JOBS AND TRAINING NEEDS REPORT

Metropolitan

2018

August 2017

v1.0

Published by the Department of Education and Training Melbourne, September 2017

©State of Victoria (Department of Education and Training) 2017

The copyright in this document is owned by the State of Victoria (Department of Education and Training), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission.

An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering such an institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution.

Authorised by the Department of Education and Training, 2 Treasury Place, East Melbourne, Victoria, 3002.

ISBN: 978-0-7594-0821-0

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Introduction

This report has been produced by the Department of Education and Training, for Training Providers, and summarises training needs for Metropolitan Melbourne.

It combines the region’s labour market analysis with existing government subsidised vocational education and training (VET) activity to provide insights on the level of future training needs, for specific occupations in the region.

This report should be considered in conjunction with the Funded Course List for 2018, which lists courses available for government subsidy and targets those courses that will yield the most value to the Victorian economy and community. It will assist Training Providers to better align their proposed delivery in 2018 with the objectives of the Victorian VET system.

Overview

Metropolitan Melbourne has a large and diverse economy that has progressively moved from manufacturing to a more globally focused, knowledge-based service economy. It is rapidly expanding with growth corridors to the north, west, southeast and northwest of the Metropolitan area. The economy shows strong growth especially in Financial and Insurance Services and Construction.

Within its sub-regions, there is significant variation in terms of industry concentration and urban characteristics.

Southern Melbourne is strongly influenced by Manufacturing, Professional and Health Care and Social Assistance industries. Western Melbourne is strongly influenced by the Financial and Insurance Services, Professional Services, and Public Administration industries due to the inclusion of the Melbourne CBD in the sub-region. Eastern Melbourne contains industrial areas, agricultural production and is a key centre for research, technological development and advanced manufacturing. Northern Melbourne has strategic infrastructure such as Melbourne Airport along with excellent road, rail and freight networks.

A number of key Training Providers service the Metropolitan Melbourne area, including: Chisholm and Holmesglen Institutes in the South; RMIT University, Victoria Polytechnic and the William Angliss Institute in the West; Box Hill Institute, Swinburne University and the Holmesglen Institute in the East; and Melbourne Polytechnic and the Kangan Institute in the North.

INDUSTRIES

FIGURE 1: BUSINESS COMPOSITION (2016)

Top five industries based on the share of total business establishments in 2016 for Metropolitan Melbourne and their comparative proportions for Victoria.

Metropolitan Melbourne

All Other Industries 43%

Construction 15%

Professional, Scientific and Technical Services 15%

Retail Trade 11%

Health Care and Social Assistance 9%

Wholesale Trade 7%

Victoria

All Other Industries 46%

Construction 15%

Professional, Scientific and Technical Services 13%

Retail Trade 11%

Health Care and Social Assistance 8%

Wholesale Trade 7%

Source: WorkSafe Victoria, 2017

JOBS AND TRAINING

The following figuresonly show occupations that are supplied by VET graduates. Some of these occupations may be supplied by both VET and higher education graduates, for example Accountants. Occupations recurring more than once in figures 2 to 4 are noted to show the extent to which high volume job vacancies, and large forecast job demand, are reflected in 2017 forecast government subsidised training commencements.

FIGURE 2: ADVERTISED VACANCIES BY OCCUPATION (2017)

The top ten occupations based on the share of total advertised job vacancies in the 12 months to June 2017 for Metropolitan Melbourne and their comparative proportions for Victoria.

Sales Representatives Metropolitan7%

Sales Representatives Victoria 7%

Software and Applications Programmers Metropolitan4%

Software and Applications Programmers Victoria 4%

Accountants Metropolitan 3% – also in figure 3

Accountants Victoria 3%

Contract, Program and Project Administrators Metropolitan 3%

Contract, Program and Project Administrators Victoria 2%

Information Officers Metropolitan 2%

Information Officers Victoria 3%

Other Specialist ManagersMetropolitan 2%

Other Specialist Managers Victoria 2%

Advertising and Marketing Professionals Metropolitan 2%

Advertising and Marketing Professionals Victoria 2%

Computer Network ProfessionalsMetropolitan 2%

Computer Network Professionals Victoria 2%

Human Resource ProfessionalsMetropolitan 2%

Human Resource Professionals Victoria 2%

ICT Business and Systems AnalystsMetropolitan 2%

ICT Business and Systems Analysts Victoria 2%

Source: Burning Glass Technologies – Labour Insight Real-Time Labour Market Information Tool, 2017

Note: Data is based on internet vacancies only and may not reflect all job openings over the period

FIGURE 3: TOTAL OCCUPATIONAL DEMAND (2017–2021)

The top ten occupations based on the share of total forecast of demand for workers over the next 5 years for Metropolitan Melbourne and their comparative proportions for Victoria. Demand for workers may arise from new jobs created, staff turnover and/or retirements.

