Structural Steel and Welding Trades Workers, and Fitters
Australian Capital Territory
October 2016
Labour Market Research and Analysis Branch
Department of Employment
Current labour market ratings
3223 Structural Steel and Welding Trades Workers Shortage
3232-11, 12, 13 Fitters Research did not provide sufficient evidence to determine a rating.
Previous labour market ratings (November 2015)
3223-11, 13 Structural Steel and Welding Trades Workers No Shortage
3232-11 Fitter No Shortage
Comments
Employers have significant difficulty attracting qualified and suitable metal fabricators and welders.
Survey results[1]
· These are small labour markets in the ACT reflecting, in large part, Manufacturing’s low share of the Territory’s employment.[2] Few vacancies are advertised for engineering trades workers.
· Applicant numbers have fallen significantly over the past three years and employers now face considerable difficulty filling their vacancies, with 41 per cent of vacancies filled in 2016.
· There were 4.9 applicants per vacancy, on average, of whom 0.7 were considered to be suitable.
Structural Steel and Welding Trades Workers
· Most surveyed vacancies involved a mix of fabrication and welding duties.
· Recruitment was particularly difficult in 2016, with the labour market tightening.
o About 43 per cent of vacancies were filled, the lowest proportion since 2011.
o There were 3.8 applicants per vacancy, on average, of whom 0.6 were considered to be suitable. Applicant numbers have fallen each year since 2013, from an average of 6.5 and
1.8 suitable per vacancy.
o One third of employers did not attract any applicants.
Fitters
· Few vacancies were identified during the research period.
· Although the small number of employers contacted for this research suggest that recruitment of fitters can be difficult, shortages have not been identified since 2008 and the research did not provide sufficient evidence to determine a definitive rating.
Employers’ expectations
· Vacancies were across a range of businesses in construction or related manufacturing, in workshops and on-site locations.
· Almost all employers sought qualified tradespeople.
· Employers required experienced workers, with some valuing experience more than formal qualifications.
o Few employers stipulated a specific minimum number of years of experience, but those who did generally required five or more.
· Most sought applicants with broad skill-sets who could undertake a wide range of fabrication, welding and fitting tasks, rather than highly specialised workers.
· Applicants with sound communication skills were also valued by employers.
· In line with mandatory requirements, vacancies for work on construction sites needed applicants to have a general construction induction card (white card) and asbestos awareness training.
Unsuitable applicants
· Around half the applicants did not have trade qualifications and about three quarters of qualified workers were considered to be unsuitable.
· The key reason that applicants were unsuitable was a lack of experience, including those who had specialised experience in one area of the trade, but lacked the broader skill-set required.
· Other reasons included
o inadequate trade knowledge or skill level
o poor references and work history.
Demand and supply trends
· Economic indicators point to solid demand for engineering trades workers in the ACT but low training numbers limiting new supply to this labour market.
· Around two thirds of engineering trades workers[3] in the ACT are employed in the manufacturing and construction industries[4], with activity in construction being the major driver of demand.
· Construction activity increased over the year to June 2016, supporting demand for engineering trades workers, with strong residential construction more than offsetting a decline in non-residential building.[5]
o The total value of construction work done increased by 5.0 per cent over the year to June2016, having risen for three consecutive quarters.
· Apprenticeship and traineeship numbers for these trades in the ACT are small and commencements have fallen over the past three years to an historically low level. Completions rose slightly over this period but are likely to fall over the next few years following declining commencements.[6]
o There were around 18 commencements and 25 completions in the year to March 2016.
· Some surveyed employers suggest that the limited number of apprentices entering these trades, and the small nature of this labour market in the ACT, limits the potential pool of locally available candidates.
Outlook
· Although construction activity is likely to moderate over 2017, the historically low new supply to these trades is expected to see shortages persist in the short term.
Labour Market Research and Analysis Branch
Department of Employment
[1] The methodology underpinning this research is outlined at Skill Shortage Research Methodology | Department of Employment - Document library, Australian Government and can also be accessed by the QR code.
[2] ABS, Labour Force Survey, annual average 2016.
[3] Custom occupation group for these data include 3223 Structural Steel and Welding Trades Workers and 3232MetalFitters and Machinists
[4] ABS, Census of Population and Housing, 2011
[5] ABS, Construction Work Done, Preliminary, June 2016, chain volume measures, trend
[6] NCVER, VOCSTATS, Apprentices and Trainees, March 2016 (Certificate III in Engineering - Fabrication Trade and Certificate III in Engineering - Mechanical Trade)