Australian ICT Statistical Compendium 2013

Transcription

1 Australian Statistical Compendium 2013

2 Australian Computer Society Inc. (ACT) ARBN National Secretariat Level 11, 50 Carrington Street, Sydney NSW 2000 PO Box Q534, Queen Victoria Building, Sydney NSW 1230 T F E info@acs.org.au W ACS 2013 Statistical Compendium Page 1

3 Australian Statistical Compendium 2013 ACS 2013 Statistical Compendium Page 2

4 About the Australian Computer Society. The Australian Computer Society is the professional association for Australia s Information and Communication Technology () sector. In everything we do, our goal is to help our members be the best they can be. We re passionate about recognising professionalism, developing skills and building a community with a true sense of belonging. Our members are committed to the pursuit of excellence and the highest standards of professional conduct. We strive for to be recognised as a driver of innovation in our society, relevant across all sectors. We help our members realise their professional ambitions in the global economy, making the most of an era of extraordinary possibility. We are also the voice of Australian, representing all practitioners in business, government and education. Our Code of Ethics upholds professional standards while our advocacy and policies help our profession thrive. Visit for more. About the Editor. The Editor and lead researcher of this publication is Ian Dennis. Ian Dennis has been the lead researcher and editor of the ACS Statistical Compendium since it was first published in He has been involved in gathering and analysing statistics since the first software industry survey in Ian is well known as the Managing Director, then Chairman, of Whitehorse Strategic Group, and is Gateway accredited by the Australian, Victorian, West Australian and New Zealand Governments. He has led and participated in a number of Gateway reviews of major Government projects 1. He is also a member of the Sector Advisory Committee of Innovation and Business Skills Australia (IBSA), and has served on UN and European Commission Expert panels. About the Centre for Innovative Industries Economic Research Inc. CIIER is an Australian think-tank developing and analysing consistent, competently researched, up-todate data on employment, markets, revenue streams, R&D, processes and management methods, for high technology, innovative, and emerging industries. CIIER conducts the Top 250 Industry Survey, is recognised as a leading indicator of trends in the Australian industry, and conducts analysis and reporting on Information Technology and other high technology industries. Centre for Innovative Industries Economic Research Inc ABN idd@whitehorsestrategic.com 1 Gateway is the Federal and State Government mandated quality and performance review process for multi-million dollar and Infrastructure projects. ACS 2013 Statistical Compendium Page 3

5 Data in this publication, and this publication itself, are copyright. Other than for the purposes of and subject to the conditions prescribed under the Copyright Act, no part of it may be in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission. ACS 2013 Statistical Compendium Page 4

6 Why this publication?... 6 At a Glance... 7 States and Territories at a Glance... 8 Defining... 9 economic contribution Who we are Learning Migration Women in What we are Paid Industry How do we compare? AWPA projections on growth in key occupations A model for reform of the Australian and New Zealand Standard Industrial Classification (ANZSIC), Codes and Titles How should we read this? ACS 2013 Statistical Compendium Page 5

7 Why this publication? Information Communications Technology () is now embedded within every sector of our economy and in every part of our lives both as an opportunity and a risk yet policy makers are constrained by a lack of up to date and accurate data relating to. Australia does not know the real worth of its workforce or economy. Many of the current classifications used by the Australian Bureau of Statistics relating to activity are not suited to accurate and up to date measurement of trends in a modern digital economy, especially in migration and employment analysis and key data is dispersed through multiple agencies. Since 2009 the Australian Computer Society Statistical Compendium seeks to address this issue by producing an annual Statistical Compendium to combine quality related data into a single summary report, as part of the ACS commitment to improving outcomes in Australia. The Compendiums have been very well received by the profession, industry, and by Governments around Australia. The Compendium in recent years included the first accurate measures of Australia s digital economy at over $100bn and, depending on classification, between 6.9% and 16.8% of GDP. The Compendium was also the first report to accurately forecast Australia s pressing skills issues. This year CIIER has again been engaged to provide an update to the ACS Compendium, including new analysis on the economic value of and its significance to the Australian economy. The objective of this report is to produce a series of snapshots of statistical data on the workforce for ACS members, industry and government, incorporating statistics on the Australian sector, higher and vocational education, trade, and employment and skills. As with each edition, this compendium does not include all of the available data, but we have tried to amass a range of data addressing the main questions that challenge policy makers. In some cases, where no later data could be identified, but the data is considered still highly relevant, information has been repeated. In other cases, such as data on usage, where data has been covered extensively in previous editions, but has not changed materially, it has not been reprinted. As a vendor and technology agnostic organization, the ACS aims to continue to assist policy makers involved in the sector by providing the latest available data, and to provide a tool for professionals and the industry, and for businesses that deal with the sector. The Project team for this compendium was led by CIIER director Ian Dennis under the guidance of ACS Adam Redman; and included Whitehorse associates Phil Kowalski and Suzana Grbesa. We especially wish to thank for their generous assistance with their advice and access to data, for this and previous reports, staff from ABS and DEEWR, and industry colleagues Martin Reschke, Graeme Philipson, Bob Olivier, Marcus Bowles and John Houghton, among many others. We hope that you find the ACS Australian Statistical Compendium 2013 useful. Sources and Acknowledgments ACS and CIIER express our grateful thanks to the organisations which have contributed to this project, by allowing access to data (either direct to the ACS or via CIIER), including: Australian Bureau of Statistics Department of Education Department of Employment Australian Department of Immigration and Border Protection CSES (Victoria University) Tradedata Hudson Greythorn Google/ Deloitte-Access Economics Working Futures OECD NCVER ITU IBSA IBM / IBISWorld Australian Tax Office ACS 2013 Statistical Compendium Page 6

8 At a Glance Summary table of key national statistics Measurement Statistic Period Source Trend 2 Total workers in Australia Total Technical, Professional, Management, Trade staff Total Technical, Professional, and Management staff Contribution to GDP by Digital Economy annual Contribution to the Australian Economy Total Domestic annual University enrolments Total Domestic annual University completions Total temporary migrants to Australia 597,700 Feb 2013 ABS Labour Market Survey Feb 2013, Industry logistics CIIER ,646 Feb 2013 ABS Labour Market Survey Feb 2013, CIIER extract 387,013 Feb 2013 ABS Labour Market Survey Feb 2013, CIIER extract 6.9% Feb/March 2013 $ Billion August 2011 CIIER calculations, based on Labour market Feb 2013 and National Accounts March 2013 CIIER, Deloitte Access Economics, IBISWorld Increase by nearly 10% over 2012, in sales, operations, and trade occupations. 3 Continued growth over 20 year cycle. Recovery from 2009, 7% growth since Steady growth to 2008, static until 2012, 1.5% growth in last year Not measured by ABS since 2003, then 4.6% on inputs. Estimated last year at 8.9% by outputs ACS calculated this measurement in 2011, representing the first calculation in Australia of the value of the Digital Economy 19, DEEWR 6% increase since , DEEWR Slight improvement after 55% + decline , 530 per annum DIMIA, CIIER calculation Was increasing rapidly to beginning of 2008, declined in and Employees in Industry. (Companies supplying goods and Services) 297,000 Dec 2012 CIIER T , ABS Labour market analysis Feb 2013 Over 2% Industry employment growth in last year, despite reductions in Telcos Revenue of Industry $91 Billion Dec 2011 CIIER T Telecommunications revenue growing slightly, sectoral variations R&D $5,704 Million exports(excluding reexports) $4,528 Million , ABS 2013 Continuing recovery from long-term decline, led by business R&D CSES 2010, ABS Tradedata Dip in 2009, after gradual recovery to export levels, but with an increasing trade deficit 2 CIIER trend assessments 3 Last year some trade and sales occupations had not been properly classified. 4 No later ABS data available. ACS 2013 Statistical Compendium Page 7

9 States and Territories at a Glance Summary table of key regional statistics 5 Measurement NSW VIC QLD SA WA TAS ACT NT Total workers 192, ,441 84,264 33,375 44,925 4,380 24,433 4,079 proportion of total State workforce 6.30% 6.68% 5.24% 4.78% 6.32% 2.73% 12.79% 3.70% Total Technical, Professional, Management, Trade staff 192, ,441 84,264 33,375 44,925 4,380 24,433 4,079 Total Domestic annual University enrolments 6,317 5,576 3, , Total Domestic annual University completions 1, Employees in State Industry. (Companies supplying goods and Services) 121,195 86,409 39,171 17,271 21,179 3,231 7,826 1,065 5 Sources and currency are derived from the national data, in some cases, where not otherwise obtainable, estimates have been made by CIIER, based on historical paradigms. 6 Unlike National data, State data includes electronics workers outside main industry sectors ACS 2013 Statistical Compendium Page 8

10 Defining The sector Previous editions of the ACS Statistical Compendium have commented at length on the significant difficulties in accessing official data to allow us to understand the sector both in labour market (what job the individual does) and in industry ( what sort of organisation the individual works for) terms. Clearly is evident in every industry sector, but unfortunately is not yet recognised in official statistics as an Industry sector of significance in its own right. ACS and CIIER consider that this confusion will remain until the current Industry and occupational statistical metrics used in Australia are updated to reflect the pervasiveness and reality of in the 21 st century. ABS Limitations This year, ABS has further limited the labour market data they consider to be statistically valid enough to release for this Compendium. We were pleased that ABS agreed to use the CIIER occupation groupings as an acceptable aggregation approach for estimating employees by State and Industry sector but remain concerned that some of the more detailed occupational data we have been able to access in previous years is now not available. It is disappointing that proper levels of data gathering and analysis to such important economic data are not available and the ACS continues to work closely with the ABS to support the resolution of this issue. broad employment occurs in a number of groupings. These include: the providers of goods and services (usually called the industry) the purchasers and users of goods and services including the government and private sectors who also employ a large number of specialists to help them apply their purchases the trainers, teachers and researchers into who generally (but not always) operate within the universities and colleges people who provide technical support to, but who might, more properly, be categorised as electrical or electronics specialists people working in call-centres, or in desk-top publishing and graphics design There are a significant percentage of professionals in the industry, but industry employment includes not only those professionals but also many non-professional technical, sales, logistical and administrative staff. ANZSCO and ANZSIC policy needs to be informed with a clear, verifiable set of occupation and industry metrics, A more appropriate classification of occupations and industry components is required to properly understand the sector and the digital economy in Australia. ANZSCO (Australia, New Zealand Standard Classification of Occupations) is a multi-level nomenclature essential to the understanding of employment statistics. The upper level (the 2-digit level) is meant to bring like occupations together so they can be aggregated. Unfortunately, the occupation grouping at this level leaves out some occupations that we, and others, would consider are, wholly or in part, within. Accordingly, simple extracts from employment data of the ANZSCO group can easily lead to inadvertent understatement of the actual position of employment. In this report, we have identified the key ANZSCO classes from which the analysis is derived. The ACS maintains a more appropriate classification of occupations is urgently required to understand the sector and the digital economy in Australia and thus inform policy with a clear, verifiable set of metrics, preferably by reference to the Skills Framework for the Information Age 7. ANZSIC (Australia, New Zealand Standard Industry Classification), can be even more misleading for policy formulation, as it has an upper level grouping Information Media and Telecommunications, that 7 Skills Framework for the Information Age ACS 2013 Statistical Compendium Page 9

11 is presumed by general economists, and other commentators, to be the industry. These commentators, some of them eminent in their field and therefore presumed to be correct, make comment without realising that in employment terms this ANZSIC group includes less than half of the employment of the real industry, and actually includes some non- elements, ( TV, radio, Print media, and libraries), while excluding the numerically larger Software and Services industry sector, which is instead included as a misnamed sub-set (Computer Systems Design) within the upper level grouping Professional, Scientific and Technical services. This confusion was most evident in 2013 during uninformed debates in the media about 457 Visa workers. 8 Information Media and Telecommunications also leaves out the hardware manufacture, wholesale and retail trade, and consulting sectors, which are scattered across a number of other ANZSIC classifications. This continued incorrect analysis impacts upon published calculations of revenue, exports, and GDP/GVA, which regularly become a synonym for economic importance, and are frequently understated for but overstated for the ANZSIC industry classifications in which the missing industry sectors are hidden. In this report, we have tried, wherever possible, whilst not altering figures derived from these misleading categorisations, to indicate the estimated true value of the industry component of each of these measures. The industry Major sectors within the industry include: IT services, systems integration and software support Internet services and telecommunications Software and digital content development Wholesale and retail distribution of software and hardware Manufacture of products and components The Australian Bureau of Statistics (ABS) has measured the Industry intermittently as a specific exercise since 1996, with its last report now over five years old representing the period (cat ) and published in October This report was referenced for the industry data in the 2009 ACS Statistical Compendium. Since 1998, the Centre for Innovative Industries Economic Research Inc has conducted an annual survey, on a smaller survey sample, modelling the industry in a similar manner to ABS. The industry data for the 2013 Compendium will again draw upon CIIER s December data from the previous year. In the 2011 Compendium we noted that further confusion was increasing with the use of the terms Digital Economy and Internet Economy, to describe those elements of the economic processes of all industries impacted by, or by the specifics of internet based, and in some cases the productive elements (labour, infrastructure etc.) that make these possible. Internet economy is an economically irrelevant varying subset of the Digital economy. The choice to use internet based or internal organisational is made for technical, financial, data security or operational control reasons - and those decisions change over time. Australia s Digital Economy, logically, is all of the industry, and a significant proportion of almost every other economic sector that uses. Mining, healthcare, education, government, wholesale and retail trade, manufacturing, transport, and other sectors all rely on goods and services, and are therefore participants in the digital economy. 8 ACS 2013 Statistical Compendium Page 10

12 ACS and CIIER do not consider the term Internet economy a valid economic sub-sector, as it is a varying subset of the Digital economy. The decision whether to use internet based or internal organisational is one that is made for many reasons - technical, financial, data security or operational control - and those decisions change over time. The distinction is economically irrelevant, other than for suppliers whose markets are internet focussed products and services. Unfortunately, these terms are sometimes used interchangeably, and the more narrow definition of Internet economy may therefore lead to conservative interpretations of the significance of the Digital economy, and thus of the industry and profession that creates and maintains it. The term " Industry" can range from the "tight" definition of companies solely concerned with the provision of products and services, but which includes companies with major units supplying goods and services, through to a "looser" definition that may include retail, call centres that are mainly parts of other industries (e.g. banking), and significant sections of the electronics industries and professional services (e.g. management consultants and, historically, accountants). Industry is sometimes used as a "broad" definition for anyone working on related matters in any industry. Industry in this publication refers to the tighter ABS and CIIER definitions; we have used the term worker for the broader definition. ACS 2013 Statistical Compendium Page 11

