Presenter: Ivan Neville Branch Manager Labour Market Research and Analysis

1. Understanding skills demand and availability in the Gas Supply industry Presenter: Ivan Neville Branch Manager Labour Market Research and Analysis

2. What do we know about the Gas Supply industry • Before this survey, surprisingly little • According to the Australian Bureau of Statistics, there were 146 000 people employed in the Electricity, Gas, Water and Waste Services industry in August 2011 • There were 9,950 people employed in the distribution sector of this industry • The largest share of employment is in Western Australia, 27 per cent followed by NSW with 24 per cent • More than two thirds of employees are males • Unknown number of people employed in gas transmission, pipeline construction, supply of equipment and services Source: ABS, Labour Force Data, August 2011, 4 quarter average

3. Objective of the Survey • DEEWR approached by EE-Oz and industry associations to conduct a survey: • Gather information at the national level on the workforce capacity of the Gas Supply Industry • Inform workforce development strategies, such as working with training organisations to provide the required training • DEEWR’s interests: • Increase our understanding of skills demand/supply issues • Develop policies or programs to benefit job seekers, for example by identifying lower skilled occupations which job seekers could fill

4. About the survey • Conducted in July 2011 • 189 employers identified as operating in the industry • 86 employers responded to the survey • 64% of surveyed businesses had 20 or more employees Source: DEEWR, Survey of the Gas Supply Industry, July 2011

5. Number of employees and contractors Source: DEEWR, Survey of the Gas Supply Industry, July 2011

6. Age Distribution Source: DEEWR, Survey of the Gas Supply Industry, July 2011

7. Changes in Staffing Levels12 months preceding the survey Source: DEEWR, Survey of the Gas Supply Industry, July 2011

8. Recruitment experiences 12 months preceding the survey Source: DEEWR, Survey of the Gas Supply Industry, July 2011

9. Recent Recruitment Source: DEEWR, Survey of the Gas Supply Industry, July 2011

10. Qualifications by Occupation • 74 per cent of employers required a qualification for the occupation for which they most recently recruited. • 42 per cent required a Bachelor degree (many of which were vacancies for Engineers) • 42 per cent required a Certificate. • Nationally, over half (53 per cent) of employed persons aged 15 to 64 with a non-school qualification had either a Certificate or Bachelor degree. This suggests the Gas Supply industry has a high demand for both certificate qualified and highly skilled staff. Source: DEEWR, Survey of the Gas Supply Industry, July 2011; ABS, Education and Work, May 2010

11. Location of Vacancies • Of employers who provided the location of their most recent vacancy, Queensland (26%), Western Australia (23%) and New South Wales (22%) were most commonly mentioned. • Queensland and Western Australia predominantly sought the need for higher skilled occupations (both 30%); • While New South Wales mainly recruited for medium to low skilled workers (39%). Source: DEEWR, Survey of the Gas Supply Industry, July 2011

12. Competition for Vacancies Source: DEEWR, Survey of the Gas Supply Industry, July 2011

13. Reasons Applicants Were Unsuitable • Of employers who recruited, 74% had at least one unsuitable applicant in their most recent recruitment round. • Reasons for applicant unsuitability included: • Insufficient experience to perform job duties; • Insufficient qualifications or training to perform job duties; and • Poor attitude or lacked basic work readiness skills • Overseas/interstate applicant Source: DEEWR, Survey of the Gas Supply Industry, July 2011

14. Occupations Difficult to Fill Source: DEEWR, Survey of the Gas Supply Industry, July 2011

15. Retention Strategies Source: DEEWR, Survey of the Gas Supply Industry, July 2011

16. Recruits requiring further development

17. Apprenticeships and Traineeships • Only 34% of surveyed businesses employed an apprentice or trainee compared with 54% for all industries. • More than half (55%) experienced challenges employing and apprentice or trainee. • Most commonly mentioned were the high attrition rate, difficulties meeting mandatory training requirements and the quality or service of training organisations • 35% of employers expected to hire an apprentice or trainee in the 12 months following the survey. Source: DEEWR, Survey of the Gas Supply Industry, July 2011

18. Trade Qualified Staff • 41% of employers who recruited an apprentice or trainee reported that all of their recently qualified trade staff completed their apprenticeship/traineeship through their business. • Of the employers who did not train their recently qualified staff, 86% recruited from within the sector and 50% recruited from outside the sector. Source: DEEWR, Survey of the Gas Supply Industry, July 2011

19. Training and Development • The majority (63%) of employers had arranged for staff to undertake nationally recognised training in the 12 months preceding the survey. • The most commonly used organisations were TAFEs, commercial training providers and industry bodies. • More than one third (36%) of employers reported barriers to providing training. • The cost of training was reported as a barrier by more than half (58%) of employers which is high when compared with all 20+ employers in regions surveyed in the 12 months to June 2011 (33%). • Other commonly reported barriers were the location, low quality of training, length and timing of training. Source: DEEWR, Survey of the Gas Supply Industry, July 2011

20. Future Recruitment Expectations Source: DEEWR, Survey of the Gas Supply Industry, July 2011

21. Occupations Employers Expect to Recruit for in the Next 12 Months Source: DEEWR, Survey of the Gas Supply Industry, July 2011

22. Conclusion • Incomplete picture of Gas Supply industry • Industry showing strong signs of growth • Strong competition for vacancies • Recruitment difficulties • In particular higher skilled occupations (Engineers) • Staff requiring further development was high with insufficiently qualified applicants as the most common reason. • Low apprentice/trainee and training numbers • Most common barrier is cost of training yet increased remuneration is the most commonly used retention strategy.

23. Possible solutions • Change expectations and train your own staff • Increase training and development • Productivity Places Program • Increase intake of apprentices/traineeships • Migration • Sponsorship • Overseas applicants • 457 visas

24. Further Information • www.deewr.gov.au/lmip • www.deewr.gov.au/SkillShortages including the new publication Skill Shortages, Australia • www.deewr.gov.au/regionalreports • www.deewr.gov.au/australianjobs • www.skillsinfo.gov.au including New Jobs 2010 • www.joboutlook.gov.au