2013 12 skills for jobs plan volume 2

SKILLS FOR JOBSThe Training and Skills Commission Five-Year Workforce Development Plan

www.tasc.sa.gov.au

November 2013 // Volume 2

TASC001 Skills for Jobs Plan Vol2 4pp COVER FA.indd 1 19/11/13 4:48 PM

P 2 Skills for Jobs 2013 The TaSC Five-Year Workforce Development Plan Volume 2

Disclaimer: The material contained in this plan has been developed by the Training and Skills Commission with support and data provided by the Department of Further Education, Employment, Science and Technology and others. The views and recommendations do not necessarily reflect the views of the Government of South Australia or the Department of Further Education, Employment, Science and Technology, or indicate any commitment to a particular course of action. The information contained in the plan is provided in good faith and all reasonable care has been taken in its preparation. The Training and Skills Commission recommends that users exercise care in interpreting this plan and carefully evaluate the relevance of the material for their purposes and where necessary obtain appropriate advice specific to their particular circumstances. The plan can be accessed electronically at www.tasc.sa.gov.au Images have been supplied by the Department of Further Education, Employment, Science and Technology and the Department of Planning, Transport and Infrastructure and the South Australian Tourism Commission. Acknowledgements: The Training and Skills Commission expresses its sincere gratitude to the Department of Further Education, Employment, Science and Technology and its stakeholders who have provided detailed information to inform this plan. The Commission also acknowledges the contributions of Joshua Rayner, Chris Zielinski, James Rundle and Ann Kerr in producing this plan.

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Contents

Chapter 6: Detailed Modelling 4

and Methodology

> Scenario Approach 5

> Economic and Employment Outlook 7

> Demand for Qualifications 11

> Total Demand 16

> Specialist Occupations 18

Chapter 7: Industry Profiles Overview 20

> Agriculture, Forestry and Fishing 22

> Mining 26

> Manufacturing 30

> Electricity, Gas, Water and Waste Services 34

> Construction 38

> Retail and Wholesale Trade 42

> Accommodation and Food Services 44

> Transport, Postal and Warehousing 46

> Information Media and Telecommunications 50

> Financial and Insurance Services 52

> Rental, Hiring and Real Estate Services 54

> Professional, Scientific and Technical Services 56

> Administrative and Support Services 58

> Public Administration and Safety 60

> Education and Training 62

> Health Care and Social Assistance 64

> Arts and Recreation Services 68

> Other Services 70

Chapter 8: Regional Profiles Overview 72

> Barossa, Light & Lower North 76

> Eyre and Western 80

> Far North 86

> Fleurieu and Kangaroo Island 90

> Limestone Coast 95

> Murray and Mallee 101

> Yorke and Mid North 106

> Adelaide Hills 112

> Eastern Adelaide 116

> Northern Adelaide 120

> Southern Adelaide 124

> Western Adelaide 128



www.tasc.sa.gov.au



Detailed Modelling and MethodologyThis section supports the information presented in the Economic Outlook and Demand for Qualifications section of the Skills for Jobs Plan and includes:• An outline of the economic scenarios used to

develop the Commission’s modelling.• Detailed results of the Commission’s modelling

of the future demand for qualifications.• Details of the approach used to derive

our results, including refinements since last years plan.

• An explanation of the methodology used by the Commission to identify specialist occupations in the State labour market.

In recognition of the uncertainty associated with forecasting, the Commission has adopted a scenario based approach to its modelling for this iteration of Skills for Jobs. In addition, consistent with the approach in our 2012 Plan (due to the policy move to a demand driven VET system in South Australia) our modelling continues to focus on future industry demand for qualifications. Furthermore as Skills for All is still in its infancy there is insufficient information available to determine with any degree of certainty how supply might respond to demand in the future.

The Commission’s modelling of the demand for qualifications comprises the following components:• Demand from new entrants (to fill job openings

resulting from employment growth and replacement demand).

• Existing workers up-skilling (completing a qualification above their highest level of qualification).

• Existing workers gaining a qualification at an equivalent or lower level (referred to as ‘skills broadening’).

• Demand by people needing to undertake lower level qualifications before they can attain the higher level qualifications needed by industry (‘pathways’ demand).

• Demand by people who are not employed and who represent a necessary reserve capacity (referred to as ‘reserve labour force’).

The focus of planning should be on what we can anticipate. We believe that our estimates of future industry demand for qualifications are the best that can be achieved, and provide a useful guide notwithstanding the acknowledged uncertainties inherent in workforce planning.

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Scenario ApproachProjecting the long-term future of the South Australian economy inevitably involves significant uncertainty. ‘To better understand the significance of this uncertainty and its likely causes, the projections for the 2013 Skills for Jobs Plan have been developed from four alternative scenarios. It is acknowledged that other possible scenarios could be created specifically for South Australia; however, it is the Commission’s view that this additional complexity would add little. Indeed, it could distract from our purpose for undertaking scenario modelling, which is to explore the possible range of future demand for qualifications and to identify the common themes across the projected level of demand. Instead it is the Commission’s view that the four scenarios presented broadly cover the range of possible futures for South Australia.

In interpreting the results of the scenarios for the development of future skills policy, it is important to consider which drivers have the most disparate (or conversely the most similar) impact across the scenarios.

The economic scenarios used as a basis for our modelling of the future demand for qualifications were initially developed at the national level by the Australian Workforce and Productivity Agency (AWPA) and modelled by Deloitte Access Economics (DAE). The four scenarios are known as the Long Boom, Smart Recovery, Terms of Trade Shock, and Ring of Fire. These national projections were adapted for South Australia as part of the economic modelling undertaken for the South Australian Government’s Economic Statement, released in early 2013.

In adapting the scenarios for South Australia, consideration was given to our different industry and demographic structure and our changing relationship with the national economy. These South Australian based economic scenarios have been used to guide the development of our modelling.

Detailed descriptions of the four scenarios are available from the AWPA website in the Scenarios for Australia 2025 publication. In brief though, the scenarios have been built around the following key drivers:• Social, demographic and cultural trends.• Economic and financial trends and globalisation.• Labour force, industrial and workplace trends.• Science, technology and innovation.• Governance and public policy capability.• Sustainability (focus on water, energy, population).

The scenarios are based on AWPA’s assessment of the possible future directions for the evolution of these key drivers and their interactions.

The strongest driver in terms of differences between the four scenarios was economic and financial trends and globalisation. The other drivers had more in common in terms of their impact and varied less from one scenario to another. For example, the demographic ageing of the population impacts in much the same way in all the scenarios, although the impact is greatest for the scenarios with the lowest rate of population growth. Even technological change, while a key determinant of our futures, differs less between scenarios, although again the rate of take-up of new technology does vary according to the nature of the scenario.

Detailed Modelling and Methodology


Scenarios

The Long Boom scenario assumes the high demand for resources traded with China and other countries continues. The terms of trade decline moderately over time but remain at historically high levels. In addition, the imbalances in the European economies and elsewhere do not have a major effect on growth, while industries challenged by the high terms of trade undertake structural adjustment. This scenario has the highest employment and economic growth with a significant lift in labour force participation rates and sustained levels of net overseas migration.

The Smart Recover scenario is characterised by initial slower economic growth due to a continuation of the current difficulties faced by Australian and global economies. Following this period of slower economic growth, Australia moves back towards its potential growth path on the back of improved global economic conditions and industry and government strategies to implement a knowledge economy.

In the Terms of Trade Shock scenario, the global economy continues to grow at a healthy rate over time. However, resource prices fall mainly due to increased supply from other competing countries. The Australian dollar falls and we move back to a broader based economy, with less structural adjustment.

The Ring of Fire scenario is characterised by a risky world with multiple economic, political and environmental shocks. Global economic growth is low, with significant volatility. There is low business and consumer confidence, increased protectionism reducing international trade and stunting productivity growth, and a notably lower level of net overseas migration to Australia.

AWPA has advised and the Commission agrees, that the Ring of Fire scenario reflects a failure of governance both internationally and domestically and as such should not be used as a basis for future planning. Accordingly, the following analysis focusses on the remaining three scenarios. Particular attention is given to the Smart Recovery scenario, which has been adjusted to incorporate State Treasury projections1 of Gross State Product (GSP) and employment growth.

Given recent trends in key economic indicators and alignment with State Treasury projections, the Commission believes that the Smart Recovery scenario represents our best single estimate of the future increase in job openings and demand for qualifications. The Commission recommends that this projection be used as a basis for future skills planning, but with the understanding that given the stronger demand projected in the other two growth scenarios, actual demand might well be higher than this projection.

Failure to meet the projected levels of demand indicated by the Smart Recovery scenario would place South Australia’s future growth potential at risk.

1 South Australian 2013-14 Budget Statement Budget Paper 3, June 2013

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Economic and Employment OutlookThe economic scenarios discussed have been used as a basis for estimating the demand for qualifications presented below.

The scenario modelling undertaken for the Economic Statement 2013 took a long-term perspective out to 2024-25. While we have projected forward our modelling for this time period, the focus below is primarily on the five-year period 2011-12 to 2016-17. Reference is made to the longer term period were notable trends are evident. Table 1 provides the broad macroeconomic assumptions for each scenario over the period 2011-12 to 2016-17.

Between 2011-122 and 2016-17, it is estimated that GSP in South Australia will grow by at least 2.25% per annum, but with the potential to grow

by as much as 3.25% per annum if the Australian and world economies recover strongly. This 2.25% projected average growth rate compares with the projection of 3.00% presented in our 2012 Plan and historical growth of 2.75% per annum. This downward revision in the Commission’s outlook for economic growth is consistent with revisions made globally and nationally which acknowledge the recent changes in the economic environment.

Given the projected rate of economic growth and assumed levels of labour productivity, it is estimated that average employment growth in South Australia will be at least 0.75% per annum, but could be as much as 1.75% per annum over the five-year period. This compares to the projection of 1.50% presented in our 2012 Plan.

Variable History Long Boom

Smart Recovery

Terms of Trade Shock

Ring of Fire

Terms of Trade1 123.9 104.0 77.0 71.0 73.2

Australian Dollar/US1 $1.02 $0.80 $0.78 $0.60 $0.72

Adult Population Growth2 1.00% 1.25% 1.00% 1.00% 0.75%

Labour Force Participation Rate2 62.5% 66.5% 63.7% 66.0% 63.4%

Unemployment Rate2 5.5% 5.3% 5.6% 5.3% 7.1%

Employment Growth2 1.50% 1.75% 0.75% 1.25% 0.25%

Labour Productivity Growth2 1.25% 1.50% 1.75% 1.25% 0.50%

Output (GSP) Growth2 2.75% 3.25% 2.25% 2.75% 0.75%

Table 1: Macroeconomic assumptions by scenario, 2011-12 to 2016-17

2 The base year is 2011-12 – the most recent full year for which there is published reliable data to use as the basis for estimating future demand.

1 Historical value as at 2011-12, Scenario value as at 2016-172 Historical value average for period 2002-12, Scenario value average for period 2011-12 to 2016-17



Employment Growth by Industry

Given the influence of the particular economic drivers associated with each of the three growth scenarios, future industry employment growth varies quite considerably across scenarios. However, as noted previously, from a policy perspective we are interested in the common/contrasting trends across the scenarios.

Under each of the three growth scenarios, employment growth is expected across the majority of industries. Those industries projected to record the strongest rate of employment growth consistently across the three growth scenarios over the period 2011-12 to 2016-17 include:• Health Care and Social Assistance, which is

projected to grow by at least 3.6%, but could be as much as 5.8% per annum given the other scenarios.

• Mining, which is estimated to grow by 3.5% or as much as 4.3% per annum.

• Education and Training, which is expected to grow by 2.5% or as much as 3.9% per annum.

As these industries are projected to be the highest growing industries across the three scenarios, this gives us a reasonable degree of certainty that we need to plan for growth in these sectors.

In contrast, there are a few industries where there are considerable differences in future employment growth between scenarios. These are industries where it will be important that flexibility exists in the training system to meet the uncertainty. Industries that show a notable difference across the three scenarios include:• Construction, which varies between growth

of 2.4% and decline of 0.7% per annum.• Professional, Scientific and Technical Services,

which varies between growth of 3.6% and decline of 0.8% per annum.

• Administrative and Support Services, which varies between growth of 2.5% and decline of 2.0% per annum.

For each of these industries, positive growth is limited to the Long Boom scenario. This suggests that current and immediate economic conditions, which are the most positive under the Long Boom scenario, are the main reason for the difference in growth across scenarios.

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Over the longer term to 2024-25, at least 15 out of the 19 industry sectors are expected to record positive employment growth across the three growth scenarios. Those sectors expected to record declining employment (albeit slightly in some cases) across the three scenarios, include: Manufacturing, Electricity, Gas and Water Supply and Wholesale Trade.

Industry Historical (10yr Avg)

Long Boom

Smart Recovery

Terms of Trade

Shock

Ring of Fire

Agriculture, Forestry and Fishing -0.8% 1.7% 1.6% 1.7% 0.8%

Mining 14.9% 4.3% 3.9% 3.5% 2.3%

Manufacturing -2.6% -2.0% -1.8% -2.2% -0.5%

Electricity, Gas, Water and Waste Services 6.9% 0.0% -5.2% -3.6% -4.4%

Construction 3.7% 2.4% -0.7% -1.2% -2.0%

Wholesale Trade 0.4% 0.6% -1.8% -2.8% -2.6%

Retail Trade 2.5% 0.9% 1.1% 1.8% 1.1%

Accommodation and Food Services 1.7% 0.1% -0.2% 0.7% -0.1%

Transport, Postal and Warehousing 1.4% 2.1% 2.1% 2.6% 0.8%

Information Media and Telecommunications 1.7% 0.9% -1.0% -0.8% -2.1%

Financial and Insurance Services 2.7% 1.0% 1.0% 0.0% -0.9%

Rental, Hiring and Real Estate Services 1.6% 3.5% 2.5% 2.9% 2.5%

Professional, Scientific and Technical Services 3.7% 3.6% -0.8% -0.3% -3.7%

Administrative and Support Services -1.0% 2.5% -2.0% -1.1% -3.8%

Public Administration and Safety 3.2% 0.8% -1.1% -0.1% -1.0%

Education and Training 1.8% 2.8% 2.5% 3.9% 1.8%

Health Care and Social Assistance 2.0% 3.9% 3.6% 5.8% 3.2%

Arts and Recreation Services 2.7% 1.5% 1.9% 2.8% 2.0%

Other Services 1.7% 1.4% 2.0% 2.3% 1.4%

Total 1.50% 1.75% 0.75% 1.50% 0.25%

Table 2: Projected Annual Average Employment Growth by Industry, 2011-12 to 2016-17



Job Openings

Over the five year period 2011-12 to 2016-17 it is estimated that growth in the South Australian economy will create at least 30,000 new jobs, but this could be as high as 73,000. Given the other scenarios it is likely that more rather than less jobs will be created. This compares with 58,000 published in last year’s plan for the period 2010-11 to 2015-16.

Between 2011-12 and 2016-17, the number of net job openings resulting from replacement demand is estimated to be 86,000, but under the other scenarios could be as low as 81,000. This compares to 81,000 published in last year’s plan.