13 economic contribution Dealing with the Real Australian economy Australia s economy can be looked at two ways, both are important: Gross Domestic Product (GDP) tells us the economic significance of parts of the economy. Employment tells us the work-force significance of parts of the economy. Contribution to GDP by Industry sectors Source: Derived from Australian National Accounts: National Income, Expenditure and Product Table 6. Gross Value Added by Industry, Chain volume measures, analysed by CIIER Finance and Insurance 11.4% Public Administration and Safety 5.7% Transport, Postal and Warehousing 5.8% Information Technology, Professional services, Education, and media 15.5% All other services 10.6% Manufacturing 8.3% Construction 8.4% Health Care and Social Assistance 7.1% All other industries, ( including Agriculture and Mining) 16.9% Wholesale and retail sales 10.3% Information, media and professional services, together with the Education sector, (often referred to as the Knowledge Industries ), are among the largest contributors to the Australian economy. Agriculture and Mining, which receive far more attention, economic support and subsidies, even when they are statistically combined with utilities and a number of other, smaller industries in the pie chart above, contribute only 1% more GDP to the Australian economy than the Knowledge Industries do. Manufacturing, with the third largest level of Government assistance, after mining and agriculture, contributes just over 8.3%. Contrary to popular belief, Information, media and professional services, together with the Education sector, (the Knowledge Industries ), are among the largest contributors to the Australian economy. ACS 2013 Statistical Compendium Page 12

14 $ million $50,000 Economic Growth by Industry Sector , Source: CIIER, derived from ABS National accounts March 2013 $40,000 Public Administration and Safety, $2,630 Construction, $4,568 All other services, $1,756 Transport, Postal and Warehousing, $2,660 Wholesale and retail sales, $4,657 $30,000 Finance and Insurance, $5,797 $20,000 Information Technology, Professional services, Education, and media, $8,618 Health Care and Social Assistance, $6,085 $10,000 All other industries, ( including Agriculture and Mining), $10,842 $0 Manufacturing, $663 -$10,000 Knowledge Industries also include the fastest growing sectors of the overall economy. Knowledge Industries: Information Technology, Professional services, Education, and media All other industries, (including Agriculture and Mining) GDP March 2007 GDP March 2013 Economic growth Growth % $25,320 $33,938 $8, % $38,696 $49,538 $10, % Wholesale and retail sales $18,173 $22,830 $4, % Health Care and Social $26,881 $32,966 $6, % Assistance Construction $22,446 $27,014 $4, % Finance and Insurance $48,221 $54,018 $5, % Transport, Postal and $23,950 $26,610 $2, % Warehousing All other services $16,511 $18,267 $1, % Public Administration and Safety $33,834 $36,464 $2, % Manufacturing $19,066 $18,403 -$ % A strong and combined focus on the Knowledge Industries and, in particular, the component of Knowledge Industries taps into and enhances this economic growth. In Employment terms, the Knowledge Industries are even more significant. As Mining and Agriculture have become more automated, their economic contribution is found mainly in exports, which are, of course, subject to variations in global demand, rather than in employment. ACS 2013 Statistical Compendium Page 13

15 Contribution to Employment by Industry sectors Source: Derived from Feb 2013 Labor Market data, analysed by CIIER Public Administration and Safety 6% Finance and Insurance 4% Transport, Postal and Warehousing 5% Information Technology, Professional services, Education, and media 18% Manufacturing 8% Construction 9% All other services 18% Health Care and Social Assistance 12% All other industries, ( including Agriculture and Mining) 6% Wholesale and retail sales 14% The Knowledge Industries are now the most significant employers in the Australian economy, with more than twice the work-force of the Manufacturing sector, three times that of Agriculture and Mining and utilities combined, and four times more than the Finance and insurance industries. Combining this data indicates the REAL economic significance of industry sectors to the Australian economy. CIIER ranking of Economic significance to Australia GDP contribution Employment contribution GSP ranking Employment ranking Combined ranking Knowledge Industries: 15.48% 17.63% Information Technology, Professional services, Education, and media All other services 10.60% 17.67% Wholesale and retail sales 10.30% 14.36% All other industries, ( including 16.88% 6.22% Agriculture and Mining) Health Care and Social 7.13% 12.06% Assistance Construction 8.44% 8.94% Manufacturing 8.31% 8.11% Finance and Insurance 11.39% 3.57% Public Administration and Safety Transport, Postal and Warehousing 5.71% 6.23% % 5.22% ACS 2013 Statistical Compendium Page 14

16 $million ANZSIC Groups in the Knowledge Industries, relative contribution to GDP GDP 2013, Education and training, 31% GDP 2013, Information media and telecommunications, 20% GDP 2007, Education and training, 34% GDP 2007, Information media and telecommunications, 23% GDP 2007, Professional, scientific and technical services, 43% GDP 2013, Professional, scientific and technical services, 49% The component parts of the Knowledge Industries are not, of course, growing or contracting at the same rate. IMT, (traditional print/tv/and radio, telecoms companies, ISP s, and libraries) GDP contribution has slightly increased in dollar terms, but nowhere near as much as the growth in professional, scientific, and technical services companies. (A significant proportion of the employment of which are comprised of software and services companies, with the rest including engineering consultancies, architects, management consultants, lawyers, accountants, advertising, market research and statistical, Knowledge Industries contribution to GDP $30,000 $25,000 $20,000 GDP 2007 GDP 2013 $15,000 $10,000 $5,000 $0 Information media and telecommunications Professional, scientific and technical services Education and training veterinarians, scientific researchers, and all other professional services practises except medical). ACS 2013 Statistical Compendium Page 15

17 Knowledge Industries employment - the traditional view based upon ANZSIC divisions Education 44% Information media and telecommunications 11% Professional and scientific services 45% Knowledge Industries employment, adjusted to extract the industry component Traditional media and libraries 6% specific companies and management consultants 17% Education and training 44% All other professional services 33% ACS 2013 Statistical Compendium Page 16

18 CIIER calculation of economic contribution, based on inputs ANZSIC Division Total workforce 9 (CIIER adjusted to derive Industry) GDP ($million) 10 % of workforce 11 contribution to GDP ($million) A Agriculture, Forestry and Fishing 317,215 $7, % $18 B Mining 266,372 $37, % $904 C Manufacturing 940,381 $26, % $602 D Electricity, Gas, Water and Waste 137,818 $8, % $624 Services E Construction 1,036,822 $27, % $448 F Wholesale Trade 452,383 $16, % $811 G Retail Trade 1,214,197 $16, % $298 H Accommodation and Food Services 796,113 $8, % $30 I Transport, Postal and Warehousing 605,474 $18, % $476 J (part)tv, Radio, Print media and 120,991 $5, % $364 libraries K Financial and Insurance Services 414,067 $36, % $3,073 L Rental, Hiring and Real Estate 199,576 $7, % $139 Services M (part) Professional services, 742,456 $19, % $2,023 excluding N Administrative and Support Services 396,184 $8, % $178 O Public Administration and Safety 722,648 $18, % $1,350 P Education and Training 884,299 $15, % $368 Q Health Care and Social Assistance 1,398,912 $22, % $242 R Arts and Recreation Services 201,268 $2, % $75 S Other Services 457,435 $5, % $206 contribution to all other $12,229 industries Industry itself 297,248 $9, % $9,637 ( 45% of Div J, 19% of Div M, + retail, wholesale, manufacture) Total 11,601,861 $320,045 $21,868 This table brings together GDP data from the ABS National accounts with Workforce data from the ABS Employed persons quarterly data. The data has been adjusted by CIIER to compensate for the lack of an ANZSIC division for the industry. Ownership of dwellings has been excluded. The intent was to calculate the contribution, based on inputs. We have previously published estimates of economic significances, based on outputs, and referring to the Digital Economy drawing on work undertaken by Deloitte Access and by IBISWorld. Outputs calculations, however, are only one of the mechanisms used to determine economic significance, so we felt it was time to try to determine a more accurate measure of inputs to the economy, so that we have both measures. 9 Derived from ABS Labour Force, Feb 2013, Divisions adjusted by CIIER to deduct Industry component 10 ABS National Accounts, March 2013, Divisions adjusted by CIIER to deduct Industry component 11 CIIER calculation derived from special extract from ABS Labour Force data, Feb 2013 ACS 2013 Statistical Compendium Page 17

19 Not having the luxury of an ANZSIC division for, we have applied sectoring of the various major ANZSIC Divisions GDP contributions in the National Accounts, in order to aggregate both a total for the industry, and also a figure for the contribution of professionals in all other industries. In order to do this, per capita GDP contributions have been calculated for each industry sector. These were then allocated to the industry component, on the basis of staff numbers, contained within the various traditional ANZSIC divisions to derive the Industry proportion of GDP contained therein. The balance of GDP remaining for each traditional ANZSIC division was then multiplied by the percentage of workers in that particular ANZSIC division. Whilst GDP per capita varies significantly between industry divisions, (in March 2013 from a high of $88,000 pc for Finance and Insurance, to a low of $10,000 pc for Accommodation and Food Service) reflecting capital and labour intensity, and also fluctuates with changes in the trade values related to industries ( e.g. commodity prices), this calculation has to assume that per capita GDP for the components of the two major Divisions in which is allocated does not vary considerably from the other components (TV, radio, newspapers and libraries on the one case, and all other professional services in the other case), with which they are co-tenanted. With these caveats noted, however, we consider that this calculation provides a sufficiently accurate quantification of both the industry annual contribution to GDP, ($9,637 million) and a minimum value for the professional and technical contribution to GDP, ($21,868 million) across all industries. annual contribution to GDP $million Derived from National Accounts March 2013, and CIIER extract of Labour Force data Feb 2013 P Education and Training, $368 Q Health Care and Social Assistance, $242 O Public Administration and Safety, $1,350 R Arts and Recreation Services, $75 N Administrative and Support Services, $178 M (part) Professional services, excluding, $2,023 L Rental, Hiring and Real Estate Services, $139 S Other Services, $206 Industry( 45% of Div J, 19% of Div M, + retail, wholesale, manufacture), $9,637 K Financial and Insurance Services, $3,073 J (part)tv, Radio, Print media and libraries, $364 I Transport, Postal and Warehousing, $476 A Agriculture, Forestry and Fishing, $18 B Mining, $904 H Accommodation and Food Services, $30 G Retail Trade, $298 F Wholesale Trade, $811 E Construction, $448 D Electricity, Gas, Water and Waste Services, $624 C Manufacturing, $602 Similar figure, but different basis We note that the August 2011 Deloitte Access Economics study 12 also arrived at an inputs figure for the Internet Economy of $22 billion. This was referenced in the 2011 Compendium and summarised in the 2012 Compendium. The similarity of totals appears to be a coincidence, however, as $5 billion of the Deloitte sum was related to a nominal 50,000 people working in e-commerce, $6 billion to 75,000 people working in Advertising and Enterprise Sites, and $2 billion to 2000 Government, of the 190,000 people they identify as working in the internet economy. Whilst some of these 127,000 people identified by 12 the Connected Continent, Deloitte Access Economics ACS 2013 Statistical Compendium Page 18

20 Deloitte may be some of the 246,000 workers CIIER identify as working in all other industries, some, equally, may be assumed to be users of the internet economy rather than providers of it. Deloitte also allocated a nominal 63,000 internet employees at a value of $11 billion to industry sectors. The industry actually employs 297,000 people. Deloitte also calculated a value-add of $22 billion for 190,000 people, (an average of $116,000 per capita) but the report does not include an explanation of how this was derived. The National accounts would suggest an average pc GDP contribution for this many people of only $5 billion (based on the $27,586 average for all Australian workers), or of $6.1 billion, (based on the $32,420 per capita for ), rather than the $22 billion identified by Deloitte. Strategies to improve data collection on skills supply and demand The ABS, together with the ACS, the AIIA and other key industry bodies, review current ABS -related collections to help ensure accurate, comprehensive and up-to-date measurement of the workforce and activity in the economy. (Australian Workforce and Productivity Agency (AWPA)) It would be pleasing to see the recent recommendation of the Australian Workforce and Productivity Agency (AWPA) 13 adopted: The ABS, together with the ACS, the AIIA and other key industry bodies, review current ABS -related collections to help ensure accurate, comprehensive and up-to-date measurement of the workforce and activity in the economy, and the ACS has commenced working with the ABS to this end. 13 Workforce Study June 2013, Australian Workforce and Productivity Agency (AWPA) ACS 2013 Statistical Compendium Page 19

21 Classifying Employment The ABS defines employment by the ANZSCO definition at a number of levels described by the number of digits in the code used. At the 4 digit level, the following are the main jobs, either wholly or in part. For the purpose of some of the analysis in this report, these occupations are grouped into CIIER occupation grouping categories: ANZSCO code Anzco 4 level Description CIIER occupation Grouping 1351 Managers Management and operations 2232 Trainers Management and operations 2247 Management and Organisation Analysts Management and operations 2249 Other Information and Organisation Professionals Management and operations 2252 Sales Professionals sales 2324 Graphic and Web Designers, and Illustrators Technical and Professional 2611 Business and Systems Analysts Technical and Professional 2612 Multimedia Specialists and Web Developers Technical and Professional 2613 Software and Applications Programmers Technical and Professional 2621 Database and Systems Administrators, and Security Management and operations Specialists 2631 Computer Network Professionals Technical and Professional 2632 Support and Test Engineers Management and operations 2633 Telecommunications Engineering Professionals Technical and Professional 3123 Electrical Engineering Draftspersons and Technicians Electronic Trades and Professional Electronic Engineering Draftspersons and Technicians Electronic Trades and Professional 3131 Support Technicians Trades 3132 Telecommunications Technical Specialists Technical and Professional 3423 Electronics Trades Workers Electronic Trades and Professional 3424 Telecommunications Trades Workers Trades 6212 Sales Assistants sales 14 Electronic Trades and Professional employment (3123/3124) is included in CIIER/ACS totals where employment is within major industry categories. ACS 2013 Statistical Compendium Page 20

