Lisa Taylor Consulting Occupational Skill Shortage Analysis - Tasmania Phase One Report Prepared for Skills Tasmania by: Lisa Taylor Principal tasmanianjobs.com Lisa Taylor Consulting Author’s note: Forecasts for numbers in a small number of occupations used as data in this report may be counter-intuitive and may not be consistent with my or the Government’s views on likely future directions but have been retained for consistency in method. Published: July 2008 Table of Contents Executive Summary.................................................................................................... 3 Methodology ............................................................................................................... 7 Background ................................................................................................................ 9 Occupational Shortages ........................................................................................... 12 Definition ............................................................................................................... 12 Supply and Demand Factors................................................................................. 13 Determinants and contributors to skills shortages................................................. 14 Cyclical factors .................................................................................................. 14 Participation rates.............................................................................................. 14 Underemployment ............................................................................................. 15 Demographic factors ......................................................................................... 15 Generational replacement of labour .................................................................. 16 Locational mismatch between the demand and supply of labour ...................... 17 Education, training and skill development ......................................................... 17 Changing skill needs within occupations ........................................................... 17 The level of remuneration.................................................................................. 18 Organisational culture and employment conditions ........................................... 18 Industry image................................................................................................... 18 Classification......................................................................................................... 19 Tasmania’s Industry Profiles..................................................................................... 20 Accommodation, cafes and restaurants ................................................................ 27 Agriculture, forestry and fishing............................................................................. 29 Communications services ..................................................................................... 33 Construction.......................................................................................................... 35 Cultural and recreational services......................................................................... 38 Education .............................................................................................................. 40 Electricity, gas and water supply........................................................................... 42 Finance and insurance.......................................................................................... 44 Government administration and defence .............................................................. 46 Health and community services ............................................................................ 48 Manufacturing ....................................................................................................... 51 Mining ................................................................................................................... 54 Personal and other services.................................................................................. 56 Property and business services ............................................................................ 58 Retail trade............................................................................................................ 62 Transport and storage........................................................................................... 64 Wholesale trade .................................................................................................... 66 List of Occupational Shortages................................................................................. 68 Recommendations.................................................................................................... 72 Appendices............................................................................................................... 73 A - Industry Consultation Letter............................................................................. 73 B – Industry consultation participants ................................................................... 74 C – Local Government Survey Response ............................................................. 75 D – IT Industry Survey Response ......................................................................... 79 Occupational Skill Shortage Analysis – Phase One Page 2 of 80 Executive Summary The concept of ‘skill shortage’ has different meanings to different people. Until recently, Tasmania had a ready and available supply of labour from which to draw its needs. At times during the 1990s, there was even an oversupply of labour in Tasmania. However, Tasmanian organisations now report that the ability to secure appropriately qualified and skilled labour is the greatest constraint on business, and has been for the past 16 consecutive quarters according to the Tasmanian Chamber of Commerce and Industry’s Business Expectations Report. Essentially, skill shortages are a by-product of a strong economy. In Tasmania’s case, the economic turnaround was largely unanticipated and therefore not planned for. In addition, the exponential rate of growth in many sectors exacerbated the implications of the unanticipated and unplanned for growth. There are a number of contributors to the skill shortages in Tasmania, as outlined in the adjacent box. However, there appears to be consensus within the Tasmanian industry sectors that the primary determinants of the skill and labour shortages stem from this unanticipated growth, and are as follows: • • • • • Resulting increase in demand from unanticipated economic growth; Competitive labour market; Nature of the employment; An ageing workforce; and Lack of investment in appropriate skills during the economic downturn of the 1990s. Determinants of skill shortages • Cyclical factors • Participation rates • Underemployment • Demographic factors • Generational replacement of labour • Locational mismatch between the demand and supply of labour • Education, training and skill development • Changing skill needs within occupation • The level of remuneration • Organisational culture and employment conditions • Industry image The consequences of skill shortages can be long lasting and serious and have the potential to impact on the competitive and comparative advantages of being located in Tasmania. Skill shortages are placing a significant level of stress on industry, government and education and training providers which has exposed serious vulnerabilities in the existing systems. For the purposes of this Occupational Skill Shortage Analysis the following definition of a ‘skill shortage’ will be applied: A skill shortage exists where employers are unable to fill, or have considerable difficulty filling, vacancies for an occupation at current levels of remuneration and conditions of employment. Occupational Skill Shortage Analysis – Phase One Page 3 of 80 In addition, for the purposes of this report, a classification system for defining the nature of skill shortages has been developed for the Tasmanian labour market. These classifications are explained below: Tasmanian Skill Shortage Classifications Level 1 • Few people available with the essential skill set • Education and training not provided in Tasmania Level 2 • Few people available with the essential skill set • Long training time to develop skills • Training is available in Tasmania or has the potential to be available in Tasmania Level 3 • Few people available with the essential skill set • Short training time to develop skills • Training provision is available in Tasmania. Condition Gap (Skill Mismatch) • Sufficient people qualified with the essential skill set • Not willing to apply at current levels of remuneration and conditions of employment Quality and Employability Gap • Sufficient qualified people with essential skill set • Applicants lack employability requirements rather than specific skill set deficiencies. Interestingly, the employment growth experienced in Tasmania for the period since 1998/99 has been dominated by occupations in the professional or associate professional classification, rather than those in the trade related occupations. Importantly, this trend is projected to continue. Demand for services like health, education, government administration, property and business services all tend to increase with the increase in the number of residents in a population. Generally, occupations within the service provision sectors require post-school qualifications. Every industry sector in Tasmania, as classified by the Australian New Zealand Standard Industry Classification (ANZSIC) system, reports the existence of occupational skill and labour shortages, to varying degrees. Some sub-sectors, however, including property services, postal and courier services and education, advise an adequate supply and the ability to respond appropriately should demand increase. Overwhelmingly, industry reports a general, but severe, lack of available people, evidenced by the diminishing number of applicants to advertised positions. Not surprisingly, the occupations in greatest demand across all industries are those highly skilled roles that require a number of years of education and training as well as on-going education and training. Those occupations that are not in short supply are the low or unskilled occupations, predominantly administrative personnel or general labour. While Occupational Skill Shortage Analysis – Phase One Page 4 of 80 industry reports high number of appropriate applications for such positions, industry also advises high turnover for these occupations. Industry recognises the competitive nature of the labour market, within Tasmania and interstate and overseas. Industry also acknowledges that the nature of work and employment conditions influence the decision making process of prospective employees in determining firstly their career of choice and then, future employment options. Often, it is those occupations that are of manual, physical or dirty nature, undertaken during nontraditional working hours and/or located in rural, regional or remote locations that provide the greatest challenges in attracting, recruiting and retaining people in the workplace. These perceptions of industry image and occupation by future generations will impact significantly on the future supply of labour. Industry now reports a commitment to planning for the future workforce through investment in education and training, however also report issues challenging their ability to do so, including: 1) In Tasmania, there are not enough fully qualified and experienced trades people to provide the appropriate ratio of trades people to apprentices and trainees; 2) University education does not provide commercially or workplace ready and able graduates. Two to three years of additional on the job experience is required until graduates are considered viable; 3) For many of the occupations in short supply, education and training is not provided in Tasmania; and 4) Education and training courses have not, and are not, keeping pace with innovation and technological change in the workplace. In fact, industry suggests that training has reached its capacity. It is difficult to increase the current numbers being trained due to the need for experienced employees to supervise and mentor apprentices, trainees or graduates and the limitations this places on the number of new entrants that can be trained. Industry also advises that any decline in demand for specific occupations is likely to be a direct result of innovation and technological change in the workplace. Additionally, the population age structure of Tasmania will lead to the retirement of a large proportion of the Tasmanian workforce sooner rather than later. The added implication for growing Tasmanian industries will be that not only will they need to replace the retiring workforce but add to the overall number as well. In Tasmania the number of labour market entrants to exits in expected to cross over during 2009. This will mean that there will be more people exiting the workforce than entering it 1 . Further research is required to determine the specific occupations that will experience large numbers of exits from the workforce. While the short term impact of occupational skill shortages in Tasmania results in the costs associated with high levels of turnover, recruitment costs, increased wages and reduced productivity it is the medium to longer term impacts that will affect the Tasmanian industries and economy most significantly. Many organisations, including government, are resorting to the outsourcing of non-core business, however this too adds to increased costs, but also further delays as providers of services outsourced are also experiencing occupational skill shortages. 1 Jackson, N.O. (2008) Tasmania's Population, www.taspop.tasbis.com (accessed 18/06/08). Occupational Skill Shortage Analysis – Phase One Page 5 of 80 These medium to long term impacts are outlined in the box below. Medium to Long Term Impacts of Skill Shortages on Tasmanian Industries • Inability to service market; • Compromises the quality of outputs – products and/or services; • Loss of market share; • Loss of competitiveness; • Inability to respond to opportunities; • Restricts any potential for business/industry growth; • Increased exposure to risk; • Affects on existing workforce include risk of burnout, attrition, workplace injuries; • Multiplier effect on other industries and organisations, particularly when feeder or enabler sectors are impacted; • Industries that are labour intensive have no flexibility and therefore skill and labour shortages directly results in decline in production; and • Outsourcing of value added production to interstate and/or international locations. Essentially, occupational skill shortages are evident across all industries in Tasmania. These shortages are the result of a number of factors, predominantly a strong economy, population growth, structural and numerical population ageing and the potential mismatch between training and education supply, utilisation and occupational demand. With an economy at, or close to, full employment and operating at full capacity, the lack of supply of future labour market entrants will further increase the competition for labour. Any solution requires a strategic response and long term plan to be implemented by all stakeholders; policy makers, industry, education providers and the community. Conclusion: The findings of this Occupational Skill Shortage Analysis for Tasmania provides a comprehensive foundation from which Skills Tasmania can determine the relative economic and social significance of skill shortages in different occupations and industries in Tasmania. This will enable Skills Tasmania to make informed decisions to develop priorities for skill acquisition and development strategies. In particular, this analysis provides Skills Tasmania with a critical insight into the impact of skill shortages on the economic, workplace and social spheres of the Tasmanian community. Occupational Skill Shortage Analysis – Phase One Page 6 of 80 Methodology Given the extent of scope of the Occupational Skill Shortage Analysis – Phase One project, the objectives were prioritised to be as follows: 1) 2) 3) 4) 5) 6) Definition of the nature and characteristics of skill shortages; Identification of the occupations facing skills shortages; Occupations in growth and decline and implications for future skill shortages; Evidence of skill shortages in Tasmania; Impact of skill shortages in Tasmania; and Scan of buoyant economic activity where skill shortages are not an impediment. Given the timeframe of the project, analysis of existing information was undertaken rather than the collection of primary data. This analysis was then supported by consultation with industry representative bodies, employing organisations and employment agencies to gain anecdotal evidence of occupational shortages. The limitation of this approach is that the project relies on ‘old’ data and will effectively be a ‘scan’ of a number of ‘scans’. The analysis was undertaken using existing material; including, but not limited to, Skills Tasmania Training Demand Profiles (TDPs) and internal research, Industry Skills Councils Environmental Scans, DEEWR Skill Shortages Lists and other relevant research, Department of Economic Development and Tourism (DEDT) Tasmanian Skill Shortage List, consultation with peak bodies, industry associations and employment agencies, as well undertaking future labour demand projections using the MONASH CGE model of labour forecasting. Report Structure The report contains two main sections. The first section details the nature of skills shortages, developing a definition, understanding the underlying factors contributing to skill and labour shortages in Tasmania and developing a classification system for identifying the different types of skill and labour shortages in Tasmania. The second section presents an overview of the nature of skill and labour shortages in Tasmania by industry sector. This section of the report uses the ABS Australia New Zealand Standard Industry Classification 1993 (ANZSIC) and the Australian Standard Classification of Occupations 2nd Edition (ASCO) systems to classify occupations and industry sectors. It is important to note that ASCO occupations are not mutually exclusive to one ANZSIC industry sector and can apply to many sectors. This second section of the report details growth in ASCO occupations since 1998/99 by ANZSIC industry sectors and projects growth in ASCO occupations by ANZSIC industry sector to 2014/15 using the MONASH CGE model of labour forecasting. In addition to detailing both historical and projected changes in occupational levels in Tasmania, the report presents the contribution of each industry sector to the Tasmania economy by employment levels and contribution to growth in employment and GSP. The MONASH CGE model of labour forecasting projects the demand for labour in five main processes: Occupational Skill Shortage Analysis – Phase One Page 7 of 80 1) Derives a macroeconomic environment from the Access Economics Five Year Business Outlook; 2) Converts the forecasts for GDP and its components into forecasts of output and employment by industry; 3) Converts data to regional forecasts using the MONASH Regional Equation System (MRES) which takes into account differences in industrial structures, regional specific industry effects, population movements, expected expenditure by regional governments and local multipliers; 4) Converts employment forecasts from industry basis to an occupational basis; and 5) Determines employment outlook for workers identified by age, sex, qualifications and hours worked per week. It is important to note that the data utilised to develop the MONASH CGE model of labour forecasting is based on macro-level national data. For this reason, projections for Tasmanian employment growth and decline by industry and occupation can not be considered definitive. The MONASH CGE projections for occupational growth in Tasmania are supported in the second section of the report by anecdotal evidence obtained through available existing documentation including TDPs and the Skills in Demand List as well as consultation with industry representative bodies, individual organisations and employment agencies. Consultation was undertaken with 45 industry representative bodies, individual employers or recruitment agencies to provide greater depth and understanding to the nature of skill and labour shortages in each sector. This consultation process involved identifying the existence of skill or labour shortages, the perceived underlying causes of the shortages specific to the industry and those occupations in short supply, defined by the ability to attract, recruit and retain. In addition, the consultation process identified occupations not in short supply, occupations that are anticipated to experience growth or decline in demand in the foreseeable future and the perceived (or realised) impact of skill shortages to the industry sector. The consultation process also identified whether the industry perceived the appropriate training provision was available in Tasmania to address the occupational shortages. The second section of the report also identifies the classification of the nature of the skills shortage for each occupation in short supply and the educational requirements for each occupation. Important Note: It is important to note that the information, communication and technology (ICT) sector is inadequately represented by the 1993 ANZSIC system. In the 1993 version, ICT is incorporated in both the communications and the property and business services sectors. ‘Communications services’ as an industry sector does not exist as a category in the 2006 version of the ANZSIC codes. In the 2006 ANZSIC ICT is more appropriately represented in the categories of ‘information media and telecommunications’ and ‘professional, scientific and technical services’. In this report ‘communications services’ represents postal and courier services and telecommunications services. For this reason, projections in this report for industry and occupational growth are not truly representative of the information, communication and technology sector. Occupational Skill Shortage Analysis – Phase One Page 8 of 80 Background Until recently in Tasmania, there has always been a ready and available supply of labour from which to source industry needs. Tasmania experienced a significant economic turnaround over the past ten years. This turnaround has seen unprecedented growth in many economic indicators, including population and employment growth. This dramatic change which resulted in almost exponential growth over a very short time period has presented Tasmania with a new challenge, what business and government and individuals are terming ‘skill shortages’ or ‘war for talent’. In the period 2001/02 to 2006/07, Tasmania's population grew by 23,006 to a total of 495,772 people 2 . This growth must be considered in the context of Tasmania's historical pattern of population change and the nature of Tasmania's components of population change. The components of population change are natural increase, interstate migration and overseas migration. In Tasmania, natural increase is the main source of population growth, while net interstate migration is usually the main source of population loss. After experiencing population decline between 1996 and 2000 due to large interstate migration losses, Tasmania did not exceed its 1996 population until June 2003. The net growth experienced between June 2002 and 2004, was due to higher than average levels of net interstate migration. Between June 2005 and 2007, net interstate migration returned to its longer term trend of net loss; however, Tasmania did not return to population decline. This was due to larger than average gains from net overseas migration and natural increase over that period. Tasmania is the oldest state in Australia and also has the fastest ageing population in Australia. This will lead to a diminishing workforce, directly resulting in industry continuing to experience a tight labour market. 