ANZSCO 3222-11Victoria

Sheetmetal Trades WorkerNovember 2017

Labour Economics Office Victoria

Department of Jobs and Small Business

Current labour market rating Shortage

Previous labour market rating (October 2016) Shortage

Comments

This is the sixth consecutive year that a shortage was recorded for this occupation, noting that a shortage was only evident in regional areas in 2015.

Survey results[1]

  • The survey results found that 13 per cent of vacancies were filled, a decrease since 2016 (33 per cent) and the lowest result in five years.
  • The average number of applicants (7.0) and suitable applicants (0.4) per vacancy has also decreased since the previous year, with the suitable applicant result marking a five year low.
  • Regional employers received, on average, less suitable applicants per vacancy than metropolitan employers (0.3 and 0.5 respectively) but filled a higher proportion of vacancies (25 per cent and nine per cent respectively).

Employer requirements

  • The majority of employers were from the manufacturing sector; the remainder were from the residential construction sector.
  • As per the previous year, 60 per cent of vacancies required applicants to hold a trade qualification. Where qualifications were not required, employers were seeking applicants with demonstrable skills relevant to the role.
  • Two thirds of employers did not prescribe a minimum duration of experience; the remainder required between one to five years, depending on the complexity of the role.
  • The majority of employers required applicants who could weld (especially MIG and TIG[2]); had experience using a range of specialist tools and machines; could fabricate from drawings and plans; had experience working across a range of steel gauges; were reliable; possessed a good work ethic; and showed attention to detail. Some employers also noted that a forklift licence was desirable.

Unsuitable applicants

  • The most common reason for unsuitability was a lack of qualifications.
  • The proportion of qualified applicants was 21 per cent, and 81 per cent of these were considered unsuitable due to a lack of technical skills or experience in a similar role.

Unfilled vacancies

  • The main reason vacancies remained unfilled was insufficient suitable applicant numbers.

Demand and supply trends

  • Based on the data below, demand indicators appear mixed while supply appears likely to decrease.
  • Demand for sheetmetal trades workers is primarily driven by the manufacturing sector.[3]
  • Victoria’s manufacturing industry Gross Value Added (GVA) – an indicator of overall industry activity – has been trending down since June 2012 and, in June 2017, recorded its lowest level in five years. Further, it contributed approximately 7.4 per cent to the total Victorian GVA in 2017, the lowest contribution in five years.[4]
  • Actual expenditure in Victorian manufacturing decreased by 1.9 per cent over the year ending June 2017 but is at the fifth highest level recorded (quarterly) in five years.[5]
  • Despite the final closure of major car manufacturing in October 2017, the Australian Industry Group reported that manufacturing conditions remained generally stable outside of the automotive subsector.[6]
  • Internet vacancies for sheetmetal trades workers have trended up since reaching a five year low in February 2014 and, as at August 2017, reached a five year peak.[7]
  • New supply to this occupation is typically through completion of an apprenticeship at the Certificate III level.[8]
  • Commencements increased by 10.6 per cent from a five year low recorded in the fourquarters to March 2016.
  • Completions reached a five year low in the four quarters to March 2017, decreasing by 8.6 per cent on the previous year and continuing a downward trend over the series.[9]

Outlook

  • The expected short and long term capital expenditure – an indicator of industry confidence and likely future activity levels – in Victorian manufacturing increased (by 14.4 per cent and 3.4 per cent respectively) on the previous year and, as at December 2016, were at the highest levels in four years.[10]
  • Employment in manufacturing over the five years to May 2022 is projected to decrease by 5.47 per cent, compared with growth of 8.8 per cent for all industries in Victoria.[11]

Labour Economics Office Victoria

Department of Jobs and Small Business

[1] The methodology underpinning this research is outlined at Skill Shortage Research Methodology | Department of Jobs and Small Business - Document library, Australian Governmentand can also be accessed by the QR code.

[2] Metal Inert Gas (MIG) and Tungsten Inert Gas (TIG) are industry methods of welding metal.

[3]Australian Bureau of Statistics (ABS), 2011 Census, Occupation by Industry of Employment

[4]ABS, Cat. No. 5220.0, Australian National Accounts: State Accounts, Table 03. Expenditure, Income and Industry Components of Gross State Product, Victoria, Chain volume measures, latest release

[5] ABS, Cat. No. 5625.0, Private New Capital Expenditure and Expected Expenditure, Australia, TABLE 7B. Actual and Expected Capital Expenditure by Industry - Victoria: Current Prices $; Nov-16 (NB: estimate has a relative standard error of 10% to less than 25% and should be used with caution.)

[6] Australian Industry Group, Australian PMI: Manufacturing enters second year of growth, November 2017.

[7] Department of Employment, Internet Vacancy Index, August 2017, 12 month moving average

[8]Australian and New Zealand Standard Classification of Occupations (ANZSCO), First Edition, Revision 1(AQF Certificate III including at least two years of on-the-job training, or AQF Certificate IV. At least three years of relevant experience may substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification.

[9] National Centre for Vocational Research (NCVER), Apprentices and Trainees, March 2017, estimates (Certificate III)

[10] ABS, Cat. No. 5625.0, Private New Capital Expenditure and Expected Expenditure, Australia, TABLE 7B. Actual and Expected Capital Expenditure by Industry - Victoria: Current Prices $; Nov-16

[11] Labour Market Information Portal – 2017 Regional Projections to May 2022, Interactive Tool