The combined impact of employment growth, plus the need to replace workers who will be leaving the workforce or changing occupations, results in estimated job openings over the five-year period of at least 116,000, with the possibility of up to 154,000. This compares with 139,000 job openings projected in our 2012 Plan.

Over the longer term (to 2024-25), the rate of employment growth is expected to increase under each scenario, resulting in job openings over the period of at least 364,000, but up to as many as 468,000.

Figure 1: Job Openings by scenario, 2011-12 to 2016-17

Data updates/refinements to methodology

For this iteration of the modelling, a scenario-based approach has been adopted.

The four scenarios used are based on those developed by AWPA at the national level and adapted for South Australia.

State Treasury forecasts of GSP, labour productivity and employment have been used to guide the development of the Smart Recovery scenario.

Employment projections for each scenario have been modelled at the industry division level (1 Digit ANZSIC). The overall employment growth projections have been utilised for the four scenarios while maintaining the industry shares implied by the modelling undertaken for the Premier’s Economic Statement.

Centre for the Economics of Education and Training (CEET) replacement rates have been updated to incorporate 2012 labour force data (replacement rates are used to estimate replacement demand). Replacement rates for each scenario were developed by applying the annual percentage point movement in retirement rates modelled by DAE.

81,000 86,000 85,000 88,000

73,000

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Demand for QualificationsThe future demand for qualifications is driven principally by the skilling requirements of new entrants (to fill job openings resulting from expansion and replacement demand) and the skilling requirements of the existing workforce (to align skills with changing industrial and occupational needs). These components have been estimated separately. As in previous years, the methodology used to estimate the future demand for qualifications draws heavily on the methodology developed by CEET.3

Underpinning these estimates are scenarios of the likely future qualifications profile of the workforce, known as skills deepening. It is assumed that skills deepening in the Smart Recovery scenario will be broadly in line with historical trends, taking into account that the rate of change will reduce as the proportion of workers with a qualification approaches 100%4. AWPA modelling of skills deepening was used to inform the degree to which skills deepening might vary between scenarios over the projection period.

Over the period 2011-12 to 2016-17, the proportion of South Australian workers holding at least one non-school qualification is expected to increase from 60.3% to 66.6% but could be as high as 68.9%. By comparison, the continuation of historic trends would result in a proportion of 67.1% by 2016-17.

3 Shah, C Demand for qualifications and the future labour market in Australia 2010 to 2025, a report for the Department of Education, Employment and Workplace Relations, Canberra, 2010

4 The proportion of workers in any occupation with a qualification cannot exceed 100%, and the rate of change in this proportion is bound to decelerate as a 100% rate is approached.



Skills deepening rates have incorporated 2012 Australian Bureau of Statistics (ABS) Survey of Education and Work data.

Skills deepening rates have been estimated at the detailed occupation level by using occupation and qualification shares and an iterative redistribution process. This allows the qualification profile for each occupation to deviate from the average qualification profile for the sub-major group.

A continuation of historic trends (between the ABS 2006 Census and the ABS 2011 Census) in the forecast period would result in skills deepening occurring at a rate of 1.36 percentage points per year. Due to the asymptotic nature of skills deepening, it was assumed that skills deepening will occur in the Smart Recovery scenario at a slower rate of 1.25 percentage points per year to 2016-17 and 1.15 percentage points per year for the remainder of the period to 2024-25.


New Entrant Demand

To meet the projected industry demand over the period 2011-12 to 2016-17 it is estimated that 89,000 new entrants will need to gain a qualification. However, this requirement could be as high as 111,000.

Existing Workers

Estimated demand for qualifications from existing workers totals 122,000 but this demand could be as high as 138,000. This compares with our estimate of existing worker demand of 127,000 published in last year’s plan.

There are two components to existing worker demand, workers who are up-skilling (completing a qualification at a higher level than their current highest level qualification) and workers who are gaining a qualification at an equivalent or lower level (referred to as ‘skills broadening’).

It is estimated that over the period 2011-12 to 2016-17, existing workers up-skilling will result in demand for 57,000 qualifications, but this could be as much as 70,000. This level of up-skilling demand is comparable to the number estimated last year of 61,000.

Table 3: New Entrant, Demand for Qualifications, 2011-12 to 2016-17

Qualification Level Number

Post Graduate 9,000

Bachelor Degree 29,000

Advanced Diploma/Diploma 12,000

Certificate IV 9,000

Certificate III 24,000

Certificate II 6,000

Certificate I 1,000

Total 89,000

Table 4: Existing Workers (Up-skilling), Demand for Qualifications, 2011-12 to 2016-17


Post Graduate 9,000





Certificate II -

Certificate I -

Total 57,000

Components may not add to total due to rounding.Components may not add to total due to rounding.

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Over the same period, it is estimated that broadening demand will result in the need for a minimum of 66,000 qualifications, or up to as many as 69,000 qualifications. This compares with the level of broadening published in last year’s plan of 66,000.

Table 5: Existing Workers (Broadening), Demand for Qualifications, 2011-12 to 2016-17


Post Graduate 4,000






Certificate I 1,000

Total 66,000

Components may not add to total due to rounding.



The qualification profile of workers was updated using 2011 ABS Census of Population and Housing data.

The ABS Survey of Education and Training 2009 data was used to derive the number of employed persons with a non-school qualification that have completed a qualification in the past 12 months at the same or lower level for work related reasons.

Skills broadening varies between scenarios as a result of different employment levels and skills deepening rates.


Pathways Demand

The Commission acknowledges that the modelling methodology, by definition, attempts only to capture industry demand, resulting in low estimates of demand for Certificate I and II level qualifications. Nonetheless, while industry demand for these qualifications is low, they provide pre-employment skills and also an entry point for many individuals and can be a stepping stone to higher level qualifications. In effect, the industry demand for higher level qualifications cannot realistically be met in some circumstances without a number of people obtaining these entry level qualifications. This applies particularly for those people who left school before completing their secondary education.

The Commission believes that this pathways demand should be incorporated into the modelling, given that a number of individuals will need to undertake lower level qualifications before they can attain the higher level qualifications needed by industry. It is estimated that there will be an additional demand for 13,000, up to as many as 14,000 qualifications at the Certificate I and II levels for ‘pathways’ purposes over the next five years.

This compares to the estimate of pathways demand in our 2012 Plan of 17,000 qualifications over the period 2010-11 and 2015-16.

Marginally attached labour force

The Commission also recognises that there is a need to consider demand for qualifications that is not strictly industry demand, but which incorporates demand from those who are currently unemployed or not in the labour force. This recognises that the economy always requires more skilled labour than is actually employed at any point of time. A proportion of workers are always moving for various reasons, but employers need them to retain their skills so that they can readily be re-employed to replace others who leave for similar reasons.

It is estimated that demand from this source will be 11,000 qualifications (with the possibility of up to 13,000 qualifications) between 2011-12 and 2016-17. In the 2012 Skills for Jobs Plan, we estimated demand for qualifications from this source of around 6,000.

Table 6: Pathways Demand for Qualifications, 2011-12 to 2016-17



Certificate I 2,000

Total 13,000

Table 7: Marginally attached labour force, Demand for Qualifications, 2011-12 to 2016-17


Post Graduate 1,000

Bachelor degree 2,000





Certificate I –

Total 11,000


NCVER Student Outcomes Survey data for 2010 to 2012 has been used to derive the percentage of all Certificate I and II graduates who subsequently enrolled in further study. This proportion was then used to estimate pathways demand for Certificate I and II qualifications in the model.


The proportion of those marginally attached to the labour force was sourced from the modelling underpinning the AWPA Workforce Development Strategy (Smart Recovery scenario). This proportion has been applied to the total demand for qualifications (excluding pathways demand), to derive the demand for qualifications from those marginally attached to the labour force. This proportion was assumed to be constant for each scenario.

P 15Detailed Modelling and Methodology


Total DemandThe combined demand for qualifications (from new entrants, existing workers, pathways demand and demand from the marginally attached workforce) results in projected total demand of 236,000 under the Smart Recovery scenario, but could be as high as 277,000 qualifications over the five-year period. This compares with projected demand for qualifications of 247,000 published in our 2012 Plan.

Under the Smart Recovery scenario, we expect that a third (77,000) of this demand will be for higher education qualifications (degree and above) with the remaining two-thirds (159,000) being for VET level qualifications. Demand for VET qualifications will be driven by the need for higher level qualifications (Certificate III and above).

Over the longer term, total demand for qualifications is expected to grow at a stronger rate than that estimated over the next five years, with an increased focus on higher level VET and higher education qualifications.

Demand for Qualifications by Occupation

In previous Skills for Jobs plans the Commission has published demand for qualifications projections on an occupational grouping basis which broadly resembled proxy industry sectors. To simplify the interpretation of the projections, we have shifted the focus to the Australian Bureau of Statistics, Australian and New Zealand Standard Classification of Occupations (ANZSCO) major/sub-major groups. Those sub-major ANZSCOs that have broadly similar skills have been grouped.

According to our modelling, the occupation groups estimated to account for the highest proportion of demand for qualifications over the period 2011-12 to 2016-17 include:• Clerical and Administrative Workers, accounting for

13.0% of total demand for qualifications, but could be as high as 13.7%.

• Health and Community Services Workers, accounting for 12.4%, or as high as 13.2%.

• Sales Workers, accounting for 9.2%, but could be as low as 8.5%.

• Health and Welfare Professionals, accounting for 8.0%, but could be as high as 9.5%.

Under the Smart Recovery scenario, our modelling suggests that just over half of VET qualifications demand over the five years to 2016-17 will be within the occupation groups of Clerical and Administrative Workers, Health and Community Services Workers, Sales Workers and Business, Human Resources and Marketing Professionals.

In contrast, the occupation groups of Health and Welfare Professionals, Education Professionals and Business and Public Administration Managers will account for almost half of total demand for higher education qualifications.

Figure 2 shows the projected profile of qualifications demand over the period 2011-12 to 2016-17 by occupation group and level of qualification.

Over the longer term to 2024-25, the occupation profile of the demand for qualifications under the Smart Recovery scenario remains fairly consistent with the profile in 2016-17.

It is the Commission’s view that this distribution of qualifications demand should be used to guide public investment in Vocational Education and Training.

Table 8: Projected Total Demand for Qualifications, 2011-12 to 2016-17


Post Graduate 23,000






Certificate I 4,000

Total 236,000

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13.0%

12.4%

9.2%

8.0%

7.5%

7.1%

6.7%

3.2%

3.2%

3.0%

3.0%

2.8%

2.6%

2.5%

2.3%

2.0%

2.0%

1.9%

1.7%

1.7%

1.4%

0.8%

0.6%

0.4%

0.4%

0.3%

0% 5% 10% 15%

Clerical and Administrative Workers

Higher Education

VET

Health and Community Service Workers

Sales Workers

Health and Welfare Professionals

Business and Public Administration Managers

Business, Human Resources and Marketing Professionals

Education Professionals

Automotive and Engineering Trades Workers

Factory Process Workers

Other Labourers

Machinery Operators and Drivers

Farmers and Farm Managers

Design, Engineering, Science and Transport Professionals

Hospitality, Retail and Service Managers

Sports and Personal Service Workers

Other Technicians and Trades Workers

Hospitaility Workers

Engineering, ICT and Science Technicians

Construction Trades Workers

Electrotechnology & Telecommunications Trades Workers

ICT Professionals

Food Trades Workers

Skilled Animal and Horticultural Workers

Construction and Mining Labourers

Farm, Forestry and Garden Workers

Arts and Media Professionals

Figure 2: Demand for Qualifications Profile by Occupation Group, 2011-12 to 2016-17

As stated previously, given the move to a demand driven VET system under the Skills for All reforms the Commission is less certain about how the supply of VET skills will respond in the future. This is further exacerbated by current government budget conditions which may see revisions to public investment in training over the coming years. A critical feature of Skills for All is that supply responds quickly to industry demand for skills and qualifications. That means that industry demand should be the driver of the system, and the main focus of workforce planning, with the supply and funding then adjusted to meet that demand.

However, using our previous method of projecting supply (an extrapolation of recent trends, taking account of known policy changes) we believe that growth in the supply of qualifications will be broadly sufficient to meet the level of demand projected under the Smart Recovery scenario.

If demand exceeds this level, and on balance it may well do so, then the supply of skills will potentially fall short of demand. This suggests that there may be the need for additional policy action over the medium to long-term to ensure there is sufficient supply. Policy considerations could include: adjusting total funding, increasing incentives and/or improving the cost efficiencies of delivery.



Specialist OccupationsFor many occupations, there is no direct relationship between the specific qualification studied and the jobs graduates end up in. For these occupations, the labour market is generally effective in responding to changing skill needs and economic fluctuations. However, for some occupations where there is a much closer relationship between the job and a specific qualification, and where the training duration is typically long and relatively expensive, there is

potential for market failure because the labour market is less able to adjust quickly. Furthermore, because the skills for these specialist occupations are highly specific, the qualifications are not readily transferable from elsewhere.

The Commission has adopted the following criteria and associated indicators, measures and data sources for defining specialist occupations in the South Australian labour market:

Criterion Indicators Measures

1. Long lead timeSkills are highly specialised and require extended learning and preparation over several years.

• Length of course. • An occupation must be at ANZSCO Skill Level 3 or above.5

2. High useThe skills are deployed for the uses intended (close occupational fit).

• The skills which people acquire through education and training are used for their intended purpose.

• A majority of people in the occupation have the requisite qualification.

• Above average match between intended and destination occupation of graduates.

• 60% or more of those working in the occupation have a skill level commensurate with that specified.

Source: Australian Workforce and Productivity Agency

3. Opportunity costThe opportunity cost of the skills being in short supply is high (causing either bottlenecks in the supply chain or imposing significant costs by their absence) and/or the skills are required to implement the Government’s economic development priorities.

• The occupation has licensing or registration requirements.6

• The occupation/skills are needed to deliver government priorities.

• Registration/licensing requirement.

• The occupation is associated with the State Government’s economic priorities.

Sources: COAG mutual recognition arrangements ABS ANZSCO, cat. no. 1220.0 Economic Statement 2013 DFEEST STEM Occupations

4. Industry intelligenceThere is robust intelligence from industry regarding the demand, supply and use of these skills.There is adequate data to assess the first three criteria.

• Industry Skills Boards (ISB) and other industry stakeholders (e.g. professional associations) can provide robust intelligence.

• ISBs, Industry Skills Councils (ISC) and professional associations. Sources: National Industry Skills Councils’ Environmental Scans. Information available from professional associations.

5 Occupations at Skill Level 3 have a level of skill commensurate with one of the following: 1) AQF Certificate IV. 2) AQF Certificate III including at least two years of on-the-job training. 3) 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 qualifications.

6 Occupations for which some form of legislation-based registration, certification, licensing, approval, admission or other form of authorisation is required by individuals in order to practice the occupation legally.

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These criteria align closely with those used by AWPA to identify specialised occupations at the national level.

The Commission has identified 87 ANZSCO7 occupations at the unit group level8 in South Australia which meet the criteria, representing just under one quarter of all occupations defined by the ABS. Together, these 87 specialist occupations account for around 22% of total employment in South Australia. The majority of occupations on the list are Professionals (52), followed by Technicians and Trade Workers (29), Community and Personal Service Workers (4) and Managers (2).

