Overview of the Victorian economy ................................................................................. 6
1.3
What data is used? .......................................................................................................... 7
1.4
ABS classifications ........................................................................................................... 8
1.5
Geography standards and map creation ......................................................................... 9
Business establishments in Victoria...................................................................................... 10
2.1
Overview ........................................................................................................................ 10
2.2
Business establishments by industry ............................................................................. 10
2.3
Business establishments by location ............................................................................. 10
2.4
Business establishments by size ................................................................................... 11
Metropolitan Melbourne .......................................................................................................... 14
3.1
Overview ........................................................................................................................ 14
3.2
The development of metropolitan Melbourne ................................................................ 14
3.3
Melbourne’s labour market ............................................................................................ 15
3.4
Changes in employment ................................................................................................ 15
3.5
Movements within the Melbourne labour force .............................................................. 16
Regional Victoria ...................................................................................................................... 19
4.1
Overview ........................................................................................................................ 19
4.2
Regional Victoria’s labour market .................................................................................. 19
4.3
Changes in employment ................................................................................................ 20
4.4
Future employment in regional Victoria ......................................................................... 20
4.5
Movements within the regional workforce ...................................................................... 21
4.6
Special focus: Victoria’s specialisation in Agriculture .................................................... 22
Manufacturing in Victoria ........................................................................................................ 24
5.1
Overview ........................................................................................................................ 24
5.2
Manufacturing business establishments in Victoria ....................................................... 24
5.3
Manufacturing employment in Victoria ........................................................................... 25
5.4
Manufacturing employment in Melbourne ...................................................................... 26
5.5
Manufacturing employment in Melbourne by sub-sector ............................................... 26
5.6
Manufacturing employment in regional Victoria ............................................................. 27
5.7
Victorian manufacturing exports .................................................................................... 27
5.8
Special focus: Victorian manufacturing specialisations ................................................. 27
Services ..................................................................................................................................... 30
6.1
Services industries in Victoria ........................................................................................ 30
6.2
Services industries in Melbourne ................................................................................... 31
6.3
Employment in Melbourne’s knowledge intensive services ........................................... 31
6.4
Employment in Melbourne’s population related services .............................................. 32
6.5
Employment in Melbourne’s goods distributing services ............................................... 33
6.6
Services industries in Regional Victoria......................................................................... 33
6.7
Special focus: Electricity, gas, water and waste services .............................................. 34
6.8
Victorian services exports .............................................................................................. 35
Skills and knowledge ............................................................................................................... 38
7.1
Victoria’s workforce skills ............................................................................................... 38
Industry Atlas of Victoria 2013
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7.2
Skills and occupations ................................................................................................... 39
7.3
Fastest growing occupations ......................................................................................... 40
7.4
Skilled migration ............................................................................................................. 42
Industry Atlas of Victoria 2013
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Ministers’ Foreword
Mapping the spatial distribution of the Victorian economy helps us to better understand how
Victoria has been shaped over time.
Over the decade to 2011-12, the Victorian economy has grown by one third to $329 billion
(current prices); population has risen by 15.5 per cent to 5.6 million; household disposable
income per capita has advanced by 22 per cent in real terms; and employment has risen to 2.9
million, an increase of 25 per cent.
This growth has left its mark on the economic and demographic landscape of Victoria. Regional
cities such as Ballarat, Bendigo and Mildura are undergoing a shift to more services-based and
professional activities, as well as experiencing an increasing concentration of businesses. The
broader regional economy is diversifying towards services industries such as construction,
health care, education, retail and the tourism-related sectors of accommodation and food
services. Inner Melbourne is enjoying strong business growth as Victoria’s professional and
business heartland. Parkville, for example, has emerged as a leading centre for education,
research and health services. The rapidly growing outer municipalities of Melbourne are seeing
a commensurate growth in health, education and personal services. Manufacturing, wholesaling
and logistics are agglomerating in key industrial precincts in the west, north and south east,
such as Dandenong and Campbellfield.
The Industry Atlas of Victoria 2013 highlights the economic diversity and strength of the state
and its transformation over the last decade. Each chapter focuses on a particular theme – the
growth of businesses, the Melbourne and regional economies, manufacturing and service
industries, and Victoria’s knowledge and skills assets.
This revised edition incorporates the latest available data, including the 2011 Australian
Census, Australian Bureau of Statistics labour force and trade data, WorkSafe Victoria data on
business establishments and other economic data. Using pictures, maps and charts, the Atlas
presents a highly visual representation of the Victorian economy. It is designed to be accessible
to all readers, particularly students, spatial planners, demographers and those who simply want
to know more about the economy’s changing landscape.
Across the state, people, businesses, cities and towns are constantly changing. The Industry
Atlas of Victoria 2013 is an important spatial reference for analysing these changes and
examining how industries have evolved over recent decades and where they – and the broader
economy – are heading in the future.
The Hon. Peter Ryan
Minister for State Development
Minister for Rural and Regional Development
The Hon. Louise Asher
Minister for Innovation, Services and Small Business
Minister for Tourism and Major Events
Minister for Employment and Trade
The Hon. David Hodgett
Minister for Manufacturing
Industry Atlas of Victoria 2013
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1 About the Industry Atlas
1.1 Why an Industry Atlas?
Victoria’s transition from an industrial, tariff-protected economy to a knowledge intensive,
globalised economy led by a rapidly growing services sector has been well documented. What
has not been examined to the same extent is how this transition has affected the distribution of
business activities across Victoria.
An Industry Atlas provides a spatial analysis of the Victorian economy and workforce. By
identifying concentrations of economic activity across geographic areas, the complexity of
Victoria’s economic growth and development becomes apparent. By examining the number of
people employed, where they live and work, and the industries in which they work, a broad
narrative about the economy unfolds.
The first edition of the Industry Atlas, based on the Australian Bureau of Statistics (ABS) 2006
Census and other data, was released in October 2011. This revised edition is based on 2011
Census data released in late 2012 and other updated data.
The focus of the Atlas is on providing spatial data in either charts and/or maps. Some
interpretation and analysis of the data has been included to highlight trends and directions.
However, the focus of making the document accessible to a wide readership meant that deeper
analysis has been kept to a minimum. Many factors have influenced spatial outcomes including
population growth, industry structure and change, the globalisation of cities, transport systems
and infrastructure investment, market demand and consumer preferences, urban history, and
government policies to name a few. The reader should be mindful of these factors when
seeking to interpret individual charts and maps.
1.2 Overview of the Victorian economy
The Victorian economy totalled $329 billion (gross state product or GSP, current prices) in
2011-12, accounting for 22.3 per cent of the national economy – slightly below Victoria’s 24.8
per cent share of the national population (with 5.6 million people). According to the Australian
Bureau of Statistics (ABS) Labour Force Survey1, Victoria has 24.9 per cent of Australia’s
workforce, with approximately 2.9 million people in employment in 2013. Over the decade to
2013, employment in Victoria has increased by more than 550,000 workers, with Health care
and social assistance, Retail trade and Manufacturing the largest employing industries.
In the ten years to 2013, the Victorian economy has become more services orientated, with
most of the growth in employment occurring in the services sectors. The largest increases in
employment over this period were recorded in Health care and social assistance, Professional,
scientific and technical services, and Construction. Together, these industries accounted for 49
per cent of employment growth in the Victorian economy.
Most of Victoria’s economic activity is concentrated in metropolitan Melbourne, the capital city.
Data from the ABS Labour Force Survey2 show that, in 2013, nearly 75 per cent of all Victorian
jobs are based in metropolitan Melbourne, a one-percentage point increase over the last ten
years.
The development of Melbourne as the centre of the Victorian economy reflects both the state’s
history and the integral role capital cities play in globalised economies. The majority of
employment in the knowledge intensive services industries of Professional, scientific and
technical services, Financial and insurance services, and Information media and
telecommunications is concentrated in Melbourne. In addition, metropolitan Melbourne has
been the focus of most of Victoria’s recent record population growth – accounting for 87 per
cent of the state’s total population growth – which has increased the available labour force
within the city and created further demand for employment, businesses, goods and services.
Industry Atlas of Victoria 2013
6
Victoria’s regions account for the remainder of economic activity and are important to the state’s
overall economic performance in terms of jobs and economic activity (in industries such as
Health care and social assistance, Retail trade, Manufacturing and Agriculture, forestry and
fishing).
The Industry Atlas documents these relationships, as well as focusing on broad developments
in manufacturing and services in Victoria.
1.3 What data is used?
Throughout this publication, official ABS data has been used, including 2011 Census data.
Wherever possible, the most up to date data available is used. Census data allows for analysis
at a more detailed geographical level and is used when presenting spatial analysis throughout
the Atlas. Most published Census data provides population characteristics by place of residence
and this has been used to show where the Victorian workforce lives. Census data also provides
information relating to place of employment, enabling the analysis of industry and occupation by
workplace destination.
In addition, WorkSafe Victoria’s data has been used in place of the ABS, Counts of Australian
Businesses data, which was presented in the earlier edition of the Atlas. This data provides
more detailed and localised industry information for spatial analysis, over the same time period
as the rest of the Atlas.
These two datasets measure different things. The WorkSafe data reflects the number of
business establishments by their economic activities and locations, with the exception of sole
traders, employers insured through Comcare (a Federal Government agency) and exempt
employers (those with less than $7,500 in remuneration). In contrast, the ABS dataset counts
the number of businesses by the headquarters’ economic activities and locations (Table 1.1).
Other data sources are used in the publication where these can be represented spatially or
where they provide the most up to date data. These sources include: ABS, Labour Force,
Australia (cat. no. 6202.0); ABS, Labour Force, Australia, Detailed - Electronic Delivery (cat. no.
6291.0.55.001); ABS, Labour Force, Australia, Detailed, Quarterly (cat. no. 6291.0.55.003);
ABS, Regional Population Growth, Australia, 2011 (cat. no. 3218.0); Department of Foreign
Affairs and Trade, Exports from Victoria, unpublished data; and Department of Planning and
Community Development, Victoria in Future.
It should be noted that the scales used in the maps throughout the Atlas vary according to the
context of the data presented.
Table 1.1: Comparison of ABS Counts of Australian Businesses and WorkSafe data, 2010-11
Industry
ABS
business
counts total
ABS business counts
excluding nonemploying businesses
WorkSafe
establishment
s
Construction
89,022
35,531
38,355
Professional, scientific and technical
services
66,682
28,837
32,356
Rental, hiring and real estate services
56,067
6,864
6,443
Agriculture, forestry and fishing
46,080
13,276
12,035
Financial and insurance services
43,309
8,471
7,002
Retail trade
37,082
20,926
31,139
Transport, postal and warehousing
34,160
10,809
14,308
Health care and social assistance
25,224
12,181
19,760
Manufacturing
24,824
14,740
19,358
Wholesale trade
22,182
12,091
18,847
Other services
21,936
12,023
17,064
Accommodation and food services
21,660
15,069
15,707
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Administrative and support services
20,176
9,048
9,982
Arts and recreation services
7,387
2,280
4,464
Education and training
6,591
2,961
9,116
Information media and
telecommunications
5,014
1,963
4,711
Public administration and safety
1,853
833
2,205
Electricity, gas, water and waste services
1,436
747
1,196
838
365
549
Mining
Source: ABS, Counts of Australian Businesses, including Entries and Exits, Jun 2007 to Jun 2011 (cat. no. 6291.0.55.003) and WorkSafe
Victoria, WorkCover policy holders data, 2012, unpublished data
1.4 ABS classifications
The Australian and New Zealand Standard for Industry Classification (ANZSIC) and the
Australian and New Zealand Standard Classification for Occupations (ANZSCO) are used.
These standard classification systems are used in Australia and New Zealand for the collection,
compilation, analysis and publication of industry and occupation statistics respectively. The
main headings used in these classifications are set out in Table 1.2.
Updated versions of these classification systems were introduced in 2006. There are some
discrepancies between the new classifications and the previous systems established in 1993;
as a result, time series data describing changes over a ten-year period has been adjusted to
enable comparisons to be made.