22 Technical and professional Employment DIVISION_A Agriculture, Forestry and Fishing Management and operations Who we are Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support DIVISION_B Mining 3,990 1, ,362 workers DIVISION_C Manufacturing 5,606 11, ,899 2,616 21,363 DIVISION_D Electricity, Gas, Water and Waste Services 4,913 3, ,625 10,417 DIVISION_E Construction 1,317 1, ,718 9,945 17,213 DIVISION_F Wholesale Trade 4,552 5,068 6,573 4,110 3,051 23,354 DIVISION_G Retail Trade 4,441 4,936 6,598 3,911 2,434 22,320 DIVISION_H Accom and Food Services DIVISION_I Transport, Postal and Warehousing Rest DIVISION J (Radio, TV, newspapers, and libraries) DIVISION_K Financial and Insurance Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M (Professional services, excluding ) DIVISION_N Administrative and Support Services DIVISION_O Public Administration and Safety DIVISION_P Education and Training DIVISION_Q Health Care and Social Assistance DIVISION_R Arts and Recreation Services 1, ,845 7,423 5, , , , ,633 1,021 7,942 15,058 16, , ,899 2, ,564 32,742 38, ,009 2,236 77,445 3,373 1,001 1,122 2, ,974 24,368 16, ,487 3,798 53,401 6,412 8, ,630 1,370 20,937 7,515 4, , ,834 2,068 2, ,145 DIVISION_S Other Services 2,428 2, ,392 8,272 15,813 Identifiable sectors Telecommunications Services Internet Service Providers, Web Search Portals and Data Processing Services Computer System Design and Related Services 9,710 13,747 10,974 17, ,366 89, ,138 3,356 6,806 25,931 75,243 7,275 13,313 3,298 52,645 96, , ,689 33,688 78,360 44,039 93, , Electronics trades only included if in industry sectors ACS 2013 Statistical Compendium Page 21

23 Possible ABS misclassifications of technical and professional employment? Management and operations Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support workers 2013 data 168, ,689 33,688 78,360 44,039 93, , data 126, ,636 26,680 58,326 38, , , data 147, ,965 40,901 80,086 39,701 44, , data 150, ,289 32,096 72,786 42,186 58, , data 164, ,840 34,137 62,331 49,272 58, ,564 Last year we noted, in a comparison to the previous year, taken from the Feb2010 ABS labour-force extract, that there were lower totals for 2011 in each column, other than Industry admin and logistics support. workers, Feb Feb 2013, CIIER Labor Force extracts workers Industry admin and logistics support Electronic Trades and Professionals Trades sales 2013 data 2012 data 2011 data 2010 data 2009 data Technical and Professionals Management and operations 0 100, , , , , , ,000 We noted at the time that some of this variation may have derived from an almost doubling in Industry admin and logistics support. (The total for this is derived from the difference between total employment in the industry, and the total of occupations in those sections of the industry that can be analysed from this data.) This year s data, taken from the Feb 2013 Labour Force statistics, maintains a similar outcome for this figure to last year, and even shows a statistical decline in ABS estimates of technical and professional employment, after years of steady and consistent growth, whilst overall worker numbers continue to grow, by over 12% since Electronics trades only included if in industry sectors ACS 2013 Statistical Compendium Page 22

24 It appears that a significant number of people who were previously included by ABS in occupations are now being classified into non- occupations, with a consequent much lower variation for the total of workers. In order to test this hypothesis, we requested a further special extract of Labor market data from ABS, detailing the occupations codes for all employees in the definable parts of the industry. ANZSCO Level 2/ANZSIC Level 3 17 Telecommunications Services Internet Service Providers, Web Search Portals and D P Services Computer System Design and Related Services 26 Professionals 14,027 1,139 82,503 97, Specialist Managers 10, ,819 35, Business, H R and Marketing Professionals 9, ,086 24, Engineering, and Science Technicians 6, ,964 21, Electrotechnology and 13, ,931 17,522 Telecommunications Trades Workers 23 Design, Engineering, Science and 2, ,130 14,233 Transport Professionals 62 Sales Assistants and Salespersons 8, ,400 10, Office Managers and Program 4, ,824 7,763 Administrators 11 Chief Executives, General Managers and ,818 6,759 Legislators 54 Inquiry Clerks and Receptionists 3, ,033 6, Numerical Clerks 2, ,181 5, General Clerical Workers 2, ,692 5, Hospitality, Retail and Service Managers 2, , Other Clerical and Admin Workers 1, ,405 2, Arts and Media Professionals ,066 1, Construction and Mining Labourers 1, , Legal, Social and Welfare Professionals , Professionals nfd 0 0 1,275 1, Personal Assistants and Secretaries , Sales Support Workers , Managers nfd 0 0 1,026 1, Sales Representatives and Agents , Clerical and Office Support Workers , Storepersons Cleaners and Laundry Workers Other Labourers Construction Trades Workers Mobile Plant Operators Health Professionals Total 89,746 6, , , ABS advise that highlighted Estimates above are subject to sampling variability too high for most practical purposes (Relative Standard Error greater than 25%) ACS 2013 Statistical Compendium Page 23

25 One clue can be seen in the 35,446 figure for 13 Specialist Managers. Only one category of this (ANZSCO 1351 Managers) is normally treated as an occupation. Whilst ABS were unable to supply a separate figure for this year for detail at this level, last year there were only 4,518 in this category for the three industry groups above, if we assume similar totals for this year, leaving nearly 30,000 Specialist Managers working in the industry, who could only be accounted for by putting them into the Industry admin and logistics category. In addition, there are 14,233 group 23 Design, Engineering, Science and Transport Professionals listed above. Only one sub-group (ANZSCO 2324 Graphic and Web Designers, and Illustrators) of these is included in our technical and professional grouping. Again, we have no data from ABS for this year, but last years total for the industry sectors was only 854, leaving, if similar to this year, 13,379 Design, Engineering, Science and Transport Professionals who work in the industry, but not, apparently, in an, Telecommunications, or Electronics discipline. Whilst some in Telecommunications may be general engineers, it is doubtful that such skills are required in the software part of the industry. We therefore consider that, had these employees been properly classified, it is likely that the Industry admin and logistics group would be reduced by at least 45,000, back to the levels estimated in 2010, and that these 45,000 people would be more likely to be included in the Technical and Professional grouping. workers, Feb Feb 2013, CIIER Labor Force extracts (amended to adjust for possible classification errors by ABS) workers Industry admin and logistics support Electronic Trades and Professionals Trades 2013 data 2012 data 2011 data 2010 data 2009 data sales Technical and Professionals Management and operations 0 100, , , , , , ,000 With this adjustment in place we can see a much more logical scenario, with industry admin and logistics in a similar pattern to sales, as one would expect, and the long-term growth in technical and professional employment more accurately reflected. The State based data listed below has not been adjusted from that supplied to us by ABS, but would be subject to proportional variance to the national data. ACS 2013 Statistical Compendium Page 24

26 Who we are By State 18 NEW SOUTH WALES Management Technical and sales Trades Electronic Trades and Industry workers and operations Professionals Professionals admin and logistics support DIVISION_A Agriculture, Forestry and Fishing DIVISION_B Mining DIVISION_C Manufacturing 1,224 4, , ,310 DIVISION_D Electricity, Gas, Water ,784 and Waste Services DIVISION_E Construction ,462 3,906 DIVISION_F Wholesale Trade ,134 1,959 1,907 10,801 DIVISION_G Retail Trade 534 1,765 2,848 1, ,492 DIVISION_H Accom and Food Services DIVISION_I Transport, Postal and 3,045 2, ,469 Warehousing Rest DIVISION J (Radio, TV, 420 2, ,914 newspapers, and libraries) DIVISION_K Financial and Insurance 7,445 7, , ,096 Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M (Professional 11,020 12, ,593 1,348 27,518 services, excluding ) DIVISION_N Administrative and 1, ,572 Support Services DIVISION_O Public Administration 6,646 4, ,254 1,298 14,769 and Safety DIVISION_P Education and Training 2,311 1, ,126 DIVISION_Q Health Care and Social 3, ,985 Assistance DIVISION_R Arts and Recreation 850 1, ,271 Services DIVISION_S Other Services ,699 5,970 Identifiable sectors SUBDIV_58 Telecommunications 4,145 7,235 3,282 6, ,816 32,901 Services SUBDIV_59 Internet Service ,059 2,027 Providers, Web Search Portals and Data Processing Services SUBDIV_70 Computer System 10,526 23,510 3,835 8,012 2,117 25,517 73,517 Design and Related Services 15,177 31,207 7,117 14,435 2,117 38, ,445 Total 57,350 72,953 15,669 30,560 15,662 38, ,586 % of total workforce 6.30% 18 CIIER special extract from ABS Labour market data Feb 2013, provided by ABS ACS 2013 Statistical Compendium Page 25

27 VORIA DIVISION_A Agriculture, Forestry and Fishing Management and operations Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support workers DIVISION_B Mining DIVISION_C Manufacturing 3,470 3, ,145 8,754 DIVISION_D Electricity, 2, ,924 Gas, Water and Waste Services DIVISION_E Construction ,172 2,468 4,248 DIVISION_F Wholesale 1,546 2, , ,865 Trade DIVISION_G Retail Trade 2,849 2,212 1,212 1,396 1,062 8,731 DIVISION_H Accom and Food Services DIVISION_I Transport, 1,943 1, ,519 Postal and Warehousing Rest DIVISION J ,617 DIVISION_K Financial and 5,470 4, , ,157 Insurance Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M 10,147 12, ,479 DIVISION_N Administrative and Support Services DIVISION_O Public 2,444 3, , ,461 Administration and Safety DIVISION_P Education and 1,496 3, , ,873 Training DIVISION_Q Health Care 2,350 2, , ,692 and Social Assistance DIVISION_R Arts and ,243 Recreation Services DIVISION_S Other Services 410 1, ,496 4, SUBDIV_58 3,700 4,332 3,865 3, ,574 27,902 Telecommunications Services SUBDIV_59 Internet ,537 2,751 Service Providers, Web Search Portals and Data Processing Services SUBDIV_70 Computer 8,570 25,137 1,183 2, ,744 51,022 System Design and Related Services 0 12,681 29,469 5,048 5,982 1,640 26,855 81,675 Total 49,952 69,735 6,669 19,126 9,959 26, ,296 % of total workforce 6.28% ACS 2013 Statistical Compendium Page 26

28 QUEENSLAND DIVISION_A Agriculture, Forestry and Fishing Management and operations Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support workers DIVISION_B Mining ,612 DIVISION_C Manufacturing 0 1, ,346 DIVISION_D Electricity, ,203 Gas, Water and Waste Services DIVISION_E Construction ,078 2,277 DIVISION_F Wholesale 1,556 1, ,665 Trade DIVISION_G Retail Trade , ,960 DIVISION_H Accom and Food Services DIVISION_I Transport, 1,441 1, ,041 Postal and Warehousing Rest DIVISION J 0 1, ,393 DIVISION_K Financial and 767 3, ,165 Insurance Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M 6,016 5, ,990 DIVISION_N 1, ,656 Administrative and Support Services DIVISION_O Public 3,926 2, , ,874 Administration and Safety DIVISION_P Education and 361 2, ,101 Training DIVISION_Q Health Care ,695 and Social Assistance DIVISION_R Arts and ,097 Recreation Services DIVISION_S Other Services ,469 2, SUBDIV_58 1, , ,360 12,417 Telecommunications Services SUBDIV_59 Internet Service Providers, Web Search Portals and Data Processing Services SUBDIV_70 Computer 1,852 13,473 1,463 1, ,196 23,907 System Design and Related Services 0 3,014 14,564 2,336 4,374 1,240 11,556 37,084 Total 22,604 38,683 4,736 11,225 7,016 11,556 95,820 % of total workforce 4.10% ACS 2013 Statistical Compendium Page 27

29 SOUTH AUSTRALIA DIVISION_A Agriculture, Forestry and Fishing Management and operations Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support workers DIVISION_B Mining DIVISION_C Manufacturing DIVISION_D Electricity, ,435 Gas, Water and Waste Services DIVISION_E Construction ,185 1,972 DIVISION_F Wholesale ,067 Trade DIVISION_G Retail Trade ,954 DIVISION_H Accom and Food Services DIVISION_I Transport, Postal and Warehousing Rest DIVISION J DIVISION_K Financial and ,324 Insurance Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M 2,343 1, ,779 DIVISION_N Administrative and Support Services DIVISION_O Public 2,150 1, ,946 Administration and Safety DIVISION_P Education and ,008 Training DIVISION_Q Health Care ,592 and Social Assistance DIVISION_R Arts and Recreation Services DIVISION_S Other Services SUBDIV_ , ,200 7,229 Telecommunications Services SUBDIV_59 Internet ,176 Service Providers, Web Search Portals and Data Processing Services SUBDIV_70 Computer 906 3, ,891 7,625 System Design and Related Services 0 1,130 4,579 2,592 1, ,759 16,030 Total 11,242 10,672 3,820 4,629 3,012 5,759 39,134 % of total workforce 4.78% ACS 2013 Statistical Compendium Page 28

30 WESTERN AUSTRALIA DIVISION_A Agriculture, Forestry and Fishing Management and operations Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support workers DIVISION_B Mining 2, ,033 DIVISION_C Manufacturing ,793 DIVISION_D Electricity, Gas, Water and Waste Services 284 1, ,423 DIVISION_E Construction ,604 2,176 3,780 DIVISION_F Wholesale Trade ,095 DIVISION_G Retail Trade DIVISION_H Accom and Food Services DIVISION_I Transport, Postal and Warehousing ,541 Rest DIVISION J DIVISION_K Financial and Insurance Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M 2,488 4, ,040 DIVISION_N Administrative and Support Services DIVISION_O Public Administration and Safety DIVISION_P Education and Training DIVISION_Q Health Care and Social Assistance DIVISION_R Arts and Recreation Services , ,447 1, , DIVISION_S Other Services SUBDIV_58 Telecommunications Services SUBDIV_59 Internet Service Providers, Web Search Portals and Data Processing Services SUBDIV_70 Computer System Design and Related Services , ,075 5, ,013 7, ,337 14, ,339 8, , ,412 19,712 Total 14,672 16,902 1,469 6,499 5,383 6,412 51,337 % of total workforce 3.89% ACS 2013 Statistical Compendium Page 29

31 TAS+NT+ACT 19 DIVISION_A Agriculture, Forestry and Fishing Management and operations Technical and Professionals sales Trades Electronic Trades and Professionals Industry admin and logistics support workers DIVISION_B Mining DIVISION_C Manufacturing DIVISION_D Electricity, Gas, Water and Waste Services DIVISION_E Construction ,031 DIVISION_F Wholesale Trade DIVISION_G Retail Trade DIVISION_H Accom and Food Services DIVISION_I Transport, Postal and Warehousing Rest DIVISION J DIVISION_K Financial and Insurance Services DIVISION_L Rental, Hiring and Real Estate Services Rest DIVISION M 727 1, ,637 DIVISION_N Administrative and Support Services DIVISION_O Public 6,624 4, , ,904 Administration and Safety DIVISION_P Education and ,909 Training DIVISION_Q Health Care ,082 and Social Assistance DIVISION_R Arts and Recreation Services DIVISION_S Other Services , SUBDIV_ , ,342 4,211 Telecommunications Services SUBDIV_59 Internet Service Providers, Web Search Portals and Data Processing Services SUBDIV_70 Computer 2,064 1, ,961 7,007 System Design and Related Services 0 2,217 1, , ,396 11,311 Total 12,505 9,744 1,324 6,321 3,005 4,396 37,295 % of total workforce 6.62% 19 ABS were unable to supply separate totals for the three States aggregated above ACS 2013 Statistical Compendium Page 30