The purpose of identifying these specialist occupations is to highlight where detailed workforce planning may be required, and where the government intervention in skills planning is expected to add value.

For areas identified for further examination, it is important that government and industry work together through established advisory mechanisms and utilise existing industry workforce planning models and approaches. This will ensure a consistent and accurate assessment of need.

It is also important to clarify that the criteria used to define a specialist occupation do not, of themselves, indicate whether an occupation is currently facing a prospective excess or shortage of skills (the criteria do not include any indicators of current/future demand or supply).

Undertaking an analysis of the future demand for qualifications for specialist occupations is the starting point for determining where government intervention in skills planning may need to occur. It also helps identify where other (non-training) workforce development responses may be required.

The Commission’s assessment of the 87 specialist occupations in this plan is based on a risk assessment rating. The risk assessment rating is a composite rating based on current labour market conditions (has the Department of Education, Employment and Workplace Relations (DEEWR) assessed the occupation as in shortage or experiencing recruitment difficulties), the projected level of industry demand for qualifications over the five year period to 2016-17 and an assessment of the ability of the training system to supply sufficient skills (based on the Commission’s modelling).

The Commission believes that those occupations with a risk assessment rating of Above Average are the ones that should be closely monitored to ensure there are sufficient skills and/or workforce development strategies in place to meet industry demand. In contrast, those occupations with a risk assessment rating of Below Average are the ones where there is a lower risk that the training system will be unable to respond to demand.

Our modelling suggests that there are 10 specialist occupations with an Above Average risk assessment, these include:• Civil engineering professionals• Early childhood (pre-primary school) teachers• Electrical distribution trades workers• Electronic trades workers• Engineering managers• Geologists and geophysicists• Medical imaging professionals• Metal fitters & machinists• Mining engineers• Motor mechanics

The risk assessment rating for all 87 specialist occupations is provided in the Economic Outlook and Demand for Qualifications section.

7 Australian Bureau of Statistics (ABS), Australian and New Zealand Standard Classification of Occupations (ANZSCO), 20098 The ANZSCO classifications groups occupations into the following hierarchy: Major Group, Sub-Major Group, Minor Group, Unit Group

and occupations. The Commissions analysis is focused at the unit group level as this is the lowest level for which data is readily available.



Based on our modelling we expect the majority of industries to record employment growth over the period 2011-12 to 2024-25, although for some this growth will not be large. Under the Smart Recovery scenario it is projected that employment in South Australia will become less reliant on Agriculture and Manufacturing sectors and more reliant on Professional, Health and Education Services

sectors over this period. These services sectors are projected to increase their share of employment from just over a quarter to more than a third of total jobs in South Australia.

Figure 3 provides an indication of the historical and expected (under the Smart Recovery scenario) change in industry composition in South Australia.

Industry Profiles Overview

Figure 3: South Australian Industry Composition, 1998-99 to 2024-25

Wholesale & Retail

1998-99 2011-12 2024-25

Health Care

Manufacturing

Construction

38.9%

15.7

11.1

13.7

5.77.77.2

42.6%

14.6

12.8

9.1

8.27.74.9

42.6%

13.6

16.4

6.3

7.39.54.2

Education & Training

Agriculture

Other

Source: Australian Bureau of Statistic (ABS), Labour Force Survey, Cat No: 6291.0,55.003. Government of South Australia, Economic Statement 2013 (Smart Recovery scenario)

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To complement the top-down economic modelling, the Commission has gathered local intelligence from a range of stakeholders. The information presented in this section draws on this industry intelligence, which has been gathered through the Commission’s formal consultations with industry advisory bodies and other stakeholders throughout the year.

The attached industry profiles provide information gathered from industry about the outlook for their sector and key current and future skills and workforce development issues.

Industry stakeholders: common themes and priorities

A reoccurring theme throughout the Commission’s industry consultation process was the lack of quality ‘one-on-one’ career advice to students to enable them to make informed decisions.

Industry believe that the lack of student understanding of education and employment pathways is leading to inappropriate commencements in training courses – in particular Certificate I and II courses. It was further mentioned that a number of students were enrolling in some courses purely from a ‘hobby’ perspective. Solutions recommended by industry included:• Developing a process to screen the suitability of

participants for training.• Charging a small fee to encourage participants to

commit to training (individual buy-in).

Industry consultation also highlighted the need for student career counselling to be made more widely available to maximise training and employability outcomes and minimise poor career decisions.

A significant number of industry sectors raised concerns around the unintended consequences of capping courses under Skills for All. Central to the concerns of industry were:• A fear that higher level qualification in the sector

may be capped in the future.• Skills for All providers who have spent considerable

money on their registration and capacity building don’t have the security of a known commercial environment.

• There is no mechanism to turn away students who are clearly unable or unmotivated to undertake a specific course.

Several industry stakeholders commented that they believe the Skills in the Workplace (SiW) program is not meeting employer’s needs. Issues raised included: constant changing of eligibility rules, complex contract arrangements, inflexibility and overly bureaucratic processes. It was further mentioned that SiW program was initially promoted as a critical component of Skills for All; however, several sectors questioned its relevance in the face of successive rules and guideline changes. One industry sector stated “SiW started off as an independent program but got consumed by Skills for All requirements”.

The Commission‘s 2013 consultations with industry stakeholders resolved that there remains a high level of support for the SiW program; however industry believes the program is too bureaucratic and focused towards large enterprises.



Agriculture, Forestry and FishingEmployment Outlook

According to the Commission’s modelling, employment in the Agriculture, Forestry and Fishing industry is projected to grow by 1.6% per annum under the Smart Recovery scenario over the next five years. This is above the historical decline experienced over the past decade of 0.8% per annum.

Over the longer term, employment growth in the industry is expected to be more subdued, resulting in Agriculture’s share of employment in South Australia falling from 4.9% to 4.2% of total employment.

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Figure 5: Agriculture, Forestry and Fishing Industry share of Total Employment

2011-12

2016-17

2024-25

4.9%

5.2%

4.2%

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Consultation with the Agriculture, Forestry and Fishing industry indicated that the sector was generally supportive of the Commission’s modelling projections for the next five years. Industry indicated that over the next five years technological advancements in the industry have the potential to support less labour intensive operations. However, over the longer term demand for agricultural products is likely to increase requiring higher levels of employment and/or further improvements in technology to meet expected demand.

Industry commented that the scenarios used by the Commission did not take into account varying seasonal events such as drought which can severely impact on the sector.

Innovation and technological advances have helped the industry remain competitive. Industry experts are predicting that technological advances across the industry will continue, revolutionising production in the foreseeable future. However, water remains a key constraint on future output. Highly productive small farms will decline with the emergence of a corporate style or expansive family farm becoming the model of the future.

Consultation indicated that industry was generally supportive of the replacement rates projected by the Commission. However, it was indicated that from 2016-17 industry expects that ageing of the workforce will result in increasing retirements across the industry.



Workforce Development Themes and Issues

The Primary industry sector plays a key economic role across the State ensuring regional communities are not stripped of services. Food and fibre production accounts for well over half the State’s exports and the sector is the largest employer in regional South Australia. The industry continues to exhibit the highest productivity growth due to its ability to adapt against drought, declining rural populations, terms of trade, an ageing workforce, limited investment attraction and poor infrastructure and services support.

The sector continues the process of restructuring, moving away from the traditional family farm model to a system that is more aligned to corporate structures. Increasingly the industry is witnessing the scaling up of businesses through the aggregation and collaborative farming practices. Although this appears positive in terms of sustainability there is an urgent need to address the declining labour supply.

This is leading to the loss of a wide range of occupational groups including Diesel Mechanics, Agronomists, Soils Scientists, Piggery Technicians, Aquiculture Farm Managers, Feedlot Managers, Horticulture Technicians and a host of other occupations in the sector.

The training numbers are often very low in these occupational areas and combined with fairly intense competition from Mining, Oil and Gas sectors there is difficulty sourcing replacements. This is being compounded by retirements in key areas of agronomy and machinery maintenance, leading to a lack of highly skilled people in the industry.

Industry commented that employment of backpackers and transient workers plays a significant role in ensuring crops are harvested across most of the horticulture sector. Governments should be cognizant of this fact and support these transient workers through the adoption supportive policies and strategies.

The Seafood sector reported that it has been adversely impacted by growth of the Oil and Gas sectors in the North West Shelf which has taken several dozen highly trained maritime personnel (especially Skippers and Marine Engine Drivers). For the first time the prawn industry has had to actively recruit deck crews following the loss of number of long-term crew members.

Most Seafood industry occupations are licensed which can take many years to qualify for a maritime ticket. So the loss of these key sector personnel has an immediate and significant impact.

The Seafood industry comprises multiple sectors with varying employment training characteristics, such as the introduction of new skills mixes in seafood/aquaculture, to include the care, handling and management of new fish farming species.

Fixed learning packages are deemed less relevant as industry believes the training sector is unable to adapt in time to accommodate their needs. The training sector needs to understand the market for up-skilling and engage with the farming community by providing short industry specific training, preferably onsite and at times convenient to employers.

Industry believes there is a need for the State Government to broaden its policy assistance measures away from Mining and focus on other major industry sectors such as Agriculture. This balance is seen as critical in light of the sectors significant contribution to government revenue created though the multiplier effect to the state’s economy.

South Australia’s Agrifood industry has the oldest workforce in the State which combined with the oldest population on the mainland poses a real and imminent threat to the industry. The sectors ageing workforce and its ability to train people to the required standard in time to meet the replacement need is a major concern. General agriculture issues are the same as in the Seafood industry, where it can take several years to acquire specific industry competencies.

Many businesses are concerned about their ability to compete for labour, and of the likely success of investing in costly attraction strategies which all too often are beyond the capacity of individual enterprises, particularly small to medium sized enterprises.

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The sector believes there is a need for more relevant regional workforce development plans across the state that reflect current and future labour and skills needs.

There is a growing consensus that migration will be an integral component of any future growth in productivity for the sector. This will require a much stronger targeted migration strategy for the regions that tops up the existing skills base through improved deployment support including more active ‘migrant friendly town’ approaches which have been successfully trialled in eastern states.

Industry stated it urgently requires State Government assistance to implement regional workforce development plans that support industry growth across all of the sector.

Industry expressed concern over a lack of sector based strategies to support industry to overcome major workforce development barriers including:• Lack of attraction of people into the industry and

regions across the State.• Poor image of primary industries as a career choice• Poor or no promotion of regions as a desirable

place to work and live.• Limited or no targeting of jobs to under-employed

or unemployed outside of the regions.• A high level of informality in recruitment, induction,

development and retention.• Inability of many regional centres to offer the range

of services and leisure attractions of larger regional centres and major urban centres.

• Loss of skilled personnel to Mining and Oil and Gas sectors.

• No locally managed system to source and facilitate labour exchange and manage training issues.

• Poor targeting of migrants especially for trades and agribusiness professional positions.

• The sectors increasing reliance on the hiring of 457 visas holders in the absence of any domestic labour willing to work in regional areas.

• Significant ageing of the workforce during a period of farm aggregation.

• Low levels of unemployment in some regional areas from which to draw potential employees.

A number of these issues were also mirrored within the National Industry Skills Council, Agrifoods Skills Australia 2013, Environmental Scan:• Building world class business and leadership

capabilities, entrepreneurial skills, marketing and global supply chain management skills and Asia-relevant capabilities which collectively, shape and drive dynamic enterprise development and profitability.

• Attraction of greater numbers of people to the industry with sufficient aptitude to replace an ageing workforce.

• Widespread up-skilling in new practices and new knowledge is urgently needed by existing workers in response to a changing policy environment, new work practices to lift productivity levels.

• Poor speed-to-market of publicly funded research findings continues to be one of the major constraints in substantially lifting agrifood productivity levels.

Industry advised that RTOs must appreciate the unique training needs of regions and respond by delivering a broader variety of short, accredited and non-accredited courses for employers and employees to choose from.

Industry emphasised that it has a distinctive workforce culture concerned with practical competency developed through lengthy experiential learning models. Learning is mostly informal and certainly not structured in the same way as traditional qualifications. The sector is less concerned with formal qualifications and more concerned with acquiring relevant skills that are fit for purpose.

Industry stressed this does not mean that competencies contained in the Agribusiness qualifications are incorrect; what is does mean is the method of access and engagement with farmers should be highly specific and focused on their training needs.

Few farmers have formal qualifications and in most cases industry believes these are not needed. However, the sector is seeing an increase in demand for short courses that are focused on new market pressures such as food safety, chemical safety, financial management, commercial management, marketing and innovation. In addition, the sector requires skills in workforce planning to assist industry with employee development and underpin regional attraction and retention strategies.



MiningEmployment Outlook

According to the Commission’s modelling, employment in the Mining industry is projected to grow by 3.9% per annum under the Smart Recovery scenario over the next five years. This is less than the historical rate of growth experienced over the past decade of 14.9% per annum, but acknowledges the shift from a period of significant investment to a more operational period.

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14.0%

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4.3% 3.9% 3.5%2.3%


P 27Industry Profiles Overview

Over the longer term, employment growth in the industry is expected to continue, resulting in Mining’s share of employment in South Australia increasing from 1.8% to 2.2% of total employment.

Consultation with Industry indicated that employment growth amongst existing mines is likely to be relatively flat going forward. However, if new projects under consideration move through to development, then employment is expected to increase considerably over the next 16 years. This suggests a much stronger rate of growth than that projected by the Commission under all scenarios.

Research undertaken by the Resources and Engineering Skills Alliance (RESA) as part of their South Australian Future Mining Workforce Report 2014 to 2030 suggests that if 16 of the 40 projects are developed over the next 16 years (‘likely scenario’) approximately 27,500 jobs will be directly and indirectly created. If all 40 projects (‘less likely scenario’) are developed more than 36,000 jobs will be directly and indirectly created between 2014 and 2030.

Industry suggested that the average staff turnover rate for employees of mining companies is currently 14%, while the average turnover figures for contractors averaged 20%. These rates were much higher than the replacement rates projected by the Commission.

Anecdotal evidence suggests that contractor turnover is high due to a variety of factors, including the transient nature of many employees, the often demanding physical endurance of the work, long hours, Fly In and Fly Out (FIFO) and the lure of other employment with higher salaries. It was acknowledged that remote site operations are unique and will continue to be subject to the impact of high turnover.

High labour turnover is impacting recruitment time, costs and productivity.

Figure 7: Mining Industry share of Total Employment

2011-12

2016-17

2024-25

1.8%

2.1%

2.2%



Skilling of new entrants into the sector is required to meet future workforce demand for a large number of projects currently in the development stage. There is a critical need to train ‘work ready staff’ to meet the demands of the sector.

The Mining industry believes industry needs to up-skill professionals in their workforce with skills in leadership, training and change management to remain world competitive.

Occupations in demand include:• Professionals – Mechanical Engineers,

Human Resource and Training Professionals, Metallurgists, Work, Health and Safety Professionals and Geologists.

• Trade – Mechanical Technicians and Fitters, Drillers, Diesel Mechanics, Electricians and Electrical and Instrumentation Technicians.

• Semi-skilled – Driller’s Assistants, Mobile Plant Operators and Fixed Plant Operators, general skilled workers, Miners and Maintenance Support Worker.