Table 1.2: ANZSIC and ANZSCO classifications
Australian and New Zealand Standard Industry
Classification (ANZSIC) 2006
Australian and New Zealand Standard
Classification of Occupations (ANZSCO) 2006
Agriculture, forestry and fishing
Managers
Mining
Professionals
Manufacturing
Technicians and trades workers
Electricity, gas, water and waste
Community and personal service workers
Construction
Clerical and administrative workers
Wholesale trade
Sales workers
Retail trade
Machinery operators and drivers
Accommodation and food services
Labourers
Transport, postal and warehousing
Information media and telecommunications
Financial and insurance services
Rental, hiring and real estate services
Professional, scientific and technical
Administrative and support services
Public administration and safety
Education and training
Health care and social assistance
Arts and recreation services
Other services
Industry Atlas of Victoria 2013
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1.5 Geography standards and map creation
The Industry Atlas represents Victoria by Local Government Areas (LGAs) using the 2011
Australian Statistical Geography Standard (ASGS) – Non ABS Structure. The LGAs geography
was chosen to provide a continuous and standardised time series of Census data, for ease of
comparison across the ten year period from 2001 to 2011. This is in contrast to the previous
Industry Atlas, which provided analysis at a more detailed geographical level. Due to changes in
the ABS geography standards, the definitions of the Greater Melbourne Metropolitan region and
regional Victoria have changed significantly.
In this publication, metropolitan Melbourne is made up of 31 LGAs and regional Victoria is made
up of 48 LGAs (Table 1.3).
Thematic maps were created using Pitney Bowes: MapInfo Professional software. The analysis
and presentation of data is consistent with accepted standards for spatial analysis, including
studies undertaken by other Victorian Government departments such as the Department of
Planning and Community Development’s Melbourne Atlas (2005) and Regional Matters: An
Atlas of Regional Victoria (2005), as well as the Department of Transport’s Victorian Transport
Demand Atlas (2012).
Table 1.3: Local Government Areas, metropolitan Melbourne and regional Victoria
Metropolitan Melbourne
Regional Victoria
1. Melbourne (C)
1. Greater Geelong (C)
32. Strathbogie (S)
2. Hobsons Bay (C)
2. Queenscliffe (B)
33. Greater Shepparton
3. Maribyrnong (C)
3. Surf Coast (S)
(C)
4. Moonee Valley (C)
4. Golden Plains (S)
34. Moira (S)
5. Moreland (C)
5. Colac-Otway (S)
35. Benalla (RC)
6. Darebin (C)
6. Corangamite (S)
36. Wangaratta (RC)
7. Yarra (C)
7. Moyne (S)
37. Indigo (S)
8. Stonnington (C)
8. Warrnambool (C)
38. Wodonga (RC)
9. Port Phillip (C)
9. Glenelg (S)
39. Towong (S)
10. Glen Eira (C)
10. Southern Grampians (S)
40. East Gippsland (S)
11. Bayside (C)
11. West Wimmera (S)
41. Alpine (S)
12. Kingston (C)
12. Horsham (RC)
42. Wellington (S)
13. Monash (C)
13. Northern Grampians (S)
43. Mansfield (S)
14. Whitehorse (C)
14. Ararat (RC)
44. Murrindindi (S)
15. Boroondara (C)
15. Pyrenees (S)
45. Baw Baw (S)
16. Manningham (C)
16. Ballarat (C)
46. Latrobe (C)
17. Banyule (C)
17. Moorabool (S)
47. South Gippsland (S)
48. Bass Coast (S)
18. Nillumbik (S)
18. Hepburn (S)
19. Whittlesea (C)
19. Central Goldfields (S)
20. Hume (C)
20. Mount Alexander (S)
21. Brimbank (C)
21. Macedon Ranges (S)
22. Melton (C)
22. Mitchell (S)
23. Wyndham (C)
23. Greater Bendigo (C)
24. Mornington Peninsula (S)
24. Loddon (S)
25. Frankston (C)
25. Buloke (S)
26. Greater Dandenong (C)
26. Yarriambiack (S)
27. Casey (C)
27. Hindmarsh (S)
28. Knox (C)
28. Mildura (RC)
29. Maroondah (C)
29. Swan Hill (RC)
30. Yarra Ranges (S)
30. Gannawarra (S)
31. Cardinia (S)
31. Campaspe (S)
Unincorporated Vic.
Note: (C) refers to City; (S) refers to Shire; (RC) refers to Rural City
Industry Atlas of Victoria 2013
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2 Business establishments in Victoria
2.1 Overview
Businesses choose specific locations that best meet their various operational functions and
commercial requirements. Key drivers for selecting business locations include being near global
supply chains, having a base in proximity to key transport nodes and being close to customers
and essential inputs. Proximity to home was also a factor for many small business owners. As
of December 2012, 73 per cent of Victoria’s 275,336 business establishments were based in
metropolitan Melbourne. The rest were spread across the state.
To provide a snapshot and spatial data analysis of business establishments across Victoria over
the ten-year period to 2011 (at both industry and geographical levels), these have been
classified by remuneration size:

Small business establishments: those with annual remunerations under $600,000

Medium business establishments: those with annual remunerations between $600,000
and $12 million

Large business establishments: those with annual remunerations over $12 million
All business establishment data and maps in this publication, including this chapter, are based
on WorkSafe Victoria data and use postcode as their base geography. LGA boundaries are
overlaid to provide location guidance. This data differs from ABS business counts data, which
counts the number of businesses – not establishments. For a more complete explanation of
WorkSafe Victoria’s data, please refer to Chapter 1: What data is used?
2.2 Business establishments by industry
Over the decade to 2010-11, the Victorian economy has grown both in business activity and
population, shifting towards a services orientated economy.
In 2010-11, the Victorian industries with the largest number of business establishments were
Construction, Retail trade, and Professional, scientific and technical services. Combined, these
three industries accounted for nearly 40 per cent of all business establishments registered in the
state with WorkSafe Victoria.
In the ten years to 2010-11, the Construction industry recorded the largest increase in the
number of business establishments in Victoria, followed by Retail trade and Accommodation
and food services. The growth in these industries has been driven by population growth
occurring throughout metropolitan Melbourne. Agriculture, forestry and fishing, Information
media and telecommunications and Manufacturing recorded the largest decline in business
establishment numbers.
2.3 Business establishments by location
2.3.1 Metropolitan Melbourne
In metropolitan Melbourne, there are high concentrations of business establishments in central
Melbourne (the City of Melbourne), in the north (Hume) and south east (Monash and
Dandenong).
In the ten years to 2011, business establishments have relocated away from the inner east,
south, south east and outer east into the City of Melbourne and other outer regions of
metropolitan Melbourne.
These changes reflect the consolidation of knowledge intensive services industries (such as
Professional, scientific and technical services, Financial and insurance services, and
Information media and telecommunications) from the inner east and south east into the
Industry Atlas of Victoria 2013
10
Melbourne city centre and surrounding suburbs, as well as the relocation of distribution services
industries, which require large parcels of land, to the outer areas of metropolitan Melbourne
where land costs are cheaper. The growth of the Construction industry, in response to
population growth, is also a factor in the increase of business establishments in the outer
municipalities.
2.3.2 Regional Victoria
In regional Victoria, business establishments are concentrated in and around the major regional
centres of Ballarat, Bendigo, Geelong, Shepparton, Mildura, Traralgon, Warrnambool and
Wodonga.
A decline in business establishment numbers over the period 2000-01 to 2010-11 was recorded
in most rural areas of the state, while growth mainly occurred in the major regional city centres
and along the peri-urban areas adjacent to metropolitan Melbourne. This reflects the transition
occurring in regional Victoria, with the regional economy diversifying towards service industries
such as Construction, Health care and social assistance, and Retail trade.
2.4 Business establishments by size
2.4.1 Small business establishments
The WorkSafe data indicates that most business establishments in Victoria are small
establishments3. In 2012, there were around 235,000 small business establishments,
comprising 86 per cent of all business establishments.
In 2010-11, the industries with the highest numbers of small business establishments were
Construction, Retail trade and Professional, scientific and technical services.
In the decade to 2010-11, Construction, Accommodation and food services, and Transport,
postal and warehousing recorded the largest growth of small business establishments, while
Agriculture, forestry and fishing, Information media and telecommunications, and Manufacturing
recorded the largest declines.
In metropolitan Melbourne, the inner municipalities of Boroondara and Port Phillip hold the
greatest numbers of small establishments, while outer municipalities in the north (City of Hume),
east (Yarra Ranges Shire) and south east (City of Casey and Mornington Peninsula Shire) also
have large numbers of small business establishments. This reflects the industry composition of
small businesses, as these localities generally have large numbers of Construction,
Professional, scientific and technical services, and Retail trade businesses.
The number of small business establishments has declined in Melbourne’s east (cities of
Boroondara and Whitehorse) and south east (cities of Stonnington, Glen Eira and Monash),
while numbers have increased in the City of Melbourne and in outer suburbs in the west (Deer
Park and Truganina), north (Craigieburn and Morang) and south east (Cranbourne and
Pakenham).
In regional Victoria, small business establishments are concentrated in and around the major
centres of Ballarat, Bendigo, Geelong, Shepparton, Mildura, Traralgon, Warrnambool and
Wodonga.
Over the decade to 2010-11, the number of small business establishments declined in the
western and northern regions of the state, as well as the eastern Gippsland region, while growth
mainly occurred in the major regional city centres and along the peri-urban areas of
metropolitan Melbourne. These patterns are a reflection of the reduction in the number of small
Agriculture, forestry and fishing business establishments and the growth of population-related
industries such as Construction, Health care and social assistance, and Retail trade.
Industry Atlas of Victoria 2013
11
2.4.2 Medium business establishments
In 2012, there were over 36,000 medium sized business establishments 4 in Victoria, comprising
13.5 per cent of total business establishments.
In the decade to 2010-11, the number of medium business establishments has grown by over
7,000 to just under 35,000. In 2010-11, Wholesale trade, Manufacturing, and Professional,
scientific and technical services were the top three industries, accounting for nearly 35 per cent
of all medium sized business establishments in Victoria.
In the decade to 2010-11, medium sized business establishments grew across all industries,
except Financial and insurance services. Retail trade, Health care and social assistance,
Construction, and Professional, scientific and technical services recorded the largest growth of
medium business establishments, while Information media and telecommunications, Utilities
and Mining recorded the lowest growth.
In metropolitan Melbourne, medium sized businesses are concentrated around the central city
and in the south east around Dandenong. This reflects the industry composition of the two
regions, with the City of Melbourne containing the central business district (CBD); while, the City
of Dandenong has a high concentration of medium sized Manufacturing and Wholesale trade
business establishments.
The growth in the number of medium sized business establishments was recorded mainly in the
City of Melbourne and surrounding municipalities, particularly in the Professional, scientific and
technical services, Administrative and support services, and Accommodation and food services
industries. The City of Dandenong also recorded strong business establishment growth,
especially in the Manufacturing and Wholesale trade industries.
In regional Victoria, medium sized businesses are clustered around major regional centres.
Warrnambool, Geelong, Ballarat, Bendigo, Mildura, Shepparton and Wodonga have the largest
number of medium sized businesses, as well as the strongest growth.
2.4.3 Large business establishments
There were over 1,500 large business establishments5 in Victoria in 2012, comprising 0.5 per
cent of total business establishments.
In 2010-11, the Professional, scientific and technical services industry had the highest
concentration of these large establishments, followed by the Manufacturing and Health care and
social assistance industries.
In the decade to 2010-11, Construction, Professional, scientific and technical services and
Transport, postal and warehousing recorded the highest growth in large business
establishments, while Agriculture, forestry and fishing, Information, media and
telecommunications, and Financial and insurance services recorded the largest declines.
In metropolitan Melbourne, large business establishments are concentrated around the city
centre and in the cities of Dandenong and Monash. Smaller concentrations are also located in
the west (Footscray and Sunshine), north west (Tullamarine) and east (Bayswater).
Generally, most of the growth in large business establishments was located in the city centre
and surrounding suburbs. The cities of Monash and Greater Dandenong also recorded strong
growth.
Large business establishments are sparse in regional Victoria and are generally located in
regional centres. Most large business establishments are found in the Manufacturing, Health
care and social assistance, Education and training, or Public administration and safety
industries.
Industry Atlas of Victoria 2013
12
Growth in the number of large business establishments has also been concentrated in major
regional centres. Geelong and Ballarat had the largest growth, while moderate growth was
recorded in Wodonga, Traralgon and Sale.
Industry Atlas of Victoria 2013
13
3 Metropolitan Melbourne
3.1 Overview
In the decade to 2012, Melbourne had the fastest population growth of all Australian capital
cities. Over this period, Melbourne’s population grew by 19 per cent to more than four million
residents, contributing around 87 per cent of the state’s total population growth. This growth
was dispersed across the metropolitan area, with outer suburbs accommodating much of the
increase.