Sales Assistants (General) Metropolitan9% – also in figure 4

Sales Assistants (General) Victoria 9%

Checkout Operators and Office Cashiers Metropolitan3%

Checkout Operators and Office Cashiers Victoria 3%

Waiters Metropolitan 3%

Waiters Victoria 3%

Kitchenhands Metropolitan3%

Kitchenhands Victoria 3%

AccountantsMetropolitan2% – also in figure 2

Accountants Victoria 2%

Retail Managers Metropolitan2%

Retail Managers Victoria 2%

Child Carers Metropolitan2% – also in figure 4

Child Carers Victoria 2%

Receptionists Metropolitan 2%

Receptionists Victoria 2%

StorepersonsMetropolitan 2%

StorepersonsCleaners Victoria 1%

General ClerksMetropolitan 2%

General Clerks Victoria 1%

Source: Deloitte Access Economics, 2017

FIGURE 4: COMMENCEMENTS BY OCCUPATION (2017 FORECAST)

The top ten occupations based on the share of total government subsidised commencements in 2017 (forecast) for Metropolitan Melbourne and their comparative proportions for Victoria.

Child Carers Metropolitan 5% – also in figure 3

Child Carers Victoria 4%

Education Aides Metropolitan 3%

Education Aides Victoria 3%

Security Officers and Guards Metropolitan 2%

Security Officers and Guards Victoria 2%

Nursing Support and Personal Care Workers Metropolitan 2%

Nursing Support and Personal Care Workers Victoria 2%

Architectural, Building and Surveying Technicians Metropolitan 2%

Architectural, Building and Surveying Technicians Victoria 2%

Concreters Metropolitan2%

Concreters Victoria 2%

Aged and Disabled CarersMetropolitan2%

Aged and Disabled Carers Victoria 2%

Special Care Workers Metropolitan2%

Special Care Workers Victoria 2%

Sales Assistants (General) Metropolitan 2% – also in figure 3

Sales Assistants (General) Victoria 1%

Welfare Support WorkersMetropolitan2%

Welfare Support Workers Victoria 2%

Source: Department of Education and Training, 2017

FIGURE 5: APPRENTICESHIP COMMENCEMENTS BY OCCUPATION GROUPS (2016)

The top ten occupations based on the share of total apprenticeship commencements in 2016 for Metropolitan Melbourne and their comparative proportions for Victoria.

Carpenters and Joiners Metropolitan16%

Carpenters and Joiners Victoria 18%

Plumbers Metropolitan 14%

Plumbers Victoria 12%

Electricians Metropolitan 13%

Electricians Victoria 11%

HairdressersMetropolitan6%

Hairdressers Victoria 5%

ChefsMetropolitan3%

Chefs Victoria 4%

CooksMetropolitan3%

Cooks Victoria 4%

Gardeners Metropolitan 3%

Gardeners Victoria 3%

Motor Mechanics Metropolitan 3%

Motor Mechanics Victoria 3%

CabinetmakersMetropolitan3%

Cabinetmakers Workers Victoria 3%

Bricklayers and Stonemasons Metropolitan2%

Bricklayers and Stonemasons Victoria 2%

Source: Department of Education and Training, 2017

Note: Forecast data for 2017 not available

ADVERTISING EMPLOYERS

The following companies and organisations have advertised the largest number of job postings in Metropolitan Melbourne in the 12 months ending June 2017 (ordered alphabetically). The data is based on internet vacancies only, and as a result, may not reflect all job openings over the period. Apprentices are generally employed by small firms and thus their employers may not be represented below.

Of the top advertisers in the region, universities are strongly represented. These educational institutions represent a quarter of the top 20 advertisers in the region. The remaining top advertisers represent a wide variety of industries ranging from government, banking, utility services and retail.