Further consultation with tertiary institutions and registered training organisations is needed to identify possible barriers to training and employment for ‘in demand’ occupations.

There are a number of factors that have potential to affect the sector including:• Impact of global commodity prices.• Mine approval and development cycles.• Australian Dollar ($AUD).• Wages, productivity and automation.

In the long-term, the biggest impacts will be around productivity and automation which may see some sites become fully automated via offsite control leading to a downward trend in wages. The latter factor is being influenced by declining sector productivity which, according to 2011 Australian Bureau of Statistics Mining Productively Index, has fallen significantly since 2002.

Industry is seeking people with the right skills, attitude, cultural fit, as well as strong focus on safety. Contemporary mining company’s hiring strategies include:• High school students receptive to mining careers.• Regional families recognise mining options. • Companies who have up-skilled reap the benefits.• Employment of women.• Industry of choice in attracting new workers.• Ageing workforce offers more skilled worker

opportunity.

Engineers lead the top of the skills in demand list for the Mining sectors including Mechanical and Chemical Engineers.

RESA advised that the mining industry are seeking to up-skill their workforce particularly around leadership training and change management.

The South Australian Mining industry differs from other states in that there are a considerable number of companies that are one project entities which are sensitive to fluctuations in global demand.

Global population growth is estimated by the United Nations to peak in 2050 at 9.5 billion. This will be a key driver in global consumerism and the demand for mining resources. South Australia is well placed to capitalise on this demand particularly around its reserves of copper. Industry believes that current world reserves of copper are insufficient to meed to the current needs of China reinforcing South Australia’s key role in the world copper supply chain.

Mineral exploration expenditure in 2011-12 continues to see South Australia dominate in copper, uranium and iron ore attracting: • A third, $146 million (34%) of national

Copper exploration.• Almost a quarter, $33 million (23%) of

national Uranium exploration.

South Australia is also emerging as a major destination for iron ore exploration, attracting the largest share of expenditure for this commodity outside iron ore giant Western Australia. In addition South Australia is leading in a number of areas including:• Shale oil (independent studies have confirmed

a major source in the far north of South Australia, which is estimated, to be worth many trillions of dollars).

• The University of Adelaide produces more mining graduates than any other university in Australia.

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• The State Government has announced that a new Mining and Engineering Centre will be built at Regency Park, supported by an allocation of $38.3 million in the 2012 State Budget.

• Resource and development capacity including the Deep Exploration Technologies Cooperative Research Centre provides funding to build critical mass in research ventures between end users and researchers to deliver significant economic, environmental and social benefits across Australia.

Olympic Dam is still in production and will be for a very long time as it is the world’s largest uranium deposit, fourth largest copper deposit and fourth largest gold deposit, and the site of Australia’s largest underground mine. It will still employ hundreds of people over the foreseeable future.

Industry advised that Australians are widely involved in global resources projects around the world including France, Mongolia and Chile. Given this, demand for our skills in engineering and project management will only increase over time. It is with this in mind South Australia needs to have a workforce development strategy that is focused on equipping local people with the skills needed by industry in the long-term. The consequences of not adopting this strategy is continued inflated wages for the sector and ultimately the viability of mining projects.

While South Australia is excelling in tertiary training for professional occupations there are issues to address in the vocational sector. Industry believes that the training system is out-dated and needs to adopt a contemporary approach where RTOs talk to industry and incorporate shorter training times and a ‘hands on’ approach.

The Resources sector is experiencing issues around attracting, retaining and training high quality Welders (especially for work on high pressure volume pipes and vessels). The problem is around the quality of existing Welders and the challenge to take them to the next level. Industry believes that there is a need for adaptability between trades such as Fitters and Welders which may assist in bridging this gap.

It was highlighted that skill sets are extremely important for the sector given that some employers are opposed to full qualifications on the basis that people leave the sector following the completion of training. Ideally these are skills sets that articulate into qualifications.

Industries are reducing non-essential training which is having an impact on areas including women’s training due to limited funds. There is a sentiment that some companies only do training if government pays for it.

Industry advised that the qualifications in greatest demand over the next seven years include:

Advanced Diploma• Advanced Diploma of Engineering• Advanced Diploma of Engineering (Technical)• Advanced Diploma of Engineering

(Advanced Trade)• Advanced Diploma of ESI (Power Systems)

Diploma Level• Diploma of Occupational Health and Safety• Diploma of Engineering

(Technical or Advanced Trade)• Diploma of ESI Generation (Operations)• Diploma in Human Resources Management

Certificate Level• Certificate IV in Electrical (Instrumentation)• Certificate IV in Human Resources• Certificate IV in Occupational Health and Safety• Certificate III in Automotive

Mechanical Technology Trade• Certificate III Drilling Oil/Gas (On Shore)• Certificate III in Drilling Operations• Certificate III in Electrotechnology Electrician• Certificate III in Engineering

(Electrical / Electronic Trade)• Certificate II Drilling Oil/Gas (On Shore)• Certificate II in Drilling Operations• Certificate II in Driving Operations• Certificate III in Civil Construction Plant Operations• Certificate III in Mining Operations• Certificate III in Surface Extraction Operations• Certificate III in Mining Exploration



ManufacturingEmployment Outlook

According to the Commission’s modelling, employment in the Manufacturing industry is projected to decline by 1.8% per annum under the Smart Recovery scenario over the next five years. This is less than the historical decline experienced over the past decade of 2.6% per annum.

Over the longer term this trend is expected to continue, resulting in Manufacturing’s share of employment in South Australia falling from 9.1% to 6.3%. The Manufacturing sector is expected to employ fewer people, it will still be a critical component of our economy, supporting research, innovation and productivity growth.

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Figure 9: Manufacturing Industry share of Total Employment

2011-12

2016-17

2024-25

9.1%

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Consultation with the Manufacturing industry provided mixed views on the Commission’s modelling on a sector by sector basis. However, in general, the consensus was that the Commission’s outlook for the industry was broadly consistent with current industry intelligence.

Sector snapshot• The Automotive sector is projected to continue

to experience subdued employment conditions. Industry generally supported this outlook, however, noted that potential policy change or potential major closures (General Motors Holden) would further weaken the outlook for the sector.

• Despite being projected to decline slightly, the Light Manufacturing sector considered the rate of employment growth modelled by the Commission to be more optimistic than what current industry intelligence suggested.

• According to industry, despite the negative outlook for the Metals and Engineering sector, opportunities for growth still exist in the Resources sector. The outlook for this sector will also be heavily influenced by growth in the Defence Manufacturing sector.

• While the Commission is projecting steady growth in Defence industry employment, consultation highlighted that continued lengthy delays in releasing Commonwealth Government contracts will impact negatively on the outlook for the sector.

• The Defence industry highlighted the importance of maintaining defence contract continuity in order to build intellectual and manufacturing capability onshore to avoid a lack of capability leading to purchasing material from overseas.

According to consultations, innovation and sustainability is crucial to the ongoing viability of the Manufacturing industry. While it was acknowledged that innovation doesn’t necessarily support jobs growth in the short-term it has the potential to impact considerably on the industry in the longer term. It was highlighted that traditional manufacturing must undergo significant transformation to remain viable.

Under the current economic conditions, the Manufacturing industry is focused on deploying strategies to retain their best people while managing redundancies in non-core areas to reduce costs. The rates of labour turnover projected by the Commission were considered reasonable and broadly consistent with industry’s view.

The importance of retaining staff was highlighted specifically by the Defence sector, who advised that highly qualified Defence sector employees seldom return following a redundancy through industry downsizing. Their advanced skills and experience are highly sought after in many higher paying roles outside of the Defence sector.




Industry contends strong policy direction is needed by Government to stop South Australia losing its manufacturing base. This sentiment was shared by Professor Goran Roos who commented in his Manufacturing into the Future Study9 that:

‘Allowing a shift away from manufacturing will be detrimental to the long-term wellbeing of the State. It takes longer and is much more complex and costly to rebuild a competitive manufacturing industry than it is allowing it to die.’

In acknowledgment of the industry’s importance to the State, the Government of South Australia has recognised the manufacturing industry as one of the States Seven Strategic Priorities10. In addition, the recently released 10-year Manufacturing Works strategy aims to drive the transition of manufacturing to high value-added activities that compete on value for money, not solely on cost. Industry is supportive of the strategy as it outlines a range of programs and initiatives to support manufacturers to innovate and prosper in an increasingly competitive global environment.

It is the Commission’s view that South Australia’s Manufacturing industry base needs to be a step ahead of the competition and operate as a critical mass to ensure future growth is sustainable. Fundamental to this transition will be the establishment of Industry Clusters to provide the critical mass for purchasing raw materials and expanding export markets.

To support the change required, the Manufacturing industry is focusing its efforts on creating a culture where innovation is the key to success. The sector believes the bulk of innovation takes place inside the workplace which requires a transitional strategy involving building leadership through skills ecosystems and cost reductions while understanding markets. The sector acknowledged the important role training plays in this process and the need to embed innovation in training.

9 Government of South Australia Professor Göran Roos Adelaide Thinker in Residence 2010–2011. Manufacturing into the future Summary of Recommendations. 10 http://www.priorities.sa.gov.au/content/growing-advanced-manufacturing

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However, through consultation it was highlighted that the high cost to employers of releasing staff to attend training is a key impediment. This cost is often overlooked by Government when planning assistance measures to industry. Further, it was raised that government assistance for skills recognition services and transition services for workers are targeted to prominent large organisations leaving smaller employers and their workforces without comprehensive services.

The Commission was advised that the current reforms to the training sector at both the state and national levels is undermining business confidence in the ability of the VET sector to deliver industry specific training in a contemporary setting. Concerns were raised on the high cost of technical and trade training, servicing of niche and thin markets and the quality of training delivery.

Industry raised a number of questions and expressed a range of concerns about the implications of Skills for All. At the core of these concerns is the lack of clarity about the role of industry advice in informing market management. Specific examples included access to workforce development advice for enterprises, industry developed career and labour market information, and institutional trade training.

It was noted that while Skills for All provides funding for training places there is a need for workforce development advisors to assist firms and sectors to analyse skills and training gaps and to develop appropriate workforce development solutions.

At a national level Manufacturing Skills Australia (MSA), Industry Skills Council in its 2013 Environmental Scan commented that the changes to VET funding across the nation reflects the fact that VET has not been operating sustainably and that change is needed. Additional comments included:• The sector needs to ensure training providers are

equipped to deliver the level of service required.• A strategic approach to workforce development

generally seems limited in VET. In MSA’s EScan survey, 59% of RTO respondents noted that training happens on an ‘as needed’ basis in their organisation.

• The VET sector is itself facing significant skill shortages and a strategic approach is needed to meet this challenge.

MSA believes that the National Workforce Development Fund (NWDF) is working well with co-contributions encouraging enterprises to participate more. Gaining efficiency improvements via the implementation of competitive system and practice skills and qualifications continues to be a prime target for manufacturing enterprises using the NWDF.

MSA has observed that the NWDF is making enterprises and providers think more strategically about training. They are more likely to assess their real skill needs and produce a considered development plan to drive their application for funding. Enterprises are becoming more conscious about their co-investment and the need to make a good return in today’s tough business climate. As a result, they are more likely to get useful results and less likely to waste resources when engaging the NWDF process. From a South Australian enterprise perspective it is believed the State has not received its proportionate share of the NWDF. This could be attributed to composition of South Australia’s businesses being predominantly small to medium enterprises.



Electricity, Gas, Water and Waste ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Electricity, Gas, Water and Waste Services industry is projected to decline by 5.2% per annum under the Smart Recovery scenario over the next five years. This is in stark contrast to the historical growth experienced over the past decade of 6.9% per annum.

Over the longer term this trend is expected to continue, resulting in the Electricity, Gas, Water and Waste Services industry’s share of employment in South Australia falling from 1.6% to 1.0%.

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Figure 11: Electricity, Gas, Water and Waste Services Industry share of Total Employment

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2016-17

2024-25

1.6%

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Consultations with Industry suggested that with the exception of the Gas sector, the outlook for the industry was gloomy (possible negative employment growth). The close connection with Defence and Construction (which are experiencing reduced activity) and Government (under tight budgetary conditions) priorities are significant factors influencing the outlook for the sector.

While current rates of replacement were quite low across the sector as a result of economic conditions and relatively high wage rates, industry indicated that rates of replacement were likely to be higher (particularly in regional areas) in the future.

The Gas industry predicts retirement rates will result in a turnover rate of 8-12% over the next five years. There are numbers of transient employees within the industry, for example Trench Diggers who move in and out of the sector in response to project work.

Industry expects strong turnover in the Power Generation sector, particularly in regional South Australia.

The Water industry has an average State workforce profile of 47 years, across trades and operational roles; however, it is significantly higher in regional areas with many workers nearing retirement age.



Industry highlighted that all sectors need dual trades training to ensure the industry can meet future efficiency and productivity demands.

TAFE SA has piloted a Certificate II (general interest) for the Water sector which has received some support from councils.

Industry representations further highlighted the need for alternative approaches to the traditional apprenticeship system.

EOZ Energy Skills Australia and National Electrical and Communications Association (NECA) recently secured a $22 million grant for accelerated apprenticeships. The EE-Oz Energy Skills Australia pilot is a holistic progression management system for electrical apprentices. It involves apprenticeship training that combines work with structured training, allowing students to apply theoretical knowledge in the workplace. The pilot program will retain this combination, whilst allowing all parties greater flexibility to vary the rate of progression in response to individual circumstances. Industry will establish Benchmark Progression Points including both on and off-the-job elements to support staged, competency based apprentice progression.

The project is supporting participants through industry mentors who provide services tailored to an individual’s learning needs.

The South Australian component of the national project currently involves 50 young apprentices and has been developed in conjunction with key industry partners including, National Electrical and Communication Association, Master Electricians Australia and the Electrical Trades Union.

Gas

Industry issues include difficulty in finding experienced labour and trainers due to competition with Coal Seam Gas and Mining sectors. In addition, there is strong competition within the sector, as well as with the Water sector which attracts staff from the Gas sector. The Gas industry advised that they expect a doubling of their workforce from 2015 -17. The occupations most in demand are trade based skills, including, Engineers, Welders and Capacity Engineers. Currently these skills are being met through the importation of gas technical staff from both the west and east coasts of Australia - a costly exercise for employers.

There are barriers for RTOs in the provision of training for these jobs as the positions are highly specialised and are only required on a project by project basis, resulting in a thin training market. Added to this is a high cost of training infrastructure which is generally prohibitive for private RTOs.

The sector has been successful in lobbying for the UEG Gas Industry Training Package to be placed on scope, however, as yet there are no RTOs in the delivery space. Ideally the gas sector needs to work with other sectors with similar needs to get a critical mass for training.


Electrical – Refrigeration

The sector is observing a high turnover of Electricians and for the first time is witnessing the laying-off of refrigeration staff. The current industry outlook is bleak with a significant number of people competing for limited work. This is in contrast to the electronics trades where there is a skills shortage of Diploma qualified trades people.

Some of the sector’s smaller enterprises (of which there are approximately 100) are struggling in the present economic climate, while the larger operators (approximately 400), are managing just to keep their existing workforce.