Metropolitan Melbourne’s population growth contributed to an increase in the size of the labour
force, particularly in the outer suburbs and the CBD. The number of people employed in
metropolitan Melbourne increased by 25 per cent, in the decade to 2013. The three largest
employment increases were recorded in the Health care and social assistance, Construction,
and Professional, scientific and technical services sectors, while Manufacturing and Information
media and telecommunications saw the largest employment decreases.
A rise in part-time employment was also evident across many metropolitan areas, led by the
CBD and the fast growing outer municipalities.
Employment in Victoria grew by 23 per cent over the decade to 2013, driven mostly by the
growth in metropolitan Melbourne (80 per cent of total employment growth). The five largest
growing LGAs in metropolitan Melbourne during the decade were the City of Melbourne,
Brimbank, Casey, Hume and Wyndham.
3.2 The development of metropolitan Melbourne
At June 2012, an estimated 4.2 million people resided in metropolitan Melbourne. By 2021,
Melbourne is projected to have a population of 4.8 million.
As the population of Melbourne grows, its workforce will also grow. By 2021, metropolitan
Melbourne’s workforce is expected to increase to just over 2.4 million, an increase of
approximately 300,000 workers.
While forecasts indicate that employment will be generated across a broad range of industries,
four industries will be the main sources of employment during the decade to 2021. These are
Health care and social assistance, Professional, scientific and technical services, Education and
training, and Retail trade (despite current moderate business conditions).
The employment forecast by industry sector in metropolitan Melbourne, from 2011 to 2021,
indicates that population related services, such as Retail trade, Health care and social
assistance, and Education and training, are expected to experience the greatest increase in
employment. This is followed by knowledge intensive services (for example, Professional,
scientific and technical services, and Finance and insurance services) and goods distributing
services (for example, Transport, postal and warehousing, and Wholesale trade).
Employment growth in the Professional, scientific and technical services industry will largely
occur in inner Melbourne. In contrast, employment growth in Health care and social assistance,
Education and training, and Retail trade industries will be distributed more evenly across
Melbourne. These growth industries, together with the Manufacturing industry, are expected to
make up the largest workforce in metropolitan Melbourne in 2021. While employment in
Manufacturing has been contracting and will continue do so, the industry employed 11 per cent
of the total workforce in Melbourne in 2011, and is expected to account for nine per cent of the
total workforce in Melbourne, in 2021.
Industry Atlas of Victoria 2013
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3.3 Melbourne’s labour market
3.3.1 A growing labour force
The ABS defines the labour force as persons aged 15 years and over who are either engaged
in or actively looking for paid employment.
Over the decade to 2011, metropolitan Melbourne’s labour force increased in the outer suburbs
and the inner city, due largely to population growth. The demographic profile and labour force
characteristics in these fast growing areas are diverse. The outer western suburbs have a
relatively high proportion of couples with children and a lower median age (32 years old) than is
typical for metropolitan Melbourne (36 years old). Inner Melbourne also has a relatively low
median age, due to young professionals moving into the area to be closer to work and overseas
students studying at TAFE colleges and universities in the CBD and surrounds.
Other metropolitan areas with fast growing labour forces included suburbs in the outer north and
south east of Melbourne. In the south east, there is a relatively high number of technical and
trades workers, labourers and machinery operators and drivers, and there is a slightly lower
median age than for the wider metropolitan area. The northern suburbs labour force has a high
proportion of clerical and administration and technical and trades workers, as well as machinery
operators and drivers. The median age (34 years old) of people living in these suburbs is closer
to that of metropolitan Melbourne as a whole.
3.3.2 Participation in the labour force
Various factors influence labour force participation including age, health, skill level and
employment opportunities. Over the decade to 2011, the participation rate for metropolitan
Melbourne increased from 61.2 per cent in 2001 to 62.5 per cent in 2011, with higher increases
observed in the inner municipalities, including the City of Melbourne, as well as eastern and
bayside LGAs. Decreasing participation rates were recorded in the outer north west, outer north
east and outer east municipalities.
3.3.3 Decrease in unemployment
Over the decade to 2011, decreases in the unemployment rate across most metropolitan areas
resulted in an average 1.1 percentage fall, from 6.6 per cent in 2001 to 5.5 per cent in 2011.
The City of Melbourne and inner LGAs recorded the largest decline in the unemployment rate
during this period.
Small increases in the unemployment rate were recorded in several eastern LGAs including the
cities of Whitehorse, Monash, Manningham and Boroondara.
3.4 Changes in employment
3.4.1 Changes in employment by industry
The ABS Labour Force Survey shows that the number of people employed in metropolitan
Melbourne increased from approximately 1.7 million to 2.2 million (up 25 per cent) over the ten
years to 2013.
6
The five largest employing industries were Health care and social assistance, Retail trade,
Professional, scientific and technical services, Manufacturing and Construction. Combined,
these industries account for 51 per cent of employment across the metropolitan Melbourne
economy.
The largest increases in the number of people employed occurred in the Health care and social
assistance, Professional, scientific and technical services, Education and training, and
Construction industries. Manufacturing was the only industry that recorded a decline in
employment.
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3.4.2 Changes in employment by place of work
Over the decade to 2011, the City of Melbourne LGA, which includes the CBD, Southbank and
Docklands, experienced significant employment growth, capturing more than 30 per cent of the
total growth in employment in metropolitan Melbourne. The remainder of Melbourne’s
employment growth was dispersed across the metropolitan area, with the five largest increases
at LGA level occurring in the cities of Wyndham, Casey, Hume, Brimbank and Yarra, each of
which grew between five and seven per cent.
The strength of Melbourne’s employment growth over the decade is highlighted by the fact that
just three LGAs experienced decreases in the number of people employed – Kingston,
Maribyrnong and Port Phillip. Furthermore, none of these LGAs registered more than a 0.2 per
cent loss of employment during this period.
3.4.3 Changes in part-time and full-time employment
An increase in part-time employment was evident over the decade to 2011, occurring across
many metropolitan areas, but significantly in the CBD and also in the fast growing outer
suburbs. These areas have experienced relatively high population growth, which has created
demand for personal services such as Accommodation and food Services, Other (personal)
Services and Retail trade. These sectors typically generate high levels of part-time employment;
accordingly, they have driven a large proportion of the ongoing growth of part time work.
Part-time employment arrangements provide benefits to both employees and employers, such
as providing more flexible working arrangements to people who are studying or those with
family commitments. This type of employment also assists businesses in services sectors to
fulfil their labour requirements, giving them more flexibility across extended operating hours
(which are often up to seven days a week).
Increases in full-time employment occurred in the CBD and outer growth suburbs; however,
small decreases were recorded in the inner northern suburbs and the eastern bayside suburbs.
The western and outer north, east and south eastern areas all recorded increases in full-time
employment. These suburbs contain Melbourne’s large industrial estates, which are home to
manufacturing and transport, distribution and logistics businesses. However, the largest and
most significant increase in full time employment occurred in the CBD, reflecting the growth of
highly skilled service sectors such as Professional services and Financial and insurance
services, which have a significant presence in this area.
3.5 Movements within the Melbourne labour force
Examining the usual place of residence of workers in Melbourne’s fast growing LGAs provides
an understanding of spatial commuting patterns across the metropolitan area. These patterns
give an indication of demand for transport infrastructure connecting places of work and
residence. Access to labour is one of the factors influencing business location preferences and
can be a prominent influence for knowledge and skills intensive companies, which rely heavily
on access to a highly skilled labour force.
This information also reveals differences in the labour force catchments that supply Melbourne’s
central city and LGAs in outer metropolitan areas with larger employment growth. For example,
the City of Wyndham drew 54 per cent of its workforce from within the municipality during the
period 2001 to 2011; an additional 30 per cent of its workforce lived in four surrounding western
suburbs and further west in Greater Geelong.
By comparison, 50 per cent of workers employed in the City of Melbourne commuted from ten
different municipalities, which are mainly located across the inner north and inner eastern
suburbs. An additional 30 per cent of the City of Melbourne’s workforce lived in a further ten
municipalities located in the eastern and western inner and middle suburbs. The high density
and diversity of employment in the City of Melbourne means that this area provides a
Industry Atlas of Victoria 2013
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disproportionate number of jobs; as such, a large number of workers commute daily to the
central city from across Melbourne.
3.5.1 Ratio of workers to households
The workers to households ratio shows the number of jobs relative to the number of households
in a municipality. The majority of residents work outside the municipality in which they live. The
ratio helps to identify areas of economic activity intensity in metropolitan Melbourne, and
provides an indication of the capacity of households to access jobs locally. The higher the ratio,
the greater the intensity of industrial and commercial activity relative to residential land use
within an LGA.
The ratio of workers per household is highest in the City of Melbourne due to activity across all
industries supporting substantial employment in Melbourne’s CBD, Southbank and Docklands.
Despite the population of the City of Melbourne having grown strongly over the past decade, the
ratio of employment to households is considerably higher than in all other LGAs within
metropolitan Melbourne. Employment growth in knowledge intensive and population based
industries has supported a rise in jobs located in inner LGAs, so that the ratio of workers to
households in the municipalities of Yarra and Port Phillip is also reasonably high.
The municipalities of Greater Dandenong, Monash and Hume also have high ratios of workers
to households due to extensive industrial precincts located in these LGAs. These precincts
support high levels of employment, and land use within them is dominated by industrial and
commercial activity.
Table 3.1: Ratio of workers to households, Melbourne, 2011
Local Government Area
Workers per
household ratio
Local Government Area
Workers per
household ratio
Melbourne (C)
6.92
Banyule (C)
0.76
Yarra (C)
1.86
Wyndham (C)
0.73
Greater Dandenong (C)
1.54
Whittlesea (C)
0.71
Monash (C)
1.36
Frankston (C)
0.72
Hume (C)
1.25
Darebin (C)
0.69
Port Phillip (C)
1.24
Moonee Valley (C)
0.68
Kingston (C)
1.24
Mornington Peninsula (S)
0.69
Knox (C)
1.01
Yarra Ranges (S)
0.67
Victoria
1.01
Bayside (C)
0.66
Whitehorse (C)
1.00
Cardinia (S)
0.60
Maribyrnong (C)
0.98
Nillumbik (S)
0.57
Stonnington (C)
0.98
Glen Eira (C)
0.58
Boroondara (C)
0.96
Casey (C)
0.55
Hobsons Bay (C)
0.90
Manningham (C)
0.56
Maroondah (C)
0.87
Moreland (C)
0.52
Brimbank (C)
0.78
Melton (S)
0.42
Source: ABS Census and DPCD
3.5.2 Largest employing industries
The largest employing industry at Transport Destination Zones (TDZs) level across metropolitan
Melbourne reflects the main workplace addresses given by Census respondents for the week
prior to Census night. The industry identified for each TDZ provides the greatest employment
level within the zone and therefore is considered the dominant employer in the zone. While
there may be other significant employing industries in each sector, this map provides a spatial
Industry Atlas of Victoria 2013
17
picture of prominent industries, measured by employment. Further detail of the performance of
selected significant industries is provided in Chapters 6 and 7.
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4 Regional Victoria
4.1 Overview
The ABS Labour Force Survey placed approximately one quarter of the state’s total workforce
in regional Victoria at the time of the 2011 Census.
In the ten years to 2011, employment in regional Victoria grew by nine per cent, largely driven
by increases in population. Major regional cities such as Geelong, Bendigo and Ballarat have
experienced strong employment and population growth over the last decade.
The five largest employing industries in regional Victoria were Health care and social
assistance, Retail trade, Manufacturing, Construction and Agriculture, forestry and fishing. Of
these, the largest increase in employment was registered by Health care and social assistance,
followed by Education, Construction and Public administration and safety.
While Agriculture, forestry and fishing remains an important source of employment in regional
Victoria, the sector’s labour force has declined by around 15 per cent in the last decade.
4.2 Regional Victoria’s labour market
4.2.1 The labour force
The labour force in regional Victoria has undergone substantial change over the ten years to
2011, reflecting changes in population and an increase in female participation. The map below
shows that the labour force increased substantially in the coastal areas around the Bass and
Surf Coasts, and the major regional centres of Geelong, Bendigo, Ballarat, Shepparton, Mildura
and Wodonga. There were also increases in the labour force in the peri-urban areas bordering
metropolitan Melbourne’s growth areas.
Over the ten years to 2011, declines in the labour force occurred mainly in the Mallee and
Wimmera regions of western Victoria, driven by a decline in the overall population of these
areas.