233,300 people are currently employed in Tasmania, 35,400 more than in May 1998, an 18% increase. The unemployment rate as at May 2008 was 4.4% in trend terms, compared with a national average of 4.3% 3 . The below table identifies the employment growth by ASCO classification in Tasmania for the period 1998/99 to 2006/07. Employment growth by occupation 1998/99 to 2006/07 Occupation Professional Associate Professional Trades & Advanced Intermediate Elementary Total Source: MONASH CGE 2 3 Growth (No.) 14,887 10,573 6,086 -544 -2,250 28,753 Contribution to total growth (%) 51.78 36.77 21.17 -1.89 -7.83 ABS Australian Demographic Statistics 3101.0 - Dec 2007 ABS Labour Force 6202.0 May 2008 Occupational Skill Shortage Analysis – Phase One Page 9 of 80 As is evident from the above table the majority of employment growth has occurred in the Professional and Associate Professional occupation classifications (88.55%) compared with only 21.17% in the trades and advanced trade occupations. Decline in employment has been experienced in the intermediate and elementary occupations. These figures are consistent with other Australian states and national data. Occupation classifications projected to experience growth in Tasmania from 2006/07 to 2114/15 are illustrated in the table below. Employment growth by occupation 2006/07 to 2014/15 – projected Occupation Professional Associate Professional Trades & Advanced Intermediate Elementary Total Source: MONASH CGE Growth (No.) 10,037 4,129 1,200 4,700 496 20,563 Contribution to Total Growth (%) 48.81 20.08 5.84 22.86 2.41 As is evident, growth is projected to remain predominantly in the Professional and Associate Professional occupations (68.89%) while growth in the trades and advanced trades is projected to be stable at 5.84% for the period. The historical growth in employment in Tasmania and resulting skill and labour shortages can be illustrated in a different way. By using the number of persons actively seeking employment (those registered and receiving unemployment benefits) and the number of advertised vacancies, the number of people available per vacancy can be determined. As can be seen in the chart overleaf, since February 1984 the number of people available per vacancy has ranged from a peak in 1993 of 53 persons per vacancy to 4.08 persons in May 2008, the latest available data. That is for every position that is advertised in Tasmania there are 4.08 people ready, willing and available to work. Occupational Skill Shortage Analysis – Phase One Page 10 of 80 Unemployed Persons per Vacancy – Tasmania ` 60.00 Number 50.00 40.00 30.00 20.00 10.00 Feb-08 Feb-06 Feb-04 Feb-02 Feb-00 Feb-98 Feb-96 Feb-94 Feb-92 Feb-90 Feb-88 Feb-86 Feb-84 0.00 Source: ABS Labour Force 6202.0.55.001, Job Vacancies 6354.0 various years 4 , tasmanianjobs.com There are a number of challenges that present with this data: • The 4.08 people available are very unlikely to match the skill set required of the particular vacancy; • The 4.08 available people may not actually be located in the geographical area of demand; • The data does not take into consideration the marginally attached (those people not participating in the labour force but willing and able to commence work within a four week timeframe); • The data does not take into account under-employment (those people who would like to work more hours or who are working in a capacity lower than their relevant qualifications, skills or experience); and • The data relies on job advertisement numbers. With the skill and labour shortage situation the way it is, many employers are actually resorting to alternative recruitment methods other than advertising, so it is more than likely that the actual number of vacancies is considerably higher. Even so, it is evident through data analysis and industry consultation that skill and labour shortages are evident in Tasmania and are significantly impacting on the capacity of business, government, service providers and community organisations to deliver core business products and/or services. 4 NB The ABS Job Vacancies 6354.0 data will cease to be collected by the ABS as at 1 July 2008 and therefore this is the final data available for expressing labour availability in Tasmania by unemployed people per vacancy. Occupational Skill Shortage Analysis – Phase One Page 11 of 80 Occupational Shortages Skills shortages are, in most cases, a feature of a strong labour market and tend to arise when there is a strongly growing economy. Skill shortages can also arise when new industries are created or particular industries expand. For these reasons, skills shortages are usually symptomatic of positive economic conditions. Skills shortages are being experienced in Australia for two reasons; 1) strong economic growth 2) an ageing population The only exception to this rule of thumb in Tasmania is when there is an exodus of skilled labour interstate or overseas, that employers have difficulties in attracting and retaining staff. This is particularly evident when Tasmanian employment opportunities and workplace conditions are not considered comparative with interstate or international opportunities. In Tasmania, the additional dimension of continued net interstate migration loss of the working age population contributes significantly to the state’s skill and labour shortages 5 . Definition The concept of ‘skill shortage’ has different meanings to different people. Often difficulties arise in correctly defining a ‘skill shortage’ when differing parties identify skill shortages as a result of deficiencies in capabilities, skills and/or occupational requirements. Skills are often broadly categorised by academics and policy makers as generic skill sets rather than being specific to occupations as often defined by industry. For example skills shortages are often referred to in literature as deficiencies in analytical, communication or technical skills rather than project manager, welfare worker or engineer. These different understandings of skill shortages by policy makers, academics, industry and education and training providers has the potential to provide for conflict and miscommunication between the various stakeholders. Definitions for capability, skills and occupations are outlined below 6 : • • • Capability: the power or practical ability necessary for doing something, or the potential ability to do something. Skill: the ability to do something well, usually gained through training or experience. Occupation: the job by which somebody earns a living. Predominantly, skill shortages are evident in two scenarios: • • Recruitment difficulties - Occur when employers have difficulty in filling vacancies for an occupation, or it takes a long time to recruit. Skill gaps in existing workforce - Occur where existing employees lack the required qualifications, experience and/or specialised skills to meet the organisation’s skill needs for an occupation or activity. This therefore impacts on productivity growth potential. 5 In 2006/07 Tasmania lost 1125 persons aged 15 to 44. Tasmania gained 645 people aged 45 to 64 during the same period. Source: ABS Migration 3412.0 various years. 6 Encarta Dictionary, 2008 Occupational Skill Shortage Analysis – Phase One Page 12 of 80 For the purposes of this Occupational Skill Shortage Analysis report, the definition of skill shortages is developed on the basis of the inability to engage a person to undertake a specific job with the capacity to do it skilfully. The following definition will be applied: A skill shortage exists where employers are unable to fill, or have considerable difficulty filling, vacancies for an occupation at current levels of remuneration and conditions of employment. The definition of skill shortage can be further distinguished as either a labour or a skill shortage. A labour shortage refers to a situation where there is a general difficulty in obtaining unskilled and semi-skilled workers to fill vacancies. It is important to note that often industry refers to a labour shortage in a different way. That is, in the instance where the number of applicants for advertised positions is few, regardless of skill requirements. This could be more appropriately defined as a ‘people shortage’. A skills shortage refers to the situation when employers are not able to attract, recruit and retain sufficient people with the specific skills and capabilities required. Supply and Demand Factors Identifying the nature of skill shortages as factors of demand and supply provides a useful basis for understanding the skills shortage issue. Solutions to the skill shortage issue will involve reciprocal interaction between these demand and supply factors, combined with maximizing the utilisation of the skills and qualifications. Supply and demand factors can be identified as follows: Supply factors • quality and quantity of the education and training system; • occupational preferences of workers; • the education and training choices of individuals; • the level of productivity; • access to on-going skill development; • regional mobility; • population and/or demographic trends; • overall labour force participation; • individual desire for work other than full time; • migration – interstate and international; • organisational culture and employment conditions; • remuneration; and • industry image. Demand factors • the level of demand for the industries products and/or services; • infrastructure and capital investment; • technological change and innovation; • industrial relations law; and • the location where the goods or services are produced. Unfortunately, there is an unavoidable lag which occurs between demand-side signals, the supply-side response and the utilisation of any given skill set. Occupational Skill Shortage Analysis – Phase One Page 13 of 80 Determinants and contributors to skills shortages The causes of skill shortages are often complex and can vary across industries, occupations and over time. The following points provide an overview of the various contributors to occupational shortages in Tasmania. It is important to note that these factors are not mutually exclusive. Some factors may be more relevant than others to particular regions, industries and/or employers. These factors also help demonstrate the complex, and often inter-dependant, causes of skill and labour shortages in Tasmania. Cyclical factors Economic cycles can suddenly increase the demand for skills in certain occupations and/or industries and decrease the supply if employment opportunities and remuneration are comparatively better elsewhere. The cyclical nature of the state and national economy can contribute to the factors that influence skill shortages such as: the demand for products and services and subsequent demand for labour and skills; the impact on one industry of strong growth or decline in other industries; and the movement of labour to different locations and occupations in response to better opportunities. Tasmania is experiencing its tightest labour market in almost three decades, as is demonstrated by the historically very low level of unemployment (4.4% in May 2008 7 ) and sustained employment growth. The tight labour market has seen strong competition among employers for labour, which has resulted in reports of skills shortages across most industries. While economic cycles can broadly affect the demand and supply of labour across all industries, several industries are more prone to global factors (such as mining to world resource prices) and tend to experience more extreme labour market changes. Where an industry or region (as in Tasmania’s case) has been through a relatively long period of low growth or decline, a rapid expansion often results in businesses finding that there is not a sufficiently skilled pool of local labour, particularly if unanticipated and unplanned for. In addition, as labour is mobile within Australia (and to a lesser extent overseas), the strong economic growth and tight labour market that Australia has been experiencing for some time has compounded the skill shortage issue for Tasmania. For occupations with a relatively high labour mobility, if Tasmanian organisations do not offer interstate levels of remuneration and employment conditions, the pool of skilled labour in Tasmania within that occupation is likely to decline over time. Participation rates The labour force participation rate (the proportion of the population aged 15 years and over who are either employed or actively seeking employment) is an important determinant of not only the potential total pool of labour available for employment but also the mix of skills available. Tasmania has the lowest labour force participation rate of all states and territories. This is partly because Tasmania has an older population than Australia as a whole, and older 7 ABS Labour Force 6202.0 May 2008 Occupational Skill Shortage Analysis – Phase One Page 14 of 80 people are less likely to be participating in the work force. Older people also generally have a preference for employment other than full time. Participation rates are lower in Tasmania relative to other states and territories in most age groups. The differences in participation rates between Tasmania and Australia are particularly significant amongst persons aged between 50 and 65 years. There are a number of likely reasons for these differences in participation rates. Low participation rates in Tasmania may result, in part, from lifestyle choices influenced by factors such as relative costs of living. Other factors that may contribute to Tasmania’s low participation rate include: • relatively low rates of educational attainment; • difficulties in accessing childcare facilities; • high rates of dependency on the Disability Support Pension (DSP) and the Parenting Payment; and • Permanently discouraged job seekers (as a result of high levels of unemployment in the 1990s). While employment has increased significantly since the early 2000s in Tasmania, Tasmania’s participation rate still lags the national rate. This suggests that there remain barriers and disincentives to participation and employment. This low participation rate can contribute to both labour shortages and also skills shortages in specific occupations and industries. Underemployment Underemployment affects those people who are participating in the labour market and reflects the inadequate utilisation of labour market participation. Under-employment is a hidden measure of unemployment and can refer to two scenarios: 1) a person who is working, but not working as many hours as he or she would like to; and 2) the under-utilisation of qualifications and skills as a result of a person working in a position that does not engage the full capacity of the person’s qualifications and skills. Under-utilisation of qualifications and skills is particularly evident for mothers returning to the work force and desiring less hours of employment and migrants. Demographic factors Demographic trends that influence the size, age and gender composition of the labour force can contribute to labour and skills shortages. Tasmania is now the oldest state in Australia and has the fastest ageing population of all Australian jurisdictions. Given that older persons are less likely to participate in the labour force and tend to work fewer hours on average when they do, Tasmania’s total labour supply is projected to decline at a faster rate than in the other jurisdictions. Population ageing can be differentiated by numerical ageing and structural ageing. Numerical ageing refers to the absolute increase in the numbers of elderly. The increase in the numbers of elderly is primarily due to improvements in mortality and life expectancy. Structural ageing however refers to the proportion of the population that is elderly. The increase in the proportion of elderly is primarily due to declining birth rates, which decreases Occupational Skill Shortage Analysis – Phase One Page 15 of 80 the proportion of the population that is young and it turn increases the proportion of the population that is older. Exacerbating Tasmania’s ageing population structure is the continued net loss of people in the working age population due to interstate migration. The chart overleaf illustrates this net interstate migration loss since 1998/99. While the magnitude of the loss has decreased, it remains volatile and significant. In 2006/07 Tasmania lost 1125 persons aged 15 to 44. Tasmania gained 645 people aged 45 to 64 during the same period, adding to the State’s already ageing population structure. Interstate Migration by Age – Tasmania 500 Number 250 0 -250 -500 -750 -1000 0-4 5-9 1014 1519 2024 2529 3034 3539 4044 4549 5054 5559 6064 6569 7074 75+ Age 2006/07 2005/06 2004/05 2003/04 2001/02 2000/01 1999/2000 1998/99 2002/03 Source: ABS Migration 3412.0 various years, tasmanianjobs.com Tasmania’s ageing population, combined with the continued net instate migration losses in the prime working age population will lead to a significantly diminished workforce. Generational replacement of labour In addition to demographic change, particularly population ageing, the notion of total social production influences the future supply of labour. Total social production expands on the economic theory of modes of production in which labour is required on a daily basis. Total social production argues that labour must be reproduced on both a daily and intergenerational basis. Essentially, the concept of total social production is that neither production nor reproduction can take place in the absence of the other. Most economic analysts see demographic reproduction as secondary to economic activity. Such analysts are predominantly concerned with population in terms of labour force participation and the unemployment rate. However, total social production argues that economic production and demographic reproduction are mutually dependent. Total social production theorists argue that economic dependence reflects a general inability (or failure) to acknowledge and integrate the generational replacement of labour. This failure has already affected, and will continue to affect, the future supply of labour. Occupational Skill Shortage Analysis – Phase One Page 16 of 80 For this reason, policies addressing skill and labour shortages should ensure the framework to support adequate reproduction. Locational mismatch between the demand and supply of labour Skill shortages are often compounded by a location mismatch between the demand and supply of labour. This mismatch can occur for a number of reasons, such as the: • lack of mobility of labour supply (due to potential workers not owning private transport, not possessing a drivers licence, having limited access to public transport, or general unavailability of public transport; • unattractiveness of a location, as is demonstrated by a general preference to live and work in metropolitan areas as opposed to regional, remote or rural areas where the skills are in even greater demand; and • seasonal nature of some industries. Education, training and skill development The lack of relevant and responsive education and training opportunities can result in a mismatch between labour supply and demand and hence contribute to skill shortages. According to some employers and industry associations, the vocational education and training system has experienced difficulties in supplying the skilled workers needed by Tasmanian industries. In particular, industry advises that education and training packages have failed to keep pace with the technological changes occurring as a result of innovation and extensive research and development outcomes. As a result, these education and training packages are no longer relevant. Where these differences do not occur, other aspects of the training system that may also contribute to the skill shortage issue include: • • • the responsiveness and appropriateness of the training system to industry needs; the speed at which the system can train and provide recognised qualifications; and overall levels of participation within the system and the training choices of individuals. In addition, industry advises that university education does not produce commercially or workplace ready and able graduates. Two to three years of additional on the job experience is required until graduates are considered viable. Industry also suggests that training has reached its capacity and it is difficult to increase the current numbers being trained due to the need for experienced employees to supervise and mentor apprentices, trainees or graduates and the limitations this places on the number of new entrants that can be trained. Changing skill needs within occupations Changing skill needs within occupations can contribute to a skill shortages problem. Such changes can occur for a variety of reasons such as: • technological change and innovation, which can change the demand for particular skills and occupations; and • different regulatory requirements, such as new environmental or safety standards, which may require organisations to recruit or train people with particular occupations or skills. Occupational Skill Shortage Analysis – Phase One Page 17 of 80 The level of remuneration The level of remuneration in an industry or occupation can make it difficult for employers to attract or retain staff. This can be compounded by more attractive remuneration packages and working conditions offered by competing employers or industries, either within Tasmania, interstate or overseas. In the longer term, excess demand for certain occupations and professions generally leads to increases in wages and salaries. This, in turn has the potential to increase the supply of labour in these fields, however will be subject to a considerable lag time effect from training to employment status. Organisational culture and employment conditions Many workers place a higher value on lifestyle and, among younger generations, there appears to be less tolerance than in the past for employment that involves long working hours, shift work or work that is of a physical nature. In addition, there appears to be a greater demand for work considered to be ‘meaningful’, as well as for career opportunities and continuous learning. Many current workforce management practices unintentionally exacerbate occupational skill shortages through; • a lack of flexible working conditions that allows a balance of family/lifestyle and work responsibilities; • a 'just in time' approach to skilling, with employers preferring to recruit people who are already skilled and experienced rather than offering training; • a preference in some industries to offer casual or fixed term positions rather than the employment security that many workers seek; • poor quality working conditions and/or environment; • employer reluctance to train workers due to a perceived risk that investing in workforce training will make employees attractive and mobile and/or lead to demands for higher wages; and • a desire by some employers to seek new skills, particularly in younger people, while disengaging or offering redundancy or early retirement packages for older workers. Industry image Adverse perceptions of an industry’s attractiveness can often result in fewer people seeking career opportunities in that field. A negative industry image can be created for many reasons including: • a perception that there is no career path; • a view that manual, physical or dirty work is inferior to office-based work; • parents, teachers and/or peers discouraging people entering the industry; and • the experience of a previous generation, such as widespread redundancies within an industry; and • a history of high rates of industry accidents and illnesses. Occupational Skill Shortage Analysis – Phase One Page 18 of 80 Classification A Tasmanian classification system for defining the nature of skill shortages can be developed by adapting the definition of the nature of skill shortages as outlined by Sue Richardson in her publication “What is a Skills Shortage?” 