Water

Major SA Water works, including the desalination plant and the laying of major interconnector pipe works and water main upgrades are nearing completion. SA Water is being resized due to a curtailing of major capital expenditure. The water sector is not expecting any major growth apart from replacement.

Regulations have recently been introduced which will open the network infrastructure for third parties access to use the resource - similar to telecommunications. A potential benefit could see SA Water working smarter with local councils around sharing and coordination of infrastructure. In regional areas SA Water is considering working with councils particularly in the areas of meter reading and minor works. While the expectation is SA Water will not necessarily grow as a result of these new regulations, contract work could expand significantly especially around assets maintenance and repair work.

SA Water has around 80% of the sectors workforce. The current turnover rate in SA Water is 7% to 8% and it is expected that retirements over the next five years will increase considerably as the workforce ages. The rate of turnover is expected to be even higher in regional areas.

SA Water as a business is interested in pursuing skills sets for their trades people who are qualified at the Certificate III and IV level. They are seeing a move by industry towards skills sets to supplement existing qualifications.


ConstructionEmployment Outlook

According to the Commission’s modelling, employment in the Construction industry is projected to decline by 0.7% per annum under the Smart Recovery scenario over the next five years. This is in contrast to the historical growth experienced over the past decade of 3.7% per annum.

Over the longer term the Construction industry is expected to recover and record positive employment growth, although growth is projected to be below the State average. As a result, the Construction industry’s share of employment in South Australia is expected to decline from 8.2% to 7.3%.

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Figure 13: Construction Industry share of Total Employment

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8.2%

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Industry believes that employment growth across the industry will be relatively flat over the coming years. However, some sectors would suggest that current conditions are much more subdued.

The Construction industry generally reflects conditions in the wider economy. According to industry, the level of investment in industry has been in protracted decline since early 2011. The view is that the South Australian construction industry is approaching the bottom of the cycle, so going forward some growth is expected in both the short- term and long-term.

Industry considered the turnover rates estimated by the Commission to be reasonable. Workers in the industry are ageing and with the protracted downturn there is an increased likelihood they could retire early or leave the industry. While this is becoming a common trend across the sector, the current contraction has outlasted others and may result in a more lasting effect as workers see this as an opportunity to exit the sector.



Sector Snapshot

• While the Housing sector has undergone a muted recovery it is the belief that South Australia doesn’t have the population mass to sustain the recovery. Growth in the sector is not expected to be high as there is no significant pent-up demand, or other obvious trigger for growth.

• It is believed the Commercial sector is entering into a period of decline following intense levels of activity induced by public investment in major projects and federal government stimulus has all but come to an end. The longer term outlook for the sector is poor due to a limited number of projects in the pipeline.

• The Civil sector is expected to decline. While there has been concentrated levels of activity arising from investment in major projects, concern was raised about the level of activity being undertaken by interstate contractors with non-South Australian workforces. Further, areas of the Civil sector that support the Housing sector (subdivisions) have seen a significant reduction in work.


The sector believes the construction industry in South Australia is undercapitalised which makes it challenging to win large contracts and hence larger interstate and overseas players dominate.

Technology is becoming the new paradigm for the industry which is being hastened through the adoption of Building Information Management (BIM) systems across Australia and overseas. The CITB have been promoting the uptake of BIM three dimensional modelling which allows precision on the site. Unfortunately the training is being hampered by high cost to industry as the software is controlled by vendors.

The CITB have been working closely with the New Royal Adelaide Hospital around BIM training for building staff. The CITB believe the increased use of technologies such as BIM and offsite fabrication and modular solutions will circumvent the Training Package system in all but bespoke construction. These emerging technology and increasing use of off-site techniques and technologies will evolve quicker than Training Packages can respond. The industry believes there is a need for the government to mandate BIM to get the industry to adopt the technology.

Industry advised that professionalisation of the industry will continue leading to very few inexperienced jobs in the sector. Given strict licensing and Work, Health and Safety (WHS) requirements, roles for unskilled workers will all but disappear in the future.

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The construction of wind turbines may soon slow and have a negative impact on the CITB levy and much needed construction work.

The CITB stated the White Card is not a qualification but rather it is a requirement for industry and as such should be removed from the Skill for All Funded Training List (FTL).

Industry believe that the vocational education system does not currently meet industry’s training needs and there is an urgent requirement for the VET sector to make training relevant and practical to industry standards.

The National Construction & Property Services Industry Skills Council (ISC) reported in their 2013 Environmental Scan that South Australia’s Skills for All program was regarded as having comprehensive training programs working alongside the conveyancing industry which was said to be providing high quality outcomes for the industry. However, the ISC voiced concerns that the capping of this up-skilling opportunity has been reported by industry to be short sighted with adverse outcomes for the Construction sector.

There is more tertiary qualified entering the industry which is seeing the emergence of new roles for young industry professions. However, current subdued conditions are limiting job opportunities.

The longer the current period of contraction persists, the greater the likelihood of a skills deficit when the eventual upswing in industry activity occurs. The contraction is impacting on apprentice commencements and has the potential to create a ‘vacuum’ four years out – so there is an imperative to retain apprentices and encourage their completion.

WHS legislation is expected to be a key driver of training demand for the next 12 months.

Continuing industry contraction exacerbates cost and time sensitivity in respect of training. At a time when we have tried to stimulate adoption of new technology for future competitive advantage, the response has been underwhelming because of the industry environment.

Apprentice numbers have been in steady decline since mid-2011, (primarily in general construction trades).



Retail and Wholesale TradeEmployment Outlook

According to the Commission’s modelling, employment in the Retail and Wholesale industry is projected to increase by 0.5% per annum under the Smart Recovery scenario over the next five years. This is less than the historical rate of growth experienced over the past decade of 2.0% per annum.

Over the longer term, employment growth in the industry is expected to continue, however, is likely to remain below the State average rate of growth. As a result, Retail and Wholesale’s share of employment is expected to fall from 14.6% to 13.6%.

2.0%

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Figure 15: Retail and Wholesale Industry share of Total Employment

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14.6%

14.4%

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The Commission consultations with the Retail and Wholesale industry identified concerns around potential wage increases for employers in relation to the Fair Work Australia case for adult wages to 18 year old staff. The sector believes should Fair Work Australia grant adult wages to 18 year old staff the resultant impact on retailers’ bottom line and their ability to sustain jobs will be dire. The Commission notes the case is still under review by the Fair Work Commission.

The Commission was advised that industry believes the Government should support business investment in the up-skilling of store managers who need additional expertise. Managing store expansions often require a specialised knowledge of issues including, managing new technologies, green gas refrigerators, lighting and specialised store computing.

Industry raised the issue of almost daily representation from Job Services Australia providers seeking placements for their streams three and four clients. These constant referrals are placing considerable time pressures on store managers.

Industry advised the Commission that it believes there is a serious mismatch between people being trained for the sector and the suitability and motivation of the students. The retail industry is considering screening as a way to ensure the suitability of potential employees for the industry. It was mentioned that some RTOs are using work experience in industry to test a person’s aptitude and attitude to the sector. In addition, it was suggested that RTOs need to provide evidence of training demand through a mapping process that demonstrates the training will lead to a job outcome. It is believed that these measures will help overcome the mismatch between training and suitability of the student to undertake the role.

Industry suggested that the Department of Further Education, Employment, Science and Technology (DFEEST) should undertake analysis of training data to guide future funding for the industry. This should include how many students commenced training, how many completed and how many dropped out. This may resolve some funding capacity management issues under the Funded Training List.

Industry advised the Commission that the sector believes the Skills for All policy settings are not right particularly where students are driving demand outside of industry need.


Accommodation and Food ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Accommodation and Food Services industry is projected to decline by 0.2% per annum under the Smart Recovery scenario over the next five years. This is in contrast to the historical rate of growth experienced over the past decade of 1.7% per annum.

Over the longer term, the Accommodation and Food Services industry is expected to recover and record positive employment growth, although growth is projected to be below the State average. As a result, the accommodation and food services industry’s share of employment will decline from 6.6% to 6.0%.

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Figure 17: Accommodation and Food Services Industry share of Total Employment

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2024-25

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Workplace Development Themes and Issues

The Commission’s consultations with the Food Services industry indicated that overall conditions within the industry are steady. However, the sector is battling with increases in food cost, higher wages, greater compliance and increased regulation, all of which are hampering the industry’s ability to expand and hire. This combined with falling poker machine revenues (down to the levels of 10 years ago) is painting a poor economic outlook for the industry unless present patronage levels increase substantially. A number of the larger hotel chains are experiencing lean times and are endeavouring to minimise wage costs by utilising the first or second year apprentices to prepare meals.

Industry advised the Commission of a number of workforce issues including high staff turnover within the industry to other sectors, as the skills acquired are readily transferrable for example employees possessing Certificate IV in Management.

The industry advised that many employers reward good staff through quick career promotions but are not always keen to hire trained staff with employers preferring training staff to their standards. There is a feeling that the training provided by TAFE SA and private RTOs does not prepare students for real work situations where customer and service demands can be extreme.

There is respectable demand for school based trainees in the Food Services industry. However, representations to the Commission has suggested Industry believes that Certificate II and III shouldn’t be delivered through VET in Schools but rather through a school based apprenticeships. This avoids situations where new entrants only possess industry theory without any practical on the job experience.



Transport, Postal and WarehousingEmployment Outlook

According to the Commission’s modelling, employment in the Transport, Postal and Warehousing industry is projected to increase by 2.1% per annum under the Smart Recovery scenario over the next five years. This is stronger than the rate of growth experienced historically in the industry over the past decade of 1.4% per annum.

Over the longer term this trend is expected to continue, resulting in Transport, Postal and Warehousing industry’s share of employment increasing from 4.0% to 4.4%.

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Figure 19: Transport, Postal and Warehousing Industry share of Total Employment

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The Commission’s industry consultations with Transport, Postal and Warehousing industry identified a number of challenges, including the ageing workforce and thin training markets for rail operation and rail infrastructure. Much of the training undertaken in recent years has been in response to legislative changes, such as fatigue management and national licensing. In parts of the road transport industry there has been reluctance over the past three years to embrace training.

Industry advised that transport is positioning itself take advantage of the rapidly expanding online retail activity. Australia Post is dominating the delivery side of the market and the industry is keen to secure market share by negotiating contracts with news agents and post offices especially for small parcel delivery.

The Commission was advised that larger South Australian road transport companies are maintaining market share, attributed by the industry sector to an expansion of mining activity, especially for the Iluka mine. While large employers are experiencing peaks and troughs in their work levels, they are retaining current staffing levels.

Industry informed that road transport is growing at the expense of rail due to quicker delivery times and the increasing use of Road Trains to meet the needs of regional South Australia. Industry issues include:• Low operating margins for road transport

operators and the management of compliance (fatigue and the burden of chain of responsibility reporting requirements).

• Low industry skills (heavy vehicle drivers). • Cost of training especially for heavy vehicle

licensing.



Industry advised the Commission, that owner truck drivers are experiencing unrealistic delivery time frames when contracted to deliver grain during harvest periods. This is compounded by poor facilities and logistics which are impacting on drivers, causing considerable down time when unloading grain. Industry advised these issues are being tolerated as the grain season provides the volumes for drivers to support them in lean times. In response to these issues, industry believes their is a need for improvements to logistical systems across the grain collection delivery process.

The Commission was further advised that industry has undertaken a number of workforce studies that support the belief that industry training is poor, citing industry time pressures and a lack of computer literacy for workers between 40 to 60 years of age.

Industry raised concerns over RTO quality around the delivery of training and assessment. Industry believes that employers want effective RTOs who can deliver flexible training during work time.

The Commission was advised that the Transport sector has moved from an industry where record keeping was secondary, to become a highly regulated sector requiring multiple record keeping processes. Currently national uniform transport rules are amended by each jurisdiction which causes issues for drivers moving between states. Migrant drivers are at major disadvantage where their literacy and Australian cultural understanding is poor.

Industry stressed that literacy and numeracy is vital for new immigrants entering the Transport industry. The industry has significant responsibilities around the completion of log books and WHS requirements including obligations to councils and State and Commonwealth Governments for the safe delivery of passengers after hours in the city, for people with a disability, mature aged people and students.

Future replacement of the ageing workforce is a critical issue for the industry. Until recently funding for existing worker training under Skills for All was available in critical areas including Certificate II and III Transport and Logistics. However, industry advised that the high uptake of training by existing workers of large employers resulted in the capping of courses. This has affected numerous small operators who no longer have access to subsidised training. Industry attributed the high demand for training to the marketability of qualifications by workers seeking industry and career changes.

According to consultations the South Australia Taxi industry comprises a high proportion of migrants or students from an Indian background who are currently working up to 20 hours per week as prescribed under their visa. However, recent changes to Commonwealth legislation regarding permanent residency is having an impact on the number of workers available. Industry further advised there is significant demand for new drivers, in contrast to five or six years ago, when there was an oversupply. The industry is hampered by high training and licensing costs which is a disincentive for new industry entrants including mature age people.

As a way of attracting new workers to the industry some companies are paying new entrants training fees upfront and recouping the cost from drivers’ takings.

It was highlighted during the consultations that many trainers working for RTOs don’t have the required level of Language Literacy and Numeracy (LLN) skills required to deal with the high migrant composition of the taxi industry. Industry informed of a pressing need to attract new Driver Instructors from an Indian background to assess the high number of Indian people attracted to the industry. This is in response to an increasing number of people from an Indian background acquiring their own taxi licenses and operating their own business.


Information Media and TelecommunicationsEmployment Outlook

According to the Commission’s modelling, employment in the Information Media and Telecomm-unications industry is projected to fall by 1.0% per annum under the Smart Recovery scenario over the next five years. This is in contrast to the rate of growth experienced historically in the industry over the past decade of 1.7% per annum.

Over the longer term, in the Information Media and Telecommunications industry is expected to recover and record positive employment growth, roughly consistent with the State average. As a result, the information media and telecommunications industry’s share of employment will decline from 1.8% to 1.6%.

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Figure 21: Information Media & Telecommunications Industry share of Total Employment



Industry reported they are being challenged to keep up with technology changes and implement new technologies to expand the delivery of new products and services. In addition, the cultural change required to implement new technology has been identified as a significant barrier for business especially understanding the large amounts of data available and how to harness information to track customer behaviour.

Growth in spatial sciences will be exponential in the coming years as mapping and smart technology continue to mesh locational data to commercial applications in retail, health, education, resources and military areas. New spatial science skills are required now to leverage the new and constantly emerging technology in areas such as Global Positioning Systems, 3D imaging, and indoor mapping.

Other issues identified by industry include:• The ability to attract new entrants to the sector,

which is leading to skill shortages.• Responding to rapid technology developments

which are creating opportunities to provide business solutions.

• Competitive advantage from information technology is shifting toward customer experience and data analytics, leading to a rise in the demand for information management skills relative to business process design skills.

• The attraction and retention of suitably qualified education and training practitioners

• Emerging opportunities resulting from the availability of high-speed broadband through the National Broadband Network.


Financial and Insurance ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Financial and Insurance Services industry is projected to increase by 1.0% per annum under the Smart Recovery scenario over the next five years. This is below the rate of growth experienced historically in the industry over the past decade of 2.7% per annum.

Over the longer term this trend is expected to continue, resulting in Financial and Insurance Services industry’s share of employment increasing from 2.9% to 3.3%.