4.2.2 Participation in the labour force
In the ten years to 2011, the overall participation rate in regional Victoria has fallen slightly from
58.7 per cent in 2001 to 58.5 per cent in 2011. Decreases in the participation rate were
observed in west, north and north west of regional Victoria. These were partly offset by
increases in other regions, particularly in the shires of Central Goldfields and Bass Coast.
The labour force participation rate varies across regional Victoria depending on a range of
factors including demographic composition, the education level of workers, employment
opportunities, health and other factors. The participation rates have increased over the last ten
years in areas where the unemployment rate has fallen. There is a close association between
unemployment rates and participation rates, with more people participating in the labour market
as unemployment declines, perhaps encouraged to do so by the greater availability of work.
4.2.3 Unemployment rate
The regional Victorian labour market is characterised by relatively low levels of unemployment.
The unemployment rates in regional Victoria have improved throughout the 2000s, from 7.1 per
cent in 2001 to 5.1 per cent in 2011. Improvements have been most significant in the Gippsland
and Geelong regions and in the major regional population centres, including Bendigo and
Ballarat.
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4.3 Changes in employment
4.3.1 Changes in employment by industry
The ABS Labour Force Survey7 shows that the number of people employed in regional Victoria
increased 20 per cent to approximately 734,000 over the ten years to 2013.
The five largest employing industries in regional Victoria are Health care and social assistance,
Retail trade, Construction, Manufacturing and Agriculture, forestry and fishing. Combined, these
industries account for 52 per cent of employment across the regional Victorian economy.
Agriculture, forestry and fishing is a major industry in regional Victoria, accounting for 77 per
cent of the state’s Agriculture, forestry and fishing jobs. The Mining, Utilities and Construction
sectors also have relatively greater proportions of workers in regional Victoria compared to the
statewide and Melbourne averages.
The regional services industry sectors – encompassing Accommodation and food services,
Retail trade, Public administration and safety, and Health care and social assistance – account
for a relatively larger proportion of regional Victoria’s labour force compared to metropolitan
Melbourne. Regional Victoria does not have significant employment in the Financial and
insurance services, Professional, scientific and technical services or ICT-related industries,
which are largely located in metropolitan Melbourne.
The increase in regional employment in the period from 2003 to 2013 was led by the Health
care and Construction industries, while Manufacturing, Financial and insurance services, and
Information media and telecommunication all recorded a decline in employment over the ten
years to 2013.
4.3.2 Changes in employment by place of work
Over the decade to 2011, the major regional centres of Geelong, Bendigo and Ballarat
experienced significant employment growth. Other LGAs that exhibited employment growth over
this period include South Gippsland, Baw Baw and Wodonga. Employment numbers also grew
in peri-urban areas close to Melbourne.
Areas in the north west and north east of the state recorded a decline in employment over the
ten years to 2013.
4.3.3 Changes in part-time and full-time employment
As in metropolitan Melbourne, there has been a shift towards greater levels of part-time
employment in regional Victoria over the decade to 2011. This shift is particularly evident in the
major regional centres and peri-urban areas where strong population growth has been
accompanied by an increasing demand for personal services such as Health care and social
assistance, Other (personal) services and Retail trade.
Increases in full-time employment also occurred in the regional centres and peri-urban areas,
with decreases recorded in the north west, west and north east of the state.
4.4 Future employment in regional Victoria
Like metropolitan Melbourne, the population services sector (for example, Health care and
social assistance and Retail trade) is currently the largest employer in regional Victoria with a 49
per cent share of total employment in 2011, and forecast to reach 50 per cent share in 2021,
corresponding to employment growth of 15 per cent. With the exception of Primary industries,
all sectors are projected to experience growth in employment in the period leading to 2021.
The fastest growing sector will be the Construction and utilities industries, with combined
estimated growth of 26 per cent and a 9 per cent share of total employment in 2021.
Employment in business services, which accounted for 10 per cent in 2011, is projected to grow
by 13 per cent, although its share of total employment is expected to remain much the same.
Industry Atlas of Victoria 2013
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The Health care and social assistance industry is expected to drive strong employment growth
across regional Victoria, in particular in the Barwon Western District and in the GoulburnOvens-Murray. A significant proportion of new jobs will also be created in the Education and
training industry. The continued diversification of regional Victoria’s economy will result in the
creation of greater job opportunities, supporting the strong population growth that regional
Victoria will experience over the next 20 to 30 years.
4.5 Movements within the regional workforce
The Census journey to work data shows that regional Statistical Divisions exhibit a high selfcontainment rate (over 72 per cent), with most workers living and working in the same statistical
division. This differs significantly from metropolitan Melbourne, where a large proportion of
workers travel to other metropolitan regions for work. However, at a finer geographical level,
journey to work characteristics in regional LGAs are influenced by their proximity to metropolitan
Melbourne and regional centres with large workforces such as Geelong, Ballarat, Bendigo,
Shepparton and the Latrobe Valley. A high proportion of workers (up to 45 per cent) living in the
peri-urban LGAs surrounding metropolitan Melbourne commute into metropolitan Melbourne for
work.
4.5.1 Ratio of workers to households
In contrast to metropolitan Melbourne, the ratio of workers to households in regional Victoria is
relatively less varied between LGAs, ranging from 0.4 in Golden Plains Shire to 1.1 in
Wodonga. The ratio differs relative to the proximity of the LGA to Melbourne and large regional
centres, the size of major urban centres relative to rural population within the LGA, and whether
the LGA has key tourism, public administration, health or education facilities.
With the exception of Greater Geelong, major regional centres are likely to have a higher ratio
of workers per household. Greater Geelong’s lower ratio is possibly due to its proximity to
metropolitan Melbourne, which attracts 13 per cent of the municipality’s workforce.
Table 4.1: Ratio of workers to households, regional Victoria, 2011
Local Government Area
Workers per
household ratio
Local Government Area
Workers per
household ratio
Wodonga (RC)
1.11
Buloke (S)
0.83
Greater Shepparton (C)
1.01
Queenscliffe (B)
0.82
Horsham (RC)
1.00
Benalla (RC)
0.81
Ballarat (C)
1.00
Wellington (S)
0.79
Warrnambool (C)
0.97
Hindmarsh (S)
0.79
Wangaratta (RC)
0.96
Yarriambiack (S)
0.77
Corangamite (S)
0.95
Alpine (S)
0.77
Southern Grampians (S)
0.93
Gannawarra (S)
0.76
Ararat (RC)
0.93
Mount Alexander (S)
0.76
Swan Hill (RC)
0.91
Moira (S)
0.76
Colac-Otway (S)
0.91
East Gippsland (S)
0.75
Moyne (S)
0.90
Mitchell (S)
0.73
Northern Grampians (S)
0.90
Murrindindi (S)
0.73
Greater Bendigo (C)
0.89
Indigo (S)
0.72
South Gippsland (S)
0.88
Towong (S)
0.72
Greater Geelong (C)
0.87
Loddon (S)
0.71
Mildura (RC)
0.86
Surf Coast (S)
0.70
West Wimmera (S)
0.86
Strathbogie (S)
0.68
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Mansfield (S)
0.85
Macedon Ranges (S)
0.67
Glenelg (S)
0.85
Central Goldfields (S)
0.66
Campaspe (S)
0.85
Hepburn (S)
0.65
Latrobe (C)
0.84
Pyrenees (S)
0.58
Baw Baw (S)
0.84
Moorabool (S)
0.57
Bass Coast (S)
0.84
Golden Plains (S)
0.41
Source: ABS Census and DPCD, Victoria in Future, 2012
4.6 Special focus: Victoria’s specialisation in Agriculture
As noted previously, the majority of workers in the Agriculture, forestry and fishing industry are
based in regional Victoria. This industry employed 8.5 per cent of all workers in regional Victoria
and 2.6 per cent of all Victorian workers in 2013.
Agricultural jobs are spread throughout regional Victoria; however, the greatest densities occur
in the farming regions of the Western District and Gippsland, and along the Murray River near
Shepparton and Mildura.
The following sections provide information on four of Victoria’s key agricultural specialities:
dairy, meat and livestock, fruit and vegetables, and wheat and other cereals.
4.6.1 Agriculture specialisation – Wheat and other cereals
Wheat and other grain farming takes place across Victoria’s north western Loddon, Mallee and
Wimmera regions.
Wheat is included in the cereals and cereal preparations export item category, which is the
major category within grain exports. Victorian grain exports were worth $1.3 billion in 2011-12,
14.3 per cent of Australia’s total grain exports.
Grain exports increased by $146 million in the ten years to 2011-12, driven by increased wheat
exports. This reflects the better harvest conditions for Victoria’s farmers after a period of
prolonged drought and increased export demand for wheat products. The largest export
markets for cereals and cereal preparations in 2011-12 were Vietnam, Indonesia, Thailand and
the Philippines, along with other markets across Asia.
4.6.2 Agriculture specialisation – Dairy
Dairy farming is concentrated in the south of the Western District, along the Murray River area
and in Gippsland. Dairy processing activity is located near farming activity, with concentrations
of employment around Colac and Warrnambool in the west, Echuca and Kerang in the north
and parts of Gippsland.
Dairy is a large food sector in Victoria, with the value of raw milk production alone worth around
$2.5 billion in 2011-128. Dairy and dairy processing goods exports totalled $1.9 billion in 201112. Victoria currently accounts for approximately 85 per cent of national dairy exports. Victoria’s
major export markets for dairy products were in Asia, specifically Japan, Singapore, Indonesia
and China.
4.6.3 Agriculture specialisation – Meat and livestock
The value of agricultural production of the meat and livestock sector in Victoria was
approximately $3.1 billion in 2011-12, with $1.6 billion in exports. The main export products
were processed (fresh, chilled or frozen forms) beef and sheep.
Sheep and beef cattle farming establishments are located throughout the Grampians, Loddon
Mallee and Barwon South West, as well as parts of Central Victoria and Gippsland.
Industry Atlas of Victoria 2013
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The United States was the largest single export market ($230 million) for Victorian meat and live
animals in 2011-12, followed by China ($166 million) and Japan ($146 million). The Middle East
region is also a very significant market for Victorian meat and livestock (over $350 million in
2011-12).
Australia’s northern neighbours are also key export markets, with Indonesia, Papua New
Guinea, Malaysia and Singapore accounting for over $240 million of meat and livestock exports
in 2011-12.
4.6.4 Agriculture specialisation – Fruit and vegetables
Much of Victoria’s fruit and vegetable growing activity occurs within the metropolitan Melbourne
boundary. Vegetable growing takes place in the market garden areas within the cities of
Wyndham (Werribee) and Whittlesea, along the Mornington Peninsula and in the Cardinia and
Yarra Ranges Shires. Fruit growing occurs in Cardinia and Yarra Ranges Shires, Greater
Shepparton, Swan Hill, Campaspe, Moira, Goonawarra and Loddon.
The Sunraysia district around Mildura in the north west stands out as the major grape growing
area in regional Victoria, along with the Heathcote region (the Yarra Valley and Mornington
Peninsula wine region lies predominantly within the boundary of metropolitan Melbourne).
Victoria is also a significant producer of tomatoes, lettuces and mushrooms. Fruit and vegetable
exports were worth $534 million in 2011-12. Major export markets for Victoria’s fruit and
vegetables are Hong Kong, India, United Arab Emirates, Sri Lanka and Indonesia.
Industry Atlas of Victoria 2013
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5 Manufacturing in Victoria
5.1 Overview
Over time, Victoria’s manufacturing industry has contended with increased import competition
and a significant appreciation of the Australian dollar. The recent global financial crisis (GFC)
resulted in economic recession in Victoria’s major trading partners in North America, Europe
and Japan and a decline in demand globally for manufactured goods.
The manufacturing industry contributed $27.2 billion to gross state product (GSP) in 2011-12,
the second largest contribution behind the Financial and insurance services industry, and is the
largest full-time employer in the state. Financial and insurance services contributed $41.8 billion
during this period, while the third largest contributor was Professional, scientific and technical
services at $26.1 billion.
During the twentieth century, and the post World War II years in particular, Victoria established
a specialisation in the manufacturing sub-industries of heavy engineering, automotive and
textile, clothing and footwear (TCF). As tariff protection was reduced, and production in lower
cost economies increased, these industries began to face strong competition from imported
products. This led to a decline in the share of employment and GSP contributed by
manufacturing to the Victorian and Australian economies over recent years.
The emergence of many developing economies, particularly in south east Asia, has also
generated opportunities for Victorian manufacturers. Manufacturing businesses have
increasingly looked beyond national borders to access skills and knowledge, new markets and
customers. Products may be designed in one country, assembled in another and built from
materials sourced and parts manufactured across the globe.