32 CIIER calculations for ACS, NT, and Tasmania Based upon established paradigms and other data, however, we estimate the following figures for ACT, Tasmania and NT. Professional. Management, technical, and trade, all industries Industry admin and logistics support workers % of workforce Industry ACT 24,433 2,166 26, % 6,630 Tasmania 4,380 1,759 6, % 3,106 NT 4, , % 1,575 Giving the following comparatives: Professional. Management, technical, and trade, all industries Industry admin and logistics support workers % of workforce Industry (ABS definable sectors only) Industry (CIIER estimate for all Industry sectors) ACT 24,433 2,166 26, % 6,630 7,826 SA 33,375 5,759 71, % 16,030 17,271 VIC 155,441 26, , % 81,675 86,409 WA 44,925 6,412 83, % 19,712 21,179 NSW 192,194 38, , % 108, ,195 QLD 84,264 11,556 37, % 37,084 39,171 NT 4, , % 1, ,065 Tasmania 4,380 1,759 6, % 3,106 3,231 State percentages of the National work-force, and National industry work-force CIIER calculations derived from ABS Labour force data and CIIER datasets NSW VIC WA SA QLD State % of National work-force State % of National Industry ACT Tasmania NT 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 20 CIIER consider this number is overstated ACS 2013 Statistical Compendium Page 31

33 Learning Data cited in the Compendium in previous years has included both undergraduate and post-graduate students. This inclusion may have led to a slightly overstated perception of the number of completions impacting on the work-force, as completing post-grad students may have already been included in previous undergraduate completions. This new data, now from the Department of Industry, allows us to correct this anomaly. Unfortunately no data for 2012 was available at the date of compilation. State Year of Enrolments, undergraduates Domestic International Total Year of Completions, undergraduate students Domestic International Total enrolment Completion ACT Multi-State NSW ,659 4,153 9, ,062 1,185 2,247 NT Queensland ,813 2,068 5, ,198 SA , Tasmania ,146 1, Victoria ,359 5,623 10, ,446 2,434 WA ,528 1,170 2, ,545 15,113 33,658 3,240 3,941 7,181 Est. completions 21 undergraduate students ACT Multi-State NSW ,866 4,073 9, ,101 1,162 2,276 NT Queensland ,897 2,154 6, SA , Tasmania ,148 1, Victoria ,447 5,586 11, ,004 1,436 2,445 WA ,537 1,111 2, ,966 15,018 33,984 3,320 3,920 7,254 ACT , Multi-State NSW ,317 3,918 10, ,185 1,118 2,344 NT Queensland ,996 2,202 6, SA , Tasmania ,160 1, Victoria ,576 5,706 11, ,028 1,467 2,500 WA ,581 1,116 2, ,660 15,076 34,736 3,446 3,937 7, CIIER calculation based upon latest completion ratios from previous years, 3 year course duration. To note, Enrolments and Commencements are two different figures, both are defined by Dept Education. Simply, Enrolments mean a student has signed up for a course, Commencements mean they actually started it. There is no such thing as a "commencing enrolment" Enrolments are usually a higher number than Commencements ACS 2013 Statistical Compendium Page 32

34 Undergraduate Enrolment in 2009 to Completion in 2011 ratios by State and by citizenship Western Australia Victoria Tasmania South Australia Queensland International domestic Northern Territory New South Wales Multi-State Australian Capital Territory 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% IT has an overall completion rate of 23.5% which is the fourth highest completion rate of disciplines measured by the Department of Education 22 with the average completion rate of all measured disciplines around 23%. National Undergraduate enrolments (3 years prior) and completion ratios (year of completion) Domestic enrolments International enrolments Completion ratio Domestic Completion ratio International 26% 35.00% 30.00% % % 20.00% 15.00% % % % Enrolments have flattened for international students, but have risen slightly for domestic students since The variation in completion ratios, however, means that the number of domestic students completing remains lower than the number of international students completing, and is unlikely to lift significantly during the forecast period to the end of In 2010 we projected that completing domestic student numbers would first decline even further in 2011, as a result of low commencements during 2008, before commencing recovery in , but only to minimal levels. The latest data shows that this projection has been proven to be accurate ACS 2013 Statistical Compendium Page 33

35 Vocational Training (VET) Australian vocational education and training statistics: Students and courses Qualification completions 24 by parent training packages, Training package ('000) ('000) ('000) ('000) % Business Services (BSA, BSB) Community Services (CHC) Tourism, Hospitality and Events (SIT, THH, THT) Retail Services (SIR, WRP, WRR, WRW) Training and Education (BSZ, TAA, TAE) Construction, Plumbing & Services Integrated Framework (BCF, BCG, BCP, CPC) Transport and Logistics (TDT, TLI) Health (HLT) Agriculture, Horticulture and Conservation and Land Management (AHC, RTD, RTE, RTF, RUA, RUH) Property Services (CPP, PRD, PRM, PRS) Sport, Fitness and Recreation (SIS, SRC, SRF, SRO, SRS) Financial Services (FNA, FNB, FNS) Information and Communications Technology (ICA) Automotive Industry Retail, Service and Repair (AUR) Electrotechnology (UEE, UTE, UTL) Metal and Engineering (MEM) Resources and Infrastructure (BCC, DRT, MNC, MNM, MNQ, RII) Hairdressing (SIH, WRH) Beauty (SIB, WRB) Manufacturing (MCM, MSA) Food Processing Industry (FDF) Screen and Media (CUF) Visual Arts, Craft and Design (CUV) Animal Care and Management (ACM, RUV) Australian Meat Industry (MTM) Furnishing (LMF) Public Services (PSP) Music (CUS) Maritime (TDM) Textiles, Clothing and Footwear (LMT) Laboratory Operations (MSL, PML) Library, Information and Cultural Services (CUL) Chemical, Hydrocarbons and Oil Refining (PMA) Floristry (SFL, WRF) Public Safety (PUA) Integrated Telecommunications () Printing and Graphic Arts (ICP) Racing Industry (RGR) Plastics, Rubber and Cablemaking (PMB) Total training package completions NCVER collection 24 A dash (-) represents a true zero figure, with no data reported in this category. Completions for packages below 1% have been removed by CIIER ACS 2013 Statistical Compendium Page 34

36 VET by package Information and Communications Technology (ICA) 2.94% Business Services (BSA, BSB) Community Services (CHC) Tourism, Hospitality and Events (SIT, THH, THT) Retail Services (SIR, WRP, WRR, WRW) Training and Education (BSZ, TAA, TAE) Construction, Plumbing & Services Integrated Framework (BCF, BCG, BCP, CPC) Transport and Logistics (TDT, TLI) Health (HLT) Agriculture, Horticulture and Conservation and Land Management (AHC, RTD, RTE, RTF, RUA, RUH) Property Services (CPP, PRD, PRM, PRS) Sport, Fitness and Recreation (SIS, SRC, SRF, SRO, SRS) Financial Services (FNA, FNB, FNS) Information and Communications Technology (ICA) Integrated Telecommunications () 0.18% Automotive Industry Retail, Service and Repair (AUR) Electrotechnology (UEE, UTE, UTL) Metal and Engineering (MEM) Resources and Infrastructure (BCC, DRT, MNC, MNM, MNQ, RII) Hairdressing (SIH, WRH) 16.0 VET completions '000 by year by training packages ICA ( IT) and ( Telecommunications) Information and Communications Technology (ICA) Integrated Telecommunications () ACS 2013 Statistical Compendium Page 35

37 NCVER note that this data is limited to publicly funded VET activity. The private VET training market is also substantial. NCVER indicated in 2005 that it was approximately the same size as the publicly funded VET market. The qualifications data is limited to those Training Package qualifications within the ICA and Training Packages. In addition to the listed qualifications a large number of students undertake VET with no intention of achieving a qualification, just to study part of a qualification, therefore there are many subject only students who may meet the profile but as they are not listed as being enrolled in a qualification they are not reflected in the enrolments data. Additionally, many VET students undertake non-training package qualifications (e.g. nationally or locally endorsed qualifications); some of these may be qualifications. Enrolments include all those enrolments within a given year; both commencing and continuing students. Specific qualification data when measured over time should be treated with care as qualifications tend to take a few years to become widely adopted, and are gradually phased out once they are superseded. The absence of total data on all VET training, both public and private, for, makes real analysis of this important part of the skills workforce equation difficult. CIIER note that the decline in raw numbers presented is still apparent, however significant changes to VET sector funding in a number of States appears to have had an effect on the ratio of students receiving training from private sector providers versus public sector providers, rendering the 2005 NCVER estimate of a 50/50 split overall unlikely to now be valid. The ratio between international and domestic students is also unclear, and neither is any trend in that ratio available. The absence of total data on all VET training, both public and private, for makes real analysis of this important part of the skills workforce equation difficult. ACS 2013 Statistical Compendium Page 36

38 Temporary migration Migration As we commented last year, whilst the Government releases an update of temporary migration statistics from time to time 25, this does not contain specific reference to migration, other than to identify that a few occupations (ANZSCO Level 6) are within the top 15 migrant visa groups awarded, and a (slightly different) group are among the top 15 continuing, (i.e. current and already issued in previous years) occupations. There is, no data made available for all of the other occupations, nor does the Industry sector analysis in this report provide much value, as it only reports to the ANZSIC level 2 classification, which, as previously noted in this report, aggregates TV, radio, and newspapers with the telecommunications sector, in the so-called group and all other professional, scientific and engineering disciplines with software and services. We are, therefore challenged for certainty as to how many 457 visas have been awarded, or whether these are increasing or decreasing either volumetrically or in percentage. Permanent migration Much the same issue affects data on permanent migration, and whereas until 2009, even on a limited number of occupations, we could track inwards migration statistics, data is now only available from DIMP (Department of Immigration and Border Protection) on the net effect (i.e. inwards migration less outwards migration), for a limited number of occupations, classified on an outdated level 2 designation no longer used by ABS or DEEWR. Net migration 8000 Net permanent migration to Australia for some occupations DEEWR trend data based on DIAC migration data Computing Professionals IT Managers About the only conclusions one can draw is that migration is continuing to increase in line with the rise in the digital economy, but we lack a clear idea by how much, or in what occupations. 25 DIAC Subclass 457 State/Territory Summary report ACS 2013 Statistical Compendium Page 37

39 Women in Industry Management and operations Technical and Professionals sales Trades Industry admin and logistics support Workers 26 Telecoms and ISPS 2,439 2,709 4, ,813 26,898 Software and services 2,656 13,016 2,167 3,278 21,294 42,411 Industry total 5,095 15,725 6,353 4,029 38,107 69,309 ANZSIC Division 0 A Agriculture, Forestry and Fishing B Mining ,087 C Manufacturing 3,099 3, ,234 D Electricity, Gas, Water 2, ,467 and Waste Services E Construction F Wholesale Trade 1,528 1,256 1, ,012 G Retail Trade 1, ,131 4,425 H Accommodation and ,059 Food Services I Transport, Postal and 2,873 1, ,096 Warehousing Rest DIVISION J (Radio, 200 1, ,543 TV, newspapers, and libraries) K Financial and Insurance 2,974 5, ,202 Services L Rental, Hiring and Real ,207 Estate Services Rest DIVISION M 11,365 15, ,934 (Professional services, excluding ) N Administrative and 2, ,868 Support Services O Public Administration 10,109 2, ,241 14,776 and Safety P Education and Training 2,351 1, ,709 Q Health Care and Social 4,197 1, ,496 7,758 Assistance R Arts and Recreation 1, ,062 Services S Other Services 1, ,813 Total 54,933 53,583 9,504 13,273 38, ,400 Female % 32.64% 24.50% 28.21% 16.94% 40.81% 28.34% 26 Electronic workers and professionals column not included, as there were no female entries in this column working in the industries. ACS 2013 Statistical Compendium Page 38

40 Female % of occupations Female % of all occupations Industry Telecoms and ISPS 15.79% 27.9% Software and services 19.93% 23.9% Industry total 18.37% 25.3% ANZSIC Division A Agriculture, Forestry and Fishing 0.0% 31.5% B Mining 17.1% 13.9% C Manufacturing 29.2% 26.2% D Electricity, Gas, Water and Waste Services 23.7% 22.0% E Construction 4.9% 12.5% F Wholesale Trade 21.5% 33.4% G Retail Trade 19.8% 56.9% H Accommodation and Food Services 37.2% 55.6% I Transport, Postal and Warehousing 32.5% 22.6% Rest DIVISION J (Radio, TV, newspapers, and libraries) 32.0% 50.7% K Financial and Insurance Services 23.5% 53.2% L Rental, Hiring and Real Estate Services 33.9% 48.7% Rest DIVISION M (Professional services, excluding ) 36.1% 48.9% N Administrative and Support Services 48.5% 51.0% O Public Administration and Safety 27.7% 45.6% P Education and Training 22.5% 68.4% Q Health Care and Social Assistance 52.3% 78.7% R Arts and Recreation Services 40.1% 44.6% S Other Services 17.8% 42.8% Total 26.6% 45.7% Did the reduction in women last year really happen? In Feb 2011, according to the ABS data, there were 131,059 women in occupations in Australia, 24.10% of the total occupation employment. This was a marginal increase of 0.6% since Feb 2010, whilst the absolute number of women had increased by over 8,000. By Feb 2012, according to the ABS data, these gains had been reversed, with the absolute number declining to 91,400, at only 19.73% of the total occupation workforce. Some of these declines were in already identified areas where reductions have taken place, such as retail sales, and education. Some may also be related to coding variations in which people have been reallocated to slightly different ANZSCO classifications than before, such as catch-alls like professionals nfd, but the clearly significant occupation group to show large volumetric and percentage was in graphics and web design, with over 14,000 fewer women identified as working than in the prior year, over half of the previous number. ACS 2013 Statistical Compendium Page 39

