A Review of the National Labour Market

Presenter: Ivan NevilleBranch Manager

Labour Market Research and Analysis Branch

2012 Plumbing Supply Forum

Australian Labour Market

Source: ABS, Labour Force, Australia, April 2012, DEEWR Internet Vacancy Index, April 2012.

• Over the year to April 2012, labour market conditions have softened:– Employment increased by a modest 69 100 (0.6 per cent)

over the year to 11 501 000 in April 2012;– Unemployment rate remained steady at 4.9 per cent over

the year to April 2012;– Participation rate fell by 0.4 percentage points to stand at

65.2 per cent in April 2012.– The Internet Vacancy Index (IVI) decreased by 0.8 per cent

in April 2012 and has declined by 10.3 per cent over the year.

The Construction Industry in Australia• Construction is the third largest industry nationally,

with 1 023 600 workers (8.9 per cent of workforce).• Construction employment fell by 14 500 workers in

the year to February 2012 and rose by 71 900 in the five years to February 2012.

• The Australian labour market, or at least the part not related to the Mining sector, is currently soft as is residential construction activity.

• But DEEWR projects solid employment growth for the Construction industry over the next five years

Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data)

Plumbers in the Construction Industry

Source: ABS, Labour Force Survey, Australia, Custom Data Request, Annual Average 2011

Construction All IndustriesCarpenters and Joiners 113 800 132 400Electricians 91 600 140 900Plumbers 72 600 80 100Construction Managers 66 600 79 400All Occupations 1 023 100 11 186 700

Plumbers as % of Construction Industry 7%Plumbers as % of Construction Trades 21%Construction % of all Plumbers 91%

Full Time & Part Time, % of Total

Source: Australian Bureau of Statistics, Labour Force Survey, Four Quarter Average, February 2012

9491

70

69

30

0

10

20

30

40

50

60

70

80

90

100

Plumbers Full Time

Construction Trades Full Time

All Occupations Full Time

Plumbers Part time

Construction Trades Part Time

All Occupations Part Time

Males & Females as % of Total

Source: Australian Bureau of Statistics, Labour Force Survey, Four Quarter Average, February 2012

99 99

54

1 1

46

0

20

40

60

80

100

120

Plumbers Males Construction Trades Males

All Occupations Male

Plumbers Females

Construction Trades Females

All Occupations Female

Median Weekly Earnings In Main Job - Full-time employees, 2011

Source: ABS, Employee Earnings, Benefits and Trade Union Membership (Custom Data Request, Aug 2011)

1,000

1,100 1,100

900

950

1,000

1,050

1,100

1,150

Construction Trades Workers Plumbers Total occupations

Percentage of Employed Persons by Age Group - 2011

Source: Australian Bureau of Statistics, Labour Force Survey, Four Quarter Average 2011: Custom Data Request

9

21

24

22

15

43

2

6

11

23 2222

8

6

3

0

5

10

15

20

25

15-19 20-24 25 - 34 35 - 44 45 - 54 55 - 59 60 - 64 65+

Plumbers

Total

Construction Trades Employment Growth – 5 years to Feb 12 (% pa)

Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data)

-11.1

-4.9

-1.4

-1.4

1.1

2.6

2.7

2.9

3.0

4.0

-12.0 -10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0

Floor Finishers

Plasterers

Wall and Floor Tilers

Painting Trades Workers

Construction Trades

Roof Tilers

Carpenters and Joiners

Bricklayers and Stonemasons

Plumbers

Glaziers

Plumbers: Employment Growth ‘000s

Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data)

54.4 56.060.1

55.3

68.5

74.1 73.175.6 74.9

83.886.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Feb-2002 Feb-2003 Feb-2004 Feb-2005 Feb-2006 Feb-2007 Feb-2008 Feb-2009 Feb-2010 Feb-2011 Feb-2012

Apprentices and TraineesCommencements and Completions

Source: NCVER National Apprentice and Trainee Collection, October - September, 1995 – 2011.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Sep-95 Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 Sep-11

Commenced

Completed

Apprentices and Trainees by State (%)Commencements and Completions, 2011

26%

41%

13%

6%

9%

2%1% 2%

22%

31%

25%

7%

12%

2% 1% 1%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

NSW Vic QLD SA WA Tas NT ACT

Commencements

Completions

Source: NCVER National Apprentice and Trainee Collection no.70 – Regions, October - September, 2005 – 2011.

Projected Growth in the Construction Industry

• The Construction industry is projected to increase by 3.6 per cent per annum nationally over the five years to 2015-16 compared with average annual growth of 2.1 per cent across all industries.

• This equates to an increase of 195 800 workers to reach 1 243 700.

• The Construction industry is projected to contribute 14.9 per cent of total employment growth in the five years to 2015-16.

Source: DEEWR 2011 Employment Projections to 2015-16

Projected Growth for Construction Trades – 5 years to 2015-16 (% pa)

Source: DEEWR 2011 Employment Projections to 2015-16

-0.8

0.8

1.2

2.8

3.2

3.2

3.4

3.6

3.9

5.1

-2 -1 0 1 2 3 4 5 6

Floor Finishers

Roof Tilers

Painting Trades Workers

Glaziers

Carpenters and Joiners

Wall and Floor Tilers

Construction Trades

Bricklayers and Stonemasons

Plasterers

Plumbers

Internet Vacancies for Plumbers (March 06 = 100)

Source: DEEWR Internet Vacancy Index ANZSCO 4 digit data (April 2012)

107.1

81.4

0

20

40

60

80

100

120

140

160

180

200

Plumbers

All Occupations

Skill Shortages• Shortages for Plumbers have been evident for nine of the past 10

years, buto While there are currently shortages, the labour market eased in

2011-12, with a large increase in the proportion of vacancies filled. o Shortages are evident in the largest three states and the ACT with

employers outside these states filling their vacancies with relative ease.

• Demand for construction trades workers is currently subdued in line with weak levels of building activity.o DEEWR research shows an adequate supply of construction trades

workers with strong competition for vacancies in several trades.

Vacancies Filled & Number of Suitable Applicants per Vacancy, Plumber

Source: DEEWR Survey of Employers who have Recently Advertised (SERA)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

20

40

60

80

(no.)(%)

Proportion of Vacancies Filled(%) - LHS

Suitable Applicants per Vacancy - RHS

Conclusions• Labour market conditions in building construction

have softened in the past year. • But DEEWR projects that tens of thousands of

additional workers will be needed in this industry over the next five years, and employment of Plumbers is projected to grow at a faster rate than Construction Trades as a whole

• So it is vital that we keep training to meet future demand.

Conclusions - Training• The training pipeline for plumbers looks to be in good

shape for when activity does pick up.• In March 2012, the Prime Minister announced Skills

for All Australians, including $1.75 billion over five years for vocational education and training.

• This additional funding will provide a national training entitlement and expand interest-free loans for people studying a Diploma or Advanced Diploma through the vocational education and training system.

Websites and Publications• More information is available from:

– Job Outlook (www.joboutlook.gov.au)– Labour Market Information Portal (

www.deewr.gov.au/lmip)– DEEWR Skill Shortages (

www.deewr.gov.au/SkillShortages) – SkillsInfo (www.skillsinfo.gov.au)– Australian Apprenticeships (

http://www.australianapprenticeships.gov.au/