Skilled Occupations List 2015
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1 Skilled Occupations List Submission from SkillsDMC 24/11/2014
2 Introduction SkillsDMC is providing input on the occupations represented under the Resources and Infrastructure Industry and some other occupations represented under other sectors closely related to Resources and Infrastructure sector. The information has been gathered through desktop research and aims to address the following the issues: Demand and supply imbalance, both nationally and regionally Medium-to-long term demand and supply trends which may impact upon Australia s employment outlook Formal licensing or registration requirements 1. What are the industry/industries and ANZSCO occupation/s that you or your organisation represents for the purposes of this submission? Industry/industries: ANZSCO code (four-to-six digit) Occupation/s Civil Infrastructure Construction Project Manager Resources Production Manager (Mining), Mine Manager, Mine Superintendent, Quarry Manager Civil Infrastructure Civil Engineer, Infrastructure Engineers Civil Infrastructure Structural Engineer Civil Infrastructure Environmental Engineer Resources Geologist Resources Geophysicist Civil Infrastructure Construction Estimator Civil Infrastructure Civil Engineering Draftsperson, Civil Engineering Design Draftsperson, Structural Engineering Drafting Officer Civil Infrastructure Civil Engineering Technician, Civil Engineering Assistant, Civil Laboratory Technician, Geotechnical Laboratory Technician Skilled Occupation List, 24 th November 2014, Page 2 of 15
3 Resources Mine Deputy "Statutory officials Underground Mine Managers Mine Deputies", Mining Technician, Open Cut Examiner Resources and Infrastructure Diesel Fitter-Mechanic Resources and Infrastructure Construction Trades Workers Supervisors / Team Leaders / Line Manager / Foreman Civil Infrastructure Technical and Trades Workers NEC Pipe Layer, Bridge Constructor, Road Construction and Maintenance Resources (Drilling) Drillers, Miners and Shotfirers Drilling Driller Resources and Infrastructure Plant Operator, Undergound Miner (Coal), Underground Miner (Metalliferous) Civil Infrastructure Bitumen Plant Operator Civil Infrastructure Earthmoving Plant Operator (General) Civil Infrastructure Backhoe Operator Civil Infrastructure Bulldozer Operator, Scraper Operator (Earthmoving), Civil Infrastructure Excavator Operator, Hydraulic Rockbreaker Operator, Trench Digging Machine Operator Civil Infrastructure Grader Operator Civil Infrastructure Loader Operator, Bobcat Operator, Front-end Loader Operator Civil Infrastructure Mobile Plant Operators NEC Plant Operators Civil Infrastructure Forklift Driver Civil Infrastructure Linemarker, Road Marker Skilled Occupation List, 24 th November 2014, Page 3 of 15
4 Civil Infrastructure Paving Plant Operator Civil Infrastructure Road Roller Operator Resources and Infrastructure Truck Driver (General) Civil Infrastructure Water Tanker Driver Civil Infrastructure Construction Worker Civil Infrastructure Drainage, Sewerage and Stormwater Labourer Civil Infrastructure Earthmoving Labourer Civil Infrastructure Concrete Worker Mining Mining Support Worker As noted in previous submissions ANZSCO is not a good guide to the skills needs of the civil construction industry. Attention is drawn to the work of SkillsDMC in collaboration with the Civil Contractors Federation (CCF), which developed and released the Civil Construction Occupation Review Report in The inadequacies of the current Australian New Zealand Standard Classification of Occupations (ANZSCO) in the area of Civil Infrastructure will need to be addressed. Given this, there are specific emerging areas of operation inadequately serviced by the current Australian and New Zealand Standard Classification of Occupations such as: Remote operation of plant and equipment; Developments in resource processing techniques; and Developments in processes and technology in the field of Trenchless Technology and Drilling It is noted that CCF in consultation with SkillsDMC is preparing a submission to increase the number of ANZSCO occupation references relevant to the Civil Construction Industry to address this shortfall. 2. Are there any occupations that you represent where there is evidence of imbalances in the demand for and supply of skills in the medium-to-long term? The Department of Employment conducts research to identify skills shortages in Australia. The department issues a six monthly publication through which it provides national labour market ratings for a list of occupations. The occupations are assessed through contact with more than 5,100 employers and recruitment agents. The list combines results for research undertaken at the national and the state and territory level to provide information about shortages which are widespread enough to be considered national. The Skilled Occupation List, 24 th November 2014, Page 4 of 15