5.2 Manufacturing business establishments in Victoria
5.2.1 Metropolitan Melbourne
In 2010-11, based on WorkSafe data, the Victorian manufacturing industry comprised close to
20,000 business establishments. The majority of manufacturing business establishments (77
per cent) are located in metropolitan Melbourne.
Within metropolitan Melbourne, manufacturing establishments have become concentrated in a
few major industrial nodes as manufacturing activity has consolidated in larger businesses.
Investment in transport infrastructure – such as the development of the Western Ring Road and
EastLink – has also contributed to the attractiveness of particular areas like major industrial
precincts.
Manufacturing establishments in metropolitan Melbourne are concentrated in the west – City of
Brimbank, the north – City of Hume, the east – City of Knox, and the south east – City of
Greater Dandenong.
Over the past decade, the number of Manufacturing business establishments in industrial
centres in Campbellfield and Dandenong has increased. At the same time, the number of
establishments in more central areas has declined, including large falls in the cities of Yarra and
Darebin in the inner north and Kingston and Knox in the south east.
There has been an increase in Manufacturing establishments in Melbourne’s outer west and
south east, where large and relatively cheap parcels of developed industrial land have become
available that are increasingly connected to Melbourne’s major road network.
In Victoria in the ten years to 2010-11, the number of business establishments in the industry
declined by 1,756 (8.2 per cent), due to the number of small business establishments9 declining
by 2,067. The number of medium and large business establishments10 increased by 311 over
Industry Atlas of Victoria 2013
24
the same period. Approximately 78 per cent of business establishments in the manufacturing
industry were classified as ‘small’ in 2010-11.
Within metropolitan Melbourne, the decline in small manufacturing business establishments
occurred in most suburbs. The main exceptions were Campbellfield, Carrum Downs, Deer Park
and Truganina. In contrast, along with significant increases in Campbellfield and Dandenong,
the number of medium and large manufacturing business establishments increased in suburbs
in central, west and south east Melbourne.
The decline in the number of small business establishments occurred in most sub-sectors. Food
product, Beverage and tobacco product, and Petroleum and coal product were the only
manufacturing sub-sectors to generate growth in small business establishments between 200001 and 2010-11. The number of medium and large businesses increased in eleven out of fifteen
manufacturing sub-sectors, with the largest increases occurring in Food product and Fabricated
metal manufacturing sub-sectors.
5.2.2 Regional Victoria
Manufacturing activity in regional Victoria is concentrated in regional centres or in particular
locations where one large scale manufacturing business with a specialisation can operate as
the major employer in a small town. Manufacturing business establishments are concentrated in
the major regional centres of Geelong, Bendigo, Shepparton and Ballarat. Smaller clusters of
manufacturing businesses are also located in Mildura and Warrnambool in western Victoria, and
Traralgon, Bairnsdale and Wodonga in the east and north east of Victoria.
Over the past decade, as the number of manufacturing establishments has declined in Geelong
and the Latrobe Valley, they have increased in Shepparton, Ballarat, Bendigo, Wangaratta and
Wodonga. Regional Victoria has benefited from strong output and employment growth
generated by the Food product manufacturing sub-sector, particularly in the Goulburn Valley
agricultural region around the City of Greater Shepparton.
5.3 Manufacturing employment in Victoria
The largest employing subdivision within the manufacturing sector is Food product
manufacturing, followed by Transport equipment manufacturing, and Machinery and equipment
manufacturing. Together, these sub-sectors account for 41 per cent of the Victorian
manufacturing workforce.
Three quarters of the Victorian manufacturing workforce is employed within metropolitan
Melbourne. Food processing is a prominent employing industry in regional Victoria.
The Victorian manufacturing workforce continues to decline in number, with the largest losses
over the past decade occurring in the Textile, clothing and footwear, Printing, and Transport
equipment sub-sectors.
Food product, Machinery and equipment, Primary metal and metal product, and Non-metallic
minerals product manufacturing were the only sub-sectors that experienced increased
employment levels over the decade to 2011.
Falling employment in the other sub-sectors, particularly after 2006, suggests that the industry
is continuing to adapt to the impacts of globalisation and particular events, such as the GFC.
From 2006 to 2011, the transport equipment sub-sector experienced a strong downward
reversal in employment, offsetting gains made in the preceding five year period. Workers in this
sub-sector are largely employed in automobile and parts manufacturing where employment is
sensitive to production decisions made by large car manufacturers that flow on to smaller car
parts suppliers. Despite the decline, this sub-sector continues to employ the second largest
manufacturing workforce in Victoria.
Industry Atlas of Victoria 2013
25
The fall in Textile, clothing, footwear and leather manufacturing employment since 2001 has
been considerable. Manufacturing in this sub-sector has increasingly moved offshore to
countries offering lower labour costs, or become more sophisticated as Victorian manufacturers
have increasingly focused on technically advanced materials.
5.4 Manufacturing employment in Melbourne
Manufacturing employment in metropolitan Melbourne is concentrated in the north, west and
south east of the city, as manufacturing activity has become increasingly clustered in large
industrial precincts in the municipalities of Hume, Wyndham, Brimbank, Monash, Kingston and
Greater Dandenong. An important industrial precinct surrounds the Port of Melbourne within the
City of Melbourne.
These industrial areas have benefitted from investment in transport infrastructure, such as the
Western Ring Road and EastLink, improving access and connectivity with other industrial
precincts, distribution nodes and the Port of Melbourne and Melbourne Airport. Except for
technologically advanced manufacturing activity near the Port of Melbourne, manufacturing
businesses have now largely vacated the inner municipalities of Melbourne.
The following sections provide information on employment in four manufacturing sub-sectors in
Melbourne. These sections highlight the employment distribution of two of the three largest
employing sub-sectors after Food product manufacturing (which is covered later in this chapter):
Machinery and equipment manufacturing and Transport equipment manufacturing. They also
examine a sub-sector with a contrasting pattern of growth (Basic chemical manufacturing) and
one with declining employment (Textiles, clothing and footwear manufacturing).
5.5 Manufacturing employment in Melbourne by sub-sector
5.5.1 Machinery and equipment manufacturing
The Machinery and equipment manufacturing sub-sector is a major employer, employing the
third largest manufacturing workforce behind Food product and Transport equipment
manufacturing subsectors.
Similar to overall manufacturing employment, Machinery and equipment manufacturing
employment is distributed across metropolitan Melbourne, but with the highest concentration of
employment occurring in south east LGAs.
Machinery and equipment manufacturers typically face high import competition, particularly in
product categories such as scientific equipment, and domestic and electrical appliances. The
increase in employment in this sub-sector since 2001 has been supported by increased demand
for machinery and equipment from resource states.
5.5.2 Basic chemical manufacturing
Employment in Basic chemical manufacturing is heavily concentrated in the City of Melbourne
and south eastern municipalities of Monash, Knox and Greater Dandenong.
Businesses benefit from being located in strategic locations, such as the Port of Melbourne/
Fishermans Bend, which provide good access to distribution channels.
5.5.3 Transport equipment manufacturing
The Transport equipment manufacturing sub-sector is a major employer, containing the second
largest manufacturing workforce, behind Food product manufacturing.
In contrast to overall manufacturing employment, Transport equipment manufacturing
employment is concentrated in Hume, Hobsons Bay and, to a lesser extent, Melbourne and
Greater Dandenong LGAs.
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The decline in employment in the Transport equipment manufacturing sub-sector since 2001
was concentrated in Hume, Monash, Melbourne and Kingston LGAs. Employment in Transport
equipment manufacturing increased in other LGAs such as Hobsons Bay, Wyndam and
Brimbank in Melbourne’swest, and Greater Dandenong in Melbourne’s south east.
Ford and Toyota have assembly plants in Hume and Hobsons Bay, respectively. The Port of
Melbourne/Fishermans Bend precinct in the City of Melbourne also contains major transport
equipment manufacturers including Toyota, GM Holden and Boeing. These areas also contain
component suppliers to major transport equipment manufacturers. As well as supplying local
transport equipment manufacturing businesses, component suppliers are also part of supply
chains in Asia and beyond.
5.5.4 Textiles, clothing and footwear manufacturing
The Textile, clothing and footwear manufacturing workforce was the eighth largest
manufacturing workforce in Victoria in 2011, having been the third largest in 2001.
Within metropolitan Melbourne, the highest concentrations of employment in the Textile,
clothing and footwear manufacturing sub-sector are in the Greater Dandenong and Yarra LGAs.
Within metropolitan Melbourne, only Wyndham LGA experienced a modest rise in employment.
The decline in employment in the Textile, clothing and footwear manufacturing sub-sector was
largest in the four inner LGAs of Yarra, Maribyrnong, Moreland and Darebin.
5.6 Manufacturing employment in regional Victoria
Manufacturing employment in regional Victoria is concentrated in major regional centres,
including Geelong, Bendigo, Ballarat, Shepparton, Wodonga and the Latrobe Valley.
Manufacturers in regional towns are more likely to have a particular specialisation: for example,
food product manufacturing in Colac-Otway and Corangamite; Pulp, paper and paperboard
manufacturing at the Maryvale Mill in the Latrobe Valley; Prepared animal and bird feed in
Wodonga; and Natural textile manufacturing in Wangaratta.
While the size of the manufacturing workforce has declined in general across major regional
centres, employment growth within these locations has varied by sub-sector. For example,
manufacturing employment increased in Food product and Machinery and equipment
manufacturing in Bendigo, and in Wood product and Petroleum manufacturing in Geelong, but
declined in Textile, clothing and footwear and Transport equipment manufacturing in both
locations.
5.7 Victorian manufacturing exports
Victoria’s manufacturing sector is vital to the state’s export performance. Processed wool was
Victoria’s highest value goods export item in 2011-12 (worth $1.44 billion), reflecting recovery in
Victoria’s agricultural processing sectors and strong demand for wool from China. Transport
manufacturing, specifically the automotive industry, was also a major export item in 2011-12.
Passenger motor vehicle exports were worth $1.14 billion. Other large contributors to exports
include cereals and cereal preparations (mainly wheat), aluminium and dairy products.
The following sections provide information on four manufacturing specialisations: automotive,
food processing, pharmaceutical manufacturing and aluminium manufacturing.
5.8 Special focus: Victorian manufacturing specialisations
5.8.1 Manufacturing specialisation  Automotive
The Victorian automotive manufacturing industry is made up of vehicle production, component
production, tooling and design, and engineering. Three major passenger motor vehicle
producers operate in Victoria: Ford, Toyota and General Motors Holden. These producers are
Industry Atlas of Victoria 2013
27
supported by a national supply chain of around 200 automotive component manufacturers, the
majority of which are located in Victoria.
These major car companies and component manufacturers form Victoria’s automotive
manufacturing supply chain. Together they generate strong spill-over benefits for the Victorian
economy through technology diffusion, capital investment and skills training. Automotive
manufacturing is a prominent employing industry in the Broadmeadows, Fishermans Bend,
Altona and Dandenong areas in Melbourne, as well as in Geelong and Ballarat in regional
Victoria.
The impact of the GFC on household spending and the appreciation of the Australian dollar
have resulted in an increase in passenger vehicle imports from Europe and Asia, and a
reduction in expenditure on domestically produced motor vehicles. The focus of local producers
on large vehicles has also resulted in a loss of market share to smaller imported models.
Fluctuations in the price of petrol have contributed to the growing preference for more fuel
efficient vehicles which are produced overseas.
Despite the downturn, local producers have continued to invest in new plants and equipment
and model upgrades. At the time of the 2011 Census, 26,100 workers were employed directly in
automotive manufacturing in Victoria.
Passenger motor vehicles remain one of Victoria’s largest export commodities by value in 201112, worth $1.14 billion. The main destinations for passenger motor vehicles produced in Victoria
are the Middle East (including Saudi Arabia, the United Arab Emirates and Oman) and New
Zealand.
5.8.2 Manufacturing specialisation  Food processing
The Food product and beverage manufacturing sub-sector employed the largest manufacturing
workforce in Victoria in 2011.
Employment in the industry has increased over the past decade as the industry has grown, due
to Victoria’s comparative advantage in agricultural production, Victoria’s fast growing population,
and low import competition for food products.
The largest subdivision by employment was bakery product manufacturing. This subdivision
includes bakeries, which are located throughout Victoria and employ staff in bread, cakes and
pastry manufacturing and in retailing products direct to customers.
