Deloitte Access Economics Skill shortages in the resources sector

Energy Skills Queensland "Industry Skills Plan

Report name:	Energy Industry Skills Plan 2009-2012
Date:	September 2009
Author:	-
Publisher/Industry/Government affiliation:	Energy Skills Queensland
Subcontractor involved:	-
Primary/Secondary research	Primary
Key sectors	Energy industry with a focus on Queensland

The Energy Industry Skills Plan develops the key Strategic Industry Workforce Development responses to improve the match between the identified skills supply and projected demand in the energy sector in Queensland (QLD).

Employers in the sector have, been faced with tight labour market conditions. The loss of skilled Workers to Other industries and greater exits associated with the ageing workforce are contributing to high replacement demand. In addition, employers held concerns about the impact that the global financial crisis might have on investment in workforce development.

The top four workforce issues identified from consultations with industry were:

• 
  Shortages across priority job roles are likely to continue
  
• 
  Expected loss of knowledge and experience over the next five to ten years as retirements increase and workers move across industries
  
• 
  New entrants to the labour market are unlikely to be sufficient to meet demand
  
• 
  Greater competition for certain roles and skills from other industries.
  
• 
  Through its consultations and analysis, Energy Skills Queensland then identified the following priority occupations.
  

Table 1.3.1: Priority Occupations identified in QLD

Apprenticeships & Traineeships	Electrical Tradesperson Electrical Line Worker Electrical Cable Jointer Rail Traction Tradesperson Refrigeration & Air Conditioning Mechanic Electronic/Office Equipment Tradesperson Instrumentation Tradesperson Data Communications Tradesperson Air-conditioning Installer Renewable Energy Tradesperson Data and Voice Communications Tradesperson Appliance Servicing Tradesperson Security Systems/Fire Control Tradesperson Utilities/Gas Tradespeople Production Technicians Drillers
Post Trade	Electrical Tradesperson Green Electrician, Renewable Energy Tradesperson Refrigeration & Air Conditioning Mechanic Instrumentation Tradesperson Data And Communications Tradesperson Electrical Fitter Mechanic (Substation Switching Operator) Electrical Fitter Mechanic (Power Systems Operator) Lift Mechanic Gas Operations Supervisor Technical Trainer Photovoltaic System Installer
Para-Professional & Professional	Electrical and Electronics Para-professional Electrical Power Systems Para-professional Refrigeration and Air-Conditioning Para-professional Renewable Energy Para-professional Mechanical Engineering Para-professional Electrical and Electronics Engineer Mechanical Engineer Chemical Engineer
Cross Industry	Training and Assessment Occupational Health and Safety Project Management Business Management Senior First Aid Cardio Pulmonary Resuscitation

The Plan concludes by reinforcing the need for continued investment in workforce development irrespective of an economic downturn.

4. Energy Skills Queensland - Workforce Planning report

Report name:	Workforce Planning Report Part A – Workforce Planning Report to inform the Workforce & Competency Development Strategy Plan for the Queensland Coal Seam Gas / Liquefied National Gas Industry
Date:	September 2009
Author:	Energy Skills Queensland
Publisher/Industry/Government affiliation:	Energy Skills Queensland
Subcontractor involved:	-
Primary/Secondary research	Primary
Key sectors	Minerals and energy industry with a focus on Queensland

This report is in response to the development of a strategic workforce plan for the QLD Coal Seam Gas (CSG)/Liquefied Natural Gas (LNG) Skills Taskforce. It reports on the development of three scenarios that consider growth in employment .and skills demand in the industry in Queensland over the next ten years.

The three scenarios consider how the workforce may shift under differing economic conditions that impact on the expansion of the CSG/LNG Industry in QLD.

• 
  Scenario A-Slow Economic Growth at 13/14 Mtpa (4 trains)
  
• 
  Scenario B- Moderate Economic Growth at 22/23 Mtpa (6 trains)
  
• 
  Scenario C- Rapid Economic Growth at 28/30 Mtpa (8 trains)
  

All scenarios indicated a significant growth in the demand for labour and skills at all levels. The report details that critical skill shortages are occurring across the country and across technical vocational roles and all engineering professional and para-professional roles. Risks associated with an ageing demographic and increased competition across industries are also placing pressure on the CSG/LNG Industry in QLD to recruit and retain skilled workers.

The industry's demand for workers in vocational occupations with technical skills is reported to be the greatest when compared to other occupations. In particular, priority technical roles that are required in large numbers by the industry are:

• 
  Production technicians (ANZSCO: 4987-11)
  
• 
  Driller's assistants (ANZSCO: 9911-13)
  
• 
  Maintenance technicians (ANZSCO: 4112-11)
  
• 
  Electrotechnology(electrical and instrumentation; hazard) (ANZSCO: 4314-11)
  
• 
  Logistics technicians/administration (ANZSCO: 7993-11/6152-11)
  

Engineers were then identified as the next key priority occupation grouping for the supply of skills to professional and para-professional roles. These priority roles included:

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  Engineers - chemical, mechanical, petroleum, electrical aid civil
  
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  Geologists
  
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  Geophysicists
  
• 
  Environmental scientists.
  

The report also provides results from an overall gap analysis that looks at the expected shortfall in skilled labour. The gap analysis takes into account the growth in new jobs and the level of replacement demand arising from natural employment attrition. These results are shown in the following table.

Table 1.4.1: Shortfall in skilled labour in QLD for CSG/LNG Industry from the base employment level

Forecast period	Scenario A (Slow economic growth)	Scenario B (Moderate economic growth)	Scenario C (Rapid economic growth)
5 years	2,083	3,695	4,394
10 years	2,751	4,697	5,991

The report identifies that the top two critical workforce issues are the supply of labour to regional operations and the shortages in the supply of a competent and skilled workforce. Competition across industries and regions will be intense and will likely result in greater wage pressures.

To alleviate the burden on businesses in the future, major investment in education and training will be necessary for future supply and to attract and retain a skilled and competent workforce in regional areas. As a result, the industry will need to invest in various targeted workforce development strategies.

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