5 skills shortages list includes the following occupations relevant for the wider Construction, Resources and Infrastructure sector. Please note that a rating of No Shortage suggests that employers generally recruit without difficulty, however, shortages maybe evident in specific locations and some employers may not attract workers who meet their needs. Hence some of the occupations issued a rating of No Shortage nationally maybe experiencing regional shortage of skills. For example, the Department of Employment research issued a national rating No Shortage for construction project managers, however the research conducted by Construction Skills Queensland, Future Workforce Analysis (March 2013) and the Queensland Resources Council Growth Outlook Study states that net demand for this occupation will exist till. Occupation Rating* Number of Years in shortage, 5 years to Construction Project Manager No Shortage 1 Architect No Shortage 0 Surveyor Shortage 4 Urban and Regional Planner No Shortage 0 Architectural Draftsperson No Shortage 0 Building Associate No Shortage 0 Construction Estimator Shortage 3 Civil Engineering Professionals (excluding Quantity Surveyor) No Shortage 3 Mining Engineer No Shortage 4 Civil Engineering Draftspersons and Technicians No Shortage 3 Metal Fabricator No Shortage 1 Welder (First Class) No Shortage 0 Sheetmetal Trades Worker Shortage 5 Fitters No Shortage 1 Metal Machinist (First Class) No Shortage 3 Source: Department of Employment, Skills Shortages Publication, June 2014 *Definition of rating given on page 13 Based on Construction Skills Queensland s 2013 Future Workforce Analysis (March 2013) and the Queensland Resources Council Growth Outlook Study: Net demand for the Civil Infrastructure sector out to will exist for: Construction project manager Concreter Truck driver (general) Plant operator Pipelayers Project Supervisors The Queensland Government has identified Civil Construction qualifications as Priority One under User Choice funding which indicates that it has identified Civil Construction as a current skills shortage area. Construction Skills Queensland has identified a long term need for plant operators in its 2013 Future Workforce Analysis. Notably though, the report only covers those occupations that are traditional trades (apprenticeships) and many civil construction careers are not recognised as such. (N.B. Plant Operator is a recognised apprenticeship in Queensland) The Western Australia Government includes the following occupations on the State Priority Occupation List Skilled Occupation List, 24 th November 2014, Page 5 of 15
6 indicating the jobs that are in high demand or considered industry-critical in Western Australia. Production manager (mining) Civil engineer Civil engineering draftsperson Civil engineering technician Diesel motor mechanic Construction project manager Environmental engineer Environmental health officer Construction estimator Concreter Truck driver (general) Mine deputy Metallurgical or materials technician Quantity surveyor Mining engineer (excluding petroleum) Metal machinist (first class) Sheetmetal trades worker Welder Panelbeater Skilled and qualified personnel from the Extractive (Quarrying) sector are continually being attracted to other resource Industry sectors which indicate that this sector provides a training ground for the Mining sector in particular. This appears to occur with the Civil Infrastructure sector but more so during periods of high demand in the Mining sector. The outcome for the Extractive sector in particular is an ongoing demand for the supply of skills. Within the Mining sector, by, the occupational mix is expected to shift in favour of those who are in greater demand during the operational phase of resources projects, with a decline in those needed with construction-related skills, for example: Drillers, Miners and Shot Firers Metal Fitters and Machinists Production Managers Mining Engineers Geologists and Geophysicists According to Resources Sector Skills Needs Report 2013 (draft), Australian Workforce and Productivity Agency, the Top Ten Employing Occupations (in the Resources Sector) between 2013 and are: Drillers, Miners and Shot Firers Metal Fitters and Machinists Other Building and Engineering Technicians Truck Drivers Production