41 As we stated last year, CIIER considered that this was unlikely to explain such a significant reduction, and that it was far more possible that a number of such women had simply been reallocated to non- occupation classes by ABS. Our scepticism appears vindicated, with the number of female workers for February 2013 back up to 169,400, over 28% of the total workforce. What percentage of women are employed in? It depends on the industry sector and type of occupations, and whether you are talking about: management and operations (32.6%), all technical and professional occupations, (24.5%), the industry, (25.3%) the technical and professional occupations IN the industry (18.4%) the work-force (28.34%) ACS 2013 Statistical Compendium Page 40

42 What we are Paid The Australian Tax Office (ATO) financial year taxable income and other aggregate data analysed by occupation and by industry for 12 million taxpayers has recently made available. 27 Over 280,000 taxpayers, of these, are classified within occupations. A variance between the ATO and ABS datasets occurs because ATO occupational data is derived from what a taxpayer says is their occupation, whereas ABS labour market data is derived from what an employer says that their employees do. This becomes especially difficult when hierarchical or designatory titles (e.g. public servant, manager, or company director) may clash with descriptive occupational titles (e.g. software developer, systems designer, telecommunications engineer). Accordingly, the volumetric data from the ATO data does not always closely correlate to that from ABS Labour market data from the same period. The ATO data provides very useful indications, however, of actual average salaries and taxable incomes in those occupation codes which can be analysed, and for which a very significant number of taxpayers are defined. Male taxable income Apprentice or trainee - electronics or telecommunications trades worker 9261 Consultant - IT business analyst 6212 Sales Assistants 3424 Telecommunications Trades Workers 3132 Telecommunications Technical Specialists 3131 Support Technicians 2633 Telecommunications Engineering Professionals 2632 Support and Test Engineers 2631 Computer Network Professionals 2621 Database and Systems Administrators, and Security Specialists 2613 Software and Applications Programmers 2612 Multimedia Specialists and Web Developers 2611 Business and Systems Analysts 2610 Business and Systems Analysts, and Programmers 2600 Professionals 2324 Graphic and Web Designers, and Illustrators 2252 Sales Professionals 2249 Other Information and Organisation Professionals 2232 Trainers $6,000 or less $6,001 $37,000 $37,001 $80,000 $80,001 $180,000 $180,001 or more 0% 20% 40% 60% 80% 100% No in income bracket Female taxable income Apprentice or trainee - electronics or telecommunications trades worker 9261 Consultant - IT business analyst 6212 Sales Assistants 3424 Telecommunications Trades Workers 3132 Telecommunications Technical Specialists 3131 Support Technicians 2633 Telecommunications Engineering Professionals 2632 Support and Test Engineers 2631 Computer Network Professionals 2621 Database and Systems Administrators, and Security Specialists 2613 Software and Applications Programmers 2612 Multimedia Specialists and Web Developers 2611 Business and Systems Analysts 2610 Business and Systems Analysts, and Programmers 2600 Professionals 2324 Graphic and Web Designers, and Illustrators 2252 Sales Professionals 2249 Other Information and Organisation Professionals 2232 Trainers $6,000 or less $6,001 $37,000 $37,001 $80,000 $80,001 $180,000 $180,001 or more 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No in income bracket 27 ATO, Selected items, by sex and occupation code, income year ACS 2013 Statistical Compendium Page 41

43 Male Taxable income, by occupation, sex and taxable income, income year $6,000 or less $6,001 $37,000 $37,001 $80,000 $80,001 $180,000 $180,001 or more Male total 2232 Trainers Other Information and 730 2,070 1, ,745 Organisation Professionals 2252 Sales Professionals 3,845 3, , Graphic and Web Designers, 310 4,245 9,245 1, ,815 and Illustrators 2600 Professionals Business and Systems Analysts, and Programmers 2611 Business and Systems 145 1,365 6,575 8, ,525 Analysts 2612 Multimedia Specialists and 105 1,115 2,640 1, ,950 Web Developers 2613 Software and Applications 650 5,980 20,420 22,950 1,590 51,590 Programmers 2621 Database and Systems 160 1,545 8,080 7, ,420 Administrators, and Security Specialists 2631 Computer Network 170 2,130 9,090 7, ,855 Professionals 2632 Support and Test 135 1,880 6,975 4, ,285 Engineers 2633 Telecommunications ,510 2, ,035 Engineering Professionals 3131 Support Technicians 410 5,420 11,605 2, , Telecommunications ,640 2, ,740 Technical Specialists 3424 Telecommunications Trades 130 2,130 7,380 3, ,825 Workers 6212 Sales Assistants 180 2,130 1, , Consultant - IT business ,100 5, ,005 analyst 9342 Apprentice or trainee , ,180 electronics or telecommunications trades worker All occupations 3, , , , , , ACS 2013 Statistical Compendium Page 42

44 Female Taxable income, by occupation, sex and taxable income, income year $6,000 or less $6,001 $37,000 $37,001 $80,000 $80,001 $180,000 $180,001 or more Female total 2232 Trainers Other Information and 1,525 3,095 1, ,935 Organisation Professionals 2252 Sales Professionals , , Graphic and Web 495 5,115 7, ,045 Designers, and Illustrators 2600 Professionals Business and Systems Analysts, and Programmers 2611 Business and Systems ,070 2, ,595 Analysts 2612 Multimedia Specialists and Web Developers 2613 Software and Applications 220 1,800 4,855 3, ,525 Programmers 2621 Database and Systems 140 1,795 3,670 1, ,190 Administrators, and Security Specialists 2631 Computer Network ,785 Professionals 2632 Support and Test , ,225 Engineers 2633 Telecommunications Engineering Professionals 3131 Support Technicians 185 1,965 3, , Telecommunications Technical Specialists 3424 Telecommunications Trades Workers 6212 Sales Assistants 110 1, , Consultant - IT business ,040 1, ,695 analyst 9342 Apprentice or trainee electronics or telecommunications trades worker All occupations 3, , , , , It has been argued that lower average female wages by industry often reflect that females are employed in lower paid occupations. This data also allows us to analyse gender variations in taxable income by occupation code, regardless of industry sector, so we can see that, other than in a small group of 25 otherwise unclassified professionals, female taxable incomes are below those of males in every occupation. This data conforms to the findings of the 2013 ACS Employment and Remunerations Surveys. 28 Female taxable incomes are below those of males in every significant occupation ACS 2013 Statistical Compendium Page 43

45 Percentage of taxable incomes greater than $80,000 pa 6212 Sales Assistants 2324 Graphic and Web Designers, and Illustrators 2612 Multimedia Specialists and Web Developers 2232 Trainers Female Male 3132 Telecommunications Technical Specialists 2610 Business and Systems Analysts, and Programmers 2621 Database and Systems Administrators, and Security Specialists 2600 Professionals 2611 Business and Systems Analysts 9261 Consultant - IT business analyst 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Percentage with taxable income > $80,000 pa Male Female Variation 9261 Consultant - IT business analyst 57.97% 44.90% 13.07% 2252 Sales Professionals 56.31% 30.98% 25.32% 2611 Business and Systems Analysts 53.87% 40.03% 13.84% 2633 Telecommunications Engineering Professionals 52.91% 30.00% 22.91% 2600 Professionals 47.83% 60.00% % 2613 Software and Applications Programmers 47.57% 34.68% 12.89% 2621 Database and Systems Administrators, and Security 46.88% 22.04% 24.83% Specialists 2631 Computer Network Professionals 39.59% 28.01% 11.58% 2610 Business and Systems Analysts, and Programmers 38.89% 33.33% 5.56% 3132 Telecommunications Technical Specialists 36.80% 13.24% 23.56% 2632 Support and Test Engineers 32.33% 24.04% 8.28% 2232 Trainers 27.51% 16.25% 11.26% 3424 Telecommunications Trades Workers 24.83% 10.20% 14.63% 2612 Multimedia Specialists and Web Developers 22.02% 15.82% 6.20% 3131 Support Technicians 13.92% 9.23% 4.69% 2324 Graphic and Web Designers, and Illustrators 12.74% 6.91% 5.83% 2249 Other Information and Organisation Professionals 11.59% 6.63% 4.96% 6212 Sales Assistants 6.67% 3.56% 3.11% 9342 Apprentice or trainee - electronics or telecommunications 1.57% 0.00% 1.57% All occupations 37.06% 20.67% 16.4% ACS 2013 Statistical Compendium Page 44

46 Taxable income, by occupation, sex and taxable income, income year 29 Total Workforce Female Workforce % 2613 Software and Applications Programmers 62,115 17% 2324 Graphic and Web Designers, and Illustrators 29,860 47% 3131 Support Technicians 26,590 24% 2621 Database and Systems Administrators, and Security Specialists 25,610 28% 2611 Business and Systems Analysts 24,120 27% 2631 Computer Network Professionals 20,640 9% 2632 Support and Test Engineers 15,510 14% 3424 Telecommunications Trades Workers 13,315 4% 9261 Consultant - IT business analyst 12,700 21% 2252 Sales Professionals 12,415 29% 2249 Other Information and Organisation Professionals 11,680 59% 3132 Telecommunications Technical Specialists 7,420 9% 2612 Multimedia Specialists and Web Developers 5,835 15% 6212 Sales Assistants 5,650 32% 2633 Telecommunications Engineering Professionals 4,435 9% 9342 Apprentice or trainee - electronics or telecommunications trades 3,220 1% worker 2232 Trainers 1,745 46% 2600 Professionals % 2610 Business and Systems Analysts, and Programmers % All occupations 283, % The data from which these tables are taken includes information from 283,105 taxpayers, of whom 67,000 were female, and includes statistically relevant numbers in almost every occupation cited. It is also interesting to confirm that, in common with ABS and other data, the female percentage varies considerably between occupations. trainers and graphic designers are far more gender diverse than, for example, telecommunications trades and network professionals, whereas most IT occupations reflect a more common participation rate, reflecting, perhaps, longstanding generic trades and engineering gender bias, rather than anything specific to. 29 Taxation statistics , Table 13: Individual tax, Selected items, by occupation, sex and taxable income, income year ACS 2013 Statistical Compendium Page 45

47 Industry Australian Industry Employment - Model comparisons ABS Industry Model (ABS ) CIIER/Whitehorse Model Jun- 96 Jun- 97 Jun- 98 Jun- 99 Jun- 00 Jun- 01 Jun- 02 Jun- 03 Jun- 04 Jun- 05 Jun- 06 Jun- 07 Jun- 08 Jun- 09 Jun- 10 Jun- 11 Jun- 12 ABS last measured the industry in (8126.0). The chart above measures the correlation between the 7 ABS and 23 CIIER-Whitehorse Industry models since ABS labour market data - part of the industry Industry employment growth especially in Software and Services May-00 May-02 May-04 May-06 May-08 May-10 May-12 Full Time ; Computer System Design and Related Services ; ; Part Time ; Computer System Design and Related Services ; ; Full Time ; Internet Publishing and Broadcasting ; ; Part Time ; Internet Publishing and Broadcasting ; ; Full Time ; Internet Service Providers, Web Search Portals and Data Processing Services ; ; Part Time ; Internet Service Providers, Web Search Portals and Data Processing Services ; ; Full Time ; Telecommunications Services ; ; Part Time ; Telecommunications Services ; ; This chart shows Industry employment growth in those sectors of the industry able to be extracted from ABS labour market data. As can clearly be seen, Software and Services (here labelled with the ABS classification Computer design and related services has grown steadily as an industry sector since 2006, whilst employment in the three ABS elements that make up the Telecommunications sector have been flat. Telecoms numbers in this data correlate well to those modelled by CIIER. CIIER cautions, however, that it is likely that a number of companies previously grouped by ABS under ACS 2013 Statistical Compendium Page 46

48 various wholesale trade classifications, may now be being included into Computer systems design, so actual overall Industry growth is not as significant as illustrated purely by this data. Booms and Busts? The gloom and doom written in both the popular and press about the impact upon the industry of y2k, the dot-com growth of investment and subsequent bust, and the GFC, suggested a significant impact for each upon the Australian industry. Industry employment - Booms and Busts? d b o o t m - b GFC Y2k Nov May Nov May Nov May Nov May Nov May Nov May Nov May Nov May Nov Full Time Computer System Design and Related Services Full Time Internet Publishing and Broadcasting Full Time Internet Service Providers, Web Search Portals and Data Processing Services Full Time Telecommunications Services Long-time trendline - software and services long-time trendline - telecoms May Nov May However, as can be clearly seen, the actual impact upon industry employment of each of these events was minimal, with even the flat Computer Systems design (software and services) employment in offset by rises in (miscategorised) ISP/web processing/data processing employment, which was later re-categorised back into software and services. Industry, Number of companies , Source Australian Tax Office 35,000 30,000 25,000 20,000 15,000 10,000 Data Processing, Web Hosting and Electronic Information Storage Services Internet Service Providers and Web Search Portals Telecommunications Services Internet Publishing and Broadcasting Software Publishing Computer and Electronic Equipment Manufacturing Computer System Design and Related Services 5, (This data excludes retail and most distribution.) ACS 2013 Statistical Compendium Page 47

49 Industry by State 30 Industry in Australia employment is dominated by software and services. Each State and Territory has a different mix of industry sectors, with nearly 50% of distribution employment in NSW, compared to its overall 40% of total industry employment, but 30% of software and services in Victoria, and software and services now comprising nearly 80% of total ACT industry employment. Industry employment by State and Industry Sector Telecommunications/ISP's Wholesale Trade Manufacturing Computer Services/Software VIC NSW QLD ACT SA WA TAS NT Dec 2011 CIIER Model AUS VIC NSW QLD ACT SA WA TAS NT Employment Software and Services Manufacturing Wholesale Trade Telecommunications % of national total 30.97% 39.73% 12.58% 3.07% 4.31% 7.63% 1.27% 0.42% Cumulative Industry employment growth in that State since 2003 WA 50.50% QLD 50.41% VIC 36.18% TAS 24.95% NSW 24.23% NT 16.44% ACT 10.91% SA 9.20% National Industry growth 31.04% since CIIER Whitehorse Top 250 industry analysis by state and territory Dec 2011, by industry grouping. Non occupations in industries are included in these totals. ACS 2013 Statistical Compendium Page 48

50 Cumulative percentile Industry Employment growth NSW SA ACT TAS VIC NT QLD WA AUS AUS, 31.04% Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jul-08 Jul-09 Dec-10 Dec State and Territory Industry employment also grows at different rates. Since 2003, Victoria, Queensland, and WA have contributed jobs growth higher than their State percentage of total industry employment, Tasmania and NT have kept pace, whilst NSW, SA, and ACT have grown more slowly. Industry Employment by sub-sector Industry Employment by Industry sub-sector Dec-11 Source CIIER-Whitehorse Top250 Survey and Industry Model Telecommunications Services 28% Consulting and Software Services 43% Manufacturing of Hardware or Software 26% Distribution of Hardware and/or Software products 3% ACS 2013 Statistical Compendium Page 49