It should be noted that the top advertising employers may recruit for a range of roles with different qualification requirements. Despite the strong presence of education providers in the top 20 advertisers, education-related occupations do not feature in the top advertised VET-related vacancies of the jobs and training figures 2 and 3 for the region. It is likely that many of the jobs advertised by universities require higher education, not VET, qualifications. Conversely, retail roles, Accountants and a number of professional service roles from figures 2 and 3 are consistent with the sectors advertising the most vacancies in the region.

  • AGL Energy
  • Ascot Vale Leisure Centre
  • Australia and New Zealand Banking Group
  • Coles Supermarket
  • Deloitte Touche Tohmatsu Limited
  • Federal Government
  • La Trobe University
  • Mercy Health
  • Monash University
  • National Australia Bank
  • News Corp
  • Public Transport Victoria
  • Royal Automobile Club of Victoria
  • RMIT University
  • State Government
  • Swinburne University of Technology
  • Telstra Corporation Limited
  • The Just Group
  • University of Melbourne
  • Woolworths

Source: Burning Glass Technologies – Labour Insight Real-Time Labour Market Information Tool, 2017

TRAINING PROVIDERS

The following figure and table represent the share of government subsidised training commencements in Metropolitan Melbourne by type of Training Provider, and the total number of Training Providers by type, in 2016. The shares are broadly consistent with the statewide picture.

FIGURE 6: SHARE OF COMMENCEMENTS BY PROVIDER TYPE (2016)

TAFE 35%

Adult Community Education (ACE) 23%

Private 42%

Source: Department of Education and Training, 2017

TABLE 1: NUMBER OF TRAINING PROVIDERS (2016)

TAFE Metropolitan14

TAFE Victoria 16

Adult Community Education (ACE) Metropolitan158

Adult Community Education (ACE) Victoria 264

Private Metropolitan273

Private Victoria 299

Source: Department of Education and Training, 2017

Skills requirement

Table 2 provides a guide for Training Providers on the nature and size of jobs serviced by VET training in Metropolitan Melbourne, and anticipated jobs growth and associated demand for training in 2018, taking into account existing training patterns.

This information is intended to provide broad indications of VET demand. Depending on a range of factors, jobs displaying similar indicators of anticipated training related employment demand may have differing training requirements for 2018. For this reason jobs should not be compared, but considered individually. The information only applies to 2018 skills needs; the data will be revised on an annual basis to take account of the latest developments in the Victorian economy.

EXPLANATORY NOTES

Training related occupations: Occupations where VET training supplies all or some new entrants, or where VET training is undertaken to improve specific or generic skills for existing workers in, or seeking to enter, those jobs.

2017 employment: Estimated persons employed in the region in 2017, in occupations where VET training supplies all or some workers, based on Deloitte Access Economics’ whole of Government Labour Market Forecasts.

Anticipated 2018 employment demand: Estimated occupational demand for those holding VET qualifications in the region, based on new jobs created, staff turnover and retirements. Note that for some jobs, workers holding higher education qualifications or no qualifications may also be in demand, but these are excluded from the data. Results will range from:

- no additional VET graduates required

- minimal additional VET graduates required

- moderate additional VET graduates required

- significant additional VET graduates required

Anticipated 2018 additional training needs (Region)/(State): Estimated requirement for government subsidised VET commencements in 2018 in the region and in Victoria, based on current employment, anticipated employment growth and current training patterns. Results are presented as numeric ranges. Please note training requirements for a given occupation may be high in some regions and negative in others. When combined into a statewide requirement, these results may cancel out each other out. Hence a single region’s training requirement may differ significantly to the statewide requirement.

Apprenticeship option available: Jobs marked with the letter A indicate that one or more apprenticeships apply to it. Training delivery aligned to those apprenticeships is encouraged, irrespective of whether anticipated requirements for general (i.e. non-apprenticeship) courses aligned to the job are stable or decreasing.

Statewide priorities: Jobs aligned to Victorian Family Violence and National Disability Insurance Scheme (NDIS) workforces, and general infrastructure (including rail) projects, are annotated with the letters F, N, I and R, respectively. As high profile Government initiatives, related job openings may increase more than the base anticipated employment demand across Victoria.