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Figure 23: Financial and Insurances Services Industry share of Total Employment

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The Financial Services Industry covers banks, building societies and credit unions, insurers, superannuation providers and other fund managers, accountants and financial planners and advisors.

The Commission is aware that the financial sector has undergone considerable change over the past two decades as a result of financial deregulation, globalisation, new technologies and the emergence of new markets and new products. More recently, rapidly evolving consumer demands and preferences, the influence of evolution in technology, continuing destabilisation in international capital markets and labour market changes have contributed to complex workforce needs.

Industry reported they are being challenged to keep up with technology changes and implement new technologies to expand the delivery of new products and services. However, the cultural change required

to implement new technology has been identified as a significant barrier for business particularly understanding the large amounts of data available and how to harness information to track customer behaviour.

Large parts of the industry are currently undergoing significant reform, with a range of new regulations having been rolled out in 2012-13 which included new credit laws for lenders, banking reforms and new financial advisory legislation.

Other industry issues include: • Adapting to new regulation from the Clean Energy

Act 2011.• Australian Securities and Investments Commission

regulated occupations, in particular the provision of financial advice.

• Sector is continuing to experience the off-shoring of jobs.



Rental, Hiring and Real Estate ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Rental, Hiring and Real Estate Services industry is projected to increase by 2.5% per annum under the Smart Recovery scenario over the next five years. This is above the rate of growth experienced historically in the industry over the past decade of 1.6% per annum.

Over the longer term, employment growth in the industry is expected to move towards the State average. As a result, the Rental, Hiring and Real Estate Services industry’s share of employment is expected to return to the level recorded in 2011-12 of 1.8%.

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Figure 25: Rental, Hiring and Real Estate Services Industry share of Total Employment

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2024-25

1.8%

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The residential property market is expected to experience growth and reallocation in investment activity in part due to lower interest rates while the commercial market is expected to strengthen due to improving economic, demographic and financial conditions that are predicted to encourage property investment.

High-tech surveillance and data delivery tools will continue to be at the frontline of security and investigative services over the next five years with companies using a mix of technologies and worker effort to reduce costs and enhance services.

Regulation Impact Statements for property-related occupations (under the Council of Australian Governments’ commitment to achieve nationally consistent licensing) was released for comment. Licences covered, included:• Real Estate Agent’s licence• Strata-managing Agent’s licence• Business Agent’s licence

The Construction and Property Services Industry Skills Council (CPSISC) indicated strong support for the development of Certificate IV in Drafting qualification, which seeks to meet the needs of individuals, enterprises and potential regulators across a number of areas including:• A defined assessment and training pathway for

new entrants seeking careers as a draftsperson.• A recognition pathway for experienced

industry workers without nationally recognised qualifications.

• Open entry to the qualification.

Industry propose that the qualification and new units of competency will be included as an extension to CPP07 Property Services Training Package upon endorsement by CPSISC.



Professional, Scientific and Technical ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Professional, Scientific and Technical Services industry is projected to decline by 0.8% per annum under the Smart Recovery scenario over the next five years. This is in contrast to the rate of growth experienced historically in the industry over the past decade of 3.7% per annum.

Over the longer term, employment growth in the industry is expected to recovery considerably, rising above the State average. As a result, the Professional, Scientific and Technical Services industry’s share of employment is expected to increase from 6.6% to 7.6%.

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Figure 27: Professional, Scientific & Technical Services Industry share of Total Employment

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The Professional, Scientific and Technical Services industry covers scientific research services, architectural, engineering and technical services, legal and accounting services, advertising services, market research and statistical services, management and consulting services, veterinary services, meteorological services, professional photographic services and computer system design services.

The majority of the industry’s workforce (56%) is employed in small-sized enterprises (those that employ less than 20 workers), with only 22% employed in large enterprises (those that employ 200 workers or more).

The Professional, Scientific and Technical Services industry has a relatively low proportion of part-time workers, with 22% compared to 30% for all industries.

More than half (56%) of workers in the sector hold a Bachelor degree or higher qualification, and only 21% do not hold post-school qualifications compared to 39% for all industries.



Administrative and Support ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Administrative and Support Services industry is projected to decline by 2.0% per annum under the Smart Recovery scenario over the next five years. This is below the rate of decline experienced historically in the industry over the past decade of 1.0%per annum.

Over the longer term, employment growth in the industry is expected to recover considerably, rising above the State average. Despite this, the Administrative and Support Services industry’s share of employment is expected to decline from 3.1% to 2.8%.

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Figure 29: Administrative and Support Services Industry share of Total Employment

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The Administrative and Support Services sector is made up of organisations that provide business related services to other businesses. The sector underpins the work of organisations in all sectors of the economy from large commercial enterprises through to small not for profit organisations.

The key issues across the sector include:• Technological advances, particularly cloud

computing. This is expected to assist businesses customise services and connect and collaborate with other businesses and customers.

• A movement towards value added services particularly in assisting businesses from inception of solutions to implementation.

• New Government legislation may create opportunities as businesses need assistance to come to terms with and/or explain to their customers the impact.

• Continued demand from the resources and energy sectors.

• The basis for competition in the industry is increasingly tied to customer relationships, customer satisfaction and customised solutions, forming new customer segments and revenue streams.

• There is movement towards providing value added services, particularly in assisting businesses to provide a ‘full-service’ to customers from inception of solutions to implementation.

Recent Australian Bureau of Statistics (ABS) data on internet and social media usage indicates that more micro businesses are using the internet to let employees work from home or other locations27. According to the ABS more than a third of micro businesses (those with zero to four employees) now use the internet to enable staff to work from home, an eight percentage point increase from two years ago.

27 Australian Bureau of Statistics (ABS), Cat No. 8129.0, Business Use of Information Technology, 2011-12



Public Administration and SafetyEmployment Outlook

According to the Commission’s modelling, employment in the Public Administration and Safety industry is projected to decline by 1.1% per annum under the Smart Recovery scenario over the next five years. This is in contrast to the rate of growth experienced historically in the industry over the past decade of 3.2% per annum.

Over the longer term, employment growth in the industry is expected to recover and move towards the State average. As a result, the Public Administration and Safety industry’s share of employment is expected to decline from 6.1% to 5.7%.

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3.2%

0.8%

-1.1%-0.1%

-1.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


Figure 31: Public Administration and Safety Industry share of Total Employment

2011-12

2016-17

2024-25

6.1%

5.6%

5.7%

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The ageing workforce is a particular concern for the Public Sector across South Australia. Recent survey data indicates that projected retirements across the three levels of government is significant.

Similarly, South Australia’s State Public Sector workforce age profiles shows that 23.7% of the workforce are aged 55 years and over, representing 24,500 workers.

Currently, strategies are being developed to deal with ageing workforce issues including: succession planning, leadership development, handover procedures, information sharing forums, and mentoring and coaching programs.

The Public Safety sector, encompassing police, defence, fire, search and rescue (aquatic and land-based), emergency services and emergency management plays a key role in the preparation for, response to, and recovery from natural and man-made threats. The diverse nature of the public safety sector requires a highly-trained and responsive workforce capable of responding to threats, maintaining community safety and collaborating across agencies and jurisdictions.

The Commission is aware that industry has major concerns about environmental issues such as increased frequency of extreme weather conditions, bushfires, natural disasters and drought which is impacting on workers in the sector. Industry advised that increased adoption of technological advances, including mobile technologies and tablet computers, will influence operations and service delivery within their sectors into the future. There are also a number of sector-specific technological advances that will influence operations, including increased automation within the water sector and the use of social media networks in disaster management and policing.

Improved communications via new technology is raising community expectations on service delivery and placing additional demands on sector workers. In spite of the trend towards increased service demand, budget constraints are impacting on the service provision across the sector. Further financial strain on public safety organisations stems from their inability to access many external funding programs for training due to current eligibility criteria that exclude government agencies. This issue affects both paid and volunteer personnel.



Education and TrainingEmployment Outlook

According to the Commission’s modelling, employment in the Education and Training industry is projected to increase by 2.5% per annum under the Smart Recovery scenario over the next five years. This is above the rate of growth experienced historically in the industry over the past decade of 1.8% per annum.

Over the longer term this trend is expected to continue, resulting in the Education and Training industry’s share of employment increasing from 7.7% to 9.5%.

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1.8%

2.8%2.5%

3.9%

1.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%


2011-12

2016-17

2024-25

7.7%

8.4%

9.5%

Figure 33: Education and Training Industry share of Total Employment

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The Training and Education industry is the fifth largest employing industry with just over 50,000 people or 7.7% of the total workforce in South Australia.

The sector is being impacted by issues including:• Policy developments leading to increased

transparency and changes in funding models led by demand driven products and services.

• Increased overlap between schools and VET and between VET and higher education.

• Significant growth in student numbers, including improved access for the disadvantaged and those from remote and regional areas, is placing pressure on supply.

• Technology developments improving the delivery of training and innovation and the increasing need for digital literacy.

• National regulation of VET and higher education and a strong compliance regime.

• Demand for the delivery of quality educational experiences and outcomes.

The Commission is aware that the VET workforce is facing a number of challenges including:• Engaging with industry to align training delivery

to workforce needs • Ensuring assessment meets the needs of

Training Packages and gives confidence to participants and industry

• Ensuring Trainers and Assessors are equipped to incorporate Language, Literacy and Numeracy (LLN), foundation sustainability and equity skills development to underpin and support transferability of skills and knowledge.

• Practicing good business skills and workforce planning and development within RTOs.



Health Care and Social AssistanceEmployment Outlook

According to the Commission’s modelling, employment in the Health Care and Social Assistance industry is projected to increase by 3.6% per annum under the Smart Recovery scenario over the next five years. This is stronger than the rate of growth experienced historically in the industry over the past decade of 2.0% per annum.

Over the longer term this trend is expected to continue, resulting in Health Care and Social Assistance industry’s share of employment increasing from 12.8% to 16.4%.

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2.0%

3.9%3.6%

5.8%

3.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%


Figure 35: Health Care and Social Assistance Industry share of Total Employment

2011-12

2016-17

2024-25

12.8%

14.8%

16.4%

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Industry believe the National Disability Insurance Scheme (NIDS) will impact significantly on the employment projections which will be compounded by additional complexities arising from the entry of multinational organisations lured by the additional funding for the sector. The projections could be further influenced by the new aged care educational requirements for staff.

Refugee services is another key policy driver for the sector with the arrival of approximately 50 new refugees every three months, all requiring housing which has the potential to be an cumulative issue that will impact on the sector’s resources for the foreseeable future.

Industry indicated that the replacement figures appear too low for the sector. The industry has an ageing workforce affected by imminent retirements which impact on replacement rates.

Disability SA currently has a 30% workforce turnover many of whom are migrating into other sectors. The main drivers of the exodus are improved pay and conditions. Industry examples were cited such as workers being offered one or two shifts a week, compounded by minimum engagement terms of one hour a week that also require they use their car. The work is very transient and the roles are not structured in a way to become a career. Other impacting factors include Occupational Health and Safety issues around working in people’s homes, as well as travelling between placements.




The new industry standard for the Childcare sector is a Certificate III qualification, which requires significant training activity. Owing to this employers are demanding even higher level qualified staff including Diploma level and above. This has resulted in additional pressures to retain qualified staff.

There is an ongoing need for experienced staff with management and leadership training within the Childcare sector. An emerging requirement is for qualified staff with early childhood training and work experience. Industry flagged the need for government support to up-skill into the Diploma of Children’s Services to broaden the sector’s skills base.

The Disability sector is seeing a consolidation of services through amalgamations being forged to ensure their position in the sector. The skills base is going to shift with new industry requirements around WHS and Workplace English Language and Literacy.

Industry raised concerns that the rollout of the NDIS is being structured by the Commonwealth and not industry. The Productivity Commission predicted a doubling of the workforce under the NDIS post July 1 2013.

The Commission was advised that industry has concerns that with a doubling of funding around the introduction of the NDIS, multinational organisations will enter the sector and significantly change the industry. This has the potential to impact on the delivery of quality care to patients flowing from an increase in the contracting out of services. Further it has the potential for a massive increase in the casualisation of the industry. In addition, employers will need to up-skill to meet the numerous policy changes to ensure their businesses are sustainable, as well as dealing with potential cost cutting that will follow from additional players in the health and community care space. This will be at odds with the up-skilling and professionalisation of the industry.

The Commonwealth is undertaking national workforce development consultations in conjunction with the Community Services and Health Industry Skills Council (CS&HISC) aimed at identifying the specific challenges across industries, and supporting individual agents to design solutions focused on planning and strategy, performance development, and productivity and measurement around the NDIS introduction.

The Government of South Australia reached agreement with the Commonwealth Government on funding the pay increases of the State’s Social and Community Services workers. The funding increases will affect around 12,000 workers in South Australia.

The sector is struggling with how to promote a career in the industry, as well as grappling with retention and development issues. Apart from the professionals including Doctors and Nurses, there is a need to build respect for the numerous roles within the Health and Care sector. The career path for the industry are yet to be articulated with a large proportion of workers currently finding their progression up the qualification scale static after low to mid-level VET attainment. This is set against a backdrop of short shifts being offered by organisations to workers who have to engage with a number of employers to achieve the equivalent of a full time job.

Government is a significant employer in the Childcare, Aged Care and Disability sectors. However, there is a significant difference in pay to the private sector which sees a continual shift of workers out of Government to the private sector for improved pay and conditions.

The sector is also grappling with poor infrastructure, including technology and physical infrastructure, which is well behind that of other sectors. The industry is experiencing a significant shift towards increased technology, especially in the Health Care sector which is having an effect on the level of technological skills expected from employees.

Industry believes there is a critical need for a central repository of industry data in order to predict future workforce needs.


Arts and Recreation ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Arts and Recreation Services industry is projected to increase by 1.9% per annum under the Smart Recovery scenario over the next five years. This is below the rate of growth experienced historically in the industry over the past decade of 2.7% per annum.

Over the longer term the industry is expected to record continued growth, resulting in Arts and Recreation Services industry’s share of employment increasing from 2.1% to 2.2%.

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2.7%

1.5%

1.9%

2.8%

2.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%


2.2%

2.1%

2.2%

2016-17

2024-25

2011-12

Figure 37: Arts and Recreation Services Industry share of Total Employment

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The Arts industry believes that skill sets are appropriate for the much of workforce especially around digital literacy. Industry advised that while skills are needed by workers in the industry they generally do not support the need for full qualifications. The wide diversification of roles within the Arts and Recreational Services industry require multiple skills or a clusters approach to the design and delivery of skill sets which recognises the varying levels of education and experience within the industry.

Industry were keen to advise the Commission that the aggregation of demand for skills sets poses a significant cost, possibly equal to the actual cost of delivering full qualifications which should be considered when determining training subsidy levels under the Funded Training List.

The Commission was advised of a project, Creative Futures, undertaken by industry to address a shortage of appropriately trained people to fill a seasonal gap in workers. The project aims to establish a shared pool of casual staff that can be accessed as the first port of call for all the different events that happen during the Adelaide festival season, and throughout the year. A major achievement of the project was in aggregating and managing the demand for training and placement of workers across industry.