51 Industry Revenue CIIER Model Revenue by Dec-09 Dec-10 Dec-11 Industry Sector Computer Services $18,499 $19,703 $19,682 Manufacturing $2,693 $2,687 $2,687 Wholesale Trade $17,251 $17,424 $17,414 Telecommunications $43,081 $42,549 $50,809 $81,524 $82,362 $90,592 Industry Revenue CIIER Industry Model, Dec-2011 Telecommunications 56% Computer Services 22% Manufacturing 3% Wholesale Trade 19% Industry revenue trends $60,000 $50,000 $40,000 $A,000 $30,000 Computer Services Manufacturing Wholesale Trade Telecommunications $20,000 $10,000 $ Revenue per employee is a rough measure of the commoditisation of industry sectors (i.e. the people intensity of an industry sector, or what proportion of the value provided to customers is represented by labour, and what part by goods and services). ACS 2013 Statistical Compendium Page 50

52 Australian sectoral revenue per employee $700, $600, $500, $400, Consulting and Software Services Distribution of Hardware and/or Software products Manufacturing of Hardware or Software Telecommunications Services $300, $200, $100, $ The CIIER model industry revenue model indicates that the sectoral difference is most marked in the revenue per employee for Telecommunications, which, although it has declined slightly since 2006, is far higher than that for Consulting and Software services. Per capita revenue Dec-03 Dec-05 Dec-11 Consulting and Software Services $111, $120, $155, Distribution of Hardware and/or Software products $284, $311, $351, Manufacturing of Hardware or Software $286, $261, $234, Telecommunications Services $583, $581, $613, $289, $299, $311, ACS 2013 Statistical Compendium Page 51

53 ATO Industry Revenue Data Australian Tax Office data for allows for comparison to actual taxation return information from companies operating in all industries. Extracting the industry from this data is not simple, as, in common with ANZSIC, ATO industry sector groupings include a number that are only partly related to the industry. The table below is an extract from the ATO data, the grouping into Wholly or mainly and Partly and the totals derived from these are by CIIER analysts. It should be noted that, whilst not all sectors can be directly compared to CIIER data published some years ago, the Telecommunications data from the ATO for of $42,306 million is very close to the CIIER Dec 2010 model of $42, 549 million, and, as the ATO do not separate out some other manufacturing, the CIIER model for this sector compares well. CIIER has a lower figure for Computer Services for this period than ATO, but comparisons for this sector are more difficult: A. because ATO leaves out of this group a number of elements that it reports separately, and B. because ATO, we believe, has included a number of software product importers within this group, whereas CIIER groups such companies within wholesale trade, which ATO groups under Electrical and Electronic Goods Retailing. companies by revenue groups Taxable revenue by industry sector 31 Telecoms/ISPs Software and service/wholesale trade Computer Manufacture Total Loss/Nil ,274 3,600 $1 - $499,999 2,498 28,745 31,243 $500,000 - $999, ,475 2,678 $1,000,000 - $4,999, ,712 2,984 $5,000,000 - $9,999, $10,000,000 - $49,999, $50,000,000 - $99,999, $100,000,000 or more Total companies 3,407 37, ,155 Partnerships (unsized) 335 1, ,130 Total entities 3,742 39, , Source ATO data extract, financial year company tax returns. Partnerships are not categorised by revenue, however most are <$500, Likely to include non-operating holding companies ACS 2013 Statistical Compendium Page 52

54 $Amillion No of companies Companies by revenue group Telecoms/ISPs Software and service/wholesale Computer Manufacture Loss/Nil $1 - $499,999 $500,000 - $999,999 $1,000,000 - $4,999,999 $5,000,000 - $9,999,999 $10,000,000 - $49,999,999 $50,000,000 - $99,999,999 $100,000,000 or more Industry Taxable Revenue , Source Australian Tax Office $90, $80, $70, $60, $50, Computer System Design and Related Services Data Processing, Web Hosting and Electronic Information Storage Services Internet Service Providers and Web Search Portals Telecommunications Services $40, $30, $20, Internet Publishing and Broadcasting Software Publishing Computer and Electronic Equipment Manufacturing $10, $ (This data excludes retail and most distribution.) ACS 2013 Statistical Compendium Page 53

55 Industry Taxable Revenue Growth to Source Australian Tax Office Computer System Design and Related Services Data Processing, Web Hosting and Electronic Information Storage Services Internet Service Providers and Web Search Portals Telecommunications Services Internet Publishing and Broadcasting Software Publishing Computer System Design and Related Services Data Processing, Web Hosting and Electronic Information Storage Services Internet Service Providers and Web Search Portals Telecommunications Services Internet Publishing and Broadcasting Software Publishing Computer and Electronic Equipment Manufacturing Computer and Electronic Equipment Manufacturing -$ $0.00 $ $1, $1, $2, $2, $3, $3, $4, $4, SA million ACS 2013 Statistical Compendium Page 54

56 exports Australia's Total Exports ($Amillion) Communications 1, Computer 1,514 1,531 1,270 1,043 1,048 1,056 1,031 1, Audiovisual Components Other -related Total Equipment 3,428 2,838 2,567 2,475 2,506 2,555 2,497 2,651 2,259 Telecommunications Computer & 883 1,176 1,176 1,275 1,160 1,406 1,532 1,663 1,640 Information Audiovisual & related Software royalties & fees Total Software and Services 1,967 2,222 2,250 2,193 2,039 2,303 2,308 2,439 2,275 Total Exports 5,395 5,060 4,817 4,668 4,545 4,857 4,805 5,090 4,534 Notes: All data are current prices. Total includes re-exports, Australian total excludes them. *Audiovisual services for 2000 exclude the one-off impact of the Sydney Olympic Games on content exports. **Software royalties and fees for 2006 are estimated, based on previous financial year shares. ***Excludes re-exports Australia s Trade Balance Total Equipment Total Services... Total Balance (Deficit) ($Amillion) ,524 14,085 14,304 16,716 17,054 19,242 19,057 19,427 20,088-1,520-1,480-1,197-1,170-1,236-1,223-1,622-2,001-2,087-15,044-15,565-15,501-17,886-18,290-20,465-20,679-21,476-22, Australian Trade Update 2010, ACS, CSES 2010 ACS 2013 Statistical Compendium Page 55

57 $Amillion research Business Commonwealth State/territory Higher Private nonprofit TOTAL Education $1,222 $166 $15 $139 $1 $1, $1,408 $102 $12 $134 $1 $1, $1,307 $185 $30 $114 $3 $1, $1,894 $165 $17 $144 $5 $2, $2,283 $131 $11 $208 $2 $2, $3,166 $180 $32 $239 $1 $3, $3,763 $ $218 $1 $4, $4,509 $261 $30 $231 $1 $5, $5,019 $316 $9 $359 $2 $5,704 R&D by Field of research $6,000 $5,000 $4,000 $3,000 $2,000 Private non-profit Higher Education State/territory Commonwealth Business Government R&D has increased by over 75% since $1,000 $ Year Research in Australia continues to be undertaken predominately by Business, rather than by Government or Higher Education, both in raw dollars and as a percentage of the total research spend. The spend by State Governments is miniscule, the Higher education R&D spend is lower than that of the Australian Government, but has increased significantly since figures in italics not available from ABS, so were brought forward from previous years to allow totals ACS 2013 Statistical Compendium Page 56

58 Government R&D spend by Field of Research Information and Computing Sciences 13% Engineering 22% Technology 4% Medical and Health Sciences 4% Agricultural and Veterinary Sciences 8% Built Environment and Design 2% Biological Sciences 11% Economics 2% Environmental Sciences 6% Earth Sciences 7% Chemical Sciences 7% Physical Sciences 10% Studies in Human Society 2% Psychology and Cognitive Sciences 1% An allocation of 13% of State and Commonwealth Government research spend to looks very good, but this does not include the substantial funding of over $9.2 Billion to research in Australia, made by not-for-profit bodies, many of which, especially those operating in medical research, are, in fact, significantly funded by Government. Combined Government and private NFP research spend in Australia Medical and Health Sciences 28.0% Environmental Sciences 5.6% Engineering 12.2% Information and Computing Sciences 7.4% Agricultural and Veterinary Sciences 13.0% Biological Sciences 10.3% When this data is combined, in order to show a truer picture of Government priorities in research spending, the research percentage shrinks to just over 7%, as medical research grows from 4% of the Government spend, to 28% of the combined spend. ACS 2013 Statistical Compendium Page 57

59 Business Research and Development 12,000,000 10,000,000 8,000,000 6,000,000 4,000, ,000,000 0 Engineering Medical and Health Sciences Information and Computing Sciences Technology Built Environment and Design Agricultural and Veterinary Sciences Chemical Sciences Earth Sciences Environmental Sciences Biological Sciences Commerce, Management, Tourism and Services Physical Sciences Mathematical Sciences Law and Legal Studies Education Studies in Creative Arts and Writing Economics Psychology and Cognitive Sciences Studies in Human Society Language, Communication and Culture Business R&D spend is growing faster than for any other field of research, and ranks second only to engineering research. There has been a 33.4% growth in Business R&D expenditure since , compared to 14% for all other fields of research. Business expenditure on R&D, by fields of research to $'000 $'000 $'000 $'000 Engineering 8,424,286 9,570,150 8,789,028 9,210,029 Information and Computing Sciences 3,763,262 4,508,532 4,835,004 5,019,259 Medical and Health Sciences 899,702 1,003, , ,910 Technology 704, , , ,238 Agricultural and Veterinary Sciences 329, , , ,775 Built Environment and Design 113, , , ,086 Chemical Sciences 223, , , ,030 Earth Sciences 206, , , ,390 Environmental Sciences 128, , , ,269 Commerce, Management, Tourism and 78,639 94,037 99, ,274 Services Biological Sciences 99,843 73,342 67,974 73,530 Physical Sciences 28,976 19,221 21,414 24,173 Mathematical Sciences 12,455 18,466 13,478 20,587 Education 7,928 12,519 19,369 15,301 Studies in Creative Arts and Writing 6,151 9,448 10,676 12,354 Economics 12,737 12,229 8,006 10,990 Psychology and Cognitive Sciences 2,646 4,088 1,780 2,162 Law and Legal Studies 1,416 5,199 4,204 1,803 Studies in Human Society 2,232 1,364 Language, Communication and Culture 1,471 1,627 Total 15,047,360 17,291,228 16,762,030 17,879, DO007_ Research and Experimental Development, Businesses, Australia, ACS 2013 Statistical Compendium Page 58

60 To other Countries How do we compare? Share of -intensive occupations in the total economy, intensive users, and Luxembourg United Kingdom Denmark Sweden Finland Estonia Norway Slovenia Ireland Switzerland Netherlands Iceland Czech Republic Belgium Germany Hungary EU Australia Canada Austria Slovak Republic France Italy United States Spain Poland Greece Portugal Turkey Sources: Information Technology Outlook 2010 and forthcoming OECD (2011): -related skills and employment: New competences and jobs for a smarter and greener economy, DSTI/ICCP/IE(2011)3 Note: Intensive users corresponds to the broad definition based on the methodology described in OECD 2004, Chapter 6. Shares for non-european countries are not directly comparable with shares for European countries, as the classifications are not harmonised. 1. For Australia, Finland and Sweden, 1997 instead of For Australia 2009 instead of ACS 2013 Statistical Compendium Page 59

61 Share of -specialists in the total economy, specialist users, and Sweden Switzerland 5.04 Czech Republic Norway 4.71 Finland Denmark Luxembourg Canada Netherlands United States Australia Germany Iceland 3.50 EU United Kingdom Estonia 3.23 Austria Belgium France Spain Italy Slovenia 2.99 Slovak Republic 2.90 Ireland Poland 2.76 Hungary 2.67 Portugal Greece Turkey 1.65 Sources: Information Technology Outlook 2010 and forthcoming OECD (2011): -related skills and employment: New competences and jobs for a smarter and greener economy, DSTI/ICCP/IE(2011)3 Note: Specialist users corresponds to the narrow definition based on the methodology described in OECD 2004, Chapter 6. Shares for non-european countries are not directly comparable with shares for European countries, as the classifications are not harmonised. 1. For Australia, Finland and Sweden, 1997 instead of For Australia, 2009 instead of ACS 2013 Statistical Compendium Page 60

62 Contributions of investment to GDP growth, Annual average growth (%) Labour input investments Non- investments Multi-factor productivity GDP growth Korea United Kingdom Ireland Japan United States Austria Finland Sweden Netherlands New Zealand Belgium Australia Germany France Switzerland Spain Denmark Portugal Canada Italy Notes: Estimates are based on cost shares and hedonic prices. Sources: OECD Productivity Database, June 2011 OECD (2011), The Future of the Internet economy. A statistical profile. June 2011 update, OECD, Paris [ ACS 2013 Statistical Compendium Page 61

63 Share of countries in -related patents filed under the PCT, Country share in total PCT filings United States EU Japan China Germany Korea France United Kingdom Netherlands Sweden Canada Finland Israel Italy Australia Switzerland India Spain Singapore Austria Belgium Denmark Russian Federation Norway Ireland Turkey Brazil New Zealand Hungary Poland South Africa Czech Republic Portugal Estonia Saudi Arabia Romania Mexico Slovenia Greece Cyprus Iceland Bulgaria Chile Slovak Republic Argentina Luxembourg Note: Patent counts are based on the priority date, the inventor's country of residence and fractional counting. 1. Patent applications filed under the Patent Co-operation Treaty, at international phase, designating the European Patent Office. Source : OECD, Patent Database, March 2012 [ ACS 2013 Statistical Compendium Page 62

64 Business R&D expenditures by selected industries, 2008 or latest available year. As a percentage of GDP manufacturing R&D services R&D Total RD/Total BERD Finland Greece* Korea Israel Estonia Ireland United States Sweden Turkey Portugal Belgium* Netherlands* Japan Canada United Kingdom Norway France* Denmark* Italy Spain Iceland New Zealand* Austria* Hungary Slovenia Germany* Czech Republic* Australia Switzerland Poland Slovak Republic Chile Mexico* General notes: (*) sector is defined here as the sum of the following categories in ISIC 3 Rev.1: 30, 32, 642 and Israel, Slovak Republic, Slovenia and Switzerland only covers category ISIC 32 for manufacturing. 3. Germany, Israel, Slovak Republic and Japan only covers category ISIC 72 for services. Country notes: For Australia: Data are distributed according to the main activity of the enterprise carrying out the R&D (or, in the case of larger enterprises, the divisions carrying out the R&D), with the R&D of independent ACS 2013 Statistical Compendium Page 63

