Labour Economics Office Tasmania

ANZSCO 3341Tasmania

PlumbersSeptember 2017

Department of Jobs and Small Business

Current labour market ratingShortage

Previous labour market rating (September 2016)Recruitment Difficulty

Comments

Employers are experiencing a shortage of qualified and experienced plumbers in Tasmania. Advertised vacancies attracted an average of less than one suitable applicant for each position and just over one third of vacancies were filled. All surveyed specialisations are in shortage.

Survey results[1]

The Survey of Employers who have Recently Advertised for plumbers found 36 per cent of advertised vacancies filled in the survey period, compared to 71 per cent in 2016 and 86 per cent in 2015.
While employers received an average of 6.1 applicants per vacancy, there was only an average of 1.8 qualified applicant per vacancy with less than one applicant considered suitable per vacancy.
This has marginally improved since 2016, where employers received an average of 1.1 qualified applicant per vacancy, with less than one applicant per vacancy considered suitable.
All surveyed employers required qualified plumbers.
Many employers reported that they experienced difficulty finding suitably experienced and qualified plumbers.
The surveyed vacancies consisted of positions across all specialisations including general plumbers, gasfitters, roof plumbers, airconditioning and mechanical services plumbers.
Half of all surveyed employers received no applicants for their vacancies.
A number of vacancies remained unfilled across all specialty areas. The largest proportion of vacancies remaining unfilled was for general plumbers and gas fitters; however, these were also the specialties with the highest number of vacancies surveyed.
Unfilled vacancies were across metro and regional areas of Tasmania.
A number of employers who were unable to fill their vacancies reported employing apprentices instead.Unsuitable applicants

The main reasons employers considered applicants unsuitable were due to not holding the required qualification or having the level of experience needed.
Other reasons employers considered applicants unsuitable were due to remuneration issues, poor reference checks or work history.

Demand and supply trends

Demand for plumbers is influenced by the level of activity in the construction industry, which has remained high.
The value of building work done in Tasmania increased by 16.5 per cent over the three years to March 2017, with growth being stronger than the national average of 12.9 per cent over the same period.[2]
The consensus of surveyed employers was that demand for plumbers had increased over the past year due to a number of major commercial construction projects, particularly in southern Tasmania. Several employers noted there is little movement within the industry due to qualified plumbers being offered good remuneration and benefits to stay working with their current employers.
Demand for plumbers is expected to grow over the next five years.
Construction industry employment in Tasmania is projected to grow by 7.9 per cent over the five years to November 2015 compared with 5.1 per cent for all industries.[3]
Formal training for the occupation comes from the apprenticeship system through the delivery of a Certificate III in Plumbing, Certificate III in Plumbing (Mechanical Services), Certificate III in Gas Fitting and Certificate III in Roof Plumbing.
In the twelve months ending March 2017, 53apprentice and trainee plumbers (all specialisations) completed their training, compared to 70 for the same period in 2016 and also 2015.Furthermore, 95 apprentice and trainee plumbers commenced their training in the 12 months ending March 2017 compared to 92 in 2016 and 65 in 2015.[4]

Other indicators and issues

There are a number of government and commercial activities which may be driving demand in the construction and building industry:
The Tasmanian Government has extended the First Home Owner Grant from 1 July 2017 to 30 June 2018 and has also made changes to stamp duty for first home builders, which should support additional building activity in the state.[5]
Tasmania is progressing towards a more streamlined state-wide Planning Scheme, removing the need for council permits for a number of building and renovation projects.[6]
The Launceston City Deal was signed by the Australian Government, Tasmanian Government and City of Launceston on 20 April 2017. The Launceston City Deal is a five-year plan (from 2017 to 2022) that is expected to drive activity in the construction sector in northernTasmania.[7]
There are currently a number of incentives for businesses hiring apprentices in Tasmania, including the Skills Tasmania travel and accommodation allowances; and the Tasmanian Department of State Growth Small Business Grant to support apprentices and trainees program (introduced in July2017). These initiatives are aimed at increasing the number of apprentices and trainees employed in Tasmania including within the Building and Construction sector.[8]

Labour Economics Office Tasmania

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 Government and can also be accessed by the QR code.

[2] Australian Bureau of Statistics, Building Activity Australia, (Cat No. 8752), March 2017, chain volume measures, trend

[3]Department of Jobs and Small Business, 2016 Regional Projections to November 2020, based on ABS detailed data

[4]National Centre for Vocational Education Research, National Apprentice and Trainee Collection, March 2017 estimates, unpublished

[5] Tasmanian Government Department of Treasury and Finance, First Home Owner Grant, September 2017

[6] Tasmanian Government Department of Justice, Consumer, Building and Occupational Services, July 2017

[7] Australian Government Department of Prime Minister and Cabinet, Smart Cities Plan - The Launceston City Deal

[8] Tasmanian Government Skills Tasmania, Incentives and subsidies for apprentices, trainees and their employers, September2017