ANZSCO 3222-11Queensland

Sheetmetal Trades WorkersDecember 2017

Labour Economics Office Queensland

Department of Jobs and Small Business

Current labour market ratingShortage

Previous labour market rating (December 2016)Regional Shortage

Comments

Shortages of appropriately skilled and experienced sheetmetal workers are evident across the state, particularly in metropolitan areas. Applicant numbers have declined substantially over the past two years and 60 per cent of employers surveyed this year have been unable to fill their advertised vacancies.

Survey results[1]

  • This year, 31 per cent of vacancies for sheetmetal trades workers were filled within four weeks of advertising, which was substantially lower than the 77 per cent recorded in November 2016.
  • Around 67 per cent of regional vacancies were filled, compared with10 per cent of metropolitan vacancies.
  • On average, the number of applicants per vacancy (8.3) has dropped for the second consecutive year, less than one third of the number of applicants recorded in 2015 (30.8).
  • Metropolitan vacancies attracted an average of 4.0 applicants per vacancy, fewer than the regionalfigure of 15.5.
  • Overall, the average number of suitable applicants per vacancy in this year’s survey was 0.4, compared with 1.4 suitable applicants in 2016.
  • Around 65 per cent of applicants were qualified with little difference between the metropolitan (63per cent) and regional (66 per cent) areas.
  • The average number of qualified applicants per vacancy in metropolitan and in regional areas was 2.5 and 10.2 respectively.
  • Around 60 per cent of metropolitan and 40 per cent of regional employers reported that their vacancies attracted no suitable applicants.
  • While all employers sought qualified applicants, several were prepared to accept candidates with at least five years of experience provided they could demonstrate expertise in a wide range of skills such as TIG and MIG welding, CNC brake press, stainless steel and other thin metals, as well as the required high quality of work.
  • Several employers who were unable to attract suitable applicants indicated they were implementing strategies to recruit and retain workers such as poaching workers from other employers, offering higher wages including topping up apprentice wages, and approaching high schools before the end of school for potential apprentices.
  • A number ofemployers were hiring more apprentices, choosing them on the basis of being a good cultural fit and training them to ensure their skills and experience were relevant to the employer’s particular industry. Employers expected this would result in qualified workers able to perform a wide range of tasks at a high standard of both quality and appearance.
  • Some employers had canvassedlocal schools and providedon-site visits to Year 12 students in an attempt to source applicants with a genuine interest and understanding of the occupation that were willing to commence their apprenticeship upon completing school. The employers expressed the belief that this strategy would result in better long term retention.

Unsuitable applicants

  • Employers reported that the majority of qualified applicants (93 per cent) were considered unsuitable.
  • Apart from lack of qualifications, the main reasons employers found applicants unsuitable were:
  • a lack of specific experience such as light steel fabrication or industrial stainless steel experience, including polishing and finishing for products such as kitchens
  • lack of technical skill in precision welding of high quality and appearance.
  • Some employers reported that qualified sheetmetal workers were not hired because applicants were not prepared to travel to work if it required paying road tolls.
  • A small number of employers stated that applicants either did not turn up to the interview, or appeared at interview inappropriately dressed.

Demand and supply trends

  • Sheetmetal trades workers are predominantly employed in manufacturing and to a lesser extent, construction. Demand for this trade has been adversely affected by reducedactivity in manufacturing and building activity.
  • Gross value added by Queensland manufacturing fell by three per cent for the year to June2017.[2]
  • Also, the value of building work done decreased by 6.4 per cent over the same period following an increase of similar proportions in the previous year.[3]
  • Employment and vacancy data, however, indicates an increase in demand and supply for this trade.
  • Australian Bureau of Statistics Labour Force Survey data shows that the number of sheetmetal trades workers employed in Queensland has increased slightly over the year to November2017 following a five year decrease.[4]
  • The Department of Jobs and Small Business’sInternet Vacancy Index showsthat annual online vacancies for sheetmetal trades workers in Queensland have increased moderately since 2014, with a 16.9 per cent increase in the last year to November 2017.[5]
  • Formal entry into this trade is mostly through the completion of an apprenticeship in Engineering Fabrication. As the data for apprenticeship in engineering fabrication includes a number of trades, separate apprenticeship data for sheetmetal trades workers is not available. However, the number of apprentices commencing a Certificate III in Engineering – Fabrication Trade has been declining since 2011-2012 but increased by around 14 per cent in 2016-2017 after a series low in 2015-2016. The number of apprentices completing this a fabrication trade certificate has also been decreasing since 2013-2014 with a drop of around 13.6 per cent in 2016-2017.[6]
  • Data from the Department of Home Affairs indicates that temporary skilled migration is a minor source of supply to this trade.There were fewer than five 457 Visas granted per annum for sheetmetal trades workers to work in Queensland since 2013-2014 to 30September2017.[7]

Labour Economics Office Queensland

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 Governmentand can also be accessed by the QR code.

[2]ABS, 5220.0 Australian National Accounts: State Accounts, Qld 2016-2017, Table 4

[3]ABS, 8752.0 Building Activity Australia, September 2017, chain volume measures, trend, Table 9

[4]ABS, Labour Force, November 2017, Department of Jobs and Small Business trend

[5] Department of Jobsand Small Business, Internet Vacancy Index, November 2017, 4 digit 12 month average

[6]National Centre for Vocational Education Research (NCVER), Apprentices and Trainees, June 2017, estimates (Certificate III in Engineering – Fabrication Trade)

[7]Department of Home Affairs, BP0014 Temporary Work (skilled) visas granted 30 September 2017