Food product and beverage manufacturing is distributed throughout metropolitan Melbourne but
is most concentrated in Melbourne and Kingston LGAs. In regional Victoria, food product
manufacturing employment is highest in LGAs containing major regional centres, and in central
Victoria where irrigated agricultural production occurs, particularly fruit and dairy products.
Food exports from Victoria in 2011-12 were worth $6.6 billion, accounting for 32 per cent of all
commodity exports from Victoria. Victorian manufacturers produce a diverse range of food
products and beverages for export. Dairy products ($1.9 billion), processed meat ($1.4 billion)
and cereal crops and cereal preparations (mainly wheat – $1.3 billion) were the three largest
food export items in 2011-12.
Victoria exports food and beverage products to markets all over the world. Japan was Victoria’s
largest food export market in 2011-12, with exports valued at $800 million, followed by China
($560 million), New Zealand ($460 million) and the United States ($310 million).
5.8.3 Manufacturing specialisation  Pharmaceutical manufacturing
Around 6,100 workers were employed in pharmaceutical manufacturing in Victoria in 2011-12,
with most (over 90 per cent) employed in metropolitan Melbourne. Pharmaceutical
manufacturing employment is concentrated in the Melbourne, Knox and Monash municipalities.
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Pharmaceutical products are developing as key export item for Victoria. In 2011-12,
medicaments and pharmaceutical products were together worth $612 million. Export markets
for Victoria’s medicaments and pharmaceutical products are diverse, including the United
States, Europe, New Zealand, Canada and Asia, and differ from Victoria’s other goods export
destinations.
5.8.4 Manufacturing specialisation  Aluminium
Just over 2,500 workers were employed in aluminium manufacturing in Victoria. Almost two
thirds of these workers were located in regional Victoria, mostly employed in aluminium
smelters owned by Alcoa in Portland in the Shire of Glenelg and Point Henry in Geelong.
Aluminium production is a significant user of electricity and the rising cost of electricity presents
a major challenge to the industry.
In 2011-12, aluminium exports were worth $1.1 billion. The key export region for Victorian
aluminium is Asia, with Korea, Japan, Taiwan and Thailand being the main destinations.
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6 Services
Services are an increasingly important source of growth in Victoria’s economy. Services now
contribute the largest share of Victoria’s GSP and employ the majority of Victorians.
The growing importance of Financial and insurance services and Professional, scientific and
technical services has contributed to the growth of the Victorian services sector. Globalisation
has benefited both industries through the increased movement of money, ideas and
innovations.
Socio-economic factors have contributed to the growth in services. As Victoria’s population has
continued to grow, demand for a broad range of services, including retail, health, education,
transport and essential services such as electricity, has risen.
Increased life expectancy and rising retirement wealth have meant Victorians are consuming
services longer and later. Residential, commercial and engineering construction activity has
also increased as Victoria’s population has grown and metropolitan Melbourne and regional
cities have expanded.
Transport, postal and warehousing and Wholesale trade businesses in Victoria have benefited
from a rise in international trade, driven by a rise in the Australian dollar and higher incomes
associated with the resources boom. A range of other services also support trade, such as
legal, insurance and financial services.
Growing wealth within Asia has supported recent increases in tourists and business visitors to
Victoria, particularly from China. This has offset the decline in arrivals from traditionally
important sources, such as the UK, USA and Europe, since the global financial crisis. Rising
incomes and a strong desire for education and training have also driven strong demand for
international education provided by Victoria’s high quality education sector.
Advances in information and communications technology (ICT) have had a positive impact on
the Victorian services economy, enabling more services to be traded internationally and
contributing to innovations that lead to new services products and markets.
6.1 Services industries in Victoria
Data from the ABS Labour Force Survey11 shows that Health care and social assistance, Retail
trade, Professional, scientific and technical services, Construction, and Education and training
are the largest employing services industries in Victoria. Many of the activities performed by
these industries are labour intensive. In contrast, the Rental, hiring and real estate services and
the Utilities (Electricity, gas, water and waste industry) industries are heavy users of capital with
relatively small workforces.
The size of the services industries workforce increased between 2003 and 2013. The Health
care and social assistance workforce grew the most over this period, followed by Professional,
scientific and technical services, and Construction.
The workforce of all services industries increased in size during this period, with the only
declines recorded in regional Victoria, in the Financial and insurance services and the
Information, media and telecommunications industries.
Employment growth increased in the second half of the last decade for five of the 16 services
industries. These industries include Health care and social assistance, Accommodation and
food services, Public administration and safety, Transport, postal and warehousing and
Administrative and support services.
For most services industries, employment growth slowed in the second half of the decade. In
three industries, Information media and telecommunications, Rental, hiring and real estate
services and Other services, employment declined.
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6.2 Services industries in Melbourne
According to Census 2011 data, within metropolitan Melbourne services employment is
concentrated in inner and eastern municipalities, particularly the City of Melbourne, where most
of the growth in services employment has been concentrated since 2001.
6.3 Employment in Melbourne’s knowledge intensive services
Knowledge intensive services industries are involved in the production, distribution and use of
knowledge and information. These include Professional, scientific and technical services,
Finance and insurance services, and Information media and telecommunications. Within
metropolitan Melbourne, activity in knowledge intensive services industries has become more
concentrated in the central and inner eastern municipalities. Knowledge intensive businesses
benefit from proximity to clients and other professionals, links to interstate and international
markets, and access to a deep and dynamic labour market. The intensity of activity in
Melbourne’s CBD provides the greatest opportunity for knowledge intensive services to capture
these benefits.
Over the decade to 2011, growth in business establishments was heavily focused in central
Melbourne as the number of business establishments across eastern municipalities declined.
In line with the growth in the number of business establishments, employment growth in
knowledge intensive services sectors has also been concentrated in the City of Melbourne, as
well as in inner eastern municipalities such as Yarra, Port Phillip and Boroondara.
6.3.1 Professional, scientific and technical services
The Professional, scientific and technical services industry contains a well educated workforce
that provides services such as legal, accounting, management consulting, architectural,
engineering and scientific research. Employment is concentrated in the City of Melbourne and
inner eastern municipalities. Beyond inner Melbourne, the City of Monash attracts a relatively
high share of scientific, engineering and design services workers, who benefit from proximity to
sophisticated manufacturing businesses, other services firms and research institutions and
facilities such as Monash University, the CSIRO and Synchrotron.
6.3.2 Financial and insurance services
The Financial and insurance services industry is concentrated in the City of Melbourne where
most banking, financial and insurance businesses are located, including the head offices of
major banks and insurance providers. Advances in technology, such as the ATM, online
banking and insurance portals – and more recently the smart phone – have contributed to a
reduction in back office and branch employment, and a rise in the proportion of professional
workers relative to clerical and administrative staff.
6.3.3 Information media and telecommunications
The size of the Information media and telecommunications workforce has declined over the past
decade as the industry has shifted from the publication, sale and distribution of predominantly
print media, such as newspapers, books and magazines, to digital content published directly
online. Growing competition in the telecommunications industry has also contributed to a
decline in workforce size.
While half of the reduction in employment over the past decade occurred in the three
municipalities of Melbourne, Monash and Port Phillip, job losses elsewhere in metropolitan
Melbourne have resulted in the industry workforce becoming more concentrated centrally where
activities such as newspaper, magazine and book publishing and telecommunications, radio,
television and motion picture production occur.
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6.4 Employment in Melbourne’s population related services
Population related services industries include Construction, Retail trade, Health care and social
assistance, and Education and training. Businesses in these industries are evenly distributed
across metropolitan Melbourne along with the residential population. These industries have
benefited from strong population growth and a rise in household consumption over the past
decade.
Population related services business establishments are mostly located in suburban shopping
centres, retail strips and commercial precincts throughout Melbourne. They are well
concentrated in Melbourne’s CBD, due to the presence of significant retail, education and health
services. Business establishments are also distributed throughout Melbourne and is particularly
evident in municipalities with higher education facilities, major shopping precincts and hospitals,
and in outer growth areas where significant residential construction has occurred.
Most of the growth in business establishments providing population related services has
occurred in inner Melbourne suburbs and the outer growth areas of Melbourne.
Data from the 2011 Census indicates that employment in population related services is
distributed across metropolitan Melbourne. While the size of the workforce increased in all
municipalities, employment growth was strongest in the City of Melbourne, with a number of
other municipalities, including Monash, Casey and Whittlesea, also experiencing strong growth.
6.4.1 Health care and social assistance services
Employment in the Health care and social assistance services industry is highest in the City of
Melbourne and municipalities with major medical facilities, such as Monash (Monash Medical
Centre), Banyule (Austin Hospital) and Yarra (Epworth Hospital).
The workforce contains a range of occupations and professions, including doctors, nurses,
dentists, optometrists, physiotherapists and social workers engaged in medical care and
treatment, residential and aged care services, and social assistance services.
Growing demand for Health care and social assistance services has driven strong employment
growth over the past decade. A growing population that is living longer, rising incomes, and
more interest in health and wellbeing have contributed to increased expenditure on health care,
while a steady rise in workforce participation, especially by women, has contributed to greater
demand for child care services.
6.4.2 Retail trade
Retail employment is concentrated in inner Melbourne and in municipalities with large shopping
centres or extensive retail strips such as Monash, Stonnington, Kingston, Boroondara and
Yarra. The higher household incomes in inner and south eastern municipalities support a
greater concentration of retail employment.
Over the past decade, the strong population growth in outer municipalities such as Wyndham,
Casey and Whittlesea has generated increased demand for retail services and supported a rise
in retail employment in new shops and shopping centres. There has also emerged a growing
demand for internet related retailing, but no data exist on its spatial distribution within Victoria 12.
While the retail trade industry has benefited from population growth and rising incomes, a higher
rate of household savings since the global financial crisis in 2008 has had an impact on demand
for retail products, along with a modest but growing share of international online retailers
accessing the Victorian market.
6.4.3 Construction
Employment in the construction industry is distributed throughout metropolitan Melbourne.
Workers are largely itinerant, working onsite where construction occurs. Employment is highest
in the City of Melbourne because of the broad range of residential, office and civil engineering
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construction that occurs there. Over the past decade, employment growth was strong in outer
growth areas where residential construction businesses have been active.
6.4.4 Education and training services
Education and training services employment is highest in the City of Melbourne and
municipalities with major higher education and training facilities such as Monash, Boroondara
and Whitehorse. Employment has increased in these municipalities and on the fringe of
metropolitan Melbourne where new education and training facilities have been developed to
serve growing populations.
While population growth has supported a rise in demand for Education and training services,
increased expenditure on these services also reflects a growing preference for education, both
domestically and overseas. Higher education and vocational education and training segments of
the industry have benefited from strong demand from overseas students studying in Melbourne.
6.5 Employment in Melbourne’s goods distributing services
Goods distributing services industries provide a range of storage and transport services to
businesses and households. These industries are concentrated in large industrial precincts in
Melbourne’s west, north and south east that offer direct access to manufacturing businesses
and Melbourne’s principal road freight network.
Growth in business establishments has been strong across Melbourne’s north west where
industrial land is directly connected (via the city’s arterial road network) to regional, interstate
and international markets through the Port of Melbourne, Melbourne airport and intermodal
hubs in Somerton and Altona.
Data from the 2011 Census indicates employment is concentrated in the municipalities of
Melbourne, Hume, Monash and Dandenong. Over the past decade, strong increases in
employment occurred in north and west Melbourne, while a number of inner eastern
municipalities experienced a decline in employment.
6.5.1 Transport, postal and warehousing services
Employment in the Transport, postal and warehousing industry is concentrated in the
municipalities of Melbourne and Hume. The City of Melbourne includes the Port of Melbourne:
the busiest container port in Australia, the main point of export for Victoria’s agricultural and
other primary goods, and a passenger terminal for cruise ships. The City of Melbourne is also
the focus of Victoria’s public transport networks and postal distribution services including
Australia Post. The City of Hume contains Melbourne’s other key freight and passenger
gateway – Melbourne International Airport.
The Transport, postal and warehousing industry plays a critical role in Victoria’s economy,
transporting goods along supply chains and people to work, shopping and leisure activities.
Accordingly, growth in Victoria’s economy drives demand for these services.
6.5.2 Wholesale trade
Employment in the Wholesale trade industry is concentrated in the City of Melbourne and in
Melbourne’s east, in the municipalities of Monash, Greater Dandenong, Kingston and Knox.
Wholesale trade businesses link local and international manufacturers with retailers and
business customers. These businesses are located in industrial precincts on major transport
routes.
