ANZSCO 3322-11New South Wales

Painting Trades WorkerSeptember 2017

Labour Economics OfficeNew South Wales

Department of Jobs and Small Business

Current labour market ratingShortage

Previous labour market rating (August 2016)Shortage

Comments

Shortages of painting trades workers are evident across Sydney and regional New South Wales, with a low proportion of surveyed vacancies being filled and employers considering few applicants to be suitable.

Survey results[1]

  • The Survey of Employers who have Recently Advertised (SERA) was conducted for the occupation of painting trades worker in September quarter 2017.
  • Around 56 per cent of surveyed vacancies were filled (compared with an average of 60 per cent over the five years ending 2016).
  • Painting trades workers have been in shortage in each year since 2013 apart from 2014 when there was a regional shortage.
  • Employers who were unable to fill their vacancies said they either had to refuse work or downsize their business moving forward.
  • There was an average of 2.4 applicants per vacancy (compared with an average of 8.1 applicants per vacancy over the five years to 2016).
  • Only half the applicants were qualified painting trades workers, with there being an average of 1.2qualified painting trades workers per vacancy.[2]
  • There were low numbers of suitable applicants, with an average of less than one applicant per vacancy considered to be suitable by employers (0.6 compared with 0.5 in 2016).
  • Historically the average number of suitable applicants per vacancy for this occupation has been low, averaging 0.8 over the five years ending 2016.
  • Despite employers in regional NSW attracting more applicants per vacancy than their metropolitan counterparts (3.7 compared with 2.1), both had a considerable number of vacancies unfilled (33percent compared to 47 per cent) and considered on average less than one applicant per vacancyto be suitable.
  • Around half of all employers surveyed indicated they are experiencing strong demand for their services at present.
  • Most employers surveyed required applicants to have completed a painting trades apprenticeship and hold a Certificate III in Painting and Decorating.
  • A small number of employers instead valued practical experience over formal qualifications.
  • Around 90 per cent of surveyed employers sought painting trades workers with experience in residential painting (particularly in painting new homes, repairs and external walls).
  • Some of these employers, however, required painting trades workers with experience in both residential and commercial work.
  • Successful applicants were also expected to hold a range of tickets and licences.
  • It is mandated by SafeWork NSW that a white card (or general construction card) is held by people who access operational construction zones.[3]
  • Employers commonly required applicants to possess a valid driver licence and their own transport.
  • A small number required applicants to have an ABN for contracting positions.
  • Surveyed employers also placed emphasis on an applicant’s soft skills and commonly advertised for painters with skills in teamwork and communication and who were well presented.
  • Of those employers who responded to questions about apprentices, around 40 per cent stated they currently employ apprentices.

Unsuitable applicants

  • Half of all qualified painting trades workers who applied were considered to be unsuitable. These applicants lacked the level of experience, technical skills and soft skills required by employers, failed to attend a scheduled interview, or did not live locally.
  • A number of employers commented they received applications from qualified painters who they considered unsuitable as the level of remuneration sought did not match their skills.
  • Applicants who lacked formal qualifications (nearly 70 per cent of all applicants) were generally considered to be unsuitable.