8 Level 1 • Few people available with the essential skill set • Education and training not provided in Tasmania Level 2 • Few people available with the essential skill set • Long training time to develop skills • Limits to the capacity of training organisations • Training has the capacity to be available in Tasmania Level 3 • Few people available with the essential skill set • Short training time to develop skills • The capacity of training organisations can be readily expanded • Training provision is available in Tasmania. Condition Gap (also known as Skill Mismatch) • Sufficient people qualified with the essential skill set • Not willing to apply at current levels of remuneration and conditions of employment Quality and Employability Gap • Sufficient qualified people with essential skill set • Willing to apply • Refers to a lack of employability requirements rather than specific skill set deficiencies These classifications are used in the following profiles of Tasmania’s industry sectors in terms of determining the nature of occupational skill shortages and projections of employment growth. In addition to classifying each occupation by the nature of the skill shortage, the educational requirements for each occupation is also identified. Key: L1: L2: L3: Nature Level 1 Skill Shortage Level 2 Skill Shortage Level 3 Skill Shortage C: Q: Condition Skill Shortage Quality and Employability Gap Skill Shortage where regional, remote or rural locations are the primary determinant of skill or labour shortages R: 8 Education Requirement (ER) UE: University Education TQ: Trade Qualification PP: Para-professional: Diploma or Advanced Diploma C: Certificate I, II, III, or IV N: Not required Richardson, S. (2007) What is a Skills Shortage?, National Centre for Vocational Education Research. Occupational Skill Shortage Analysis – Phase One Page 19 of 80 Tasmania’s Industry Profiles Tasmania’s industry structure provides a wide range of industries and at a broad level does not differ markedly from the national industry structure. However, while Tasmania is more reliant on the production of goods rather than the delivery of services compared with the Australian economy, the difference is not significant. Goods producing industries include, as classified by ANZSIC: • • • • • Agriculture, forestry and fishing; Mining; Manufacturing; Electricity, gas and water; and Construction The remaining 12 sectors are classified as service providing industries. Despite many similarities at the broad industry sector level, due to the small size of the Tasmanian economy the State has a much narrower range of sub-sectors within each industry sector than the national economy. Differences between the Tasmanian economy and the national economy at the sub sector level include: Agriculture, forestry and fishing: Tasmania has a greater dependence on apples, stone fruits, vegetables and dairying than is the case nationally. Aquaculture is an important contributor to Tasmanian fishery production. The contribution of forestry to the Tasmanian GSP is much greater than for Australia, reflecting the large area of commercial forests in the state. Manufacturing: food processing, wood and paper products and metal products account form the bulk of Tasmanian manufactured goods. Tasmania does not possess the major manufacturing activities found in other Australian states such as car manufacturing or extensive machinery production. Government administration and community services: industry sectors such as health and community services; government administration and defence; and general government have traditionally made a greater contribution to Tasmanian GSP than the national average. The GSP contribution of each industry sector by Total Factor Income and Value Added for the 2006/07 financial year is detailed overleaf. Occupational Skill Shortage Analysis – Phase One Page 20 of 80 Industry contribution to GSP – 2006/07 - Tasmania Total Factor Income % of Rank Total $million Accommodation, cafes and restaurants 459.0 2.2% 14 Agriculture, forestry and fishing 844.0 4.0% 10 Communication services 421.0 2.0% 15 Construction 1004.0 4.8% 8 Cultural and recreational services 259.0 1.2% 17 Education 1142.0 5.4% 4 Electricity, gas and water 817.0 3.9% 11 Finance and insurance 1024.0 4.9% 7 Government administration and defence 1046.0 5.0% 6 Health and community services 1654.0 7.8% 2 Manufacturing 2721.0 12.9% 1 Mining 949.0 4.5% 9 Personal and other services 377.0 1.8% 16 Property and business services 1099.0 5.2% 5 Retail trade 1235.0 5.9% 3 Transport and storage 808.0 3.8% 12 Wholesale trade 588.0 2.8% 13 Source: ABS National Accounts 2006/07 – 5220.0 Value Added % of Rank Total $million 458.0 2.6% 14 1032.0 5.8% 7 430.0 2.4% 15 1015.0 5.7% 8 306.0 1.7% 17 990.0 5.5% 9 877.0 4.9% 11 1088.0 6.1% 5 1070.0 6.0% 6 1662.0 9.3% 2 2648.0 14.8% 1 518.0 2.9% 13 416.0 2.3% 16 1112.0 6.2% 4 1293.0 7.2% 3 929.0 5.2% 10 670.0 3.8% 12 As illustrated above, the top five sectors for 2006/07 in terms of Total Factor Income contribution to GSP were manufacturing (12.9%), health and community services (7.8%), retail trade (5.9%), education (5.4%) and property and business services (5.2%). In terms of value added contribution to Tasmanian GSP the top five industry sectors for 2006/07 were manufacturing (14.8%), health and community services (9.3%), retail trade (7.2%), property and business services (6.2%) and finance and insurance (6.1%). The below table ranks the industry sectors by employment numbers in 2006/07, projected numbers in 2014/15 and the projected growth of each industry sector by employment numbers based on the forecast percentage change from 2006/07 to 2014/15. As illustrated, the top five industry sectors are projected to remain the same: retail trade, health and community services, manufacturing, property and business services and education. However, the projected rate of growth for each industry sector differs considerably. Education, property and business services, health and community services, construction and personal and other services are projected to experience the greatest growth in employment numbers from 2006/07 to 2014/15. Occupational Skill Shortage Analysis – Phase One Page 21 of 80 Rank of Industry Sector by Employment Numbers Rank Projected Industry Accommodation, cafes and restaurants Agriculture, forestry and fishing Communication services Construction Cultural and recreational services Education Electricity, gas and water supply Finance and insurance Government administration and defence Health and community services Manufacturing Mining Personal and other services Property and business services Retail trade Transport and storage Wholesale trade Source: MONASH CGE Annual Change (%) 8 13 17 4 7 1 15 10 9 3 16 14 5 2 6 12 11 2006/07 size 7 8 17 6 13 5 15 14 9 2 3 16 11 4 1 10 12 2014/15 size (projected) 7 8 17 6 13 5 15 14 9 2 3 16 10 4 1 11 12 The actual rates of growth for each industry sector from 1998/99 to 2006/07 by employment numbers is detailed in the below table. These can be compared with the projected rates of growth for each industry sector from 2006/07 to 2014/15 by employment numbers. The changes that occurred in employment numbers by industry sector from 1998/99 to 2006/07 are relative to the significant economic turnaround experienced in Tasmania during the same period. The greatest growth occurred in the electricity, gas and water supply sector of 70.02%, indicative of the large scale infrastructure investment during that time, followed by accommodation, cafes and restaurants (45.06%), property and business services (44.47%), government administration and defence (42.93%) and cultural and recreational services (42.83%). The greatest decline in employment numbers was experienced by the communication services (postal and courier services and telecommunications services) sector of -16.19%, followed by agriculture, forestry and fishing (-11.01%) and manufacturing (-8.19%). However, from 2006/07 to 2014/15, projected rates of employment growth differ considerably, with education (20.67%), property and business services (13.83%), health and community services (13.78%), construction (11.68%) and personal and other services (10.68%) are projected to experience the greatest rates of growth in employment numbers. Declining rates of growth are projected for communication services only (-.7.12%) with manufacturing stagnating at 1.32% followed by electricity, gas and water supply (3.06%). However, it is important to note the definition of the ‘communication services’ ANZSIC category as outlined in the Methodology section on page eight. Occupational Skill Shortage Analysis – Phase One Page 22 of 80 Employment growth by ANZSIC industry sector 1998/9 to 2006/7 (actual) Total Change (%) Annual Change (%) 45.06 4.76 Agriculture, forestry and fishing -11.01 Communication services 2006/07 to 2014/15 (projected) Total Change (%) Annual Change (%) 2 7.12 0.86 8 -1.45 16 3.87 0.48 13 -16.19 -2.18 17 -7.12 -0.92 17 Construction 40.23 4.32 6 11.68 1.39 4 Cultural and recreational services 42.83 4.56 5 7.25 0.88 7 Education 16.78 1.96 9 20.67 2.38 1 Electricity, gas and water supply 70.02 6.86 1 3.06 0.38 15 Finance and insurance -3.64 -0.46 14 6.29 0.77 10 Government administration and defence 42.93 4.57 4 6.35 0.77 9 9.7 1.16 12 13.78 1.63 3 Manufacturing -8.19 -1.06 15 1.32 0.16 16 Mining 13.19 1.56 10 3.07 0.38 14 Personal and other services 26.36 2.97 7 10.68 1.28 5 Property and business services 44.47 4.71 3 13.83 1.63 2 Retail trade 5.22 0.64 13 10.28 1.23 6 Transport and storage 12.8 1.52 11 5.12 0.63 12 Wholesale trade 17.28 2.01 8 6.25 0.76 11 All industries Source: MONASH CGE 14.81 1.74 9.21 1.11 Accommodation, cafes and restaurants Health and community services Rank Rank ASCO classifications are divided into major, sub-major, minor and unit groups and are not specific to industry sectors. The below table illustrates the historical and projected growth in employment numbers by the nine major ASCO levels. From 1998/99 to 2006/07 the greatest growth in employment numbers was experienced by the associate professionals (57.26%), managers and administrators (49.44%) and advanced clerical (45.76%) level occupations. While employment growth is not projected to be as exponential as the 1998/99 to 2006/07 period, projected growth for the period 2006/07 to 2014/15 is most significant in the professional occupation levels; managers and administrators (30.08%), associate professionals (14.15%) and professionals (13.22%). Decline in employment is projected during the same period for labourers (-1.63%) and advanced clerical (-0.19%) occupation levels. Occupational Skill Shortage Analysis – Phase One Page 23 of 80 Employment growth by ASCO occupation (%) Occupation Managers and Administrators Total Change (%) 1998/9 to 2006/7 Ave Rank Change (%) 2006/7 to 2014/15 (projected) Rank Ave Total Change Change (%) (%) 49.44 5.15 2 30.08 3.34 1 Professionals 32.07 3.54 4 13.22 1.56 3 Associate Professionals 57.26 5.82 1 14.15 1.67 2 Tradespersons 16.08 1.88 5 3.94 0.48 6 Advanced Clerical 45.76 4.82 3 -0.19 -0.02 8 Intermediate Clerical/Sales -3.63 -0.46 8 9.13 1.1 4 Intermediate Production/Transport 4.26 0.52 6 6.08 0.74 5 Elementary Clerical/Sales 1.69 0.21 7 3.79 0.47 7 -11.02 -1.45 9 -1.63 -0.21 9 14.81 1.74 9.22 1.11 Labourers All occupations Source: MONASH CGE The following two tables detail the projection of employment growth and decline for the period 2006/07 to 2014/15 by ASCO at the unit level by both percentage change and actual employment number change (‘000s). The first table lists the top 50 occupations projected to increase in employment numbers during the period 2006/07 to 2014/15 by annual percentage change and projected increase by number (‘000s). The second table ranks the top 50 occupations projected to decline in employment numbers during the period 2006/07 to 2014/15 by annual percentage change and projected decline by number (‘000s). Occupational Skill Shortage Analysis – Phase One Page 24 of 80 Projected Growth by Occupation 2006/07 to 2014/15 (%) Annual Change Rank Projected Growth by Occupation 2006/07 to 2014/15 (‘000) Growth (No.) Rank ESL Teachers 7.49 1 Office Managers Office Trainees 7.09 2 Store persons 1.70 1 1.394 2 General Mechanical Engineering Trades 6.73 3 General Managers 1.267 3 General Fabrication Engineering Trades 6.56 4 General Clerks 0.997 4 General Managers 6.20 5 Livestock Farmers 0.824 5 Transport Company Managers 6.08 6 Project & Program Administration 0.779 6 Information Technology Managers 6.05 7 Bookkeepers 0.733 7 Podiatrists 5.95 8 Inquiry & Admissions Clerks 0.686 8 Customer Managers 5.94 9 Personal Care/Nursing Assist 0.610 9 Registered Mental Health Nurses 5.81 10 Secondary School Teachers 0.608 10 Nurse Managers 5.79 11 Other Elementary Service Worker 0.578 11 Commissioned Officers 5.71 12 Chefs 0.566 12 Human Resource Managers 5.69 13 Structural Steel & Welding Trades 0.542 13 Engineering Managers 5.54 14 Sales & Marketing Managers 0.541 14 Education Managers 5.52 15 Education Aides 0.538 15 Nurse Educators & Researcher 5.48 16 Sales Assistants 0.514 16 Office Managers 5.44 17 Human Resource Managers 0.487 17 Property Professionals 5.43 18 Designers & Illustrators 0.481 18 Supply & Distribution Managers 5.40 19 Truck Drivers 0.475 19 Financial Dealers & Brokers 5.39 20 Receptionists 0.457 20 Health s Managers 5.31 21 Customer Managers 0.449 21 Massage Therapists 5.31 22 Welfare & Community Workers 0.418 22 Hospitality Trainees 5.26 23 Crop Farmers 0.408 23 General Clerks 5.25 24 Accountants 0.394 24 Sales & Marketing Managers 5.17 25 Forklift Drivers 0.368 25 Computing Support Technician 5.12 26 Supply & Distribution Managers 0.363 26 Other Elementary Service Worker 5.05 27 Gardeners 0.359 27 Solid Plasterers 4.91 28 Other Mobile Plant Operators 0.326 28 Fitness Instructors Occupational & Environmental Health Professionals 4.86 29 Motor Vehicle & Related Sales 0.308 29 4.79 30 Computing Support Technician 0.308 30 Chiropractors & Osteopaths 4.77 31 Financial Dealers & Brokers 0.307 31 Other Miscellaneous Tradespersons 4.76 32 Intermediate Inspectors/Examiner 0.304 32 Medical Technical Officers 4.64 33 Other Miscellaneous Labourers 0.303 33 Personal Care/Nursing Assistant 4.64 34 0.301 34 Ambulance Officers/Paramedic 4.60 35 Production Managers Environmental & Agriculture Science Professionals 0.294 35 Other Mobile Plant Operators 4.55 36 Nurse Managers 0.286 36 Other Business/Information Professionals 4.53 37 Checkout Operators 0.284 37 Other Food Tradespersons 4.52 38 Other Food Tradespersons 0.280 38 Designers & Illustrators 4.46 39 Waiters 0.278 39 Urban & Regional Planners 4.46 40 Education Managers 0.277 40 Structural Steel Construction Workers 4.39 41 Human Resource Professionals 0.269 41 Welfare & Community Workers 4.30 42 Children's Care Workers 0.267 42 Jewellers & Related Trades 4.24 43 Guards & Security Officers 0.233 43 Project & Program Administration 4.22 44 Restaurant/Catering Managers 0.227 44 Domestic Housekeepers 4.15 45 Marketing/Advertising Professionals 0.227 45 Vehicle Body Makers 4.06 46 Primary School Teachers 0.225 46 Psychologists 3.98 47 Handypersons 0.215 47 Registered Midwives Other Building & Engineering Professionals 3.95 48 Fitness Instructors 0.204 48 3.93 49 Other Miscellaneous Tradespersons 0.197 49 Author’s note: Forecasts for numbers in a small number of occupations used as data in this report may be counter-intuitive and may not be consistent with my or the Government’s views on likely future directions but have been retained for consistency in method. Published: July 2008 Crop Farmers 3.92 50 Information Technology Managers 0.193 50 Source: MONASH CGE Projected Decline by Occupation 2006/07 to 2014/15 (%) Annual Rank Change Desktop Publishing Operators -33.93 Projected Decline by Occupation 2006/07 to 2014/15 (‘000) Decline Rank (No.) 1 Accounting Clerks -1.021 1 Engine & Boiler Operators -24.83 2 Farm Hands -0.851 2 Ushers, Porters -15.51 3 Secretaries & Personal Assistants -0.782 3 Switchboard Operators -13.61 4 Keyboard Operators -0.714 4 Sales Demonstrators & Models -12.5 5 Shop Managers -0.548 5 Screen Printers -12.5 6 Engineering Production Systems Worker -0.529 6 7 Company Secretaries -11.67 7 Mixed Crop/Livestock Farmers -0.34 Metal Casting Tradespersons -11.51 8 Street Vendors -0.33 8 Footwear Tradespersons -11.49 9 Mobile Construction Plant Operators -0.312 9 Street Vendors -11.32 10 TCF Production Machine Operators -0.286 10 TCF Production Machine Operators -11.24 11 Travel & Tourism Agents -0.28 11 Keyboard Operators -9.56 12 Registered Nurses -0.27 12 Photo Developers & Printers -9.22 13 Cooks -0.247 13 Engineering Production Systems Workers -8.66 14 Laundry Workers -0.239 14 Mixed Crop/Livestock Farmers -8.5 15 Science Technical Officers -0.234 15 Betting Clerks -8.41 16 Forestry & Logging Workers -0.216 16 Rubber Production Machine Operators -7.82 17 Bank Workers -0.21 17 Graphic Pre-Press Trades -7.76 18 Other Manufacturing Supervisors -0.208 18 Sea Transport Professionals -7.56 19 Paving & Surfacing Labourers -0.176 19 Mail Sorting Clerks -7.51 20 Communications Tradespersons -0.175 20 Accounting Clerks -6.97 21 Hotel & Motel Managers -0.173 21 Other Wood Tradespersons -6.84 22 Wood Products Factory Hands -0.172 22 Paving & Surfacing Labourers -6.47 23 GPs Wood Machinists & Turners -6.37 24 Civil Engineering Associate Professionals -6.15 25 Engine & Boiler Operators Branch Accountant and Financial Institution Managers -0.14 23 -0.138 24 -0.136 25 Library Assistants -5.93 26 Pulp & Paper Mill Operators -0.128 26 Bank Workers Mechanical Engineering Associate Professionals -5.88 27 Real Estate Associate Professionals -0.128 27 -5.34 28 Nursery & Garden Labourers -0.118 28 Secretaries & Personal Assistants -5.27 29 Personnel Clerks -0.11 29 Garbage Collectors -5.26 30 Switchboard Operators -0.11 30 Branch Financial Institution Managers -5.24 31 Painters & Decorators -0.11 31 Laundry Workers -5.09 32 Sea Transport Professionals -0.103 32 Chemical Production Machine Operators Other Natural & Physical Science Professionals -5.07 33 Messengers -0.093 33 -5.03 34 Other Hospitality Managers -0.092 34 Bricklayers -4.99 35 Meat Tradespersons -0.088 35 Metal Finishing Tradesperson -4.98 36 Betting Clerks -0.086 36 Forging Tradespersons -4.94 37 Metal Casting Tradespersons -0.085 37 Personnel Clerks -4.88 38 Geologists & Geophysicists -0.082 38 Sewing Machinists -4.87 39 Seafarers & Fishing Hands -0.078 39 Economists -4.82 40 Print Machine & Small Offset Printers -0.077 40 Communications Tradespersons -4.76 41 Product Quality Controllers -0.075 41 Seafarers & Fishing Hands -4.62 42 Metal Fitters & Machinists -0.073 42 Farm Hands -4.58 43 Food Trades Assistants -0.07 43 Science Technical Officers -4.58 44 Ticket Salespersons -0.064 44 -0.062 45 -0.06 46 Senior Fire Fighters -4.49 45 Fibrous Plasterers Forestry & Logging Workers -4.48 46 Civil Engineering Associate Professional Pulp & Paper Mill Operators -4.42 47 Technical Sales Representatives -0.059 47 Production Recording Clerks -4.19 48 Registry & Filing Clerks -0.058 48 Travel & Tourism Agents -4.09 49 Meat & Fish Process Workers -0.057 49 Occupational Skill Shortage Analysis – Phase One Page 26 of 80 Roof Slaters & Tilers -3.74 50 Sheetmetal Tradespersons -0.057 50 Source: MONASH CGE Accommodation, cafes and restaurants As the ANZSIC category name suggests, ‘accommodation, cafes and restaurants’ comprises ‘accommodation, cafes and restaurants’ and incorporates the hospitality and tourism sectors in Tasmania. 2006/07 2014/15 (projected) This Industry Employment (No.) 14,380 15,403 All Industry Employment (No.) 223,155 243,706 % of Total Employed 6.44 6.32 Rank (size) 7 7 Growth (%) 45.06 15.4 2 8 Rank (% growth) Source: MONASH CGE In 2006/07 the accommodation, cafes and restaurant sector was the 7th highest employing sector in Tasmania with 14,380 people. Between 1998/99 and 2006/07, employment increased by 45.06 per cent in total or 4.76 per cent per annum, ranking the second fastest rate of growth in employment numbers. Employment in the accommodation, cafes and restaurant sector is projected to increase by a further 15.4% by 2014/15. While the accommodation, cafes and restaurants sector is a large employing sector in Tasmania, it is not a significant contributor to Tasmanian GSP with Total Factor Income contribution 2.2% (rank 14) and value added contribution 2.6% (rank 14). Occupational Shortages Consultation with the Australian Hotels Association (AHA), the Restaurant and Caterers Association Tasmania (RCAT), the Baking Industry Association of Tasmania (BIAT) and the Tourism Industry Council of Tasmania (TICT) identifies significant occupational skill and labour shortages throughout the industry, extremely evident in regional locations and exacerbated by the seasonal nature of the industry sector. Occupational Skill Shortage Analysis – Phase One Sustained strong growth in the tourism sector and changes in visitor expectations, has led to an increase in demand for occupations in the tourism sector to focus on quality of product and service delivery. The industry associations report that there is a significant lack of people willing and able to work in the tourism, accommodation, café and restaurant sector which puts pressure on the ability of the sector to operate effectively. In a strong economy with an ageing population, the demand for labour across all industries is increasing. The industry associations report that working in the tourism sector is often perceived to be of lower status than other industries and therefore has difficulty attracting and retaining staff. In addition, turnover and attrition within the hospitality and tourism sector is traditionally high, exacerbated by Tasmania’s seasonality. The industry associations report that working in the tourism and hospitality sector is perceived to have limited career opportunities, low pay, highly casualised and unattractive working conditions. It is reported that the most critical issue in terms of skill shortages is the emphasis on the need for employability skills in the hospitality and tourism sector, particularly given the increase in expectations and sophistication of visitors to Tasmania. Given the type of work undertaken; personality, communication abilities, attitude, work ethic, a friendly nature and a willingness to work outside ‘normal’ working hours is imperative, however, difficult to find in Tasmania. Occupations Not in Short Supply Industry advises that all hospitality occupations are facing some sort of Page 27 of 80 shortage be it skills or labour, however the lower skilled occupations such as housekeeping and kitchen hands are not as severe in terms of shortage comparatively. According to industry, the hospitality sector in Tasmania is facing a plateau in regard to growth and inbound tourism is expected to slow. So therefore, even with minimal growth, occupational demands should be adequately met by training completions. The emphasis therefore needs to be on attracting people to work in the sector as a career choice. Specific Occupational Shortages Occupation Baker Chef Cook Food and Beverage Wait staff Front of House Gaming attendants Hotel Service Supervisors Hotel/Motel Managers Pastry Cook Nature L2, C, Q L2, C, Q L2, C, Q L3, C, Q ER TQ TQ TQ C L3, C, Q L3, C, Q L2, C, Q L2, C, Q L2, C, Q C C C UE/PP TQ Restaurant and Catering Managers L2, C, Q C Impact of Occupational Shortages The lack of people willing and able to work in the tourism and hospitality sector threatens the ability of the industry to operate effectively, particularly as many of the businesses in the sector are small to medium enterprises (SMEs). The viability of individual businesses is severely threatened by these occupational shortages. There is also a significant impact on supporting industries in the cluster such as food and beverage providers, launderers and other feeder businesses. Occupational shortages therefore can have a negative impact on the supply chain in the sector. In addition, given the significant contribution of the tourism and hospitality sector to the Tasmania economy, the occupational shortages experienced by the industry also could significantly impact on the Tasmanian Brand. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Chefs Waiters Other Elementary Service Worker Bar Attendants Restaurant/Catering Managers Office Managers Other Miscellaneous Labourers Receptionists General Managers Handy persons Occupational Skill Shortage Analysis – Phase One Total Change (%) 26.88 8.98 48.34 11.62 14.50 52.83 35.42 11.6 61.79 27.84 Average Annual Change (%) 3.02 1.08 5.05 1.38 1.71 5.44 3.86 1.38 6.20 3.12 All Industries Rank 84 155 27 141 128 17 52 143 5 93 Employed (No.) 2,672 3,375 1,776 1,344 1,792 4,919 1,157 4,398 3,318 924 Page 28 of 80 Source: MONASH CGE Agriculture, forestry and fishing The agriculture, forestry and fishing sector comprises agriculture, services to agriculture; hunting and trapping, forestry and logging and commercial fishing, including aquaculture. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed Rank (size) Growth (%) Rank (% growth) 14,374 223,155 6.44 8 -11.01 16 2014/15 (projected) 14,930 243,706 6.12 8 3.87 13 Source: MONASH CGE In 2006/07 the agriculture, forestry and fishing sector employed 14,374 people in Tasmania, however experienced negative growth of -11.01% for the period 1998/99 to 2006/07. By 2014/15 employment in the agriculture, forestry and fishing sector is projected to grow marginally by 3.87% to 14,930 employees, or 6.12% of the total working population. In addition to being a moderate employing sector, the agriculture, forestry and fishing sector is also a moderate contributor to Tasmanian GSP with Total Factor Income contribution of 4.0% (rank 10) and value added contribution 5.8% (rank 7). Occupational Shortages Agriculture Industry Consultation with the Food Industry Council of Tasmania (FICT), representing grazing, vegetable, fruit, dairy and poppy sectors advises both skill and labour shortages. Businesses in the agricultural or primary industry sector are predominantly family businesses located in rural, regional or remote areas. Smaller families, a lack of interest by the next generation and the perception of hard physical work for uncertain returns as well as the increased technical nature of the industry deter people following a career path in the sector. Occupational Skill Shortage Analysis – Phase One Where previously high unemployment levels provided access to reliable people to fill the seasonal job vacancies in the agricultural sector, low unemployment levels restricts access to those unable to get full-time work, often the ‘lower quality’ staff. Seasonable labour for peak production times, with picking, packing and handling procedures requires an understanding of OH&S issues (bending and handling etc) and experience in grading of fruit and vegetables. In addition, peak casual labour requirements around summer for harvesting of fruits and vegetables occur at a time when tourism and retail are also looking for large numbers of casual staff. Further challenges for the agricultural sector include such issues as transport, accommodation and pay rates. Research undertaken by Caroline Brown 9 has indicated that there are limited job opportunities available in certain professional capacities in the agricultural sector in Tasmania. The locations of the professional based jobs are in city locations and therefore regional areas appear to not be attracting a higher level of skills. Brown states that it is clear from her quantitative research conducted that there is not a lack of job opportunities in primary industries in Tasmania, there is a lack of a certain type of job opportunity. Whilst the job advertisements explored in her research did not state a preference for a particular age group, the research reveals that fifty one percent of the jobs on offer in Tasmania were offered on a full time basis with part time work replaced by fixed term contracts or casual work. The findings of Brown’s research revealed that with the least advertised full time occupations in the 9 Caroline Brown is Program Leader (Women in Rural Industries) in DPIW and has recently completed a Masters degree researching rural careers and young people in Tasmania. Page 29 of 80 categories of professional, management and administration being evident, the lack of opportunity to bring a diverse social base to the primary industry sector in a rural community is evident. The research demonstrated that more labourer jobs are available than professional based opportunities. If young people are not seeking these jobs, as they do not perceive them as opportunities, then this creates a challenge for the primary industry sector. comparable with other industries of a similar remuneration and nature of employment. According to Brown’s research the challenge for the primary industry sector is attracting people to want to work in the industry despite a lack of opportunities for a career path in a professional capacity. Due to the complex nature of the industry sector it has previously been difficult to match training and skill development needs with industry demands, however the recent development of a new training package for the forestry industry now addresses these issues. Forestry Industry The Tasmanian forestry is experiencing continual change as a result of changing technology, expansion of eucalypt plantations and changed access to native forests as well as being a cyclical industry affected by market demand and prices. These changes also affect the number and types of occupations in the industry. Wood and paper processes employ a large proportion of the workforce as do silviculture, harvest and haulage contractors. A significantly high proportion of the forestry related workforce is in the consulting and contractor services predominantly made up of SMEs which reflects the changing nature of the industry. However, it is likely that future changes in the sector will see the consolidation of harvester and haulage contractors, with smaller contractors absorbed for productivity and efficiency gains purposes. Consultation with the Forests and Forest Industry Council advises skill and labour shortages across the industry sector. While the industry recognises the general competition for skill and labour in Tasmania, a number of additional factors affect the forestry industry in attracting and retaining skills in the sector. The forestry industry is a highly politicised sector which affects the ability to attract new, younger entrants to the industry. In addition, the levels of remuneration or potential profit are not Occupational Skill Shortage Analysis – Phase One In Tasmania, however, the forestry industry sector is attracting and realising significant investment in value added manufacturing processes. This increase in valued added manufacturing will influence the demand for specific skills and occupations, particularly in qualified valued added processing workers and plantation harvesters. Fishing Industry Consultation was undertaken with the Tasmanian Fishing Industry Council (TFIC) which represents the wild fisheries, aquaculture, shellfish and processing sectors of the fishing industry. TFIC advises that occupational shortages exist in the fishing industry in Tasmania, most critically in the regional areas. The TFIC advised that significant change has occurred within the industry in recent years that has resulted in the contraction and consolidation of the industry. Occupational shortages in the fishing industry are a result of an ageing demographic within the industry with very few young people entering the fishing industry combined with the perception that the work is insecure, physically demanding and provides unattractive working conditions. In addition, the work is highly casualised and at times seasonal in nature. Predominantly, occupations within the fishing industry do not require formal qualifications and are labour intensive. The fishing industry, like many other industries in Tasmania, is struggling to compete with the higher paying, similarly physically demanding opportunities being offered in Western Australia and Queensland. Page 30 of 80 The increasing demand for environmental and food safety requirements, particularly for export of product, has placed greater need for technically qualified occupations within the industry. However, enrolments with the school of aquaculture have decreased considerably, in 2007 there were just 10 enrolments. The extent of this issue is yet to be fully realised with the school of aquaculture being absorbed by the AMC, resulting from the merger between UTAS and the AMC. The fishing industry is addressing these occupational shortages through increasing efficiencies through investment in capital, particularly machinery and equipment, however, the TFIC anticipates this investment will introduce demand for new skill sets including more highly qualified and experienced personnel like engineers. Specific Occupational Shortages Occupation Boiler maker/welders Chemical Engineers Cow milkers Dairy workers Deckhands Diesel mechanics Farm workers Financial Controllers Fish Feeders Foresters Heavy machinery operators Maintenance workers Marine Engine Drivers Mechanical Engineers Operations managers Pickers Quality Assurance officers Shearers Shipwrights Slaughtermen Supervisors Team leaders Technical officers Transport drivers Truck Drivers Work crew Nature L2, Q, C L1 L3 L3, R, C L3, Q, C, R L2, Q, C L3 L2 L2, Q, C, R L1 L3 L3, Q, C L2, Q, C L2 L2, Q, C L3, R, C L2 L3 L2 L3 L3, R, C L2, Q, C L2, Q, C L3 L3 L3, Q, C, R ER TQ UE C C N TQ C UE C UE C TQ TQ UE TQ/UE N UE/PP C TQ C C UE UE C C N Occupations Not in Short Supply Occupational Skill Shortage Analysis – Phase One Agriculture Industry While access to processing workers and general labour is not in short supply, the time, effort and resources undertaken to prepare employees to work readiness stage has increased considerably in recent years. Forestry Industry The forestry industry advises no shortages are evident in the general low skilled processing occupations for wood, paper and pulp. Fishing Industry Occupational shortages do not exist in the more densely populated areas of Tasmania for labour such as work crews and deck hands. Administrative personnel are also not in short supply, however not always to the quality standard required. Impact of Occupational Shortages Agriculture Industry The agriculture sector reports the increasing inability to carry out farm operations due to lack of available labour. The greatest impact is being experienced in the north west of the state with grazing industries were experiencing the most problems, followed by dairy and vegetable industries. In addition, lack of access to labour will result in reduced investment in the Tasmanian agricultural sector and the possible relocating of value-adding processes to interstate or overseas locations. Forestry Industry Occupational and skill shortages in the forestry industry affect the productivity, production and profitability of organisations in the sector, in addition to increasing public risk. Most significantly, skill shortages affect the quality of wood, paper and pulp products. The political nature of the forestry industry sector affects the reputation, morale and motivation of the existing workforce on a personal level which has considerable impacts on the employing organisation. Fishing Industry The lack of people willing and able to work in the fishing industry threatens the viability Page 31 of 80 of the sector into the future and constrains of the fishing industry will be relocated out future growth. Should the shortage worsen, of Tasmania. This will be a significant loss it is likely that the value adding component to the Tasmanian economy and community. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Livestock Farmers Crop Farmers Other Mobile Plant Operators Environmental & Agriculture Science Professionals Truck Drivers Office Managers Aquaculture Farmers General Managers Project & Program Administration General Clerks Total Change (%) 23.42 36.01 42.75 Average Annual Change (%) 2.67 3.92 4.55 22.88 11.61 52.83 34.86 61.79 39.17 50.62 2.61 1.38 5.44 3.81 6.2 4.22 5.25 All Industries Rank 91 50 36 94 Employed (No.) 4340 1,542 1,008 1,577 142 17 54 5 44 24 4,556 4,919 280 3,318 2,768 2,965 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 32 of 80 Communications services The ANZSIC category ‘Communications services’ comprises postal and courier services and telecommunications services. It is important to note that ‘communications services’ does not exist as a category in the 2006 version of the ANZSIC codes. ‘Communications services’ inadequately represents the services which are represented in the 2006 ANZSIC categories of ‘information media and telecommunications’ and ‘professional, scientific and technical services’. For this reason, projections in this report for industry and occupational growth are not truly representative of the information, communication and technology sector. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 2,533 2,353 223,155 243,706 1.13 0.96 Rank (size) 17 17 Growth (%) -16.19 -7.12 17 17 Rank (% growth) Source: MONASH CGE In 2006/07 the communications services sector employed 2,533 people in Tasmania, representing 1.13% of the working population. Communications services experienced negative growth from 1998/99 to 2006/07 of -16.19% and is projected to continue negative growth to 2014/15. The communications sector is ranked as the smallest employing industry and the slowest growing sector in Tasmania in 2006/07 and is also projected to be the smallest employing industry and slowest growing sector in 2014/15. As well as being a low employing sector in Tasmania, the communication services sector is a minimal contributor to Tasmanian GSP. Total Factor Income contribution to GSP in 2006/07 was 2.0% (rank 15) and Value Added 2.4% (rank 15). Occupational Skill Shortage Analysis – Phase One For the purposes of this Occupational Skills Shortage Analysis, ICT skill and labour shortages will be considered in the communications sector of the ANZSIC industry classification system. Occupational Shortages Anecdotal evidence provided by employing organisations of postal and courier services suggest little difficulty in recruiting for occupations within this sub-sector of the communications services industry. However, the cyclical nature of some of the occupations and the subsequent need for short term or casual contracts creates challenges at times for the sub-sector. Response from the survey distributed by TasICT to members (Appendix D) identified a significant occupational skill shortage in Tasmania, particularly in experienced software engineers and specialist programmers. These shortages are caused by a number of factors, including: • Rapid increase in demand • Highly competitive labour market • Lack of graduates with commercially useful skills • Low level remuneration • High level exodus to interstate opportunities • Little inflow of skills from outside Tasmania • Insufficient government support for technology industries • Poor marketing of ICT as a career option • Traditional education programs do not adapt quickly enough to fast-paced industry and rapidly changing technology • No defined career path or widely recognised professional certification or regulatory requirement. Demand for ICT related occupations will continue to experience growth due to increased investment by both the public and Page 33 of 80 private sectors in productivity and efficiency, predominantly supported by information technology and communications infrastructure. These shortages affect the ability of the industry to adequately service existing clients, let alone expand business, which therefore limits growth opportunities. Occupations Not in Short Supply The communications services industry sector has access to an adequate supply of, drivers, couriers and administrative and support staff that are predominantly low skilled. As an enabling industry sector, occupational shortages in the ICT sector impact significantly on other industries in Tasmania. Impact of Occupational Shortages The ICT industry advises that this severe occupational skill shortage is already impacting on the industry and the wider business community in Tasmania, to the point that the sustainability of a viable ICT industry in Tasmania is threatened. Occupation Audio visual technicians Business Analysts Business Development Managers IT Systems engineers IT technicians Programming specialists (.NET, C#, Java etc) experienced Software engineers Telecommunications technicians Skill shortages are resulting in increased labour costs, a slow down in industry development, and significant increases in time to market for new products. Specific Occupational Shortages Nature L2 L2 L2 ER UE UE UE L2 L2 L2 UE UE UE L2 L2 UE UE Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Customer Service Managers Inquiry & Admissions Clerks Delivery Drivers Information Technology Managers Human Resource Managers General Managers Supply & Distribution Managers Computing Support Technician Project & Program Administration General Clerks Total Change (%) 58.66 18.19 9.66 59.98 55.67 61.79 52.28 49.06 39.17 50.62 Average Annual Change (%) 5.94 2.11 1.16 6.05 5.69 6.2 5.4 5.12 4.22 5.25 All Industries Rank 9 112 152 7 13 5 19 26 44 24 Employed (No.) 1,213 4,455 1,355 516 1,362 3,318 1,059 935 2,768 2,965 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 34 of 80 Construction The construction industry sector comprises general construction and construction trade services, including site preparation, structural, installation and building completion services. 2006/07 2014/15 (projected) This Industry Employment (No.) 16,538 18,470 All Industry Employment (No.) 223,155 243,706 % of Total Employed 7.40 7.58 Rank (size) 6 6 Growth (%) 40.23 11.68 6 4 Rank (% growth) Source: MONASH CGE In 2006/07 the construction sector employed 16,538 people in Tasmania and experienced significant growth in employment from 1998/99 to 2006/07 of 40.23%. This is reflective of the economic turnaround during that period and subsequent increase in private and public infrastructure investment. Employment in the construction sector is projected to continue growing to 2014/15, albeit not at the same strong rate. Even so, it is projected to be the fourth fastest employing sector growth of 11.68%. In addition to being a moderate employing sector, the construction industry is also a moderate contributor to Tasmanian GSP. Total Factor Income contributed 4.8% (rank 8) and Value Added contributed 5.7% (rank 8) to GSP in 2006/07. Occupational Shortages Consultation with the Building and Construction Industry Council and Training Board, the Master Plumbers Association (MPA) the Master Builders Association (MBA) and Local Government indicated the sector is experiencing both skill and labour shortages. According to the State of Building Excellence Report produced by the TBCITB there is a shortage in the number of employees, those with critical skills and site management personnel. Specifically in the Occupational Skill Shortage Analysis – Phase One industry there is an inability to recruit and retain new employees in areas where hard physical effort is required and also in attracting operational personnel with the ability and capability in supervisory and/or management roles. The MBA believes the cyclical nature of the construction industry combined with the lack of investment in training in the past, the large number of micro businesses in Tasmania and the lack of long term planning has resulted in the occupational shortages being experienced today. This was exacerbated by the virtually unanticipated exponential growth in demand in the early 2000s, which will be ongoing for some time. In addition, there is a high proportion of people working in the industry who are not formally qualified. The TBCITB has identified that the contributing factors to these shortages include: • Lack of applicants with the skills required with the right attitude and the right qualifications • Labour market competition • Relatively unattractive wage and employment conditions • Nature of the building industry – physical, cyclical, dirty etc • Ageing workforce not being replaced • Industry sector not viewed as a career option • Lack of on-the-job training opportunities. In addition to the traditional trade and skill shortages, the MBA identifies a growing need for skill sets in non-traditional occupations as a result of innovation, technology and the introduction of new products into the construction industry. Demand for specialist sub-trades is likely to increase particularly in areas of concreting, rendering, tiling, bricklaying, glazing and stonework. As a result combined occupations will be increasing in demand. Also due to changes in technology and innovation many of the traditional trade training courses are now outdated and do Page 35 of 80 not match current and future industry requirements. fastest rate of 10.38% from 2006/07 to 2014/15. In addition, industry suggests that training has reached its capacity and it is difficult to increase the current numbers being trained due to the need for experienced trades people to supervise apprentices and the limitations this places on the number of apprentices that can be trained. Specific Occupational Shortages Large construction projects such as the proposed pulp mill and the new Royal Hobart Hospital will sustain demand for building and construction occupations and skill sets well into the future. Local Government Local Government advises that the strength of the construction industry in Tasmania is severely impacting on local government’s ability to attract, recruit