Industry informed the Commission that the Recreation industry is experiencing significant issues around training and retention. To contextualise the issue industry advised there are thousands of volunteers many of whom are trained within their own organisations. However, a significant number of organisations are small and training poses a significant burden on resources especially in light of the high turnover of volunteers.

The industry believe that major improvements to Training Packages across the industry are required to ensure officials (predominantly volunteers) are appropriately trained to manage both major and minor sporting events in South Australia.

Industry informed the Commission of an unintended consequence of the capping of Personal Trainers qualifications under the Funded Training List has resulted in removal of support to people wanting to undertake a traineeship. The removal of training subsidies has also impacted on Indigenous applicants and forward training programs undertaken by Sport SA.

Industry believes that this situation could have been avoided with the introduction of a managed market, based on a bipartisan allocation of an agreed number of training positions to meet genuine industry demand.



Other ServicesEmployment Outlook

According to the Commission’s modelling, employment in the Other Services industry is projected to increase by 2.0% per annum under the Smart Recovery scenario over the next five years. This is above the rate of growth experienced historically in the industry over the past decade of 1.7% per annum.

Over the longer term, employment growth in the Other Services industry is expected to be more subdued. As a result, the industry’s share of employment in expected to fall from 4.3% to 4.1%.

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1.7%

1.4%

2.0%

2.3%

1.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%


4.3%

2016-17

2024-25

4.5%

4.1%

2011-12

Figure 39: Other Services Industry share of Total Employment

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According to the AutoSkills Australia, 2013 Automotive Environmental Scan in the Automotive Repairs and Maintenance, the general consensus among automotive employers in South Australia is that business conditions are irregular. Consumers are not generally servicing their vehicles in accordance with designated vehicle maintenance schedules, but rather are stretching service intervals, often until vehicle breakdowns occur. This is causing irregularities in workflows for businesses, with weeks of little or no work often followed by short periods of intense work. This makes the task of managing staff levels all the more difficult for these businesses. For vehicle collision repair businesses, work is reportedly diminishing due to the fact that modern vehicles are now written-off with much less damage than previous generations of vehicles. The cost of repairing modern technology within vehicles today renders many vehicle repairs economically unviable.

The majority of employers (53.9%) in the automotive repair and maintenance sector reported skill shortages. The main occupations experiencing skills shortage include: Light Vehicle Mechanic, Automotive Transmission Repairer, Heavy Vehicle Mechanic, Panel Beaters, Spray Painter and Tyre Fitter.

The key workforce development issues identified by employers in the automotive repairs and maintenance sector in South Australia, included:• The attraction of labour by other industries.• Achieving productivity improvements with current

staff levels and skill base.• Poor quality candidates.• The cost of employer-sponsored training.• The loss in productivity to businesses through

off-the-job training for staff.

According to the Service Skills Australia, Funeral Services Environmental Scan 2013, economic concerns lay against a backdrop of cultural, demographic and social change. Industry continues to report a greater demand for price conscious funeral offerings in line with the reduced levels of consumer spending seen since 2009. Consequently, prepaid funerals are increasingly becoming a central rule of the funeral services business model.

The greater proportion of migrants coming from Asia has supported a shift in Australia’s immigration patterns. The greater prevalence of cremation in Eastern religion and culture is driving the popularity of this service, relative to burial services. The increasing cultural diversity of the workforce and its customer base means that the ability to provide services attuned to different cultures is becoming an essential skill for many funeral service employees.

Greater cultural diversity, however, is only part of the story. As the population grows and ages the demand for Funeral Services is increasing. The latest census figures reveal that one in five Australians do not ascribe to any religion. This trend toward secularism is driving demand for more personalised funerals. As a result, industry reports that Funeral Service workers need to broaden their knowledge and skill base to cater for both religious and secular consumers.

Finally, the rapid ageing of the Funeral Services workforce is creating concerns of potential future skills shortage in the industry. Such fears are made all the more real given the barriers facing those wishing to enter the industry, including the small number of RTOs delivering qualifications, high course costs and geographical restrictions on availability.



The Commission acknowledges the important role that regions play as drivers of economic development across South Australia.

Consistent with our previous Plans we have structured our regional profiles based on the State Government’s 12 regions which utilise a consistent set of boundaries to define 12 administrative regions in the State. The regional boundaries help improve reporting, planning and service delivery systems and include: four regions in the Adelaide metropolitan area; three regions in the greater Adelaide area (Adelaide Hills, Barossa, and Fleurieu and Kangaroo Island); and five country regions (Eyre and Western, Far North, Limestone Coast, Murray and Mallee, and Yorke and Mid North).

Each State Government Region has unique drivers of economic development, different labour market conditions and different supply potential across demographic groups. Skills and workforce development priorities therefore vary considerably across regions, as detailed in the regional profiles.

The Commission firmly believes that all regions must have in place strategies that match the skills required by growth sectors of the local economy with the skill sets of local job seekers. For regions exposed to structural adjustment issues, it is important they work to transform their economic structure and support displaced workers to access opportunities in growth sectors.

Regional Profiles Overview

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Common to all regions is the significant number of people with low educational attainment. The Commission believes priority must be given to improve the provision and uptake of foundation skills and entry level training, and facilitate pathways into further training and jobs.

The profiles include analysis of published data and information together with local intelligence provided by regional networks and stakeholders. The information comes from the following sources:• Published data, including ABS Labour Force

Survey and Census data, regional labour force estimates from the Department of Education, Employment and Workplace Relations (DEEWR), and VET data from the National Centre for Vocational Education Research (NCVER).

• Consultations with State Government Departments and Regional Development Boards, undertaken by the Commission.

• Jobs and Skills Regional Networks.

Each Profile also includes a summary table of key demographic, labour market and education and training data. The Training and Skills Commission will use the profiles as the basis for further consultation with the regions during 2014, as part of the development of next years plan.

In the course of the Commission preparing this Plan update, the State Government announced its Jobs and Skills Policy. The government has allocated an additional $12 million over three years to increase job creation and support workers to gain new skills and employment as traditional jobs disappear and new roles emerge. The strategy aims to assist South Australians through new and expanded programs including:• The Local Government Stimulus Program.• Skills for Jobs in Regions (expansion).• Building Family Opportunities (extension).• More training for unemployed people through

Skills for All.• Retrenched Workers Program (expansion).• Skills in the Workplace program.

On a regional level the Commission is creating ties with the newly formed Industry supported through Skills for Jobs in the Regions networks (formerly Skills for All in the Regions). We commend this initiative whose role centres on increasing engagement with local industry to better understand regional skill needs to inform Government priorities.

In June, 2013 the Commission visited the Limestone Coast, as part of our industry consultations and to gain deeper insight into the priorities and challenges facing regional South Australia.

While in Mount Gambier the Commission undertook a series of work site visits involving a cross section of industries with representatives of various sectors in the region including:• Whitehead Timber Sales, an Australian owned

family sawmill in Mount Gambier, engaged in timber production for the housing industry.

• The new Mount Gambier Marketplace, the largest retail site within the greater trading area.

• Skills for Jobs in Regions Career Development Centre.

• TAFE SA campus.• Boandik Lodge Aged Care facility.

The visit also included a local regional leader’s function between the Commission and the Limestone Coast Regional Development Australia (RDA) Board which focused on high level discussions about local economic, workforce development and training issues.

The Commission also conducted an industry networking breakfast with key industry leaders representing employers, regional advisory organisations, training providers, Local Government and the University of South Australia.

The Commission observed that the issues in the region are aligned around economic development: however, consideration should be given to the leadership/management needs of this economy, and identifying the skills required for the future. The region requires special attention towards workforce development and pre-employment which can’t necessarily be solved at a local level.



Regional areas employment make up and qualifications under Skills for All

0.0%

Barossa, Light and Lower North

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel

CertificateIII or IV

CertificateI or II

Other Sectors52.2%

Manufacturing17.8%

Health11.2%

Retail10.6%

Const-ruction8.2%

10.7%

7.9%

22.7%

1.9%

0.0%

Eyre and Western

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors53.0%

Agriculture13.4%

Health11.7%

Manufacturing11.2%

Retail10.7%

9.3%

5.7%

22.7%

2.2%

0.0%

Far North

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors54.1%

Mining17.9%

Health10.8%

Accomm.8.8%

Public Admin8.4%

9.9%

5.6%

23.4%

2.0%

Source: ABS, Census of Population and Housing, 2011

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0.0%

Limestone Coast

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors47.3%

Agriculture17.2%

Manufacturing14.0%

Retail11.9%

Health9.6%

9.0%

5.8%

21.3%

2.4%

0.0%

Yorke and Mid North

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors49.7%

Agriculture17.3%

Health12.9%

Retail11.1%

Manu-facturing

9.0%

8.1%

5.9%

20.4%

1.8%

0.0%

Fleurieu and Kangaroo Island

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors55.4%

Health13.3%

Retail11.5%

Agriculture10.1%

Const-ruction9.7%

12.1%

9.1%

22.3%

1.9%

0.0%

Murray and Mallee

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors47.9%

Agriculture19.0%

Health11.6%

Retail10.8%

Manu-facturing

10.7%

7.4%

5.8%

20.0%

2.2%



Barossa, Light and Lower North State Government Region

The Barossa, Light and Lower North State Government Region (SGR) performs relatively well across a number of economic and demographic indicators, compared to South Australia as a whole:• The labour force participation rate is well

above the State average, and• The unemployment rate is significantly lower.

The largest employing industries in the Barossa region in 2011-12 were manufacturing, retail trade, agriculture, forestry, viticulture, health and community services and education and training.11 The share of the Barossa workforce employed in manufacturing and agriculture is well above the state average.

The dominance of manufacturing in the region is due to significant wine processing facilities, the largest in the southern hemisphere. Other heavy industries, such as aluminium, glass and cement manufacturing, have been established as spin-offs from the wine industry.12

Total gross regional product attributable to the wine industry was approximately $660 million in 2011-12, which represented 26% of the region’s total.13

Employment generated by wine industry activities in 2011-12 was estimated to be almost 5,000 full time equivalent jobs, around 24% of the region’s total.

Aside from the continued importance of the wine sector to the region’s economy, economic prospects for the region are heavily influenced by conditions for agriculture and food production, and opportunities for associated services.

The Barossa region is a major food producer through broad acre cropping, horticulture, viticulture and livestock. Industry development in coming years is likely to be in sectors such as advanced manufacturing, tourism and education.

A major influence on industry development in the Barossa is the anticipated population growth projected by the 30 Year Plan for Greater Adelaide. This population growth will drive investment in housing and urban development in the Barossa and adjoining regions, and will have significant effects on other sectors servicing the population.

The 30 Year Plan predicts that an additional 110,000 residents (from the current 65,000), 38,500 jobs and 46,400 houses will be in the Barossa by 2036. This will predominantly be in designated ‘green field’ developments at Roseworthy and Two Wells, and in Gawler and Evanston. Dedicated industrial zones, such as at Kingsford near Gawler, will cater for new industrial enterprises, while associated service industries, such as retail, health and education, will grow as demand increases.14

It is estimated that the recently approved $1.2 billion Two Wells township expansion will create more than 3,000 jobs in the region over the next 20 years, including more than 450 jobs annually in the construction industry.15

A $1 billion Gawler East residential development has also been approved.16

The number and value of major projects in the Barossa is modest compared to other regions that have large mining, defence and urban development projects. The close proximity of Barossa to the Northern Adelaide region—which has a proliferation of major projects across a number of sectors—is likely to provide some flow-on benefits to Barossa residents and businesses. Projects in the Barossa SGR include:• A new $7.5 million retail and office development

under construction in central Gawler. • A $30 million shopping centre at Gawler, expected

to create around 150 jobs.• A $242 million Wind Farm in Keyneton, under

consideration.17

There are a number of structural adjustment pressures and cyclical challenges in the region. For example, the persistently high value of the Australian dollar and the impact of the global financial crisis have negatively impacted on important trade-exposed sectors, such as wine and international tourism. Any downturn in the wine sector has a disproportionate impact on the local workforce, and many people employed in the wine industry (as well as in other key sectors in the region) are more vulnerable because they are in casual, part time or seasonal work.

11 EconSearch, Socioeconomic Profile of the Barossa Regional Development Australia Region - A report to Regional Development Australia Barossa, draft report, p.ix-x. Relates to the Barossa RDA region, 2013

12 Regional Development Australia – RDA, Regional Roadmap – Barossa, p.43, 201013 ibid14 Regional Development Australia – RDA, Regional Roadmap – Barossa, p.43, 201015 Media Release, Deputy Premier John Rau Approval for Two Wells township development, September 1, 201316 DMITRE, Major Developments Directory 2012-1317 DEEWR, South Australia Employment Services Area Profiles, July, 2013

State Government - Regional Briefings

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The agriculture and forestry sector has been impacted by factors such as the high value of the Australian dollar, the effects of drought and an ageing workforce.

The region has prioritised activity to increase workforce participation by ensuring that:• Learning and skills development meets the needs

of individuals and employers.• Young people who are at-risk in the labour market

are connected with education and employment opportunities.

• Individuals in the region are assisted to access learning and work opportunities.

The Barossa, Light and Lower North SGR region has:

1. An estimated 3.6% of State wide student contact hours for non-accredited training in 2013-14 for Adult Community Education (ACE).18

2. Engaged 348 people through Skills for Jobs in Regions in 2013-14 to assist:• 69 people access their Skills for All entitlement• 69 people into pathways including further

education, volunteering and work experience• 70 people into work.

The Jobs and Skills Policy announced by the State Government in September increases the focus on creating and filling job opportunities. Skills for Jobs in Regions19 will support more people into work and employment pathways, in addition to the above numbers.

The Commission notes that the State Goverment funds a number of programs in the region—for example, the Cultivate your Career project introduces jobseekers to horticulture and conservation land management through accredited training delivered at live training sites. Taking place at the Barossa Bush Gardens and Lyndoch Hill (a local holiday resort), this initiative uses a partnership approach with service providers to assist participants develop confidence, self-esteem and build employability skills while obtaining accredited qualifications.

The Side by Side project supports young carers through a structured case management approach. In the Barossa region 1 in 10 young people aged 15-24 have caring responsibilities. Of these, an estimated 56% are not employed or at school, compared to 15% of the general population in the same age group. The focus of this project is to develop confidence and life skills with the objective of re-engaging successfully with learning, training or employment. Individuals are assisted to overcome their personal barriers to training and workforce participation and develop skills to balance their caring responsibilities with the need to earn an income.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate I in Education and Skills Development• Certificate II in Wine Industry Operations• Certificate II in Business• Certificate II in Hospitality• Certificate III in Wine Industry Operations• Certificate III in Children’s Services• Certificate II in Hospitality (Kitchen Operations)• Certificate III in Customer Contact• Diploma of Counselling• Certificate III in Wool Clip Preparation

Under the Skills in the Workplace program a number of companies in the Barossa region have received almost $250,000 in Government funding (as at July 2013), to support existing workers to gain qualifications and skill sets. This is in addition to industry’s contribution of more than $32,000.

18 There are two ACE providers in the Barossa region delivering ACE non-accredited training19 Skills for Jobs in Regions renews the Skills for All in Regions program, with a stronger focus of employment outcomes.



