Deloitte Access Economics Skill shortages in the resources sector

Australian Petroleum Production and Exploration Association

Report name:	State of the Industry 2010
Date:	2010
Author:	-
Publisher/Industry/Government affiliation:	Australian Petroleum Production and Exploration Association (APPEA)
Subcontractor involved:	-
Primary/Secondary research	Secondary
Key sectors	Petroleum

The report provides an overview Of Australia's oil and gas industry, highlighting recent developments, Changes in the operating environment and key trends. It also reviews factors limiting the industry's performance and actions being taken to address the impediments to growth identified in the strategy's initial report, Platform for Prosperity, published in 2007.

As Australia recovers from the GFC public infrastructure investment and private investment (particularly in resources) will rebound and skilled labour shortages will re-emerge. Australian projects are not only competing amongst themselves for LNG markets, capital, skilled labour and construction capability but also face strong competition from lower-cost projects overseas, particularly in Qatar.

The report summarises findings by the National Resources Sector Employment Taskforce in their report Resourcing the Future. Suggestions to address the upcoming skills shortages and actions already taken by state governments are discussed, with particular focus on the response of WA and QLD.

The WA government responded by creating a new Resources Industry Training Council to better address industry advice on its training needs, established a new WA Department of Training and workforce Development and developed a WA Workforce Development Plan to guide workforce development policy and training delivery.

In QLD, the CSG-LNG industry and Energy Skills Queensland have formed a taskforce to work with the state government and other stakeholders to develop the workforce to meet the needs of the industry. A CSG-LNG Workforce and Competency Development Plan has been developed around four strategies for skills attraction, skills development, skilling systems and skills sustainability.

The industry is currently considering a proposal by Adelaide University's Australian School of Petroleum for it, the University of New South Wales and Curtin University to develop a stronger, coordinated tertiary education program to produce larger numbers of better qualified petroleum professionals.

The industry has been working with the Department of Immigration and Citizenship to ensure that skilled migration programs meet the industry's needs and that companies are aware of options available to them to access those schemes to meet short or long term skilled labour requirements.

5. Chamber Of Commerce and Industry of Western Australia

Report name:	Building Western Australia’s Workforce for Tomorrow
Date:	June 2010
Author:	-
Publisher/Industry/Government affiliation:	Chamber of Commerce and Industry of Western Australia (CCIWA)
Subcontractor involved:	-
Primary/Secondary research	Secondary
Key sectors	Western Australian Industry

The report focuses on WA's workforce needs for the decade from 2010-2020, covering expected skills shortages and strategies for addressing the shortages.

CCIWA estimates an additional 488,500 workers will be required in the WA economy over the next 10 years if economic growth is to be maintained at the average rate experienced since the beginning of last decade. This will result in a shortfall of more than 210,000 workers in WA by 2020. A Significant share of these workers will be required in the construction and mining sectors.

Based on CCIWA modelling, by 2020 the number Of jobs available in the mining sector is expected to increase by 93.6 per cent, with an additional 69,000 workers required. Given supply trends, this would result in an overall shortfall of 30,000 mining workers. Similarly, the number of jobs available in the construction sector is expected to increase by 104 per cent, with an additional 129,753 workers required by 2020. This will lead to overall shortfall of 56,000 construction workers.

Overall, by 2020 there will be an additional 488,500 jobs available in WA, a 44 per cent increase on the current levels of 1,110,400. Of these, approximately 75 per cent of jobs will be in Perth.

There will also be strong demand for workers in the north of the State. By 2020, the Pilbara region will require almost 10,000 additional workers, while the Kimberley will need more than 8,000. However, they are expected to fall short of this target by more than 4,000 and 3,000 workers respectively.

CCIWA recommends population growth (particularly through skilled migration) and increasing workforce participation and productivity to raise the capacity of the State's human capital.

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