and retain employees. Local Government is unable to compete with the remuneration offered in the private sector and therefore has difficulty recruiting a range of occupations in the construction sector including engineers, building inspectors, planning officers and management and supervisor staff in these occupations. Labour Hire It is important to note that the employment numbers and the contribution of the construction industry sector to the Tasmanian economy may be considerably distorted as a result of labour hire companies. Labour hire companies are classified as being in the ‘property and business services’ ANZSIC industry sector. There is evidence of significant growth in the utilisation of labour hire companies to employ a wide range of trades, particularly those in the construction and manufacturing industries. It is highly likely that a significant proportion of the property and business services employment growth includes trades people who are subsequently hired out to work in the construction industry sector. Employment in the property and business services industry sector increased by 44.47% from 1998/99 to 2006/07 and was ranked third of all industry sectors. Employment in the property and business services is projected to grow at the second Occupational Skill Shortage Analysis – Phase One Occupation Architects and Landscape Architects Bricklayers Building and Engineering Professionals Building Inspectors Building Surveyors Building, Architectural and Surveying Associate Professionals Carpenters and Joiners Civil Engineers Concreters Construction and Plumbing Assistants Construction Managers Crane, hoist and lift operators Earthmoving Labourers Electrical and Telecommunications Trades Assistants Electricians Engineering production systems workers Fibrous Plasterers Floor Finishers Foremen/Site Supervisors Grader drivers Insulation and Home Improvement Installers Mobile construction plant operators Other Building and Engineering Associate Professionals Other mining, construction and related labourers Painters and Decorators Planning officers Project Managers Quantity Surveyors Roof Slaters and Tilers Signwriters Solid Plasterers Stonemasons Structural Construction Tradespersons Structural steel construction workers Town Planners Wall and Floor Tilers Nature L2 ER UE L2 L2 C/TQ UE L2, C L2, C L2 UE UE UE L2 L2 L2 L3 TQ UE TQ C L2 L3 L3 L3 TQ C N C L2 L3 TQ TQ L2 L2 L2 L3 L2 TQ TQ TQ C TQ L3 C L2 UE L3 C/N L2 L2 L2 L2 L2 L2 L2 L2 L2 TQ UE TQ/U E UE TQ TQ TQ TQ TQ L3 TQ L1 L2 UE TQ Page 36 of 80 Occupations Not in Short Supply The MPA believes that the plumbing industry is not experiencing an occupational skill shortage, provided around 47 plumbers complete their trade qualification each year (and work in the industry) and that two thirds of entrants remain general plumbers and the remaining third specialist plumbers, predominantly roof plumbers. The MPA believes there may be an oversupply of gas workers and fitters due to previous over investment and promotion of gas in Tasmania. However, consumer sentiment would disagree. Impact of Occupational Shortages The greatest impact of occupational skill shortages for the construction industry is increased costs, constraint on business and industry growth and the impact on the client including time delays and pricing. Other Issues The MPA is awaiting the release of the new Occupational Licensing Act in July 2008 which may introduce additional skill set requirements for the plumbing industry, for example water, waste or environmental specialisations which will require significant investment in training and assessment. In addition to plumbers, there is also an adequate supply of non-qualified labourers in the construction industry. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Office Managers Bookkeepers Carpentry & Joinery Trades Glass Tradespersons Structural Steel & Welding Trades Plumbers Electricians General Managers Concreters Building, Architect & Survey Associate Professionals Occupational Skill Shortage Analysis – Phase One Total Change (%) 52.83 29.16 5.8 24.27 24.86 8.36 1.28 61.79 20.88 Average Annual Change (%) 5.44 3.25 0.71 2.75 2.81 1.01 0.16 6.2 2.4 All Industries Rank 17 73 174 90 88 158 197 5 100 Employed (No.) 4,919 3,246 3,296 919 2,725 1,465 2,935 3,318 635 19.84 1.14 105 1,153 Page 37 of 80 Cultural and recreational services The cultural and recreational services sector comprises motion picture, radio and television services, libraries, museums and the arts as well as sport and recreation. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 6,309 6,766 223,155 243,706 2.82 2.77 Rank (size) 13 13 Growth (%) 42.83 7.25 5 7 Rank (% growth) Source: MONASH CGE In 2006/07 the cultural and recreational services sector employed 6,309 people in Tasmania. The sector had experienced significant growth in employment from 1998/99 to 2006/07 of 42.83%. This growth is projected to continue to 2014/15 however not at the same significant rate. The cultural and recreation services sector is not a significant employing sector in the Tasmania, with only 2.77% of the employed population projected to be working in the cultural and recreational services sector in 2014/15. In addition to being a small employing sector in Tasmania, the cultural and recreational services industry is not a significant contributor to GSP, ranking 17 out of 17 for both Total Factor Income (1.2%) and Value Added (1.7%) contribution to Tasmanian GSP in 2006/07. Occupational Shortages The cultural and recreational services sector is diverse in nature. Comprising private enterprises, government bodies, notfor-profit organisations and clubs and associations, it is not surprising that the industry sector is experiencing occupational shortages for varying reasons and to varying degrees. For not-for-profit organisations and clubs and associations where budgets are determined by membership bases and/or grants received, attracting skilled Occupational Skill Shortage Analysis – Phase One occupations is challenged by the inability to match remuneration to the private sector in the highly competitive labour market. These organisations must appeal to those participants in the labour market not solely motivated by financial means. Given the size of Tasmania, while some of the occupations within the cultural and recreational services industry sector are highly skilled and specialised, the volume of numbers required is not significant. For this reason, many of the specific skill sets required, particularly in motion pictures, production in television and radio services and museums are not readily available in Tasmania and therefore take time to attract and recruit. Specific Occupational Shortages Occupation Account Managers Arts administrators Jockeys Journalists Personal Trainers Production managers Project/program managers Sales representatives Sports administrators Stablehands Sub-editors Trackwork riders Nature L3 L1 L3 L2 L2 L2 L2 L3, C L2 L3, C L2, C L3, C ER N UE TQ UE C UE UE C UE C UE C Occupations not in Short Supply Anecdotal evidence suggests that no occupational shortages exist in the cultural and recreational services industry sector in graphic design related occupations as well as administrative personnel. Impact of Occupational Shortages There are increasingly long vacancy periods for occupations in the cultural and recreational services sector which impacts on the ability of organisations to meet market demand, inhibits growth and infrastructure investment. In addition, for the not-for-profit organisations and clubs and associations sub-sector the impact of skill shortages is Page 38 of 80 the inability to adequately provide services to the community and an increasing dependence on volunteers. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Fitness Instructors Library Technicians General Managers Designers & Illustrators Human Resource Managers Other Professionals Sport & Recreation Managers Journalists & Related Professionals Other Miscellaneous Labourers Office Managers Total Change (%) 46.14 29.23 61.79 41.79 55.67 31.78 20.98 20.18 35.42 52.83 Average Annual Change (%) 4.86 3.26 6.2 4.46 5.69 3.51 2.41 2.32 3.86 5.44 All Industries Rank 29 72 5 39 13 63 99 104 52 17 Employed (No.) 576 716 3,318 1,631 1,362 617 260 544 1,157 4,919 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 39 of 80 Education The education sector comprises pre-school, school, post-school and other education services. 2006/07 2014/15 (projected) This Industry Employment (No.) 16,944 20,455 All Industry Employment (No.) 223,155 243,706 7.59 8.39 % of Total Employed Rank (size) 5 5 Growth (%) 16.78 20.67 9 1 Rank (% growth) Source: MONASH CGE The education sector is a significant employing sector in Tasmania with 16,944 people employed in 2006/07 (7.59% of the total working population) following substantial growth of 16.78% since 1998/99. Employment in the education sector is projected to grow at the fastest rate of all sectors in Tasmania to 2014/15 at 20.67%. Projected employment in the education sector 2014/15 is 20,455, representing 8.39% of the working population. While the education industry is a large employing sector in Tasmania, it is also a significant contributor to the Tasmanian GSP. Total Factor Income contributed 5.4% (rank 4) and Value Added 5.5% (rank 9) to GSP in 2006/07. Occupational Shortages School Systems While the schooling sector is projected to experience a decline in student enrolments in the Tasmanian state school sector as a result of demographic change 10 , this demographic change will also result in large numbers of school teachers retiring from the workforce. For the education and schooling sector, this presents significant challenges as many of the occupations in short supply are those with specialised skills which are also in demand in the primary industry sector to which the occupations apply. This results in the inability to attract interest in working in the education sector. Vocational Education The current economic climate and industry wide skill shortages, particularly in the construction and manufacturing sectors, presents significant challenges for the vocational education sector to attract teachers of traditional and non-traditional trades. This is predominantly due to the remuneration received by working directly in the relevant industry, compared with a teaching salary, and despite the comparatively attractive employment conditions. This economic growth and demand also results in a direct increase in demand for vocational education and training delivery and assessment as a direct result of increasing numbers undertaking apprenticeships and traineeships. This further exacerbates the occupational skill shortages. The changing demographic profile and ageing of the Tasmanian population has two direct implications for the education sector. Firstly, there will be an increase in the requirement of community care and health services and therefore a direct increase in the requirement for training providers. Secondly, an ageing workforce and population will impact on the vocational education sector with a significant number of teachers projected to retire in the short to medium term. This ageing of the workforce results in competition among all industries for entry into the sector by the younger generations. 10 Demographic Change Advisory Council, Tasmanian Demographic Change: impact on state schools, Discussion Paper, April 2008. Occupational Skill Shortage Analysis – Phase One Page 40 of 80 Occupations not in Short Supply Consultation identified a number of occupations that are not in short supply in the education industry sector including: • Primary teachers • Social workers • Grounds staff • Administrative personnel • ESL Teachers • General Secondary Teachers • Principals Impact of Occupational Shortages In the schooling sector, occupational shortages require schools to reconsider what educational programs can be offered and how to group and support the students Specific Occupational Shortages Occupation Educators Secondary Teachers – specialised subjects Special Needs Support Staff (eg Teachers Aides) Special Needs Teachers Speech and Language Pathologists Trainers and Assessors Vocational Teachers – specific skill sets Nature L2 L2, C ER UE UE L3 C L2 L1, C UE UE L3 L2 C/TQ TQ/C Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Secondary School Teachers Education Aides Education Managers Primary School Teachers General Clerks Project & Program Administration Office Managers University Lecturers & Tutors Library Technicians Pre-Primary School Teachers Total Change (%) 16.38 31.18 53.76 7.67 50.62 39.17 52.83 14.25 29.23 29.59 Average Annual Change (%) 1.91 3.45 5.52 0.93 5.25 4.22 5.44 1.68 3.26 3.29 All Industries Rank 120 67 15 161 24 44 17 132 72 69 Employed (No.) 4,318 2,266 793 3,162 2,965 2,768 4,919 790 716 408 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 41 of 80 Electricity, gas and water supply The electricity, gas and water supply sector comprises electricity, gas and water supply as well as sewerage and drainage services. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 2,934 3,024 223,155 243,706 1.31 1.24 Rank (size) 15 15 Growth (%) 70.02 3.06 1 15 Rank (% growth) Source: MONASH CGE The period 1998/99 to 2006/07 realised an exponential growth in employment in the electricity, gas and water supply industry sector in Tasmania of 70.02%. This was reflective of investment in related infrastructure during the same period. This growth increased employment in the sector to be representative of 1.31% of the total working population. Growth in the electricity, gas and water supply industry sector is not projected to continue to 2014/15. In 2014/15 employment in the sector is projected to be 3,024 people, or 1.24%, of the working population, ranking the sector 15th out of a possible 17 in terms of size and growth rate. The electricity, gas and water supply industry sector is not a significant contributor to Tasmanian GSP. The sector contributed 3.9% to GSP (rank 11) in Total Factor Income terms and 4.9% (rank 11) in Value Added terms in 2006/07. Occupational Shortages Consultation with Local Government and large employing organisations identified occupational shortages in the electricity, gas and water supply industry sector. Industry advises that population growth, ageing assets and infrastructure requires the sector to not only replace an ageing workforce but increase the numbers of employed too. This growing demand is particularly challenging for the industry sector in the highly competitive market for Occupational Skill Shortage Analysis – Phase One skilled employees. Industry advises that the most significant occupations in short supply require a minimum of ten to 15 years experience, often starting in a trade and progressing to a professional role. Therefore the industry acknowledges that it needs to attract the younger generations to consider a life long career path in the sector. With the current demand for skills and occupations in the trade occupations, it is increasingly difficult for the electricity, gas and water supply sector to compete with the high wages offered for trades people in the manufacturing, mining and construction sectors interstate and overseas. Given the responsibility for water and sewerage in Tasmania will transfer from local government to the state government from 1 July 2008, the future occupational requirements for the water and sewerage sector is not fully understood. It is likely that significant investment in water and sewerage infrastructure will be undertaken in the medium term which will increase the demand for specific, highly skilled occupations. Specific Occupational Shortages Occupation Asset Management Engineers Electrical Powerline trades Environmental Health Officers Planning Engineers Power Engineers Project Managers Protection and Control Engineers Technical Officers Nature L2 ER UE L2 L1 TQ UE L2 L2 L2 L2 UE UE UE UE L1 TQ + Occupations not in Short Supply The industry representatives advise no difficulty in recruiting for administrative positions or entry level project officer roles. Page 42 of 80 Impact of Occupational Shortages Occupational shortages within the electricity, gas and water supply industry sector will have a direct impact on the Tasmanian community. Occupational shortages will result in a delay in rolling out capital programs, increase exposure to risk and attrition and loss of institutional knowledge. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Project & Program Administration Human Resource Managers Supply & Distribution Managers Customer Managers General Managers Inquiry & Admissions Clerks General Clerks Financial Dealers & Brokers Engineering Managers Office Managers Total Change (%) 39.17 55.67 52.28 58.66 61.79 18.19 50.62 52.21 53.91 52.83 Average Annual Change (%) 4.22 5.69 5.4 5.94 6.2 2.11 5.25 5.39 5.54 5.44 All Industries Rank 44 13 19 9 5 112 24 20 14 17 Employed (No.) 2,768 1,362 1,059 1,213 3,318 4,455 2,965 897 185 4,919 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 43 of 80 Finance and insurance The finance and insurance sector comprises the central bank, financial services, insurance, superannuation and investment services and services to finance and insurance. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 5,508 5,855 223,155 243,708 2.47 2.4 Rank (size) 14 14 Growth (%) -3.64 6.29 14 10 Rank (% growth) Source: MONASH CGE In 2006/07 the finance and insurance sector employed 5,508 people in Tasmania, following a decline of -3.64% since 1998/99. This decline is reflective of the reduction of the number of state head offices and staffing in Tasmania during the same period. While employment in the finance and insurance sector is projected to grow 6.29% to 2014/15 to 5,855 people, the sector is not a significant employing industry in Tasmania. With only 2.4% of the working population employed in finance and insurance, the sector is ranked in size 10 of a possible 17. While the finance and insurance sector is a small employing sector in Tasmania, it is a moderate contributor to GSP with Total Factor Income contribution 4.9% (rank 7) and Value Added contribution 6.1% (rank 5) in 2006/07. Occupational Shortages Information on occupational shortages within the finance and insurance sector has been difficult to ascertain due to the lack of industry representative bodies in Tasmania. The finance and insurance sector in Tasmania is made up of a few large employing organisations, state offices of national or international companies and smaller owner-operator firms and businesses. Occupational Skill Shortage Analysis – Phase One Anecdotal evidence provided by employing organisations in the finance and insurance sector suggests an acknowledgement and recognition of the highly competitive labour market and the demand for specialised and experienced skills sets. Industry also suggests a perceived lack of interest in the sector by labour market entrants, particularly the insurance subsector, due to the historical poor reputation of the industry. In addition, the office bound nature of the work and perceived monotonous nature appears to detract new finance and insurance professionals to the sector. Industry reports a decline in demand for administrative personnel, but an increase in demand for para-professionals, essentially highly skilled and specialised administrative support staff. While occupations in short supply are of a highly skilled and specialised nature with numerous years of experience, given the size of Tasmania and the finance and insurance sector, the numbers in demand are not significant. Specific Occupational Shortages Occupation Administrators – superannuation etc Client services officers Financial Controllers Insurance brokers Market analysts Risk assessors Settlements clerks Nature L2 ER UE L2 L2 L2 L2 L2 L2 PP/C UE UE UE UE PP/C Occupations not in Short Supply Industry advises that administrative personnel and entry-level professionals are not in short supply in the finance and insurance sector. Page 44 of 80 Impact of Occupational Shortages The impact of occupational shortages in the finance and insurance sector includes long periods of vacancy, a stretched existing workforce with risk of burnout and attrition and the inability to service existing clients in a timely and efficient manner. These impacts therefore constrain any potential for business or industry growth in Tasmania. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Financial Dealers & Brokers Inquiry & Admissions Clerks Financial Investment Adviser Credit & Loans Officers Office Managers General Managers General Clerks Customer Service Managers Sales & Marketing Managers Accountants Total Change (%) 52.21 18.19 17.26 21.19 52.83 61.79 50.62 58.66 49.62 19.12 Average Annual Change (%) 5.39 2.11 2.01 2.43 5.44 6.2 5.25 5.94 5.17 2.21 All Industries Rank 20 112 118 97 17 5 24 9 25 107 Employed (No.) 897 4,455 675 530 4,919 3,318 2,965 1,213 1,632 2,457 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 45 of 80 Government administration and defence The government administration and defence industry sector comprises government administration, justice, foreign government representation and defence. 2006/07 2014/15 (projected) This Industry Employment (No.) 13,985 14,873 All Industry Employment (No.) 223,155 243,708 % of Total Employed 6.27 6.1 Rank (size) 9 9 Growth (%) 42.93 6.35 4 9 Rank (% growth) Source: MONASH CGE In 2006/07 the government administration and defence sector employed 13,985 people in Tasmania or 6.27% of the total working population. During the period 1998/99 to 2006/07 employment in the sector experienced significant growth of 42.93%. Employment growth to 2014/15 is not projected to be as noteworthy for the government administration and defence sector at 6.35%. However, the government administration and defence sector will remain ranked ninth in terms of the employing sectors in 2014/15. In addition to being a moderate employing sector in Tasmania, the government administration and defence sector is also a moderate contributor to Tasmanian GSP. Total Factor Income contribution in 2006/07 was 5.0% of GSP (rank 6) and Value Added was 6.0% (rank 6). Occupational Shortages Anecdotal evidence gathered through discussions with HR personnel within state government agencies and also local government identified a shortage of specific occupations within the government sector. These shortages are perceived to be due to a tight labour market, the inability for government to be a competitive employer in terms of salary, and specialist occupations in some areas without a pool of appropriate ‘job ready’ people. Specific government sector roles Occupational Skill Shortage Analysis – Phase One include policy analysts, property management and procurement and particularly a strong demand for experienced project managers/officers with specific skill sets, knowledge and/or industry experience. Support staff in professional services including IT, accounting, HR and planning are also in high demand. Government believes these occupational shortages are due to the ageing of the workforce, the competitive nature of the labour market particularly with the private sector and the perception of employment as a public servant. In addition, the responsibility of government in nontraditional public sector roles is increasing. An additional challenge to government is that the government sector occupations require experience and knowledge of policy, legislation and public sector practices as well as the core role and responsibilities of professional and/or technical occupations. Government also reports high movement and turnover within the sector at local, state and federal level. Specific Occupational Shortages Occupation Accountants Administration Computer support officers Economists HR professionals Payroll officers Policy analysts Policy officers Procurement officers Project Managers Property/asset management Nature L2 L2, R L2 L2 L2 L2 L2 L2 L2 L2 L2 ER UE C UE UE UE PP UE UE UE UE UE Occupations not in Short Supply Government advises that occupations not in short supply are all those of an administrative nature and also lower level project officer roles, however, a regional or remote location can increase the time taken to recruit and fill a position. Page 46 of 80 Impact of Occupational Shortages The difficultly to recruit specific occupations for the government sector results in long periods of vacancy, therefore a greater focus on retention needs to be applied. This therefore affects government processes and the ability to deliver on projects and required outcomes or outputs. Occupational shortages within the government sector are leading to greater utilisation of the outsourcing of projects or infrastructure support. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Intermediate Inspectors/Examiner Project & Program Administration General Clerks Inquiry & Admissions Clerks General Managers Other Business/Information Professionals Urban & Regional Planners Other Professionals Welfare & Community Workers Computing Support Technician Total Change (%) 35.34 39.17 50.62 18.19 61.79 Average Annual Change (%) 3.86 4.22 5.25 2.11 6.2 42.52 41.76 31.78 40.04 49.06 4.53 4.46 3.51 4.3 5.12 All Industries Rank 53 44 24 112 5 37 Employed (No.) 1,163 2,768 2,965 4,455 3.318 617 40 63 42 26 372 617 1,462 935 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 47 of 80 Health and community services The health and community services sector comprises hospitals, nursing homes, medical and dental services, child care, community care, veterinary care and other health services. 2006/07 2014/15 (projected) This Industry Employment (No.) 25,943 29,518 All Industry Employment (No.) 223,155 243,707 % of Total Employed 11.66 11.94 Rank (size) 2 2 Growth (%) 9.7 13.78 Rank (% growth) 12 3 Source: MONASH CGE In 2006/07 the Health and Community services sector was the second largest employing industry in Tasmania and is projected to remain the second largest in 2013/14 with 29,518 people working in the sector, or 11.94% of the total working population. While the Health and Community services sector did not experience significant growth in employment for the period 1998/99 (ranking 12 out of 17 industry sectors) it is projected to experienced significant growth of 13.78% from 2006/07 to 2014/15, ranking third of a possible 17. As well as being a significant employing sector in Tasmania, the health and community services industry is also a significant contributor to Tasmania GSP. In 2006/07, Total Factor Income contribution was 7.8% (rank 2) and Value Added was 9.3% (rank 2). Occupational Shortages Consultation with the AMA Tasmania and Aged and Community Services Tasmania (ACST) advised that virtually all medical, health and caring related occupations are in short supply in Tasmania. The shortage of health and caring professionals is particularly extreme in localised or regional areas. The AMA believes the shortages are due to a serious lack of investment in health and Occupational Skill Shortage Analysis – Phase One medical training by the federal government over the last 15 years. The AMA and ACST also believe that in Tasmania these occupational shortages are due to an ageing workforce as well as the physically, mentally and emotionally demanding nature of the occupation, non competitive wages and lack of training provision in the state. In addition, the industry is highly regulated, impacting particularly on management staff. The AMA is concerned at the proposed doubling of graduates as a solution to addressing this issue. The shortage of occupations at the experienced level means there is not the ability to adequately train those graduates coming through. This will lead to burn out, attrition and severe lack of quality. The ACST identifies occupational growth areas in allied health professions such as physiotherapists and particularly occupational therapists due to the emphasis of care moving towards community care rather than direct residential care. The ACST also advises that this emphasis results in residential care being dominated by high care residents. As such, demand for medication endorsed Enrolled Nurses (ENs) and Extended Care Assistants (ECAs) will increase. The ASCT anticipates demand for multi-skilled paraprofessionals with nursing and allied health caring components to be particularly attractive to the industry. As a result, ENs that are not medication endorsed will be less in demand. The current Federal Government funding model for aged care and community services does not enable the industry to undertake long term planning. Child Care The child care sub-sector reports significant obstacles to attracting child care workers to the industry as a result of bureaucratic challenges. Page 48 of 80 The Federal Government’s Child Care Unit's (CCU) Standards for Long Day Care, written under the Child Care Act, states that child care providers cannot include under 20 year olds in the ratio requirement without CCU approval. Specific Occupational Shortages Nature L1 ER UE While students in Year 11 and 12 can study Certificate II and III in Children's Services and can also obtain paid employment in a child care centre they can not be counted as staff under the ratio system until the turn 20 years of age. This detracts child care providers from employing people younger than 20. This forced gap results in a lost opportunity for the industry to attract school leavers to the child care sector. L2 L3 L2 L2, C L1 L1 L2 L2, C, Q L2, C, Q L1 UE C C C UE UE UE C L3 L1/2 L2, C L2 L2 L2 L2, C L2 L1 L1 L1 L1 L2 L2, Q L2 L1 L2 L2 L1 L2, C L1, C L2 L1 L2, C, Q C UE UE UE UE C UE UE UE UE UE UE UE UE UE UE UE UE UE UE UE C UE UE/PP Veterinarian services According to the Australian Veterinarian Association Tasmanian President, there is a severe shortage of veterinarians in Tasmania, particularly in rural and regional areas and large animal veterinarians. These shortages will likely decrease services and increase fees, while also impacting on the welfare of the livestock industry The veterinarian shortage in Tasmania is exacerbated by the lack of education facilities and graduates returning to Tasmania 11 . Local Government Local Government reports an increasing demand to undertake the responsibility for delivery of community services and welfare in Tasmania, particularly in child care and aged care as well as traditional responsibilities of environmental health and welfare. Occupations not in Short Supply The AMA and ACST advise there are no health professional occupations in short supply, however general administrative personnel are relatively accessible. Occupation Allied Health Professionals – Occupational Therapists, Physiotherapists, Speech Pathologists, Podiatrists etc Anaesthetists Catering professionals Childcare workers Dental nurses Dentists Dermatologists Diagnostic radiographers Enrolled Nurses Enrolled Nurses (medication endorsed) Environmental Health Officers Extended Care Assistants General Physicians General Practitioners Health Inspectors Medical Receptionists Medical Typists Nurses – specialist Obstetricians/gynaecologists Ophthalmologists Optometrists Paediatrician Pathologist Pharmacists Practice Managers Practice Nurses Radiologists Registered Mid Wife Registered Nurses Sonographers Specialist GP Nurses Surgeons – all Veterinarian nurses Veterinarians Welfare workers TQ UE Impact of Occupational Shortages Both the AMA and ACST advise that impacts are already being felt and include longer waiting lists, higher risk, burn out, attrition, inability to undertake research, and the general inability to provide health and medical services to the community in a timely and effective manner. 11 The Sunday Tasmanian, “Vet crisis hits Tassie”, 15 June 2008 Occupational Skill Shortage Analysis – Phase One Page 49 of 80 The AMA reports bed closures in hospitals are a direct impact of occupational shortages rather than funding shortfalls. The ACST reports that processes have already been implemented to address the occupational skill shortages in the industry. These include not rostering registered nurses on night shifts or on weekends and outsourcing the registered nursing requirements on an ‘on call’ basis. Should the skill shortage worsen, sections of residential homes will be forced to close. The inability to secure appropriately qualified and skills staff results in the inability to deliver the minimum required services to the aged and community sectors. In 2006/07 the Tasmanian Aged Care and Community Services could deliver only 63 of the 167 packages funded by the Federal Government due to the inability to source staff, capital and infrastructure. In the child care sub-sector this inability to include employees aged under 20 limits to numbers of child care places available for working parents. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Personal Care/Nursing Assist Nurse Managers Welfare & Community Workers Office Managers Children's Care Workers Receptionists Registered Midwives Registered Mental Health Nurses Ambulance Officers/Paramedic Massage Therapists Total Change (%) 4.64 5.79 4.3 5.44 1.68 1.38 3.95 5.81 4.6 51.27 Average Annual Change (%) 43.7 56.91 40.04 52.83 14.28 11.6 36.3 57.1 43.3 5.31 All Industries Rank 34 11 42 17 131 143 48 10 35 22 Employed (No.) 2,005 789 1,462 4,919 2,139 4,398 669 379 443 444 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 50 of 80 Manufacturing The manufacturing industry sector includes: • Food, beverage and tobacco • Textile, clothing, footwear and leather • Wood and paper products • Printing, publishing and recorded media • Petroleum, coal, chemical and associated products • Non-metallic mineral products • Metal products • Machinery and equipment; and • Other manufacturing. 2006/07 2014/15 (projected) This Industry Employment (No.) 21,852 22,140 All Industry Employment (No.) 223,155 243,708 9.79 9.08 Rank (size) 3 3 Growth (%) -8.19 1.32 15 16 % of Total Employed Rank (% growth) Source: MONASH CGE In Tasmania, the manufacturing industry is a significant employing sector with 21,852 employees in 2006/07, 9.79% of the working population and ranked three in size behind retail and heath and community services. However, from 1998/99 to 2006/07 employment in the manufacturing sector actually declined by 8.19% in Tasmania. While negative growth is not projected for the period to 2014/15, employment growth in the manufacturing sector will be minimal. The manufacturing sector is the most significant contributor to GSP in Tasmania. In 2006/07, the manufacturing industry contribution to GSP in Total Factor Income terms was 12.9% (rank 1) and in Valued Added terms was 14.8% (rank 1) in 2006/07. Occupational Shortages Consultation with the Manufacturing Industry Council (MIC) identified that the sector and its various sub-sectors are experiencing significant occupational and labour shortages. The MIC believes the cause is two fold; Occupational Skill Shortage Analysis – Phase One 1) General shortage of people as a result of Tasmania’s population age structure; and 2) A lack of investment in apprentices and trainees during the 1990s as a result of poor economic conditions, particularly in Tasmania, and changes to public funding. These two issues have significant flow through effects for the industry. The ageing population will result in an increase of exits from the industry (retirement) and therefore the inability to adequately train the required numbers in demand. This will result in a dilution of the skill base in the sector. In addition to the traditional trade and skill shortages, the manufacturing industry identifies a growing need for skill sets in non-traditional occupations. This is a result of innovation, technology and the introduction of new products into the sector. Demand for specialist sub-trades or hybrid trades is likely to increase, particularly in areas of fabrication fit out, plastics and electronics. As a result combined occupations will be increasingly in demand. Also due to changes in technology and innovation many of the traditional trade training courses are now outdated and do not match current and future industry requirements. The physical nature of the industry combined with Tasmania’s cool climate is also a significant deterrent within the industry. Wood and paper products In Tasmania the forestry sector is attracting and realising significant investment in value added manufacturing processes. This increase in valued added manufacturing will influence the demand for specific skills and occupations, particularly in qualified valued added processing workers. Textile, Clothing and Footwear (TCF) Over recent years the TCF industry subsector has experienced a significant contraction in employment numbers and Page 51 of 80 therefore advises no current shortages of labour in the industry. The workforce makeup is labour intensive and generally lowskilled, with a small number of specific skill sets (eg textile mechanics). However, the industry believes that replacement of existing labour requirements would provide challenges, particularly given the age structure of the TCF sector and the competitive nature of the labour environment. Interestingly, the TCF sector advises that general labour shortages would have been more severe had it not been for the increase of females into the industry in recent years. In addition, while general labour is readily available, the level of investment required by employing organisations to achieve work-readiness is significantly greater than previously. Food, beverage and tobacco While access to processing workers and general labour is not in short supply in the food manufacturing sector, the time, effort and resources undertaken to prepare employees to work readiness stage has increased considerably in recent years. Labour Hire It is important to note that the employment numbers and the contribution of the manufacturing industry sector to the Tasmanian economy may be considerably understated as a result of employment by labour hire companies. Labour hire companies are classified as being in the ‘property and business services’ ANZSIC industry sector. With the growth in the utilisation of labour hire companies to employ a wide range of trades, particularly those in the construction and manufacturing industries, it is highly likely that a significant proportion of the property and business services employment growth includes trades people who are subsequently hired out to work in the manufacturing industry sector. Employment in the property and business services industry sector increased by 44.47% from 1998/99 to 2006/07 and was ranked third of all industry sectors. Employment in the property and business services is projected to grow at the second Occupational Skill Shortage Analysis – Phase One fastest rate of 10.38% from 2006/07 to 2014/15. Specific Occupational Shortages Occupation Administrative staff (full time only) Binders and Finishers Boat builders CAD/design personnel CNC (computer numerical control) operators Communications officers Electricians Electronics/technical officers Fabricators Fitters Furniture Upholsterer Interior fit out tradespersons Lean manufacturing managers Machinists Plastic fabricators Pre-press workers Print Machinists Production managers Project managers Quality Assurance officers Refrigeration and airconditioning Mechanic Sales and marketing personnel Steel fabricators Value added processors (wood, paper and pulp) Welders Nature L2 ER C L2, C L1 L2 L2, C, Q TQ TQ TQ TQ L2 L2, C, Q L2, C, Q L2, C, Q L2, C, Q L2 L1, C, Q L2 TQ TQ TQ TQ TQ TQ TQ TQ L2, C, Q L1 L2, C L2, C L2 L2, C, Q L2 L2 TQ TQ TQ TQ TQ TQ UE TQ L2 UE L2, C, Q L3 TQ C L2, C, Q TQ Occupations not in Short Supply Due to innovation and technological changes, industry advises that demand for some traditional trades is not likely to increase in the future. In addition, administrative and general, low skilled labour is not in short supply. Impact of Occupational Shortages The ongoing shortage of skilled labour has resulted in the manufacturing sector reaching full operating capacity. Given much of the manufacturing sector is labour intensive, the inability to attract and retain labour directly causes a reduction in production. Page 52 of 80 Industry also suggests that training has reached its capacity. As a result it is difficult to increase the current numbers being trained due to the need for experienced trades people to supervise apprentices and the limitations this places on the number of apprentices that can be trained. Future growth is significantly threatened, and combined with the ageing population, any movement potentially could be downward. Occupational shortages threatens the industry and individual organisations to service the market. Time delays and active poaching of labour within the sector and other industries results in wage increases and threatens the competitiveness of the industry. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Structural Steel & Welding Trades Other Food Tradespersons Forklift Drivers Production Managers General Managers Office Managers Designers & Illustrators Store persons Other Food Factory Hands General Mechanical Engineering Trades Total Change (%) 24.86 42.43 32.07 34.23 61.79 52.83 41.79 33.31 12.44 Average Annual Change (%) 2.81 4.52 3.54 3.75 6.2 5.44 4.46 3.66 1.48 All Industries Rank 88 38 62 57 5 17 39 58 138 Employed (No.) 2,725 941 1,519 1,172 3,318 4,919 1,631 5,579 756 68.33 6.73 3 336 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 53 of 80 Mining The mining sector comprises coal mining, oil and gas extraction, metal ore mining, all other mining and services to mining. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 2,545 2,623 223,155 243,708 1.14 1.08 Rank (size) 16 16 Growth (%) 13.18 3.07 10 14 Rank (% growth) Source: MONASH CGE The mining industry is not a significant employing sector in Tasmania, nor is it projected to experience strong employment growth. In 2006/07 the mining sector employed 2,545 people, or 1.14% of the total working population, after experienced 13.18% growth in employment from 1998/99. Growth in employment in the mining sector is projected to be 3.07% to 2014/15 and will remain the second smallest employing industry sector behind communication services. In addition, the mining sector is not a significant contributor to GSP in Tasmania. In 2006/07, the mining industry contribution to GSP in Total Factor Income terms was 4.5% of GSP (rank 9) and in Value Added terms was 2.9% (rank 13). Occupational Shortages Consultation with the Tasmanian Minerals Council (TMC), the Australian Mines and Metals Association (AMMA) and a large employing organisation identified that the mining industry is experiencing significant skill and labour shortages in Tasmania. These shortages are the result of a two primary factors in Tasmania, firstly the global boom in resource and mineral prices has led to significant increases in investment in mining exploration and, secondly, the geographical location of many mining organisations. Occupational Skill Shortage Analysis – Phase One This global boom has led to an increasingly competitive labour market, not just within the mining industry, and contributes significantly to the lack of supply of labour. The mining industry has been forced to employ unskilled labour to fill the occupational gaps which increases the exposure to safety risk. The geographical location of mining sites and subsequent lack of services and infrastructure catering for couples and families significantly impacts on the ability to attract and retain skilled labour. Non-mining specific occupations are also in high demand in the mining industry, specifically professional services like accountants, HR and IT professionals. These occupations are particularly difficult to attract to the industry because in addition to requiring some industry knowledge, these occupations are also in short supply in metropolitan and less remote areas. Specific Occupational Shortages Occupation Accountants Chemical Engineers Diesel Fitters Electricians Environmental Scientists Geo technical engineers Geologists HR professionals IT professionals Maintenance Engineers Management Metallurgists Mining Engineers Plant Managers Skilled Miners (jumbo operators) Nature L2, C L1 L2, C L2 L2 L3 L2 L2, C L2, C L2 L2 L1 L1 L2, C L2, C ER UE UE TQ TQ UE UE UE UE UE UE UE UE UE TQ TQ Occupations not in Short Supply Consultation identified that occupations of a low skill nature like administrative personnel, general labour and truck drivers are not difficult to attract or retain to the mining industry in Tasmania. Page 54 of 80 Impact of Occupational Shortages The occupational shortages within the mining industry are stretching the capacity of the existing workforce leading to increased exposure to safety risk. This impact is exacerbated by the requirements of the industry to employ less experienced and skilled persons to fill the demand. In addition, projects are delayed and costs are escalating as a direct response to the skill shortages. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Miners Production Managers Other Building & Engineering Associated Professionals General Mechanical Engineering Trades Mine Support Workers, Driller Assistants Truck Drivers Information Technology Managers Project & Program Administration Structural Steel & Welding Trades General Clerks Total Change (%) 8.81 34.23 Average Annual Change (%) 1.06 3.75 All Industries Rank 156 57 Employed (No.) 893 1,172 32.61 3.59 60 412 68.33 6.73 3 336 25.86 11.61 59.98 39.17 24.86 50.62 2.92 1.38 6.05 4.22 2.81 5.25 86 142 7 44 88 24 210 4,556 516 2,768 2,725 2,965 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 55 of 80 Personal and other services Personal and other services includes household goods hiring, religious organisations, interest groups, public order and safety, domestic staff and other personal services. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 9,649 10,680 223,155 243,708 4.32 4.38 Rank (size) 11 10 Growth (%) 26.36 10.68 7 5 Rank (% growth) Source: MONASH CGE In 2006/07 9,649 people were employed in the personal and other services industry sector in Tasmania, representing 4.32% of the working population. The sector experienced strong growth of 26.36% for the period 1998/99 to 2006/07 and is projected to maintain growth of 10.68% to 2014/15, ranking fifth out of a possible 17. The personal and other services industry sector is a minimal contributor to Tasmanian GSP. In 2006/07 contribution in Total Factor Income was 1.8% of GSP (rank 16) and in Value Added terms was 2.3% of GSP (rank 16). Occupational Shortages The personal and other services industry sector is diverse in nature. Comprising private enterprises, government bodies, notfor-profit organisations and clubs and associations, it is not surprising that the industry sector is experiencing occupational shortages for varying reasons and to varying degrees. Consultation was undertaken with the Tasmanian Health and Beauty Industry (THB), the Hairdressing Federation Tasmania (HFT), the Nursery and Garden Industry of Tasmania (NGIT) and Tasmania Police as well as gaining anecdotal evidence from employing organisations. Occupational Skill Shortage Analysis – Phase One Beauty Industry The THB believes there is a shortage of qualified and experienced beauty therapists and nail technicians in Tasmania. This is predominantly due to the lack of on-the-job training and high exodus from the industry. The THB believes there is a low trainee rate of the required Certificates III, IV and Diploma level. The THB also believes that the training package does not meet the demand of the actual work requirements. Hairdressing Industry The HFT advises that while the industry can attract hairdressers to the industry and provides good on the job training, the industry struggles to retain qualified, experienced hairdressers. THE HFT believes the inability to retain hairdressers is due to a number of factors; 1) Mothers not returning to the industry when they return to work; 2) The highly competitive nature of the labour market providing more attractive and less physically demanding opportunities; and 3) That the higher salary levels are achieved quickly and therefore provides no incentive to stay in the industry. Tasmania Police Previous consultation with the Inspector responsible for recruitment of trainee Police Officers advises increased demand for policing in Tasmania and thus an increase in demand for the intake of Police Officer internships. However, Tasmania Police identify challenges to attracting suitable trainees due to the competitive nature of the labour market, particularly in encouraging apprenticeships and traineeships in traditional and non-traditional trades, but also due to the stringent psychological and physical requirements of a police officer traineeship. Page 56 of 80 Occupations not in Short Supply The THB advises that there is no demand for beauty consultants that have Certificate II and below qualifications. The THB believes appropriate levels of administrative support including book keeping are available as required. Impact of Occupational Shortages The inability to attract qualified, experienced personal service providers affects the business’ ability to provide a complete service. As a result this threatens the business’ viability, opportunities for growth and compromises client service. Specific Occupational Shortages Occupation Beauty Therapists (Cert IV +) Hairdressers/senior stylists Nail Technicians Police Officers Security Guards Nature L3, Q L3, C, Q L3, Q L2 L3 ER C TQ C other C Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Gardeners Police Officers Office Managers Hairdressers General Managers Personal Care Consultants General Clerks Commissioned Officers Truck Drivers Project & Program Administration Total Change (%) 32.22 10.54 52.83 7.37 61.79 26.92 50.62 55.93 11.61 39.17 Average Annual Change (%) 3.55 1.26 5.44 0.89 6.2 3.02 5.25 5.71 1.38 4.22 All Industries Rank 61 148 17 164 5 82 24 12 142 44 Employed (No.) 1,473 1,293 4,919 1,306 3.318 576 2,965 194 4,556 2,768 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 57 of 80 Property and business services The property and business services industry sector is a diverse sector including: • Property operators and developers • Real estate • Non-financial asset investors • Machinery and equipment hiring and leasing • Scientific research • Computing services • Technical services • Legal services • Accounting services • Marketing services • Business management services • Other business services It is important to note that the ‘property and business services’ category does not exist in the 2006 version of the ANZSIC codes. The sector is more appropriately represented by ‘rental, hiring and real estate services’ and ‘professional, scientific and technical services’. 2006/07 2014/15 (projected) This Industry Employment (No.) 18,573 21,142 All Industry Employment (No.) 223,155 243,706 % of Total Employed 8.32 6.67 Rank (size) 4 4 Growth (%) 44.47 13.83 3 2 Rank (% growth) Source: MONASH CGE In 2006/07 the property and business services industry was the fourth largest employing sector in Tasmania with 18,573 employees, representing 8.32% of the total working population. From 1998/99 to 2006/07, the property and business services sector experienced the third strongest employment growth of 44.47%. Employment growth is projected to be 13.83% to 2014/15, ranking second behind the education sector, remaining the fourth largest employing sector in Tasmania. The property and business services sector is a significant contributor to GSP in Tasmania. In 2006/07, the property and Occupational Skill Shortage Analysis – Phase One business services industry contributed 5.2% (rank 5) of GSP in Total Factor Income terms and 6.2% of GSP (rank 4) in Valued Added terms. For the purposes of this Occupational Skills Shortage Analysis, computing and technical skill and labour shortages will be considered in the ‘communications services’ ANZSIC industry sector. Labour Hire It is important to note the impact of labour hire companies in the property and business services industry sector. Labour hire companies are classified as being in the ‘property and business services’ ANZSIC industry sector. With the growth in the utilisation of labour hire companies to employ a wide range of trades, particularly those in the construction and manufacturing industries, it is highly likely that a significant proportion of the property and business services employment growth includes trades people who are subsequently hired out to work in the construction and manufacturing industry sectors. Occupational Shortages The property and business services industry sector is diverse in nature. Consultation was undertaken with the Real Estate Institute of Tasmania (REIT), Australian Property Institute (API), the CPA and a number of individual organisations and employment agencies. Advice from employment agencies is that demand for non-traditional business services like marketing and human resources is beginning to increase due to a the acknowledgement and recognition of industry of the value of these occupations to individual organisations. Previously the responsibility of the skill sets for these occupations were packaged into the role of more general organisational occupations like Office Managers. Demand for these positions is primarily experienced Page 58 of 80 professionals rather than graduates or those with one to three years experience. professionals with three to four years experience. Industry also reports a decline in demand for general administrative personnel, but an increase in demand for para-professionals, essentially highly skilled and specialised support staff. In addition, industry reports a shortage of para-professionals. This results in high level administrative work being undertaken by accounting professionals. Property and real estate The REIT advises that as a result of the ‘housing boom’ in Tasmania during the early 2000’s the number of real estate consultants and agencies increased significantly. However, with the levelling off of the real estate market, demand for property consultants has also plateaued. The API represents Certified Practising Valuers (CPV) in Tasmania and advises an occupational shortage in property valuers in Tasmania. The API believes this is due to the age structure of the CPV workforce in Tasmania and that the required education and training is not provided for in Tasmania. Legal services Given the organisational structure of most legal firms in Tasmania, there is little demand for experienced legal professionals. Most legal professionals progress to partner status where possible and then retire. Given the age structure of the legal profession in Tasmania and the likelihood of increased numbers of retirements in the short to medium term, opportunities for junior lawyers to advance will increase, and may lead to shortages, particularly considering succession planning requirements. While there tends to be little turnover in support staff within the legal profession, vacancies for legal secretaries and paralegals are difficult to attract and recruit for. Accounting services Consultation with the CPA Tasmania Division, a large accounting organisation and employment agencies identified significant shortages in the accounting and professional financial services occupations. These shortages are predominantly in attracting and retaining accounting Occupational Skill Shortage Analysis – Phase One These shortages are evidenced by the lack of applications received for advertised positions. Many times no applications or enquiries are received. These shortages are the result of a number of factors. Lack of employability of current university graduates. Employers advise that university education does not produce job ready graduates. In addition, the majority of graduates from UTAS are international students. While technical skills may be adequate, there are significant workplace barriers including communication and cultural issues that affect successful integration into the workplace. Difficulties in retaining people in the profession Australian research identifies that only 60% of accounting graduates remain in the profession within five years of graduating. High level exodus of professionals with three to four years experience to interstate or overseas opportunities. Once graduates have completed their professional studies (CPA, CA etc) they have three to four years experience and choose to leave the state for higher paying opportunities interstate. In addition, Tasmanian professionals are considered to be well rounded professionals with significant practical experience. Increased demand for professionals Due to increased complexity of taxation and accounting requirements there is greater demand for accounting professionals. Lack of flexibility Australian research identifies that Lack of flexible working conditions in the professions leads to high exit rates from the Page 59 of 80 profession, particularly for According to the research, accountants work full time. females. 86% of The CPA is working with members to address skill shortages issues through its relationship with the UTAS. These initiatives include investigating the option for a skilled migration internship and improving the current work experience model. The Australia research also identifies the role of the book keeper as a significant solution to the skills shortages in the profession. Other business services Demand for HR professionals has increased significantly recently, more than likely in response to the skill shortages and the need to effectively manage the HR process of attracting, recruiting and retaining staff. Occupations not in Short Supply Industry advises that administrative personnel and entry-level professionals are not in short supply in the property and business services sector in Tasmania. The REIT advises that there is not a short supply of real estate consultants. Should demand increase, the REIT are adequately equipped to respond. Impact of Occupational Shortages The impact of occupational shortages in the property and business services sector includes long periods of vacancy, a stretched existing workforce with risk of burnout and attrition and the inability to service existing clients in a timely and efficient manner. The occupational shortages also result in the sector employing persons not qualified to undertake the work. This compromises the quality of the work. In the accounting profession, the shortage of experienced intermediate accountants results in senior accountants mentoring and supervising the graduate intake. This is a significant opportunity cost to accounting firms as billable hours are severely impacted. This particularly impacts on the ability for business or industry growth in Tasmania. Specific Occupational Shortages Occupation Accountants – tax and audit Accounts receivable/payable clerks Book keepers Business Development Managers Company Accountants HR Professionals experienced - including generalists, training, learning and development, recruitment and selection, OH&S Legal Secretaries Para-legals Para-professionals Payroll clerks Public Practice Accountants Security Guards Valuers Nature L2 L3 ER UE C L2 L2 PP UE L2 L2 UE UE L2 L3 L2 L3 L2 L3 L3 PP C PP C UE C PP Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. Occupational Skill Shortage Analysis – Phase One Page 60 of 80 The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Office Managers Accountants Designers & Illustrators General Managers Guards & Security Officers Other Elementary Service Worker Legal Professionals Inquiry & Admissions Clerks Bookkeepers General Clerks Total Change (%) 52.83 19.12 41.79 61.79 29.37 48.34 17.56 18.19 29.16 50.62 Average Annual Change (%) 5.44 2.21 4.46 6.2 3.27 5.05 2.04 2.11 3.25 5.25 All Industries Rank 17 107 39 5 70 27 117 112 73 24 Employed (No.) 4,919 2,457 1,631 3,318 1,025 1,776 1,182 4,455 3,246 2,965 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 61 of 80 Retail trade The retail trade industry sector comprises food retailing, personal and household good retailing and motor vehicle retailing and services. 2006/07 2014/15 (projected) This Industry Employment (No.) 32,655 36,011 All Industry Employment (No.) 223,155 243,706 % of Total Employed 14.63 14.77 Rank (size) 1 1 Growth (%) 5.22 10.28 13 6 Rank (% growth) Source: MONASH CGE In 2006/07 the retail trade industry was the largest employing industry sector in Tasmania with 32,655, or 14.63%, of the total working population. While the retail trade experienced employment growth during the period 1998/99 to 2006/07 it was not significant at 5.22%, ranking 13th out of a possible 17. Retail trade is projected to experience stronger growth for the period to 2014/15 of 10.28%, ranking sixth and increasing the share of the working population to 14.77%. The retail trade sector is a significant contributor to Tasmanian GSP. In 2006/07, contribution to GSP from the retail sector was 5.9% in Total Factor Income terms (rank 3) and was 7.2% (rank 3) in Value Added terms. Occupational Shortages Consultation with the Retail Traders Association (RTA) who represents small retail businesses in Tasmania indicated that the industry does not suffer from skill shortages but labour or ‘people’ shortages due to the competitive nature of the labour market today. by the working population and is predominantly made up of a casual workforce. While no formal qualifications are required to work in the retail sector in Tasmania, on the job training is provided and accredited training can be undertaken. Advancement in the retail sector to supervisory and management roles tend to occur through the existing workforce and therefore shortages at these levels are not apparent. The greatest challenge to the retail sector is high turnover and lack of appropriate numbers of floor staff. This is due to the competitive nature of the labour market and the perception that the retail sector provides an unattractive workplace. Specific Occupational Shortages Occupation Account/Client Managers Experienced Sales People Motor Mechanic Panel Beater Retail Staff Vehicle Painter Nature L1, C, Q L1, C, Q L2, C L2, C L1, C, Q L2, C ER C C TQ TQ N TQ Occupations not in Short Supply The RTA believes appropriate levels of low level skills such as store persons and administrative support staff including book keeping are available as required. Impact of Occupational Shortages The inability to attract the right number of floor staff in the retail sector impacts on the capacity of the enterprise to provide complete sales service. As a result this threatens the business’ viability and compromises customer service. The RTA argues that the retail sector is not considered a viable long term career option Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the Occupational Skill Shortage Analysis – Phase One Page 62 of 80 specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Store persons Sales Assistants Checkout Operators Motor Vehicle & Related Sales Sales & Marketing Managers Office Managers Fast Food Cooks Customer Managers General Managers Bookkeepers Total Change (%) 33.31 3.79 15.63 34.58 49.62 52.83 23.05 58.66 61.79 29.16 Average Annual Change (%) 3.66 0.47 1.83 3.78 5.17 5.44 2.63 5.94 6.2 3.25 All Industries Rank 58 184 125 55 25 17 93 9 5 73 Employed (No.) 5,579 14,104 2,100 1,201 1,632 4,919 924 1,213 3.318 3,246 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 63 of 80 Transport and storage The transport and storage industry sector comprises road, rail, water, air and space transport as well as all other forms of transport. It also includes services to transport and storage. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 9,815 10,318 223,155 243,706 4.40 4.23 Rank (size) 10 11 Growth (%) 12.8 5.12 11 12 Rank (% growth) is experiencing significant skill and labour shortages as a result of an ageing workforce and an exponential increase in demand. The TTA anticipates demand for road and sea transport services to continue this pattern of growth into the future, particularly with the uncertainty of the future rail services in Tasmania. The industry has difficulty attracting younger generations into the sector due to the perceived unattractiveness of the industry. Source: MONASH CGE Specific Occupational Shortages In 2006/07 the transport and storage industry employed 9,815 people in Tasmania, 4.4% of the total working population, after experiencing growth of 12.8% from 1998/99. Occupation Administrative personnel Bus Drivers Logistics personnel Management Stevedores Truck Drivers Employment growth is projected for the transport and storage sector to 2014/15, however is not expected to be significant at 5.12%. The transport and storage industry sector is not a significant contributor to GSP in Tasmania. In 2006/07, the transport and storage sector contributed 3.8% of GSP in terms of Total Factor Income (rank 12) and 5.2% of GSP in terms of Value Added (rank 10). Occupational Shortages Consultation with the Tasmanian Transport Association (TTA) representing road and sea freight in Tasmania advises the industry Nature L3 L3, C L2 L2 L2, C L3, C ER C C C UE/PP TQ C Occupations not in Short Supply The TTA does not believe there are any occupations that are not in short supply apart from general labour. Impact of Occupational Shortages The impact of occupational skills shortages in the transport industry has resulted in significant increases in operational costs. These costs increases are anticipated to continue as well as impinging on the ability to effectively service the market. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Occupational Skill Shortage Analysis – Phase One Page 64 of 80 Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Supply & Distribution Managers Truck Drivers Transport Company Managers Bus Drivers General Managers Forklift Drivers Office Managers Inquiry & Admissions Clerks Store persons General Clerks Total Change (%) 52.28 11.61 60.38 12.78 61.79 32.07 52.83 18.19 33.31 50.62 Average Annual Change (%) 5.4 1.38 6.08 1.51 6.2 3.54 5.44 2.11 3.66 5.25 All Industries Rank 19 142 6 137 5 62 17 112 58 24 Employed (No.) 1,059 4,556 454 1,042 3,318 1,519 4,919 4,455 5,579 2,965 Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 65 of 80 Wholesale trade The wholesale trade industry sector comprises basic material wholesaling, machinery and motor vehicle wholesaling and personal and household good wholesaling. 2006/07 This Industry Employment (No.) All Industry Employment (No.) % of Total Employed 2014/15 (projected) 8,616 9,155 223,155 243,708 3.86 3.76 Rank (size) 12 12 Growth (%) 17.28 6.25 8 11 Rank (% growth) Source: MONASH CGE In 2006/07 the wholesale trade industry employed 8,616 people in Tasmania, 3.86% of the working population. While the sector experienced strong growth of 17.28% for the period from 1998/99 to 2006/07, it was not significant comparative to other industry sectors, ranking only eighth of 17. Employment growth for the sector is projected for the period to 2014/15, however again not significant at 6.25%. The wholesale trade industry sector is not a significant contributor to GSP in Tasmania. In 2006/07, the wholesale trade sector contributed 2.8% of GSP in Total Factor Income terms (rank 13) and 3.8% of GSP in Value Added terms (rank 12). Occupational Shortages The wholesaling industry is in general perceived as an unattractive industry to work in, particularly where remuneration rates may be less than that of other industries due to the low margin nature of the business. In short, potential employees are those who are attracted to the manual nature of the business, but are often lured away by higher remuneration elsewhere. Finding able and more importantly quality people to fill operative level positions has also represented a challenge to the wholesale sector in recent years. As the industry expands, demand on human resources personnel will grow, as will the demand for quality front line managers and qualified and experienced transport operators (truck drivers). Due to the lack of training options, a lot of training within the wholesale industry is onthe-job. As the training in this industry requires is very specific, and there are relatively few organisations in the industry, it is not cost feasible for a training organisation to offer specific training for areas such as inventory purchasing Specific Occupational Shortages Occupation Inventory Buyer Motor Mechanic Panel Beater Sales Personnel Vehicle Painter Warehouse operatives Nature L1 L2, C L2, C L3, C L2, C L3, C ER PP TQ TQ C TQ C Impact of Occupational Shortages Industry advises that the first and foremost impact of skill shortages is the increased cost of operating. Particularly at an operative level, unskilled workers are costing the industry due to their lack of productivity and hence the need to have more workers on the floor to compensate for the lower productivity rates. Projected Employment Growth The below table ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. This projection takes into consideration that the ASCO occupations are not specific to industry sectors. Occupational Skill Shortage Analysis – Phase One Page 66 of 80 The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector) in 2014/15. Top 10 Occupations by Contribution to Industry Growth (%) 1 2 3 4 5 6 7 8 9 10 Store persons Office Managers Sales & Marketing Managers General Managers Motor Vehicle & Related Sales Forklift Drivers General Clerks Supply & Distribution Managers Customer Service Managers Total Change (%) 33.31 52.83 49.62 61.79 34.58 32.07 50.62 52.28 58.66 31.58 Average Annual Change (%) 3.66 5.44 5.17 6.2 3.78 3.54 5.25 5.4 5.94 3.49 All Industries Rank 58 17 25 5 55 62 24 19 9 65 Employed (No.) 5,579 4,919 1,632 3,318 1,201 1,519 2,965 1,059 1,213 149 Import, Exporters & Wholesalers Source: MONASH CGE Occupational Skill Shortage Analysis – Phase One Page 67 of 80 List of Occupational Shortages The following table lists all those occupations that have been identified as being in short supply in Tasmania by industry. In addition to classifying each occupation by the nature of the skill shortage, the educational requirements for each occupation is also identified. Key: L1: L2: L3: Nature Level 1 Skill Shortage Level 2 Skill Shortage Level 3 Skill Shortage UE: TQ: VET: C: Condition Skill Shortage PP: Q: R: Quality and Employability Gap Skill Shortage where regional, remote or rural locations are the determinant of skill or labour shortages C: N: Education Requirement (ER) University