Managers Electricians Geologists and Geophysicists Mining Engineers Structural Steel and Welding Trades Workers Earthmoving Plant Operators The SkillsDMC Environment Scan (Draft) provides skills forecast modelling on projected workforce gap through - and states the following results. Research on skills shortages produced by the Department of Employment found there are currently no acute shortages in either the Mining or the Heavy and Civil Engineering Construction sectors. The demand drivers for both these industries are expected to have a negative effect on occupational demand, which is forecast to decline for at least the next five years. In the case of Heavy and Civil Infrastructure, /18 is expected to be the start of the next upturn in labour demand, while the Mining Industry is expected to lift its skills needs from /20. By the end of the decade to /24, the modelling identifies several occupations where training providers will need to equip new entrants with the requisite skills to meet the growing needs of the Mining Industry. Critical shortfalls are projected for the Drillers, Miners and Shotfirers, Metal Fitters and Machinists, Other Building and Engineering Technicians and Truck Drivers. Skilled Occupation List, 24 th November 2014, Page 6 of 15
7 Meanwhile, demand for occupations within the Heavy and Civil Engineering Construction is expected to weaken significantly and result in a surplus of skilled workers for much of the next decade. With the increase in Construction on urban major transport projects, worker shortages are expected in the Metal Fitters and Machinists, Structural Steel and Welding Trades Workers, Earthmoving Plant Operators and Truck Drivers. Total Mining: Projected Workforce Gaps (Source SkillsDMC Environmental Scan, Draft) Drillers, Miners and Shot Firers Metal Fitters and Machinists 5,809 6,059 4,503 3,035 2,003 8,632 9,839 12,865 15,829 14,782 2,706 2,793 2,040 1,368 1,011 4,068 4,643 6,100 7,549 7,040 Truck Drivers Other Building and Engineering Technicians ,002 1,220 1,888 2,246 2, ,205 1,862 2,240 2,586 Skilled Occupation List, 24 th November 2014, Page 7 of 15
8 Electricians Production Managers ,028 1,172 1,591 1,846 1, ,084 1,238 Earthmoving Plant Operators Structural Steel and Welding Trades , ,045 Other Construction and Mining Labour Other Stationary Plant Operators Skilled Occupation List, 24 th November 2014, Page 8 of 15
9 Heavy Civil and Engineering Construction: Projected Workforce Gaps (Source: SkillsDMC Environmental Scan, Draft) Earthmoving Plant Operators Paving and Surfacing Labourers , , , , Truck Drivers Building and Plumbing Labourers Architectural, Building and Surveying Technicians Construction Managers Skilled Occupation List, 24 th November 2014, Page 9 of 15
10 Structural Steel and Welding Trades Workers Metal Fitters and Machinists Electricians Other Miscellaneous Labourers Is there evidence of imbalances in the demand for and supply of skills in the medium-to-long term in nonmetropolitan areas? If so, can you indicate in what part of Australia and the number in the occupation in over- or under-supply Most Resources Industry construction and operations tasks currently take place in regional areas. As such, demand will be focused heavily around on-site occupations (professional occupations such as mining engineers, trades and technicians and operators). This demand may be ameliorated somewhat across some occupations by the trend towards remote and autonomous operations, with work previously done by on-site labour being organised remotely from control centres in metropolitan areas. Skills shortages will be particularly acute in the Northern Territory because of the size of projects in relation to the size of resident population. Below is a list of specific skills shortage areas noted in QLD and NSW. Specific shortages of first class welders are noted in regional NSW. QLD occupations are on the Queensland Skilled Occupation List (QSOL). Skilled Occupation List, 24 th November 2014, Page 10 of 15