65 R&D firms (or their divisions) serving mainly one industry allocated to the industry served. For Austria: Data are distributed according to the main activity of the enterprise carrying out the R&D. For Belgium: Data are distributed according to the product field of the R&D. For Czech Republic: Data are distributed according to the main activity of the enterprise carrying out the R&D. Since 2004, the R&D of enterprises in the Research and development industry (ISIC, R-3: 73) has been redistributed to the industries for which the R&D was carried out. For France: Data are distributed according to the product field of the R&D. For Greece: Data are distributed according to the main activity of the enterprise carrying out the R&D. For Hungary: Data are distributed according to the main activity of the enterprise carrying out the R&D, with the R&D of independent R&D firms serving mainly one industry allocated to the industry served. For Israel: Data are distributed according to the main activity of the enterprise carrying out the R&D. Defence R&D is excluded. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. For Italy: Data are distributed according to the main activity of the enterprise carrying out the R&D. For Korea: Data are distributed according to the main activity of the enterprise carrying out the R&D. For Portugal: Data are distributed according to the main activity of the enterprise carrying out the R&D. For Spain: Data are distributed according to the main activity of the enterprise carrying out the R&D. Since 2000, data for the Research and development industry (ISIC, R-3: 73) have been allocated to the industries served. For Sweden: Data refer to 2009 and were provided by Statistics Sweden. For Turkey: Data are distributed according to the main activity of the enterprise carrying out the R&D. For United Kingdom: Data are distributed according to the product field of the R&D for large firms, while for small firms the R&D is allocated to their main activity. R&D firms are redistributed to the industry served. Telecommunications (ISIC, R-3: 642) includes Post (ISIC, R-3: 641). For United States: Data are distributed according to the main activity of the enterprise carrying out the R&D. For 2008, the estimates are preliminary. Source: OECD, ANBERD database, May 2011 and Statistics Sweden, June OECD (2011), The Future of the Internet economy. A statistical profile. June 2011 update, OECD, Paris [ ACS 2013 Statistical Compendium Page 64

66 12. Trade in goods, 2009, USD Millions Exports Imports United States 113, ,627 Korea 79,508 41,855 Japan 70,164 62,726 Germany 54,601 78,036 Mexico 50,499 45,938 Netherlands 50,265 54,858 United 23,411 47,596 Kingdom France 19,762 38,233 Hungary 19,517 16,199 Czech Republic 16,305 16,458 Ireland 12,801 8,294 Sweden 11,788 12,677 Canada 10,944 27,012 Poland 9,510 14,609 Slovak Republic 9,410 8,429 Belgium 9,296 13,595 Italy 8,092 24,560 Israel 7,854 4,605 Finland 6,746 6,193 Spain 5,428 28,238 Austria 5,271 8,148 Denmark 3,108 6,561 Switzerland 2,746 8,896 Turkey 2,032 7,078 Portugal 1,757 4,367 Norway 1,757 5,247 Australia 1,647 16,699 Slovenia 519 1,109 Greece 496 3,659 Estonia Luxembourg New Zealand 348 2,202 Chile 72 2,689 Iceland Brazil 2,859 14,433 China 356, ,214 India 6,099 20,749 Indonesia 6,921 8,619 Russian ,435 Federation South Africa 677 5,533 Source : OECD Communications Outlook 2011 ACS 2013 Statistical Compendium Page 65

67 Households with broadband access (1), Percentage of all households (*) See notes Korea (*) Iceland Sweden Denmark Netherlands Finland United Kingdom Norway (*) Germany Switzerland Belgium Canada (*) Australia (*) Austria France United States Israel (*) Luxembourg (*) EU Slovenia Estonia Ireland Japan (*) Czech Republic (*) New Zealand (*) Spain Poland Hungary Portugal Slovak Republic Italy Greece Turkey Chile Mexico (*) Source: OECD, database and Eurostat, Community Survey on usage in households and by individuals, June ACS 2013 Statistical Compendium Page 66

68 Internet penetration by size class, 2011 or latest available year Percentage of businesses with 10 or more employees Source: OECD, database and Eurostat, Community Survey on usage in enterprises, June (*) See notes. [10-49] [50-249] 250 and more Switzerland (2008) (*) Finland Netherlands Iceland (2010) Portugal Israel (2008) Korea (2010) (*) Slovenia Austria Luxembourg Slovak Republic Estonia Greece Spain Australia (2010) (*) Belgium Denmark Japan (*) France Poland Czech Republic Germany Canada (2007) (*) EU Italy New Zealand (*) Sweden Ireland United Kingdom For most European countries, the following industries are included: Manufacturing, Construction, Wholesale and retail, Hotels and restaurants, Transport, storage & communication, Financial intermediation and insurance, Real estate, renting and business activities and Other community, social and personal service activities. For European countries, Financial intermediation and insurance are excluded. For Australia, the following industries are excluded: SISCA 3000 General government; SISCA 6000 Rest of the world; ANZSIC06 Division O Public administration and safety; ANZSIC06 Division P Education and training; ANZSIC06 Groups 624 (Financial asset investing) and 633 (Superannuation funds); ANZSIC06 Groups 854 (Religious services) and 955 (Civic, professional and other interest group services); ANZSIC06 Subdivision 96 Private households employing staff. From 2010, businesses within ANZSIC06 Division A Agriculture, forestry and fishing industry were included for the first time. For Canada, Agriculture, fishing, hunting and trapping, and Construction specialist contractors are excluded. For Denmark and Finland, Financial intermediation and insurance are excluded. For Japan, data refer to enterprises with 100 or more employees and exclude: Agriculture, forestry, fisheries and Mining. For Korea, the following industries are included: Agriculture, forestry, fishing, mining and quarrying, Manufacturing, Construction, Wholesale and retail, Transportation, Accommodation and Food Service Activities, Information and Communications, Financial and Insurance Activities, Real estate & Renting, Professional, Scientific and Technical Activities, Business Facilities Management and Business Support Service, Membership Organizations, Repair and Other Personal Services and Other activities. For New Zealand, data excludes Government administration and defence, and Personal and other services; the NZ survey also excludes businesses with less than 6 employees (calculated by Rolling Mean Employment) and those with turnover of less than NZD For Switzerland, data refer to enterprises with 5 or more employees. For Canada, employees instead of and 300 and more instead of 250 and more. For Japan, instead of and 300 and more instead of 250 and more. For Mexico, instead of employees. For Switzerland, 5-49 instead of employees. ACS 2013 Statistical Compendium Page 67

69 Salary comparisons US Salaries 36 Job title Average Salary ( $US) EVP/SVP/VP of Business Applications $167,900 CTO $155,625 EVP/SVP/VP of IT/MS/IT $141,582 CIO $126,827 Director of Business Applications $119,491 Architect (any technology) $119,279 Director of IS/MIS/IT $117,625 Risk Manager/Compliance/Privacy Officer $117,281 CSO/CISO $106,445 Security Manager $104,287 Data Center Manager/Architect $103,607 Project Manager $102,912 IT Manager $93,640 Database Administrator $91,523 Programmer/Developer $88,149 Developer $88,004 Telecommunications Manager $79,700 Systems Manager/Administrator $77,226 Analyst (internal) $76,747 Network Manager/Administrator/Engineer $73,934 IT Staff $72,717 US Salary movements 36 TechTarget, IT SALARY SURVEY 2012, (2227 responses from IT professionals in North America) ACS 2013 Statistical Compendium Page 68

70 US Hiring position European statistics 37 > 7 million people work in the European IT sector The European Commission projects a deficit of at least 700,000 skilled IT workers by 2015 Simultaneously the number of jobs has been steadily growing by 3% each year during the current economic crisis The number of new Computer Science / IT graduates and other skilled IT workers has been diminishing during the same period The IT sector contributes strongly to EU growth:- 5.3% of the EU's GDP 4% of its jobs 20% of economy-wide labour productivity growth + the EU s most innovative and research-intensive sector - representing ¼ of the total EU research effort in the business sector A viewpoint from U.K. 38 Employment in the IT industry is expected to grow at nearly 5 times the UK average over the next decade If the status quo in IT education remains, a widening skills-gap will take its toll on UK business. Unless immediate action is taken we will have whole swathes of the current generation of school children who are simply not IT literate enough to function in an increasingly digital world The standard of Computer science educational curriculum has steadily declined at all levels through from school to university over the past years The number of young people studying and choosing careers in IT has correspondingly decreased, and therefore not kept up with growing demand. Graduates are becoming less equipped to enter the job market meaningfully in a competitive market, with overseas students often being better qualified Women are under-represented at all levels in the IT sector, particularly decision making positions. 37 Yva Thakurdas, presentation to the House of Lords, UK. 38 John Harris, Commission Chairman, Corporate IT Forum Education and Skills Commission January 2013 ACS 2013 Statistical Compendium Page 69

71 To other Professions Median starting salaries of bachelor degree graduates in first full-time employment and aged less than 25, Males Females Total Dentistry $92,000 $76,000 $80,000 Earth Sciences $68,500 $75,000 $73,000 Engineering $63,000 $64,000 $63,000 Medicine $60,000 $60,000 $60,000 Education $56,000 $56,000 $56,000 Law $55,000 $50,700 $53,000 Computer Science $52,000 $55,000 $52,500 Agricultural Science $50,500 $50,000 $50,000 Biological Sciences $49,500 $50,000 $50,000 Social Work $50,900 $50,000 $50,000 Accounting $50,000 $48,000 $49,000 Architecture & Building $52,000 $43,000 $48,000 Economics, Business $50,000 $47,000 $48,000 Social Sciences $45,000 $47,000 $47,000 Humanities $45,000 $45,000 $45,000 Veterinary Science $46,000 $45,000 $45,000 Art & Design $42,500 $40,000 $40,000 Pharmacy $36,000 $39,700 $39,000 Australian Graduate starting salaries by Discipline Source: Graduate Careers Australia December 2012, analysed by CIIER $100,000 $90,000 $80,000 $70,000 Total Males Females $60,000 $50,000 Median salary for all $40,000 $30,000 $20,000 $10,000 $0 Pharmacy Art & Design Humanities Veterinary Science Social Sciences Architecture & Building Economics, Business Accounting Psychology Agricultural Science Biological Sciences Social Work Paramedical Computer Science Law Physical Education Mathematics Medicine Engineering Earth Sciences Optometry Dentistry It is interesting to note that Graduates starting salaries whilst lower than those for medicine or Engineering, are at the median for all graduates, and very similar to those of Law graduates, but higher than those for Accounting, Economics and Business, or Architecture and Building graduates. 39 Gradstats, Dec 2012, rel Jul 2013, Graduate Careers Australia, selected disciplines in table by CIIER. ACS 2013 Statistical Compendium Page 70

72 Where have we come from and where are we going? Long-term trend ABS labour market data - part of the industry Part Time ; Telecommunications Services ; Males ; Part Time ; Telecommunications Services ; Females ; Part Time ; Internet Service Providers, Web Search Portals and Data Processing Services ; Males ; Part Time ; Internet Service Providers, Web Search Portals and Data Processing Services ; Females ; Part Time ; Internet Publishing and Broadcasting ; Males ; Part Time ; Internet Publishing and Broadcasting ; Females ; Part Time ; Computer System Design and Related Services ; Males ; Part Time ; Computer System Design and Related Services ; Females ; Full Time ; Telecommunications Services ; Males ; Full Time ; Telecommunications Services ; Females ; Full Time ; Internet Service Providers, Web Search Portals and Data Processing Services ; Males ; Full Time ; Internet Service Providers, Web Search Portals and Data Processing Services ; Females ; Full Time ; Internet Publishing and Broadcasting ; Males ; Full Time ; Internet Publishing and Broadcasting ; Females ; 0.0 Feb- 85 Feb- 87 Feb- 89 Feb- 91 Feb- 93 Feb- 95 Feb- 97 Feb- 99 Feb- 01 Feb- 03 Feb- 05 Feb- 07 Feb- 09 Feb- 11 Feb- 13 Full Time ; Computer System Design and Related Services ; Males ; Full Time ; Computer System Design and Related Services ; Females ; Whilst this chart does not include data for wholesale and retail, and manufacture, it does demonstrate the long-term growth of, in particular, the software and services sector, (known to ABS as Computer Systems Design ). The significant leap in apparent employment numbers in may, however, reflect a reclassification of companies from wholesale trade to software and services, as well as normal growth. Last decade Employment Estimates DEEWR/ABS/CIIER Jun-01 Jun-03 Jun-05 Jun-07 Dec- 09/Feb 2010 Dec- 10/Feb 2011 Dec 11/Feb 2012 Dec 12/Feb 2013 Industry 210, , , , , , , ,000 Professional, 267, , , , , , , ,013 technical and mgt Since 2008, industry staffing has flattened, but has now started to climb again. Some of this flattening, we believe has been through an increasing tendency towards off-shoring of client projects by some companies operating in Australia. The flattening of employment growth in the industry has, however, been offset to a degree by rises in overall technical, professional and management staff, reinforcing our conclusion, indicated over the last two years, that the change away from panacea outsourcing towards previous ratios of inhouse staffing is continuing to have an effect, as clients find that some of the purported benefits of outsourcing, and in particular, off-shoring, have not always materialised as they were led to expect. The trend-line for both sets of data is however, very similar, suggesting that the aberrant outsourcing bump has been compensated for and the industry can now revert to its long-term growth. ACS 2013 Statistical Compendium Page 71

73 400,000 Industry, and Professional technical and mgt, employment ,000 Industry Professional, technical and mgt Professional, technical and mgt trend Industry trend 300, , , ,000 Jun-01 Jun-03 Jun-05 Jun-07 Dec-09/Feb 2010 Dec-10/Feb 2011 Dec 11/Feb 2012 Dec 12/Feb 2013 ACS 2013 Statistical Compendium Page 72