Education Trade Qualification VET pathway exists Para-professional: Diploma or Advanced Diploma Certificate I, II, III, or IV Not required Occupation Account/Client Managers Accountants Accounts receivable/payable clerks Administrative personnel Administrators – superannuation etc Allied Health Professionals – physiotherapists, podiatrists, speech pathologists, occupational therapists, dentists etc. Anaesthetists Architects and Landscape Architects Arts administrators Asset Management Engineers Audio visual technicians Bakers Beauty Therapists (Cert IV +) Binders and Finishers Boat builders Boiler maker/welders Book keepers Bricklayers Building and Engineering Professionals Building Inspectors Building Surveyors Building, Architectural and Surveying Associate Professionals Bus Drivers Business Analysts Business Development Managers CAD/design personnel Carpenters and Joiners Catering professionals Chef Chemical Engineers Child Care Workers Civil Engineers Client services officers CNC (computer numerical control) operators Communications officers Computer support officers Occupational Skill Shortage Analysis – Phase One Nature L3, C, Q L2, C L3 L3, R L2 L1 ER C UE/VET C C UE UE L2 L2 L1 L2 L2 L2, C, Q L3, Q L2, C L1 L2, Q, C L2 L2 L2 L2, C L2, C L2 L3, C L2 L2 L2 L2 L3 L2, C, Q L1 L2, C L2 L2 L2, C, Q L2 L2 UE UE UE UE UE/VET TQ C TQ TQ TQ PP C/TQ UE UE/VET UE/VET UE/VET C UE/VET UE/VET TQ TQ C TQ UE C UE/VET PP/C TQ TQ UE/VET Page 68 of 80 Concreters Construction and Plumbing Assistants Construction Managers Cooks Cow milkers Crane, hoist and lift operators Dairy workers Deckhands Dental nurses Dentists Dermatologists Diesel Fitters Diesel mechanics Earthmoving Labourers Economists Educators Electrical and Telecommunications Trades Assistants Electrical Powerlines Trades Electricians Electronics/technical officers Engineering production systems workers Enrolled Nurses Enrolled Nurses (medication endorsed) Environmental Health Officers Environmental Scientists Experienced Sales People Extended Care Assistants Fabricators Farm workers Fish feeders Fibrous Plasterers Financial Controllers Fitters Floor Finishers Food and Beverage Wait staff Foremen/Site Supervisors Foresters Front of House hospitality workers Furniture Upholsterer Gaming attendants General Physicians General Practitioners Geo technical engineers Geologists Grader drivers Hairdressers/senior stylists Health Inspectors Heavy machinery operators Hotel Service Supervisors Hotel/Motel Managers HR Professionals Insulation and Home Improvement Installers Insurance brokers Interior fit out tradespersons Inventory Buyers IT professionals IT Systems engineers Occupational Skill Shortage Analysis – Phase One L2 L3 L2 L2, C, Q L3 L3 L3, R, C L3, Q, C L2, C L1 L1 L2, C L2, Q, C L3 L2 L2 L3 L2 L2, C, Q L2, C, Q L3 L2, C, Q L2, C, Q L1 L2 L3, C, Q L3 L2, C, Q L3 L3, Q, C L2 L2 L2, C, Q L2 L3, C, Q L2 L1 L3, C, Q L2 L3, C, Q L1/2 L2, C, R L1 L2 L3 L3, C, Q L2 L3 L2, C, Q L2, C, Q L2 L2 L2 L1, C, Q L1 L2 L2 TQ C TQ TQ C C C N C UE UE TQ TQ N UE UE C TQ TQ TQ TQ C PP UE/VET UE C C TQ C C TQ UE/VET TQ TQ C TQ UE/VET C TQ C UE UE UE UE C TQ UE/VET C C UE/VET UE/VET TQ UE/VET TQ PP UE UE Page 69 of 80 IT technicians Jockeys Journalists Lean manufacturing managers Legal Secretaries Logistics personnel Machinists Maintenance Engineers Maintenance workers Management Marine Engine Drivers Market analysts Mechanical Engineers Medical Receptionists Medical Typists Metallurgists Mining Engineers Mobile construction plant operators Motor Mechanic Nail Technicians Nurses – specialist Obstetricians/gynaecologists Operations managers Ophthalmologists Optometrists Other Building and Engineering Associate Professionals Other mining, construction and related labourers Paediatrician Painters and Decorators Panel Beater Para-legals Para-professionals Pastry Cook Pathologist Payroll officers Personal Trainers Pharmacists Pickers Planning Engineers Planning officers Plant Managers Plastic fabricators Police Officers Policy analysts Policy officers Power Engineers Practice Managers Practice Nurses Print Machinists Procurement officers Production managers Programming specialists (.NET, C#, Java etc) - experienced Project Managers Project/program managers Property/asset management Protection and Control Engineers Quality Assurance officers Quantity Surveyors Occupational Skill Shortage Analysis – Phase One L2 L3 L2 L2 L2 L2 L2, C, Q L2 L3, Q, C L2 L2, Q, C L2 L2 L3 L3 L1 L1 L3 L2, C L3, Q L2, C L2 L2, Q, C L1 L1 L2 L3 L1 L2 L2, C L1 L2 L2, C, Q L1 L2/3 L2 L2 L3, R, C L2 L2 L2, C L3 L2 L2 L2 L2 L2, Q L2 L2, C L2 L2 L2 L2 L2 L2 L2 L2 L2 UE/VET TQ UE TQ/PP PP C TQ UE/VET TQ UE/VET TQ UE UE C/PP C UE/VET UE C TQ C UE UE UE/VET UE UE UE/VET C/N UE TQ TQ C/PP PP TQ UE PP C UE N UE UE/VET TQ TQ Other UE UE/VET UE UE UE TQ UE/VET UE/VET UE/VET UE/VET UE/VET UE UE UE/VET UE Page 70 of 80 Radiographers Radiologists Refrigeration and Air-conditioning Mechanic Registered Mid Wife Registered Nurses – accident/emergency, aged care, cardiothoracic, community health, critical/intensive care, neo-natal, neurological, oncology, operating theatre, paediatric, palliative care, peri-operative, rehabilitation, renal Restaurant and Catering Managers Retail Staff Risk assessors Roof Slaters and Tilers Sales representatives Secondary Teachers – specialised subjects Security Guards Settlements clerks Shearers Shipwrights Signwriters Skilled Miners (jumbo operators) Slaughtermen Software engineers Solid Plasterers Sonographers Special Needs Support Staff (eg Teachers Aides) Special Needs Teachers Specialist GP Nurses Speech and Language Pathologists Sports administrators Stablehands Steel fabricators Stevedores Stonemasons Structural Construction Tradespersons Structural steel construction workers Sub-editors Supervisors Surgeons – all Team leaders Technical Officers Telecommunications technicians Town Planners Trackwork riders Trainers and Assessors Transport drivers Truck Drivers Value added processors (wood, paper and pulp) Valuers Vehicle Painter Veterinarian nurses Veterinarians Vocational Teachers – specific skill sets Wall and Floor Tilers Warehouse operatives Welders Welfare Workers Work crew Occupational Skill Shortage Analysis – Phase One L2 L1 L2 L2 L2 UE UE TQ UE UE L2, C, Q L3, C, Q L2 L2 L3, C L2, C, R L3 L2 L3 L2 L2 L2, C L3 L2 L2, C L1 L3 L2 L2, C L1, C L2 L3, C L2, C, Q L2, C L2 L2 L3 L2, C L3, R, C L1, C L2, Q, C L1 L2 L1 L3, C L3 L3, C L3, C L3 L1 L2, C L2 L1 L2 L2 L3, C L2, C, Q L2, C L3, Q, C C N UE/VET TQ C UE C PP/C C TQ TQ TQ C UE TQ UE C UE UE UE UE/VET C TQ TQ TQ TQ TQ UE C UE UE/VET TQ/PP UE/VET UE C C/TQ C C C PP TQ C UE TQ/C TQ C TQ UE/VET N Page 71 of 80 Recommendations Given the extent of the scope of the Occupational Skills Shortage Analysis and the agreed priorities for Phase One of the project as outlined in the Methodology, further work to complement and expand on this overview of the nature of occupational shortages in Tasmania is recommended. Further research and consultation is recommended for the finance and insurance and business and property services sectors due to a lack of representation by peak industry bodies in Tasmania and the subsequent need to directly contact employing organisations. Additional research and analysis recommended includes: • • • • • • An audit of each industry’s occupational vacancies and projected shortages, including existing capabilities and skills Retirement projections by age group, by industry and by occupation Regional analysis of occupational shortages Replacement of Training Demand Profiles (TDPs) with occupational demand profiles Supply side analysis of education and training course enrolments and completions Investigation of partnership arrangements between interstate education and training institutions to supply occupations not provided for by Tasmanian education and training organisations. Occupational Skill Shortage Analysis – Phase One Page 72 of 80 Appendices A - Industry Consultation Letter 30 April 2008 Dear <industry>? Occupational Skill Shortage Analysis I have been contracted by Skills Tasmania to undertake a Skills Shortage Analysis of occupations in Tasmania. The purpose of the analysis is to gain a greater understanding of specific skill sets in short supply in Tasmania, currently and into the future. The findings of the analysis will inform Skills Tasmania’s future skill acquisition strategy and purchasing priorities. In particular, I am interested in gaining a greater understanding of the occupational skill shortages currently being experienced by the <industry>? • • • What occupations are currently in short supply? Are there any occupations that are not in short supply? Are there any occupations that will experience significant growth or decline in demand in the foreseeable future? And finally, • What is the impact of the skills shortage for the <industry>? I appreciate your consideration of these areas of interest and any further input you may wish to provide. I will be in contact during the week starting 19 May 2008 to arrange a convenient time for you to discuss further. In the meantime, should you have any queries please contact me on 0400 190 964 or by email at lisa@tasmanianjobs.com. Kind regards, Lisa Taylor Principal Occupational Skill Shortage Analysis – Phase One Page 73 of 80 B – Industry consultation participants Aged and Community Services Tasmania AMA Tasmania State Office Australia Mines and Metals Association Australian Hotels Association and Restaurant and Caterers Association of Tasmania Australian Property Institute – Tasmanian Division Baking Industry Association of Tasmania Building and Construction Industry Council CPA Department of Economic Development Department of Education Department of Primary Industries and Water Department of Treasury and Finance Food Industry Council of Tasmania Forest and Forestry Industry Council Hairdressing Federation Tasmania Henty Gold Mine Information, Communication and Technology Industry Council KPMG Local Government Association of Tasmania Manufacturing Industry Council Master Builders Association Master Plumbers Association of Tasmania Metal Industries Association Real Estate Institute of Tasmania Retail Traders Association of Tasmania Searson Buck Skills Tasmania Statewide Independent Wholesalers Stepping Stones Childcare TAFE Tasmania TasICT Tasmania Maritime Network Tasmania Police Tasmanian Building and Construction Industry Training Board Tasmanian Fishing Industry Council Tasmanian Health and Beauty Industry Council Tasmanian Minerals Council Tasmanian Transport Association Textile, Clothing and Footwear industry sub sector of MIC Tourism Industry Council of Tasmania Transend Occupational Skill Shortage Analysis – Phase One Page 74 of 80 C – Local Government Survey Response 1. Is your council currently experiencing a shortage of skills or labour? please indicate which areas:a) specific skills? Yes b) areas of labour? yes 2. Describe the possible reasons for the shortages you have outlined. • • • • • • • • • • • • • • • • Too little money and too much stress dealing with Council and public. Also there are few good quality applicants about. Salaries and trying to attract staff from a decreasing pool with increased expectations. The location of this Council could be a factor and as a small council the limited opportunity for advancement.. Being a small Council it is difficult to attract employees in these positions – location, remuneration etc. Lack of skilled applicants. Lack of qualified employees in the state. Lack of population, inability to financially afford comparable salaries and conditions Competition with a booming mining industry & Council’s inability to compete with wages offered. Market shortage Private sector’s capacity to pay higher salaries for professional staff Low profile of LG Restricted training opportunities at local level Unable to offer salaries competitive with private enterprise. Councils competing against each other to fill vacancies. Generation X and Y tend to have less loyalty to an organisation. Many staff are paid better in cities, we have limited finance and benefits to attract any staff to the rural area. Also very difficult to attract staff without facilities that the city provides, ie cinemas, fast food, shopping, gymnasiums etc The boom in the construction industry has contributed to a large portion of our current skills shortage. Better money is available in private industry.. 3. List those specific occupations that currently present difficulties in terms of recruitment and retention. • Town planning, various engineering, building surveyor, EHO, plumbers • Town planner (at a senior level), graduate engineer • Town planning, engineering and IT • Engineer, Tourism Development Officer, Youth Development Officer • Engineering and planning • Statutory Planner, Building/health inspector, grader driver, plant operators, financial management, IT, engineer • plant operators, technically qualified staff, engineering, technical officer, works manager Occupational Skill Shortage Analysis – Phase One Page 75 of 80 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Planners, machine operators, senior accounting officer, works staff Office Administration Plant Operators & Truck Drivers Statutory / Strategic Planning Concreting MR licence Engineering, Planning, Accountancy, Public Health, Child Care Engineers, Planning Officers, Environmental Health Officers, Senior Accountants, Qualified Child Carers Town Planners Systems Development Officers Outside School Hours & Vacation Carers Engineers Plumbers IT Project Management Treatment Operators Town Planners Roads Maintenance and Construction Systems Development Child Care Nursing, child care. Aged Care within community Office Administration/reception Town Planners, Engineers and Construction Workers. Construction (non-tradespeople) – specifically in areas such as concreting, paving, etc Management Development appraisal planners (retention issue) Diesel fitters (retention issue) Admin assistants (retention issue) 4. Identify occupations or skills areas in your council, which are likely to experience significant growth in demand in the next ten years. • All professional skills will have a shortage however the growth in workload and demand I expect to be reasonably steady. • Probably aged care if that responsibility comes to council. Also there will be increasing need for staff with advanced IT skills. • Tourism positions, planning positions, building positions, risk management. • Engineering, planning, building • No significant growth anticipated • Environmental Management Officers • Information Technology, Engineers, Planners • Nursing and aged care, technical services (ie plumbing, building etc), community services • Community services seems to be a growing area • Planning, environmental planning and environmental management 5. Identify occupations or labour areas currently in council, that are likely to be in decline, or experience less demand over the next ten years. Occupational Skill Shortage Analysis – Phase One Page 76 of 80 • • • • • • • With the probable exception of building surveyors (as there are none out there) all current professional skills will probably remain in demand unless the system changes as with water and sewerage. There will be a decline in the demand for engineers with the loss of water and sewerage. Not known Specialist staff – anticipate more resource sharing to offset lack of availability of staff Employees currently employed in the water and sewer area due to the commencement of the new Water and Sewer Authority. Obviously, all occupations linked to water and sewage. Water and sewage related occupations 6. What is the impact of the skills/labour shortage on your council? • • • • • • • • • • • • • • • Currently town planning in particular although that could change rapidly – the flow on effect on customer service, regulatory capability and stress on other staff is being felt however. Currently contracting or utilising consultants to fill vacancies in specialist areas. Staff being utilised across the organisation, not always with specific skills at the level of understanding required. A dilution of the specialist skills in the organisation. Some more strategic strategies and initiatives being put on hold. Cost of recruitment, cost of contracting. Lack of productivity, more stress on current employees carrying the load. Rising cost of consultants Most of the shortage is due to the location of our Municipality and the housing shortage due to the current mining boom. Staff turnover Review of job priorities to work within resource capacity. Restricted capacity to proactively manage succession planning. The need to hire consultants to assist with workload. Extra pressure being placed on existing staff. Labour shortage will lead to workplace stress, long hours, workplace injuries, difficulty in accomplishing tasks within required timeframes. Potentially will lead to burnout . Skills shortage will lead to poor service, potential loss of income, higher cost to employ and retain staff. High recruitment costs and difficulties in achieving goals. Also, additional expense of hiring contractors. 7. Is appropriate training available in Tasmania to address the shortage? • • • • • • Yes There is training available but the shortages make it difficult to release staff to train whilst current work demands are high. Most town planners seem to be studying externally interstate other areas should be OK although building surveying and environmental health (in the form we need it) may be an issue No As far as I am aware Not across all areas, LG primarily utilise the Water Industry Training Centre; in lieu of TAFE for water treatment modules and they do not offer courses regularly in Tas. Occupational Skill Shortage Analysis – Phase One Page 77 of 80 • Yes, but may not in the future. 8. Other comments In response to your survey request I advise as follows. We don’t have either a HR manager or officer or time to fill in surveys however the positions we have difficulty filling are primarily the technical ones in the local government sphere. These include mainly, planning, engineering, environmental health and building surveyors at practically any level. Don’t know the reasons why presumably there have not been sufficient people trained in the past. Don’t know what training is available you should probably talk with educational bodies on that. We are currently relying on minimal contract support for many of the above functions with resulting delays in service delivery and increased costs because contractor rates tend to be higher than employee rates. Next 10 years, don’t know haven’t got a crystal ball but I don’t see it getting any better than it currently is. Occupational Skill Shortage Analysis – Phase One Page 78 of 80 D – IT Industry Survey Response 1. Does your industry believe it is experiencing a skill or labour shortage? Yes, skills shortage – unanimous 2. What does your industry perceive to be the reasons for the skill/labour shortage? • • • • • • • • • • • • • • • Insufficient government support for technology industries Exodus to the mainland Little R&D tax concessions Need to create a “smart state mentality” Rapid increase in demand, coupled with competition from other sectors Lack of graduates, drain to the mainland b/c of salary levels, little inflow of skills from outside Tasmania Lack of supply of graduates to cover all of market (therefore making things very competitive for employment), tendency for qualified staff to move interstate/overseas. Low unemployment levels and general labour shortages Poor marketing of ICT as a career option Fast-paced industry and rapidly changing technology: traditional education programs do not adapt quickly enough to meet industry needs, and need better collaboration between industry and educational institutions Out-of-date skills are expensive to update No defined career path or widely recognised professional certification or regulatory requirement. Loss of skilled practitioners and tertiary graduates to mainland jobs, due to perception that exciting career prospects or opportunities are not available in Tas. In-sourcing of ICT services by government agencies, which drives up salaries, reduces the pool of available skills, locks up skills from being available commercially, and reduces ICT services business opportunities. UTAS does not provide employable graduates with commercially useful skills 3. What specific occupations are currently in short supply? • • • • • • • • • • • • IT Technicians/engineers Telecommunications technicians Software applications engineers Audio visual technicians MS.NET Framework and C# programming specialists Software engineering skills preferably with strong physics & maths (hard sciences) Higher level Technical programmers/developers in Java and .NET (i.e. experienced staff rather than graduates) Business analysts with IT skills Business Development Managers (sales reps) IT Systems Engineers Skills in MicroSoft Software Development Skills Software Developers 4. Are there any occupations that are not in short supply? Administration staff Occupational Skill Shortage Analysis – Phase One Page 79 of 80 5. Are there any occupations that will experience significant growth in demand in the foreseeable future? • • • • • • • All of the above Programmers Software engineers Technical programming (Java and .NET) Business analysts with IT skills IT systems engineers. Yes,. All ICT roles 6. Are there any occupations that will experience significant decline in demand in the foreseeable future? • • • No Unlikely Legacy system skills 7. What does your industry perceive to be the impact of the skill/labour shortage? • Decline in the sustainability of a viable ICT industry in Tasmania • Increased labour costs, slow down in industry development • Increased time to market for new products leading to reduction of export earnings and shrinkage of R&D investment • It makes staff very hard to come by and thus very expensive. We either employ graduates and fail to get the experience from staff we need, or we shell out a lot of money. It will limit the growth opportunities for our company and may impact on the quality of service we can deliver. • A solution we are currently considering quite seriously is to outsource some development labour off-shore. Luckily we haven’t had to do this yet. • Restricts our ability to adequately service our existing markets and limits our growth potential • At the end of the day, if we can’t fulfil the market demand for IT services, our customers are not able to maximise the benefits of IT, and therefore cannot maximise the productivity and efficiency benefits which IT provides. • An Inability for Tasmanian ICT companies to grow & be competitive on the local & Australian market place 8. Other comments Talking with other ICT companies we are all struggling to find software engineers. I believe the government should do two things: 1. 2. Short term a. advertise ICT opportunities in Tasmania in overseas markets (South Africa, NZ, UK, USA, India) b. advertise in Australian lifestyle magazines to attract people from interstate. c. Set up careers days at UTas as an introductory service between employees and ICT companies 6 months prior to completion of the academic year. (ie May) Med – Long term a. Provide scholarships at the UTas to UGs doing combined science/software/engineering courses. We find that Tasmanian raised staff stay with us longer and resist the temptation of higher wages outside of Tasmania. Occupational Skill Shortage Analysis – Phase One Page 80 of 80