GUIDELINES FOR USE

Table 2 should be read in conjunction with Table 3 to link anticipated additional training needs for each job to the VET courses which supply graduates for those jobs. In proposing Program Delivery Plans, Training Providers should assess which courses on their scope, within the ANZSCO Sub-Major Groups, will best service the anticipated additional training needs.

Example 1

As indicated in Table 2, Agricultural Technicians have a relatively low employment base in the region (300 workers). It is anticipated that there will be no further employment demand for VET graduates (arising from new jobs created, staff turnover and retirements) for this occupation in 2018. This is indicated in the table. Additionally, no training commencements will be required in 2018.

The ANZSCO Sub-Major Group for Agricultural Technicians is Engineering, ICT and Science Technicians. Referring to this ANZSCO Sub-Major Group in Table 3 , the course most aligned with Agricultural Technicians is the Certificate IV in Conservation and Land Management. Training Providers may wish to limit the number of places for this course in their Program Delivery Plans, due to the lack of anticipated employment demand, as explained above.

Example 2

As indicated in Table 2, Bricklayers and Stonemasons have an employment base in the region of approximately 5800. Anticipated employment demand for VET graduates (arising from new jobs created, staff turnover and/or retirements) is increasing moderately, which suggests that some job openings may become available in 2018. Additionally, some new training commencements is anticipated for the region in 2018 in the 500-2000 level, to meet this demand. Also of note, there are some Apprenticeship courses associated with Bricklayers and Stonemasons and they are associated with statewide government priorities (infrastructure projects and rail projects).

The ANZSCO Sub-Major Group for Bricklayers and Stonemasons is Construction Trades Workers. Referring to this ANZSCO Sub-Major Group in Table 3, the courses most aligned with Bricklayers and Stonemasons are: the Certificate II in Building and Construction, Pre-apprenticeship; the Certificate III in Stonemasonry; and the Certificate III in Bricklaying/Blocklaying. Training Providers may wish to include these courses in their Program Delivery Plans, taking into account the range supplied in Table 2. As the Certificate III in Bricklaying/Blocklaying is an Apprenticeship, unlimited delivery is permitted and encouraged for this mode.

Notes

Apprenticeships:

Apprenticeship commencements are encouraged and no limits will be applied, due to the following specific needs of the occupations associated with these courses:

  • long lead times - skills for these occupations are highly specialised and require extended training over three or more years, so the pipeline of apprentice graduates must be maintained irrespective of short term fluctuations in employment demand
  • high use - skills are deployed for the uses intended, so there is a good occupational ‘fit’ between the course undertaken by the apprentice and the occupations
  • high risk - disruption caused by skills being in short supply would impose a significant risk to the economy and/or community, particularly for occupations which have licensing and registration requirements.

Additionally, the rate of apprenticeship take up is closely related to available employment, given that apprentices and employers must enter into an employment contract. This promotes greater opportunities for ongoing employment once the apprenticeship is completed.

Region/State training indicators:

In some instances, occupations may display no anticipated 2018 additional training needs (indicated as zero in Table 2) at both the region and State Level. Courses associated with these occupations may still appear on the Funded Couse List 2018 and will therefore be government subsidised in 2018, in order to:

  • cater for niche/thin market occupations which are important to the State or local economy and may require access to marginal levels of government subsidised training from time to time (including with the additional support of the Regional and Specialist Training Fund)
  • allow for training in apprenticeship courses associated with those occupations should there be demand
  • maintain stability of the Funded Course List in cases where the demand for training varies from year to year but the associated courses still show high economic or community value to Victoria.

Training Providers should still consider these courses in their Program Delivery Plans.

1

Table 2: Skills requirement by Sub-Major and Unit Group occupations (ANZSCO)

Training related occupations / 2017 Employment / Anticipated 2018 employment demand / Anticipated 2018 additional training needs (Region) / Anticipated 2018 additional training needs (State) / Statewide priorities
Technicians and trade workers
Engineering, ICT and Science Technicians
ICT Support Technicians / 11,200 / minimal additional VET graduates required / 500-2,000 | A / 1,000-5,000 | A
Telecommunications Technical Specialists / 2,100 / minimal additional VET graduates required / 500-2,000 | A / 1-1000 | A
Other Building and Engineering Technicians / 1,800 / minimal additional VET graduates required / 500-2,000 | A / 1,000-5,000 | A / I, R