74 Future trends In the last two year s Statistical Compendia, we have included versions of this chart, which models a future employment demand algorithm based upon Ian Dennis, research and development of a regressive analysis correlation algorithm between a subset of future employment levels and Australian share market indices, (effectively a surrogate for future investment intentions). 450,000 CIIER projections of future Professional and Technical Employment Based upon ASX 200 sharemarket analysis 400, ,000 Stockmarket slow recovery Stockmarket projected recovery Stockmarket recession 1/07/13, 312,000 1/07/15, 390,600 1/07/15, 346, ,000 1/07/15, 289, ,000 1/07/12, 299, ,000 Historic employment , ABS labour market data 150, ,000 50,000 0 Jul- 99 Jul- 00 Jul- 01 Jul- 02 Jul- 03 Jul- 04 Jul- 05 Jul- 06 Jul- 07 Jul- 08 Jul- 09 Jul- 10 Jul- 11 Jul- 12 Jul- 13 Jul- 14 Jul- 15 Jul- 16 In April 2012, the ABS provided CIIER with the requisite Feb 2012 data allowing for the projection to be verified. The ABS data, which would have a potential sampling error of up to 2.5%, had a total for Feb 2012 of the specific ANZSCO/ANZSIC codes used in the algorithm, and delivered a result of 299,675, a variation of only 0.23% from the CIIER projection. Last years ACS employment projection has since been confirmed by ABS data as highly accurate. In May 2013, in a similar exercise on the projection above, the ABS data, again with a potential sampling error of 2.5% gave a result of 319,000 for Feb 2013 of the occupations measured against the CIIER projection of 312,000, a variation of 2.25%. CIIER also note that recent Telco announcements of pending staff reductions suggest that the actual June figure will be closer to the CIIER projection of 312,000 than the ABS Feb 2013 estimate. Accordingly, and as we indicated last year, this data suggested that, unless Australia were to tip into a minimum two year recession, net demand for technical and professional staff continues to grow. We also noted that this projected data is about net change. Notwithstanding any growth in net demand, replacements will also still need to be made for retirements, external migration, the expiring of temporary visas, and other ongoing reductions in the workforce. Accuracy of projections This chart shows the historical basis of the CIIER workforce projection model, based upon a correlation between changes in share market indices and actual workforce outcomes. ACS 2013 Statistical Compendium Page 73

75 CIIER current Workforce projections and recent history of projections Actual employment (ABS Labour force extracts) CIIER projections from previous year, and midpoint of forward (non-recession) scenarios CIIER 2013 high estimate CIIER 2013 low estimate There is a close correlation achieved by the CIIER statistical modelling to actual workforce outcomes 9 to 12 months later. Last year, our scenarios, developed in March 2012, showed a slow recovery outcome for July 2014 of 341,700, (based on an June 2013 ASX200 close at 4500), with a faster recovery at 368,500 (based on an ASX 200 June close at 4800). New Projection CIIER has updated the model to reflect both last years accurate projection of Professional and technical employment, and to adjust for the June 2013 ASX200 close, and variations in the consensus of economist s projections for future ASX 200 positions. We are now projecting a 355,100 result for July 2014, exactly midway between these two original ( nonrecession) scenarios from last year. ACS 2013 Statistical Compendium Page 74

76 500,000 CIIER 2013 projections of future Professional, Management, and Technical Employment Based upon ASX 200 sharemarket analysis 450, ,000 Stockmarket slow recovery Stockmarket projected recovery Stockmarket recession 1/07/2016, 435,500 1/07/2016, 402, , ,000 1/07/2014, 355,100 1/07/2016, 335, , ,000 Historic employment , ABS labour market data 150, ,000 50,000 0 Jul- 99 Jul- 00 Jul- 01 Jul- 02 Jul- 03 Jul- 04 Jul- 05 Jul- 06 Jul- 07 Jul- 08 Jul- 09 Jul- 10 Jul- 11 Jul- 12 Jul- 13 Jul- 14 Jul- 15 Jul- 16 Jul- 17 These projections mean that there would be a 36,057 net growth by July 2014, a further 34,300 the following year, and a further 46,100 in the year in the primary scenario. A slower economic recovery still shows growth of 52,014 over the two years to July Only a recession, with an ASX200 outcome regressing to 4500 by June 2014, suggests a small net decline in net employment growth in the year Jul 2014 to June 2015 to current levels, before a resumption of growth in the subsequent year. ACS 2013 Statistical Compendium Page 75

77 AWPA projections on growth in key occupations In July 2013, the Australian Workforce and Productivity Agency (AWPA) published a report titled, Future Focus: Australia s skills and workforce development needs. A discussion paper for the 2012 National Workforce Development Strategy Projections for future employment demand DEEWR analysis indicates employment for workers is expected to grow considerably over the next five years. The total workforce is projected to grow by workers, or 9.4 per cent, in the period from to The employment of Professionals is projected to grow by 10 per cent or by workers during this period. DEEWR Employment projections for to for the 6 highest employing occupations 40 This graph, reprinted from the AWPA report, captures the DEEWR five-year employment growth projections for the period to for the six highest employing occupations. The projected increase in the numbers of workers over the five year period to 2017 for each of these occupations is set out below: (9.3 per cent) for Software and Applications Programmers (10 per cent) for Support Technicians (12.6 per cent) for Managers (8 per cent) for Database and Systems Administrators and Security (4.1 per cent) for Electronics Trades Workers (13.2 per cent) for Business and Systems Analysts In the report was some forward modelling of skills demand. We print the section below, and the table of growth scenarios, verbatim. 40 Source: AWPA graph based on DEEWR Occupation Projections data. ACS 2013 Statistical Compendium Page 76

78 AWPA s modelling is based on four scenarios looking at possible futures. 41 The scenarios are not projections, nor are they based on past trends, but represent a range of possible futures. The four scenarios are: 1. The Long Boom: The economy recovers from the financial uncertainty of 2012 and India and China drive the demand for Australian resources. Mining and construction continue to thrive in Australia. 2. Smart Recovery: A protracted European downturn and slowing growth in China and India creates a drop in the demand for Australian resources. As global growth resumes from , the Australian economy looks to knowledge based industries to drive growth which leads to increased demand in technology related skills. 3. Terms of Trade Shock: An oversupply of commodities creates a drop in commodity prices. Australia moves to a broad based economy with internationally competitive businesses. 4. Ring of Fire: In a context of natural disasters, global crises, political unrest and increased protectionism, the lower Australian dollar enables the strengthening of trade exposed industry sectors. AWPA analysis of the common themes across the scenarios indicates that technology is a key driver in all cases. The table below highlights projected qualification shortfalls in most occupations by 2025.The Ring of Fire scenario is excluded as it has a very different set of assumptions to the other models. 41 Australian Workforce and Productivity Agency (AWPA) (2012), Future Focus: Australia s skills and workforce development needs. A discussion paper for the 2012 National Workforce Development Strategy, accessed 3 April ACS 2013 Statistical Compendium Page 77

79 Shortages/surpluses in qualifications for the three AWPA scenarios as at Occupation Long Boom Smart Recovery Terms of Trade Shock Managers 7,704 6,707 7,756 Trainers Sales Professionals 1,520 1,534 1,429 Web and Multimedia Designers** 2,249 2,970 2,317 Electronics Engineers Business and Systems Analysts 3,789 3,608 3,516 Multimedia Specialists and Web Developers 3,358 3,144 3,078 Software and Applications Programmers 13,341 13,278 12,349 Database and Systems Administrators, and Security Specialists 4,037 3,806 3,735 Computer Network Professionals 3,830 3,776 3,589 Support and Test Engineers 3,436 3,205 3,226 Telecommunications Engineering Professionals Electronic Engineering Draftspersons and Technicians Support Technicians 1,573 2,317 1,782 Telecommunications Technical Specialists Electronics Trades Workers 1, ,013 Telecommunications Trades Workers Sales Assistants (Total added by CIIER) 48,821 47,570 46,352 CIIER consider that there may be debate about the pace of growth for specific occupations above, especially since the pace of technology would suggest that some occupations may have a very different paradigm by the year 2025, (12 years is a very long time in ). We do not, however. Think that it really matters if we have more or less web developers compared to software and applications programmers, as they share almost the same skills base. We note that we have previously recommended that a restructure of these occupation designations would usefully be modelled on the SFIA 43 structures to accommodate the rapid change of work We do consider, however, that these are conservative projections for occupations, as the total growth foreshadowed of 46-49,000 in these occupations is likely, both on our analysis, and on historical trends, to be achieved long before such an extended forward date. Such growth can only be achieved, however, if there are enough people in the supply pipeline, selecting and being educated for careers, and Australia remains challenged in this respect 42 AWPA analysis based on Deloitte Access Economics (DAE) modeling 43 SFIA, Skills for the Information Age ACS 2013 Statistical Compendium Page 78

80 A model for reform of the ABS Australian and New Zealand Standard Industrial Classification (ANZSIC), Codes and Titles Suggested name changes Current Anzsic code Current ANZSIC title Major sector Information and Communications Technology, Digital Content, media, and entertainment Content Digital content, media, games, and 5700 Internet Publishing and Broadcasting entertainment Content Information management services part of 6010 Libraries and Archives and digital libraries Content part of 6020 Other Information Services Products Computer and Electronic Office Equipment Manufacturing 2421 Computer and Electronic Office Equipment Manufacturing Products Communication Equipment 2422 Communication Equipment Manufacturing Manufacturing Products Computer and Computer Peripheral Wholesaling 3492 Computer and Computer Peripheral Wholesaling Products Telecommunication Goods Wholesaling 3493 Telecommunication Goods Wholesaling Products Software Wholesaling 3492? Products Computer and Computer Peripheral Retailing 4222 Computer and Computer Peripheral Retailing Products Software retailing 4222? Products Software Publishing 5420 Software Publishing Products Computer and telecommunications equipment repair and maintenance part of 9422 Electronic (except Domestic Appliance) and Precision Equipment Repair services outsourcing and transaction 5921 Data Processing and Web Hosting Services processing services Electronic Information Storage Services 5922 Electronic Information Storage Services services System Design and Software development Services 7000 Computer System Design and Related Services services Engineering Design and Engineering Consulting Services part of 6923 Engineering Design and Engineering Consulting Services services Consulting, Management, and Education Services part of 6962 Management Advice and Related Consulting Services services Consulting, Management, and part of 8220 Educational Support Services Education Services services Scientific and Technical Services n.e.c. part of 6999 Other Professional, Scientific and Technical Services n.e.c. transmission Telecommunications Network carrier Operation 5801 Wired Telecommunications Network Operation transmission Telecommunications Network carrier Operation 5802 Other Telecommunications Network Operation Other Telecommunications Services 5809 Other Telecommunications Services transmission transmission Internet Service Providers and data transmission services 5910 Internet Service Providers and Web Search Portals ACS 2013 Statistical Compendium Page 79

81 Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Media and entertainment Library and non-digital information Library and non-digital information Publishing, Broadcasting, and non-digital information Newspaper Publishing 5411 Newspaper Publishing Magazine and Other Periodical Publishing 5412 Magazine and Other Periodical Publishing Book Publishing 5413 Book Publishing Directory and Mailing List Publishing 5414 Directory and Mailing List Publishing Other Publishing (except Software, Music 5419 Other Publishing (except Software, Music and Internet) and Internet) Motion Picture and Video Production 5511 Motion Picture and Video Production Motion Picture and Video Distribution 5512 Motion Picture and Video Distribution Motion Picture Exhibition 5513 Motion Picture Exhibition Post-production Services and Other 5514 Post-production Services and Other Motion Motion Picture and Video Activities Picture and Video Activities Music Publishing 5521 Music Publishing Music and Other Sound Recording 5522 Music and Other Sound Recording Activities Activities Radio Broadcasting 5610 Radio Broadcasting Free-to-Air Television Broadcasting 5621 Free-to-Air Television Broadcasting Cable and Other Subscription 5622 Cable and Other Subscription Broadcasting Broadcasting non-digital Libraries and Archives part of 6010 Libraries and Archives Other Information Services part of 6020 Other Information Services The structure above is put forward by us for consideration by the Australian Bureau of Statistics. It would address one of the key concerns of the profession and industry, by establishing a unified and consistent high level ANZSIC sector for. The use for of the Content, Product, Services, Transmission, sectoral designators also allows a much simpler and elegant distinction between industry sectors. The separation of the non portions into a separate grouping also allows for specific analysis of the Broadcasting and non- components. ACS 2013 Statistical Compendium Page 80

82 How should we read this? Statistical data caveats and cautions A significant amount of the data presented in this compendium is derived from the Australian Bureau of Statistics and other Government agencies. Other data is derived from surveys conducted by a variety of organisations. It should be noted that the ABS, other Government agencies, and many of the organisations concerned, advise that some caution should be exercised in the analysis of such data. Some of the broader caveats to the data in this publication have been incorporated alongside the tables and charts; others are too extensive or complex for easy inclusion. ABS has made specific mention this year of concern in respect to employment data taken from its quarterly labour survey. They note that individual cells allocated to an ANZSIC level 2 by ANZSCO level 4 matrix may have RSE s 44 greater than 25% in a number of cases. ABS this year have only supplied Labour Force data by State and gender and ANZSIC level 1 division, (other than three specific ANZSIC level 2 divisions), and rather than 4 digit ANZSCO, have supplied data aggregated to the CIIER categories. They have not supplied such data for Tasmania, NT, and ACT, but only a total for the three smaller States, so divisions into State totals have been undertaken by CIIER based upon historical paradigms and data from private date-sets. Even at the level supplied by ABS they still note a number of cells with high RSE s. ABS outlines for its publications both the methods applied to source the data, and estimates of the reliability of it for analysis purposes, these can be accessed from the ABS website. The quality of statistical data is affected by a number of factors, the main ones being time, depth, and coverage. Timely data is data that is reasonably up-to-date, and non-timely data loses usefulness as it gets older, other than for trend analysis. In this publication we have tried to present the timeliest data available at the time of compilation, however it is clear that some important data is not as up-todate as would be preferable. Depth of data refers to the base level to which the data penetrates, and the relative size of the sample used. It also addresses whether the data only exists at a summary level, or whether it is a summation of more detailed data. In general, the greater the depth the greater levels of accuracy. Coverage applies to the relevancy of the source to the analysis, i.e. if the only sources of data come from a single State, industry sector, or size of organisation, does that allow analysis to presume with any level of certainty that other States, sectors or corporations are similar? We have tried to identify in footnotes and comments both the source and timeliness of data, and analysis has been kept to the minimum necessary to minimise any inadvertent misinterpretation of the data presented. Some data are leading indicators, i.e. they can help to project other data. (An example of a leading indicator is tertiary commencements, which, by the application of average success percentages, can project likely completions three years hence). Other data are trailing indicators, i.e. job losses are often a trailing indicator of worse market conditions. Because they are gathered with different timeframes, leading and trailing indicators may not always agree. They can, however, if tracked consistently, show trends of growth or contraction, and of acceleration or slowdown. Statistics can tell us what has happened, but not always why. Statistics can give us pointers to the future, but only to the limitations of the data and the environment. We hope you find these statistics useful and that they encourage debate and discussion about the scope and role of in Australia. 44 RSE Random sampling error ACS 2013 Statistical Compendium Page 81