11 Mechanical Engineering (NSW) Recruitment difficulty Electrical Engineering Draftspersons and Technicians (NSW) Shortage Metal Fabricator (NSW) Shortage Welder (First Class) (NSW, QLD) Shortage in Regional Areas Fitters (NSW, QLD) Shortage Mine Surveyor (NSW) - Shortage Metal Machinist (First Class) (NSW) Shortage Electrician (General) (NSW, QLD) Shortage Production Manager (Mining) (National) Shortage Chemical Engineer (National) Recruitment difficulty Mining Engineer (National) Shortage Geologist (National) Shortage Geophysicist (National) Shortage Mine Deputy (National) Shortage Environmental Manager (QLD) Surveyor (QLD) Geotechnical Engineer (QLD) Quantity Surveyor (QLD) Surveying or Spatial Science Technician (QLD) Mechanical Engineer (QLD) Environmental Consultant (QLD) Metallurgist (QLD) Electrical Engineering Technician (QLD) Pressure Welder (QLD) Driller (QLD) Draftsperson (Electrical/Mechanical Engineering) (QLD) Metallurgical or Materials Technician (QLD) Electronic Equipment Trades Worker (QLD) The Civil Infrastructure Industry is characterised by project-based tasks and is highly mobile. Projects are dependent on a shorter decision-making time horizon in both the public and private sectors than the medium to long-term identified above with often only weeks to mobilise from contract acceptance. Generally skills shortages are exacerbated with the distance from metropolitan centres. The following ratings have been issued by the Department of Employment for skills shortages across states and territories in Australia for technicians and trade workers. Skilled Occupation List, 24 th November 2014, Page 11 of 15
12 Technicians and Trades Workers NSW QLD WA SA VIC NT ACT TAS Automotive Electrician R R S S S Motor Mechanic (General) R S D S S S Diesel Mechanic S S Sheetmetal Trades Worker S R S S S Welder (First Class) R R D S S D Surveyor S R D S Construction Estimator S S S S S S S S Panelbeater S S S S S S S S Motorcycle Mechanic S R S Metal Machinist (First Class) M S S D Vehicle Painter S S S S Bricklayer S R S Painting Trades Worker S R S Wall and Floor Tiler S R S Electrician (General) R;M-D M Metal Fabricator D S D Carpenters and Joiners S S Fibrous Plasterer S Plumbers S D D Fitter D D Source: Skills Shortages List, Department of Employment S: State-wide shortage M: Shortage in metropolitan areas R: Shortage in regional areas D: Recruitment difficulty R-D: Recruitment difficulty in regional areas M-D: Recruitment difficulty in metropolitan areas Definition of ratings: Shortage: Skill shortages exist when employers are unable to fill or have considerable difficulty filling vacancies, or significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment, and in reasonably accessible locations. Recruitment difficulty: Recruitment difficulties occur when some employers have difficulty filling vacancies for an occupation. There may be an adequate supply of skilled workers but some employers are unable to attract and recruit sufficient suitable workers for reasons which include: specific experience or specialist skill requirements of the vacancy; differences in hours of work required by the employer and those sought by applicants; or transport issues. No Shortage: Research has not identified widespread significant difficulty filling vacancies. This does not mean individual employers in some locations or those seeking specialised skills will readily fill their vacancies Skilled Occupation List, 24 th November 2014, Page 12 of 15
13 4. Are there any occupations which require formal licensing or registration arrangements in order to practice/perform in this occupation? For example: Midwives are required to register with the nurses board in their state or territory Panelbeaters are required to be registered or certified with the state Motor Vehicle Repair Industry Authority In Queensland professional engineers engaged in a professional engineering service must be registered under the Professional Engineers Act 2002 (QLD), unless they work under the direct supervision of an RPEQ ( In some States and Territories some civil activities require registration as a builder (retaining walls, pump station structures etc) There are some occupations that have State specific registration requirements such as Mine Managers, Mine Deputies, Mine Surveyors, Ventilation Officers, Quarry Managers. Not all States have these requirements. Some electrical trade occupations also require registration. Work Health and Safety (WHS) Regulations apply for certain types of work and facilities which require licensing. The Commonwealth, state and territory work health and safety regulators issue licences in their jurisdiction. 