Demand and supply trends

  • Demand for painters is generally influenced by the level of activity in the Construction industry.
  • The total, inflation adjusted, value of building work done grew by 2.8 per cent in the year to September 2017, with growth stronger than the national average of 0.8 per cent. This was the first year to end September since 2012 where the growth in NSW was not at least 10 per cent.[4]
  • Growth over the year to September 2017 was driven by the residential sector where the overall value of work done increased by 8.7 per cent. The increase of construction of new residences other than houses was 11.6 per cent while that for new houses was 6.4 per cent (after having grown 38.5 per cent and 4.9 per cent, respectively, over the year to September 2016).[5]
  • The value of non-residential work decreased by 8.4 per cent over the year to September 2017 which follows four years of growth in this sector.[6]
  • The New South Wales Budget 2017-18 outlines $2.7 billion in capital expenditure over four years for social housing.[7] This includes Phase 2 of the Social and Affordable Housing Fund which will the creation of 1200 new homes.[8]
  • The NSW Government is also committed to unlocking new land for housing through the Housing Acceleration Fund by delivering key infrastructure including roads, water and community amenities.[9]
  • The Australian Performance of Construction Index (state data are not available) expanded for the eight consecutive month in September 2017, though the extent of growth slipped slightly, with the dropping by 0.6 points to 54.7 (readings above 50 indicate expansion in activity, with the distance from 50 indicating the strength of the increase).[10]
  • Growth was driven by house building (up 0.1 points to 56.6) and engineering construction (down 1.1 points to 56.9). Commercial construction activity remained stable in September (up 0.1 point to 50.3), while apartment building activity dropped further into negative territory (down 3.3points to 41.4).
  • The Housing Industry Association(HIA) forecast in August 2017 that NSW housing starts for detached and multi dwellings will decrease in 2017-18 and 2018-19 with the declines for total dwelling starts being 15.7 per cent and 18.4 per cent, respectively.[11]
  • The HIA, though, predicts that renovation activity will remain flat over this period.
  • While construction demand remains strong, the number of internet vacancies for painting trades workers has remained flat over the year to September 2017.[12]
  • Entry into this trade is generally through the completion of a Certificate III in Painting and Decorating.[13]
  • The number of commencements in this course has increased consecutively for six years and for the year ended March 2017 was at a record high of about 325. The average annual level over the last five years was six per cent higher than the average for the previous five year period.
  • Completions, though, remain relatively stable and averaged around 130 over the five years to March 2017 (an increase of three per cent from the average over the previous five years).
  • The number of primary applicant 457 temporary skilled immigration visas granted for painting trades workers increased in significance as a source of supply over the two years ending 2016-17, with the average number of visas granted around 80 per annum. This compares with an average of around 35 per annum for the five years ending 2014-15.[14]
  • Please note, on 18 April 2017 the Government announced that the Temporary Work (Skilled) visa (subclass 457 visa) will be abolished and replaced with the completely new Temporary Skill Shortage visa in March 2018.[15]

Outlook

  • While the Construction industry has shown signs of slowing, the level of demand remains at a relatively high level and although Certificate III completions seem likely to increase, it seems doubtful that this will be enough to satisfactorily meet employers’ demand for painting trade workers.

Labour Economics OfficeNew South Wales

Department of Jobs and Small Business

[1] The methodology underpinning this research is outlined at Skill Shortage Research Methodology | Department of Jobs and Small Business - Document library, Australian Government.

[2] Data from previous years has not been reported on the average number of qualified applicants per vacancy due to a change in the methodology from September quarter 2017.

[3] NSW SafeWork, White Cards (CIC), (last accessed 5 October 2017).

[4] ABS, Construction Work Done, Preliminary, September 2017 (8755.0), chain volume measures, original.

[5] Ibid.

[6] Ibid.

[7] Department of Jobs and Small Business, NSW Budget 2017-18, 2017.

[8] NSW Government, NSW Budget 2017-18 Half-Yearly Review, 2017.

[9] NSW Government, NSW Budget 2017-18 Half-Yearly Review, 2017.

[10] Ai Group, Performance of Construction Index September 2017, 6 October 2017, (accessed 29 January 2018).

[11] Housing Industry Association, Economic and housing outlook for New South Wales, August 2017, (accessed 24 January 2018).

Please note, after this report was finalised, the HIA in November 2017 indicated that its forecasts may have been a little pessimistic, with building approvals having been stronger than anticipated.

[12]Department of Jobs and Small Business, Internet Vacancy Index, September 2017, 12 month moving average.Please note, this data is based on a count of online job advertisements newly lodged on SEEK, CareerOne and Australian JobSearch during the month. As such, it does not reflect the total number of job advertisements in the labour market as it does not include jobs advertised through other online job boards, employer websites, word of mouth, in newspapers, and advertisements in shop windows.

[13] National Centre for Vocational Education Research, Apprentices and Trainees, March 2017, estimates.

[14] Department of Home Affairs, Temporary Work (Skilled) visa (subclass 457) Programme, (accessed 25 January 2018).

[15] More information can be found here