6.6 Services industries in Regional Victoria
Like metropolitan Melbourne, the majority of new jobs created in regional Victoria over the ten
years to 2011 were in services industries. Growth in Victoria’s regional employment has been
concentrated in Health care and social assistance and Construction industries, and to a lesser
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33
extent Professional, scientific and technical services and Retail trade. Continued growth in
Accommodation and food services employment reflects the continued importance of tourism as
a source of income in regional Victoria.
The total number of workers employed in Professional, scientific and technical services is also
growing in regional Victoria although the composition of the workforce differs from metropolitan
Melbourne, with more workers employed in accounting and veterinary roles, and fewer in
computer systems design and related services.
Services employment tends to be located in larger regional towns and cities, with employment
in regional Victoria becoming increasingly concentrated in LGAs that include major regional
centres such as Greater Geelong, Ballarat, Greater Bendigo, Latrobe, Greater Shepparton,
Mildura and Wodonga.
These major regional centres serve their own populations and those from surrounding rural
areas, smaller towns and commercial centres, and are strategically located on the regional road
network. They accommodate significant education, health and public administration workforces.
Their regional role has been consolidated through past investment in transport infrastructure
and public investments in health, education and public administration facilities.
The strongest growth in services employment occurred in major regional centres that are
relatively close to metropolitan Melbourne: Geelong, Ballarat and Bendigo. These centres have
become more important economically as their size has increased and economic ties with
Melbourne have deepened. Services employment in shires located in coastal and peri-urban
areas surrounding Melbourne, such as Bass Coast, Macedon Ranges, Surf Coast and Mitchell,
has also risen strongly. These areas have benefited from the expansion of metropolitan
Melbourne and a growing desire for coastal and semi-rural living.
6.7 Special focus: Electricity, gas, water and waste services
The Electricity, gas, water and waste services (Utilities) industry provides essential services
directly to households and businesses throughout metropolitan Melbourne and regional Victoria,
but is comprised of relatively few business establishments and its workforce is concentrated in
inner Melbourne and major regional centres. The industry is relatively stable, generating
moderate employment and business growth over the past decade. This industry includes large
public and private sector businesses involved in the provision of both wholesale and retail
electricity, gas and water to businesses and households. The industry also includes businesses
that collect, treat, dispose and recycle water and waste materials.
The industry has changed over the past two decades, moving away from public ownership to
significant private sector ownership, particularly in electricity and gas supply. Investment in
infrastructure has increased as new sources of energy have been discovered (such as gas,
wind and solar), and aging equipment has been replaced to meet the rise in demand for energy
from Victoria’s growing population. A long, severe drought during the 2000s focused greater
attention on Victoria’s water resources, with the most significant response being the
construction of the desalination plant to supply metropolitan Melbourne, located near Wonthaggi
in the Shire of Bass Coast.
6.7.1 Changes in business establishments
The number of business establishments within the industry is relatively modest. A third of
business establishments in metropolitan Melbourne are located in Melbourne’s CBD, including
head offices of large utility companies. In 2010-11, metropolitan Melbourne contained 70 per
cent of the 692 businesses and 57 per cent of the 1,194 business establishments in the industry
located in Victoria.
Regulatory changes aimed at increasing competition between retail suppliers of electricity and
greater demand for household and industrial recycling have had a modest impact on business
growth over the past decade. Most of the growth in business establishments that occurred was
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in the municipalities of Melbourne (electricity distribution and retail) and Casey (waste collection,
treatment and disposal).
In regional Victoria, business establishments are concentrated in major regional centres. In
contrast to metropolitan Melbourne, one third of business establishments in the industry in
regional Victoria are involved in water supply (dam operation, distribution and irrigation). Like in
metropolitan Melbourne, the industry was relatively stable with modest change in the number of
business establishments between 2000-01 and 2010-11.
6.7.2 Changes in employment
Over the past decade, half of the employment growth that occurred within the industry was in
metropolitan Melbourne. One third of Melbourne’s related workforce is located within the City of
Melbourne, due to the presence of large electricity, gas and water utilities with extensive
customer services and retailing focus.
Within regional Victoria, most of the jobs growth over the past decade occurred in major
regional centres where the majority of the workforce is employed. An exception was a rise in
activity in Bass Coast Shire due to the development of the desalination plant to provide
metropolitan Melbourne with a rain-independent source of drinking water. The largest decline in
employment occurred in the City of Latrobe, where many workers are engaged in the
generation and supply of electricity.
6.8 Victorian services exports
Services are an important source of Victorian exports. Major contributors to the rise in services
exports have been an increase in demand for Victorian education, tourism and business
services from the Asia region. Globally, demand for services exports is growing fastest in the
Asia region and an increasing share of Victorian services exports are being directed to Asian
economies.
Education was Victoria’s highest value services export in 2011-12 ($4.5 billion). Education
exports capture tuition fees and spending by international students while in Victoria. Personal
travel (tourism) exports, which totalled $2.5 billion in 2011-12, capture spending by international
visitors to Victoria while on vacation or visiting family and friends. Other important services
export categories were Other business services and Business travel.
6.8.1 Services exports  Education
Education exports were Victoria’s most valuable services export in 2011-12. Victoria has
generated strong growth in international education exports over the past decade. Despite the
appreciation of the Australian dollar and changes to visa requirements, demand from China,
India and south east Asian countries has remained strong.
Tertiary education workers in Melbourne employed in the higher education and vocational
education and training (VET) sub-sectors are concentrated in municipalities with major
education facilities including Melbourne, Monash, Darebin and Whitehorse. In regional Victoria,
tertiary education employment is concentrated in LGAs with universities or TAFEs and other
major training institutions including Greater Geelong, Greater Bendigo, Ballarat and Latrobe.
Victoria’s education exports ($4.45 billion) were 30.1 per cent of total education exports for
Australia ($14.77 billion) in 2011-12.
China consumed the largest proportion of education exports in 2011-12. Chinese students
studying in Australia spent over $4 billion in 2011-12. The next largest sources of education
exports for Australia were India ($1.4 billion), South Korea ($814 million), Vietnam ($761 million)
and Malaysia ($739 million).
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6.8.2 Services exports  Tourism
Victoria’s multicultural and cosmopolitan society, scenic attractions and sporting and cultural
events attract international visitors. The Victorian tourism industry provides a broad range of
services including accommodation, restaurants, pubs and cafés, entertainment, arts and
recreation events. In the year to December 2012, there were almost 1.7 million visitors to
Victoria for purposes other than education, who spent $1,625 each on travel and
accommodation or $2.78 billion in total.
The Accommodation and food services and Arts and recreation services industries are
important generators of tourism exports in metropolitan Melbourne and regional Victoria.
At the time of the 2011 Census, over three quarters of the Accommodation and food services
workforce within metropolitan Melbourne was employed in the City of Melbourne in the large
number of hotels, motels, hostels, cafés and restaurants located there. The number of
Accommodation and food services business establishments in the City of Melbourne increased
by almost 700 in the ten years to 2010-11 as the city expanded into Southbank and Docklands.
In regional Victoria, Accommodation and food services employment was concentrated in major
regional centres as well as in tourist locations such as Victoria’s Alpine region and coastal
areas.
In 2010-11, employment in the Arts and recreation services industry was also heavily
concentrated in the City of Melbourne – in major sporting facilities, art galleries, museums,
theatres, concert halls and a major casino. In regional Victoria, employment in the Arts and
recreation services industry was concentrated in major regional centres and in tourist
destinations close to Melbourne such as the Macedon Ranges and Bass Coast shires.
With the appreciation of the Australian dollar over the past decade, the cost of travelling to
Australia has increased. Despite this increased cost, international visitor numbers to Victoria
have continued to rise, largely due to an increase in visitors from Asia, and China in particular.
Not including education exports, the United Kingdom was Australia’s largest tourism export
market in 2011-12 ($2.1 billion), followed by New Zealand ($2 billion), the United States of
America ($1.5 billion), China (excluding Hong Kong) ($1 billion) and Japan ($838 million). Japan
was Australia’s second largest tourism export market in 2000-01.
6.8.3 Services exports  Other business services
Improvements in ICT have led to innovations in the design and delivery of business services,
opening up new export markets for Victoria’s Professional, technical and scientific services
businesses.
These advances in ICT have facilitated the export of Victoria’s services. While some initial faceto-face contact may still be required, ongoing interaction can be conducted at a distance.
Professional reports and designs can be delivered electronically; scientific analysis compared
and discussed through digital media and online forums; data and statistics accessed online; and
geography viewed virtually. Compared to the delivery of manufactured goods, the cost of
delivering business services digitally is negligible.
Globalisation and improvements in ICT have resulted in industrial supply chains that spread
research and development, product design, manufacturing and marketing across international
locations. These activities make use of services such as delivery, legal, information technology
and financing in multiple legs of product development and manufacture. Specialised Victorian
services firms have emerged and expanded to take advantage of the growing use of global
supply chains to export their services.
Demand for business services is growing fastest in developing regions such as Asia and South
and Central America, as emerging economies in these regions have become more
sophisticated and income and wealth increases.
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In total, Victoria generated $1.7 billion in other business services in 2011-12. Technical
services, including architectural and engineering services, was the largest sub-category ($683
million) followed closely by professional services including legal, accounting and public relations
($675 million).
The United States of America was Australia’s largest business services exports market in 201112 ($1.9 billion), followed by Singapore ($1 billion), the United Kingdom ($703 million) and New
Zealand ($428 billion).
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7 Skills and knowledge
A skilled, educated and productive workforce is vital to support the demands of business and
the growth of an advanced economy. The growth of Victoria’s population as well as the
increasing importance of knowledge based economic activity in the state is increasing the
demand for workers in the industries of Health care, Education and training, Professional
services, Construction and Retail trade.
Victoria has a highly educated population, with 53.4 per cent of the population having a post
school qualification as of 2011, an increase from 44.2 per cent in 2001. The disaggregation of
people with a post school qualification by level of education highlights a 6.6 per cent increase in
the proportion of the population with a Bachelor degree or above, over the decade to 2011.
The growth in educational attainment can be attributed to a number of factors, including
companies placing greater emphasis on a person’s relevant skills and qualifications, the shift
towards a knowledge-based economy and people’s desire to improve their employment
opportunities and earning potential.
7.1 Victoria’s workforce skills
One way to obtain a general perspective on the educational level of a workforce is to look at the
qualifications attained by the working population.
The Education and training, and Professional, scientific and technical services industries
employ the largest proportion of workers with a Bachelor degree or above. At the other end of
the scale, the Other services and Construction industries employ the largest proportion of
workers with Certificate qualifications. The proportion of workers with Diploma qualifications is
more uniform across all industries.
The Victorian workforce has a diverse educational attainment across industries and highlights
how the ability to work in specific industries is dependent upon workers’ educational level. In the
long term, a university degree offers better employment prospects and higher wages.
At the time of the 2011 Census, the largest proportion of these workers (53 per cent) had
attained a Bachelor degree or above, followed by Certificate qualified workers (29 per cent) and
holders of a Diploma (18 per cent).
Independent of their qualification level, the largest concentration of workers in metropolitan
Melbourne is found in the City of Melbourne. In 2011, 21 per cent of workers in metropolitan
Melbourne worked in the City of Melbourne, followed by the Cities of Monash and Greater
Dandenong with five per cent each.
7.1.1 Metropolitan Melbourne
The City of Melbourne had the largest number of workers with a Bachelor degree or above
qualification in 2011, more than 190,000 workers. The LGA with the second largest number of
workers in this category was Monash, with less than 35,000 workers, followed by the cities of
Yarra, Port Phillip and Boroondara .
13
The concentration of highly educated workers in the City of Melbourne is consistent with the
spatial distribution of business activity in Melbourne. Melbourne’s knowledge and skills intensive
sectors – which largely employ highly educated workers – are concentrated in central
Melbourne, particularly within the CBD ‘grid’.
Workers with Bachelor degree or above qualifications generally prefer to live in the inner LGAs,
close to the City of Melbourne, with large numbers residing in the inner north, east and south
east municipalities. The City of Boroondara has the largest number of workers in this
qualification category residing within its borders.
Industry Atlas of Victoria 2013
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The spatial distribution of workers with Diploma qualifications by place of work is similar to
holders of Bachelor degree or above, with the highest concentration found in the City of
Melbourne (nearly 40,000 in 2011) followed by significant concentrations in the LGAs of Port
Phillip, Yarra and Monash.
Industries that have workforces with a higher number of Diploma qualifications include Rental,
hiring and real estate services, Financial and insurance services, and Health care and social
assistance.
