Deloitte Access Economics Skill shortages in the resources sector

Chamber of Minerals and Energy of Western Australia

Report name:	WA State Growth Outlook
Date:	April 2011
Author:	-
Publisher/Industry/Government affiliation:	Chamber of Minerals and Energy of Western Australia
Subcontractor involved:	-
Primary/Secondary research	Secondary
Key sectors	Western Australian resources sector

This report provides an outlook for the demand for people, water, and energy in the WA resources industry, based on the development intentions and plans of the industry and government in WA.

The total workforce required to meet current growth plans in the minerals and energy sector is expected to reach a peak of over 119,500 people in 2012 - around 43,800 above the 2009 sector workforce of 75,600. The operations workforce will continue to increase over the period with the State requiring an additional 27,000 operations staff by 2015. The construction workforce will peak in 2012 and then reduce by 2015 as operations are commissioned.

Areas of highest labour growth are the Pilbara, Mid West, and Perth/Peel regions. The majority of the additional workforce will be driven by projects in the Pilbara. Current planned projects indicate an additional 34,000 workers in 2012 in the region, reducing to 21,000 above the 2009 workforce by 2015. The Mid West will require an additional 7,500 workers by 2012.

Incremental FIFO demand sourced from the Perth/Peel region is expected to peak at around 30,000 in 2012, remaining at around 16,500 by 2015.

The report finds that there is a forecast deficit in workforce requirements based on current ABS population projections and current workforce participation rates (see Figure 2.6.1 below).

Figure 2.6.1: Minerals and Energy Workforce Outlook



Source: Chamber of Minerals and Energy (2011)

7. ElectroComms & Energy Utilities Industry Skills Council

Report name:	2011 Environmental Scan
Date:	31 March 2011
Author:	-
Publisher/Industry/Government affiliation:	ElectroComms & Energy Utilities Industry Skills Council
Subcontractor involved:	-
Primary/Secondary research	Secondary
Key sectors	Electricity and gas

The intent Of the report is to alert key government and industry stakeholders of potentially significant issues at a product, operational and systemic level in the Electrotechnology, Communications, Electricity Generation, Transmission and Distribution, Rail Traction and Gas Supply Industries.

Skills shortages at post-trade level (Certificate IV to Advanced Diploma and above) are more prevalent than ever before, and industry intelligence indicated that a further 23,000 tradespeople will be required across all sectors of the industry.

All four industry sectors are suffering severe skills shortages and an ageing workforce of technical trainers. Registered Training Organisations report that they are unable to compete with industry to recruit skilled tradespeople into training roles.

Energy Skills Queensland has identified the 'priority job roles' as:

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  Drilling assistants
  
• 
  Production technicians
  
• 
  Maintenance technicians
  
• 
  Electrical and instrumentation technicians
  
• 
  Logistics technicians/administrators
  
• 
  Petroleum, chemical and mechanical engineers
  
• 
  Geologists and geophysicists.
  

The gas industry has suffered from skills shortages arising from a number of factors, including:

• 
  Industry rationalisation/potential takeovers. In an uncertain environment training effort is generally reduced.
  
• 
  Splintering/specialisation of workforce due to a trend towards outsourcing and sub­contracting in recent years.
  
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  Limited training opportunities in organisations.
  
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  An ageing workforce. By 2013, 47 per cent of gas industry operatives and 65 per cent of those in gas management or leadership roles will be at, or nearing, retirement age.
  

8. Queensland Treasury

Report name:	Queensland Employment Projections by Industry and Statistical Division, 2009-10 to 2011-12
Date:	August 2010
Author:	-
Publisher/Industry/Government affiliation:	Office of Economic and Statistical Research, Queensland Treasury
Subcontractor involved:	-
Primary/Secondary research	Secondary
Key sectors	All sectors in Queensland, including mining and construction

This report presents employment projections by industry, region and occupation for QLD. The projections are derived from the Monash Multi Regional Forecasting model (MMRF), and are consistent with the macroeconomic forecasts and assumptions in the 2010-11 Queensland State Budget. Note that the projections are shown on an ANZSIC 1993 basis.

In 2010-11, total O, LD employment is forecast to grow by 2.75 per cent (equivalent to 63,000 jobs).

• 
  Employment in mining is projected to recover, growing by 5.6 per cent, while employment in construction is expected to grow by 6.0 per cent.
  
• 
  Employment in the Moreton, Fitzroy, Mackay and Northern regions is expected to grow faster than the state average, reflecting strong population growth and increases in construction and mining activity.
  

• 
  By occupation, higher levels of construction and mining activity will support a range of trade occupations. For example, the number of jobs for construction tradespersons and mining construction and related labourers is projected to increase by 5.6 and 4.9 per cent respectively in 2010-11.
  

In 2011-12, total QLD employment growth is forecast to strengthen to 3.25 per cent (equivalent to 73,900 jobs).

• 
  A sharp increase in employment in Mining (up 9.9 per cent) is expected to contribute an additional 4,500 jobs in 2011-12, while employment in construction is expected to grow by 8 per cent.
  
• 
  Employment in Mackay and Fitzroy is expected to grow strongly due to the high presence of mining and construction in those regions.
  

By occupation, the strongest growth is projected for construction and mining related occupations. Demand for structural construction tradespersons, final construction tradespersons, plumbers and intermediate mining and construction workers is likely to be strong with employment projected to increase by at least 7 per cent (a combined increase of 9,100 jobs).

9.