5. Is it expected that your employment sector will be impacted by any medium-to-long term trends which will impact upon demand and/or supply (excluding costs associated with training, labour hire, and international sponsorship)? For example: New benchmarks for childcare centres mandate increased staff-to-child ratios and higher qualification standards for childcare workers. The following trends have been identified for the resources sector: Shift from construction to operational mining towards end of decade (Draft Resources Skills Sector Needs Report 2014, AWPA) In 2013/14, Mining investment reached $93.1 billion, with the Oil and Gas sector contributing $65 billion, due to projects ramping up across Queensland, Western Australia and the Northern Territory. These projects are significant in terms of their contribution to the total Mining Industry that almost 90% of growth in Mining investment over the past five years has come from the Oil and Gas sector. As these projects approach and reach completion over the next few years, total investment will steadily fall from its current peak without projects of a similar size replacing these in the construction pipeline (SkillsDMC Environmental Scan Draft) Overall, Mining investment is forecast to fall by an average of 10% per annum over the next four years to a trough of $55.1 billion by /18. The majority of these declines will be felt by the Oil and Gas sector, while the Coal and Iron Ore sectors are also expected to continue to fall over the next few years. However, offsetting some of the impact of falling investment will be rising output as projects currently under construction progress to production. Mining output in terms of Gross Value Added (GVA) is forecast to increase by 34% over the next five years to $220 billion (SkillsDMC Environmental Scan Draft) The contrasting outlooks for investment and production will have opposing effects on Mining employment. It is generally accepted that the Mining sector employs more workers during the construction phase than the production phase. This will have a negative effect on total employment as the Industry undertakes the aforementioned transition toward production. The forthcoming decline in Construction activity should see Mining Construction employment Skilled Occupation List, 24 th November 2014, Page 13 of 15
14 fall by 45% over the next five years. Overall, Mining employment is expected to fall by around 22 per cent over the next five years (SkillsDMC Environmental Scan Draft) Growing trend towards remote and autonomous operations (technological interventions), with work previously done by labour force on site being organised remotely from control centres in metropolitan areas. ( Long and short term trends in demand and resultant prices for mined commodities. The mining industry will continue to be affected by the fundamental principles of economics commodity prices and value of Australian dollar (SkillsDMC Environmental Scan Draft) The search for alternatives to cement and the importation of cement ingredients are reducing the size of the Extractive Industry in Australia Skilled labour needs in the Extractive sector are closely related to the activity levels in the Mining sector (high need in the Mining sector translates to high need in the Extractive sector) The Resources and Infrastructure Industry workforce is ageing with significant levels of retirements over the coming decade. The Industry needs to prepare for the looming loss of skills and experience to avoid acute shortages later this decade. This skills gap may be exacerbated by expected weaker employment conditions in the short term and could lead to current workers permanently exiting the Industry (SkillsDMC Environmental Scan Draft) The following trends have been identified for the Infrastructure sector: Investment in the Sector peaked in 2012/13, at around $69 billion, and declined by 7.4% to $63.9 billion in 2013/14. As a gap between major projects emerged in both the public and private sectors roads investment dropped by 13 per cent. Rail and harbours saw lower activity as both publicly-funded projects and Mining-related construction decreased (SkillsDMC Environmental Scan Draft) A second, slightly larger decline in Civil Infrastructure investment in 2014/15 is anticipated The Federal and State level Governments remain in cost-cutting mode, however Population, economic, and trade growth are pushing infrastructure demand, particularly in the transport and utilities subsectors, with both Federal and State Governments consequently committing to expanding infrastructure development from mid-decade (as well as over the longer term) (SkillsDMC Environmental Scan Draft) Given the lead time for workforce skilling it is appropriate that skills plans be prepared in the lead up to increased activity in the middle of the decade (SkillsDMC Environmental Scan Draft) Skilled Occupation List, 24 th November 2014, Page 14 of 15
15 SkillsDMC Tower 1, Level 1, Suite 2, 495 Victoria Avenue, Chatswood NSW 2067, Australia T +61 (0) F +61 (0) E skillsdmc@skillsdmc.com.au Skilled Occupation List, 24 th November 2014, Page 15 of 15
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