This is in contrast to their place of usual residence pattern, which is generally further away from
central metropolitan Melbourne. Large numbers of workers with Diploma qualifications live in
the outer west, and south east, with the largest number living in the City of Casey.
Again, the largest concentration of workers with Certificate qualifications is found in the City of
Melbourne, with a concentration of approximately 35,000 Certificate qualified workers in 2011.
The cities of Hume, Monash, Kingston and Greater Dandenong also had high concentrations of
workers with Certificate qualifications.
In contrast to the spatial distribution of the place of usual residence, workers with Certificate
qualifications reside the furthest away from metropolitan Melbourne in comparison to those with
higher degrees, toward outer municipalities in a well dispersed pattern.
7.1.2 Regional Victoria
Compared to metropolitan Melbourne, regional Victoria has a relatively lower proportion of
highly skilled workers. Geographical differences also have an impact in higher education
participation, with access to higher education in regional Victoria being more difficult, as cost
and distance to education facilities present a barrier to prospective students.
All three categories of workers with post-school qualifications are concentrated in the same
LGAs in regional Victoria. The largest concentrations are found in the major regional centres of
Bendigo, Geelong and Ballarat where regional university campuses and business centres are
located. Smaller, but still significant, concentrations are found in Mildura, Shepparton, Wodonga
and the Latrobe Valley.
7.2 Skills and occupations
Another way to examine the workforce is to analyse it by occupation group. Professional and
Managerial occupations (such as teachers, engineers, nurses and lawyers) have the largest
proportion of workers with higher education qualifications. Most occupations in this major group
have a level of skill commensurate with the qualifications and experience of a Bachelor degree
or higher qualification.
Community and personal service workers have the highest proportion of Diploma level
qualifications, while technicians and trades workers have the highest proportion of Certificate
level qualifications.
7.2.1 Professionals
The majority of Professionals work in the Melbourne CBD and the inner city LGAs of Port
Phillip, Yarra and Boroondara. There are also significant densities of professional workers in
Monash and its surrounding LGAs, reflecting the high number of Professional services
businesses located in these areas.
The ABS defines Professionals as those who ‘perform analytical, conceptual and creative tasks
through the application of theoretical knowledge and experience in the fields of the arts, media,
business, design, engineering, the physical and life sciences, transport, education, health,
information and communication technology, the law, social sciences and social welfare’.
Professionals tend to reside in the inner municipalities, close to where they work, such as
Boroondara (C), Moreland (C), Whitehorse (C), Monash (C) and Glen Eira (C).
Industry Atlas of Victoria 2013
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7.2.2 Community and personal services workers
Community and personal services workers have the largest concentration of Diploma qualified
individuals. Workers within this occupational group assist health professionals in the provision of
patient care, provide information and support on a range of social welfare matters, and provide
other services in the areas of aged care and childcare, education support, hospitality, defence,
policing and emergency services, security, travel and tourism, fitness, sports and personal
services.
While the highest density of workers by place of work is once again in the CBD (over 20,000
workers in 2011), significant concentrations were also found in Hume in the north, the inner east
(Boroondara, Whitehorse, Monash and Yarra), Casey and the Mornington Peninsula. The data
also show that a large number of Community and personal services workers live in the City of
Casey, which recorded a concentration of some 10,000 workers in 2011. Wyndham, Brimbank
and the Yarra Ranges also recorded strong concentrations of these workers.
7.2.3 Technicians and trade workers
Technicians and trade workers have the largest number of Certificate qualified workers across
all occupation groups. This is a broad category and includes medical technicians, panel beaters,
plumbers, electricians and shearers. At the time of the 2011 Census, the City of Melbourne and
the Cities of Hume and Greater Dandenong had the highest density of Technicians and trade
workers by place of work. Significant concentrations were also found in the Mornington
Peninsula, the south east of Melbourne (Knox and Monash) and the west (Brimbank).
In terms of where they live, workers in this occupation category tend to be well dispersed across
metropolitan Melbourne, with the largest concentration in the City of Casey.
7.3 Fastest growing occupations
The top three fastest growing occupations within the five fastest growing industries during the
period 2006 to 2011 are listed in the table below.
Table 7.1: Top three fastest growing occupations for the top five fastest growing industries in
Victoria, 2006-2011
Percentage
Industry
Occupation
2011
2006
Change
Change
Heath care
and social
assistance
Professional,
scientific and
technical
services
Retail trade
Education
and training
Construction
Nurses
34,382
28,570
5,812
20.3
Child carers
13,116
9,069
4,047
44.6
Aged and disabled carers
12,868
8,152
4,716
57.9
Accountants
14,409
12,550
1,859
14.8
Software programmers
8,957
7,070
1,887
26.7
Solicitors
8,674
6,646
2,028
30.5
Sales assistants
64,058
59,667
4,391
7.4
Retail managers
24,840
23,054
1,786
7.7
Checkout operators and
office cashiers
15,306
13,724
1,582
11.5
Primary teachers
23,329
21,105
2,224
10.5
University lecturers
10,302
8,459
1,843
21.8
Education aides
9,404
7,379
2,025
27.4
Carpenters and joiners
9,607
7,398
2,209
29.9
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Plumbers
8,614
6,532
2,082
31.9
Electricians
8,558
6,009
2,549
42.4
Source: ABS Census
7.3.1 Heath care and social assistance
The largest increase was experienced by Aged and disabled carers (57.9 per cent), followed by
Child carers (44.6 per cent) and Nurses (20.3 per cent).
While the highest concentrations for Nurses and Child carers are in the City of Melbourne and
the City of Casey respectively, Aged and disabled carers are concentrated in Darebin and
Whitehorse. Generally, Nurses tend to be concentrated in a few LGAs in Melbourne, while Child
carers and Aged and disabled carers are more dispersed throughout Melbourne.
During the period 2006 to 2011, the City of Melbourne recorded most of the employment growth
for Nurses, followed by Monash and the south east of Melbourne more generally. The growth in
employment for Child carers has been distributed across Melbourne, although the peripheral
LGAs of Mornington Peninsula, the Yarra Ranges and Cardinia have experienced a relatively
slower rate of growth compared to metropolitan Melbourne overall, particularly the west and
inner city areas.
While the growth in employment of Aged and disabled carers have also been distributed across
metropolitan Melbourne in general, the largest growth was concentrated in the middle LGAs of
Darebin (in the north) and Borrondara, Whitehorse and Monash (in the east).
7.3.2 Professional, scientific and technical services
Software Programmers, Solicitors and Accountants are highly concentrated in the City of
Melbourne. Given that accountants serve both business and individuals, they are also found in
residential suburbs, particularly in Hume, inner and south-east Melbourne.
During the period from 2006 to 2011, the largest growth in employment for all three occupations
was in the City of Melbourne.
7.3.3 Retail trade
Employments in Retail trade, a population-driven business activity, are distributed right across
metropolitan Melbourne, with significant densities across the middle LGAs. This is not surprising
as workers in this occupation are required in all retail activities that involve selling and receiving
and processing payment for goods and/or services such as food and clothing.
The employment growth rate for Checkout operators and office cashiers reached 11.5 per cent
during the five year period to 2011, while Retail manager and sales assistant jobs increased by
7.7 and 7.4 per cent respectively. While some LGAs had a net decline in the number of Sales
assistants during this period, the decline was more than offset by strong growth in Whittlesea
and lower, but still significant, growth in the Mornington Peninsula, Wyndham, Manningham and
Melton.
7.3.4 Education and training
Employment in Education aides is well distributed across Melbourne, with some concentrations
found in Hume, the Yarra Ranges and Casey. The areas with the lowest number of Education
aides are Nillumbik in the north east and the City of Melbourne and the Cities of Port Phillip,
Yarra, Stonnington and Maribyrnong.
Primary school teachers are well dispersed across Melbourne. The Yarra Ranges, Casey,
Hume, Brimbank and Borrondara are home to a high number of Primary school teacher jobs. As
with Education aides, inner Melbourne has the lowest numbers of jobs for Primary school
teachers, as relatively few schools are located in this area.
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As could be expected, University lecturer jobs are concentrated in the City of Melbourne, which
is home to a number of universities, such as the University of Melbourne and RMIT University.
Lower, but important, concentrations of these jobs are found in Darebin, Glen Eira, Monash and
Whitehorse.
During the period from 2006 to 2011, the number of Education aides grew strongly by 27.4 per
cent or 2,025 workers, with growth distributed across Melbourne. The second largest increase
was in university lecturers (21.8 per cent), most significantly in the City of Melbourne, Monash
and Whitehorse. Primary school teacher jobs registered a 11.5 per cent increase across
Melbourne, with significant growth recorded along the city’s western periphery.
7.3.5 Construction
The three fastest growing occupations within the Construction industry by place of work are
Carpenter and joiners, Electricians, and Plumbers. All three occupations are reasonably well
distributed across metropolitan Melbourne, with generally higher concentrations in the north
western, central and south eastern municipalities.
All three occupations saw strong growth during the period 2006 to 2011: employment for
electricians grew by 42.4 per cent; Plumbers registered a 31.9 per cent rise in jobs, while
Carpenters and Joiners saw their employment numbers grow by 29.9 per cent.
7.4 Skilled migration
Victoria has been welcoming skilled migrants for many years. Skills shortages have prompted
the Australian Government to offer a range of visas to facilitate the entry of foreign skilled
workers to meet labour demand.
The following maps have been constructed using Census 2011 data. Only those migrants who
had arrived in the previous five years before the Census year (2006 for the 2011 Census and
2001 for the 2006 Census) are included in the data, under the assumption that recently arrived
migrants who are already participating in the Victorian workforce are more likely to have
completed their education overseas.
Mapping where migrants with post-school qualifications work and live assists in determining
whether they tend to follow the same spatial distribution as non-migrant workers for each
category of post-school qualification.
7.4.1 Migrants with Bachelor degrees or above
Highly skilled migrants tend to concentrate in the City of Melbourne, which had approximately
22,000 workers in 2011 – 11.4 percent of all workers with a bachelor degree or above. The
second highest concentrations are found in Monash, Port Phillip and Yarra. This distribution is
very similar to that of highly skilled non-migrant workers.
The largest growth in employment for Bachelor degree or above qualified migrants occurred in
the City of Melbourne, which recorded almost 10,000 new jobs in the five years to 2011. Strong
employment growth was also recorded in the municipalities of Monash, Whitehorse, Yarra, Port
Phillip and Boroondara.
Despite having similar place of work patterns as non-migrants, migrants with Bachelor degree
or above qualifications differ significantly in their preference for place of residence from nonmigrants. While non-migrants in this category tend to live in the inner eastern and south eastern
municipalities (as explained earlier in the chapter), migrants have a preference for living
centrally in the City of Melbourne and further out in the south east – City of Monash, as well as
a strong presence in the west – City of Wyndham.
7.4.2 Migrants with Diplomas
The highest density of Diploma qualified migrants by place of work was in the City of
Melbourne, followed by Monash and Greater Dandenong. Once again, this distribution is very
Industry Atlas of Victoria 2013
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similar to their non-migrant counterparts. The strong growth in employment of migrants with a
Diploma in the City of Melbourne is consistent with the overall growth of all Diploma qualified
workers.
Migrants with Diploma qualifications are not as well dispersed across metropolitan Melbourne
as non-migrants with these qualifications. The map shows migrants in this category have a
strong preference for living in the cities of Monash and Greater Dandenong, as well as generally
closer to central Melbourne – perhaps choosing to live close to where they work.
7.4.3 Migrants with Certificate qualifications
The City of Melbourne has the highest number of Certificate qualified migrants by place of work,
followed by smaller concentrations of between 600 to 1500 workers in the LGAs of Hume,
Monash, Kingston and Greater Dandenong. This distribution is very similar to that of Certificate
qualified non-migrant workers.
The largest employment growth of migrants with Certificate qualification was recorded in the
City of Melbourne, which registered an increase of 850 jobs between 2006 and 2011. Strong
growth also occurred in other municipalities across metropolitan Melbourne, particularly in the
cities of Greater Dandenong, Kingston, Wyndham and Hume.
In contrast to non-migrants, whose place of usual residence is well spread out across the outer
municipalities, migrant workers with Certificate qualification are more concentrated in the outer
south eastern LGAs (Casey and Greater Dandenong) and outer western LGAs (Wyndham and
Brimbank). The map below also shows that Certificate-qualified migrants have similar spatial
patterns of distribution by place of usual residence as by place of work.
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