Summary Data – Barossa, Light and Lower North

Population (ABS & Census) Barossa

% of Region

Total

% of State Total

South Australia

State Total

Estimated Resident Population (ERP): June 2012 65,793 - 4.0% 1,638,232 -

Net Change in ERP 2011 to 2012 361 - 4.1% 8,798 -

Rate of Population Change (%) 0.6% - - 0.5% -

Children (0-14 years) 12,925 19.6% 4.5% 289,166 17.7%

Youth (15-24) 8,310 12.6% 3.8% 220,898 13.5%

Middle (25-44) 16,299 24.8% 3.7% 435,092 26.6%

Mature (45-64) 18,434 28.0% 4.3% 432,490 26.4%

People aged 65 and over 9,825 14.9% 3.8% 260,586 15.9%

Aboriginal - Census 2011 748 1.2% 2.5% 30,267 1.8%

People with disability (15-64) – Census 2011 1,227 1.9% 3.8% 32,486 2.0%

Labour Force (DEEWR) March 2013

Total Employed 31,176 - 4.2% 738,446 -

Total Unemployed 1,504 - 3.4% 44,723 -

Unemployment Rate 4.6% - - 5.7% -

Participation Rate (Census 2011) 65.5% - - 62.7% -

Industry Employment (Census 2011)

Manufacturing 5,540 17.8% 7.1% 77,808 10.5%

Health Care and Social Assistance 3,491 11.2% 3.5% 100,530 13.6%

Retail Trade 3,315 10.6% 4.0% 83,012 11.2%

Construction 2,558 8.2% 4.6% 55,499 7.5%

Qualifications (Census 2011)

Degree or higher 5,038 10.7% 2.4% 207,758 17.7%

Diploma Level 3,741 7.9% 3.9% 95,325 8.1%

Certificate Level III or IV 10,716 22.7% 4.8% 223,996 19.1%

Certificate Level I or II 898 1.9% 4.5% 20,061 1.7%

Highest Level of Schooling (Census 2011)

Year 12 16,296 44.0% 3.3% 497,585 54.2%

Year 11 9,814 26.5% 5.0% 196,997 21.5%

Year 10 or below 10,863 29.3% 5.0% 218,377 23.8%

Did not go to school 71 0.2% 1.3% 5,320 0.6%

Training (NCVER) 2012

VET Students 6,442 - 4.4% 146,129 -

Indigenous Students 129 2.0% 2.1% 6,074 4.2%

Students Reporting Disability 446 6.9% 4.7% 9,478 6.5%

Commencing Apprentices and Training (2011) 1,063 - 4.2% 25,328 -

Source: Workforce Wizard, DFEEST, September 2013

P 79

Barossa, Light and Lower North – Financial year 2011-12 compared to Financial year 2012-13:

There were an extra 1,100 publicly funded course enrolments under Skills for All in the Barossa, Light and Lower North region in 2012-2013, increasing from 3,700 in 2011-2012 to 4,800 (in 2012-2013). This was a 30% increase.

The increase in course enrolments of 30% consists of:• 65% increase in Certificate I and II enrolments. • 4% increase in Certificate III and IV enrolments.• 27% increase in Diploma and above enrolments.

The Table below summarises the figures by provider type.

The Figure below depicts the change (in percentage terms) for enrolments under Skills for All between 2011-2012 and 2012-2013 for the selected cohorts.

Skills for All Course Enrolments - Barossa, Light and Lower North SA Government Region TAFE SA

Private/Non-government

providers Total

TAFE Market

Share

2011-2012 3,600 100 3,700 96%

2012-2013 4,300 500 4,800 90%

Change 800 400 1,100 -7%

Percentage Change 21% 250% 30% n/a

Notes: 1 Figures are rounded to the nearest 100. 2 Percentage changes are calculated using non rounded figures. 3 Totals / Changes may not sum due to the effects of rounding. 4 n/a = not applicable, pp = percentage points.

Figure 40: Skills for All, Change in Enrolments, Barossa, Light & Lower North, Selected Groups, 2011-12 and 2012-13 (%)

26%

15%

32%

59%

37%

46%

30%

0%

10%

20%

30%

40%

50%

60%

70%

Aged16-24

Aged 55& older

Female Aboriginal Disability Low-SES All



Eyre and Western State Government Region

The Eyre and Western State Government Region (SGR) performs relatively similar to South Australia as a whole across a number of economic and demographic indicators. For example:• The labour force participation rate is above

the state average, but• The unemployment rate is also slightly above

the state average.

The region’s economy centres on primary production and processing, including a significant seafood industry. The agriculture, forestry and fishing sector employed 13.4% of the region’s workforce (well above the State average) at the time of the 2011 Census. It should be noted that the seasonal influence of grain and fishing harvests has a major impact on the regions ability to source adequately skilled people during these peak times. This issue is discussed under the Chapter 5 Building Adaptive Capacity of the Plan.

The share of employment is also high in health care and social assistance, manufacturing and retail trade. Together, these four industries account for almost half of the employment in the region. In comparison, these four industries account for 34% of employment on a State level.

According to the RDA Whyalla and Eyre Peninsula Regional Plan 2013-14, the region produces 42% of South Australia’s total agricultural output and produces and exports 80% of South Australia’s seafood product. The region has a large manufacturing sector, with many new projects pending; a large and diverse retail trade and small business sector; a fast growing tourism industry (contributing $270 million per annum to the regional economy); and a fast growing mining industry, due to a wealth of mineral resources.20

Opportunities exist to further diversify the region’s economic base through new industrial initiatives, the development of mining operations, as well as renewable energy projects.21 The region has been identified as one of the best locations internationally for wind, solar and wave renewable energy development. Major wind farm developments and several solar and hydro thermal pilot initiatives are being progressed.22

Steel manufacturing and associated mining activities are a key source of employment in the region, especially in Whyalla. Whyalla also has an expanding hub of industries that support mining activities across the region and adjoining regions.23

A scoping study by the Resources and Engineering Skills Alliance (RESA) in 2013 analysed the current and future workforce requirements of the South Australian resources sector up to 2020. This study found that across the state, the average total employment for operational and approved mining projects (five of which are located in the Eyre and Western region) over the next seven years is 14,788 people. The study also identified that additional workforce demand will come from another 34 mining projects that are awaiting approval—over one third of these projects are located in the Eyre and Western region.

In total there are 15 mining sites recognised across the Eyre and Western region that are either operating, developing or in prospect. Mining activity in the Eyre and Western region has a focus on iron ore and heavy minerals projects, but also includes gold, uranium, graphite and kaolin prospects.24

The entire Upper Spencer Gulf region of South Australia (including Port Pirie, Whyalla and Port Augusta) is undergoing a significant economic transition as it moves towards a more diversified and stronger economic base. Over the next decade, the region will see potentially $36 billion of investment in the mining, minerals processing, renewable energy, and associated services sectors.25

20 Regional Development Australia—RDA Whyalla and Eyre Peninsula, Regional Plan 2013-2014, p.22, 201321 ibid p.522 ibid23 Government of South Australia, Strategic Infrastructure Plan for South Australia – 2010 Discussion Paper, Government of South Australia, Adelaide p.130, 201024 Deloitte, Regional Mining and Infrastructure Project – Eyre and Western, p.18, 201325 Australian Government, South Australian Government and Local Government Association, Upper Spence gulf – A Place-Based Strategy for Regional Transformation, 2013

P 81

26 Regional Development Australia—RDA Whyalla and Eyre Peninsula, Regional Plan 2013-2014, p.6, 201327 ibid p.6

The region generates significant wealth from agriculture, forestry and fishing and manufacturing sectors. However, these sectors are experiencing significant structural adjustment pressures, including the continuing high value of the Australian dollar and changing seasonal conditions.

A key challenge cited by the RDA Whyalla and Eyre Peninsula is that many of the region’s development opportunities, such as mining and renewable energy projects, will not be realised unless the region’s infrastructure needs are addressed. For example, some mining enterprises will not progress from exploration to operation until the road and rail networks are upgraded and bulk commodity port facilities with cape-class vessel capacity have been established to get mineral resources to the market.26

Growth in industries such as mining may place further competitive pressures on the traditional sectors of agriculture and manufacturing. The strong demand for mineral resources (especially from China and India) results in a continuing high value of the Australian dollar, with a potentially negative impact on the competitive position of other trade-exposed sectors.

Another challenge for the region relates to meeting projected workforce needs for proposed mining and industrial growth. For example, the RDA Regional Plan highlights that workforce demand is expected to escalate substantially with 4,500 new jobs generated by 2016 in the mining sector alone in the region, and a further 2,200 workers needed within the next ten years, based on the estimates provided in the RESA study. Even if the entire region’s unemployed and underemployed were sufficiently up-skilled to gain employment, it is projected that there would still be a notable shortfall in labour demand.27 This is likely to be exacerbated by the ageing workforce in the region.

The general level of educational attainment and qualifications is below the state average. In addition, the region contains pockets of significant disadvantage, with Ceduna and Whyalla among the most disadvantaged regions in South Australia.



The region has prioritised activity to increase workforce participation by focusing on ensuring that:• People who are most disadvantaged in the

labour market can access pathways that lead to sustainable employment.

• People in the region have the opportunity to access their Skills for All learning entitlement.

The Jobs and Skills Policy announced by the State Government in September 2013 has an increased focus on creating and filling job opportunities Skills for Jobs in Regions28 is designed to support more people into work and employment pathways, in addition to the above numbers.

There are a number of participation and equity programs, supported through the Skills for Jobs in Regions program, that are targeting regional priorities in Eyre and Western including:• Provision of ACE—Eyre and Western has an

estimated 7.5% of State wide student contact hours for non-accredited training in 2013-14.29

• Engaging 470 people through Skills for Jobs in Regions30 in 2013/14 to assist:- 94 people access their Skills for All entitlement- 94 people into pathways including further

education, volunteering and work experience- 94 people into work.

Additional projects receiving state government funding include:• Pre-Employment Industry Cluster Project program,

in which participants receive accredited training, mentoring, career services sessions, work experience and post-placement support to gain and sustain a job in skill shortage industries, such as health and community services, resources and infrastructure, business administration, retail, and civil construction.

• Agrifoods Project assists unemployed job seekers with a range of transferable skills to support seasonal employment within the Agriculture Industry. Participants develop their foundation and employability skills to enter further training and transition into employment.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Community Services• Certificate II in Driving Operations• Certificate I in Education and Skills Development• Certificate III in Transport Distribution

(Maritime Operations)• Certificate III in Aged Care• Certificate II in Engineering• Certificate III in Carpentry• Certificate II in Hospitality• Certificate II in Resources and

Infrastructure Work Preparation• Agricultural Chemical Skill Set

Under the Skills in the Workplace program a number of companies in the Eyre and Western region have received almost $200,000 in government funding (as at July 2013), to support existing workers gain qualifications and skill sets. This is in addition to industry’s contribution of more than $97,000.

28 Skills for Jobs in Regions renews the Skills for All in Regions program, with a stronger focus of employment outcomes.29 There are four ACE providers in the Eyre and Western region delivering ACE non-accredited training.30 The Skills for Jobs in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation projects

that respond innovatively to local skill and workforce needs by: providing people with the skills to succeed in training and employment; providing employers with access to skilled workers at the time they need them.

P 83Regional Profiles Overview


Summary Data – Eyre & Western

Population (ABS & Census)Eyre &

Western

% of Region

Total

% of State Total

South Australia

State Total


Net Change in ERP 2011 to 2012 -90 - -1.0% 8,798 -

Rate of Population Change (%) -0.2% - - 0.5% -

Children (0-14 years) 11,671 20.2% 4.0% 289,166 17.7%

Youth (15-24) 7,241 12.5% 3.3% 220,898 13.5%

Middle (25-44) 14,662 25.4% 3.4% 435,092 26.6%

Mature (45-64) 15,434 26.7% 3.6% 432,490 26.4%


Aboriginal - Census 2011 3,221 5.7% 10.6% 30,267 1.8%



Total Employed 25,271 - 3.4% 738,446 -





Agriculture, Forestry and Fishing 3,383 13.4% 11.8% 28,724 3.9%


Manufacturing 2,824 11.2% 3.6% 77,808 10.5%

Retail Trade 2,707 10.7% 3.3% 83,012 11.2%


Degree or higher 3,678 9.3% 1.8% 207,758 17.7%

Diploma Level 2,250 5.7% 2.4% 95,325 8.1%




Year 12 12,501 40.1% 2.5% 497,585 54.2%

Year 11 8,829 28.4% 4.5% 196,997 21.5%

Year 10 or below 9,742 31.3% 4.5% 218,377 23.8%



VET Students 6,729 - 4.6% 146,129 -



Commencing Apprentices and Training (2011) 981 - 3.9% 25,328 -


P 85

Eyre and Western Skills for All Summary Data (Financial year 2011-12 compared to 2012-13)

There were an extra 1,900 publicly funded course enrolments under Skills for All in the Eyre and Western region in 2012-2013, increasing from 4,000 in 2011-2012 to 5,900 (in 2012-2013). This was a 48% increase.

The increase in course enrolments of 48% consists of:• 102% increase in Certificate I and II enrolments. • 18% increase in Certificate III and IV enrolments.• 12% decrease in Diploma and above enrolments.

The Table below summarise the figures by provider type.


Skills for All Course Enrolments - Eyre and Western SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 3,400 600 4,000 86%

2012-2013 4,400 1,500 5,900 74%

Change 1,000 900 1,900 -11pp



Figure 41: Skills for All, Change in Enrolments, Eyre and Western, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


109%

202%

35%

13% 21%34%

48%

0%

50%

100%

150%

200%

250%



Far North State Government Region

The three largest employing industries in the Far North State Government Region are mining (17.9%, well above the state average of 1.3%), health care and social assistance (10.8%) and accommodation and food services (8.8%).31

Major industries in the Far North region include mining, sheep, beef cattle and grain farming, tourism and defence. The tourism industry continues to be the mainstay of many regional townships in the region. The population of the Far North region is skewed towards young working age males, reflecting the nature of employment opportunities in the region.32

Most of South Australia’s major mines are located in the Far North, including Olympic Dam and Prominent Hill (copper, gold, silver, uranium), Beverly (uranium), Cairn Hill and Peculiar Knob (iron), Leigh Creek (coal), Beltana (zinc), and Challenger (gold).

The Far North region has twelve operating mines and fifteen developing projects.33 The region also exhibits considerable diversity in its minerals prospects, with exploration and development projects targeting iron, copper, uranium, gold and silver.34

The entire Upper Spencer Gulf region of South Australia (including Port Pirie, Whyalla and Port Augusta) is undergoing a significant economic transition as it moves towards a more diversified and stronger economic base. Over the next decade, the region will see potentially $36 billion of investment in the mining, minerals processing, renewable energy, and associated services sectors.35

There are a number of structural adjustments and cyclical pressures facing the Far North region. For example, over-reliance on mining for local employment and export income means the region is vulnerable to fluctuations in the global economy that affect demand for resources.36

According to the RDA Far North Regional Plan, the key challenges for the Far North include its demographic diversity, young people leaving townships to seek further education and work, the availability of affordable housing and skills shortages.

Furthermore, a recent workforce and skills survey conducted by RDA Far North showed that attracting and retaining qualified and experienced staff was a major issue for local businesses. Survey respondents highlighted that the main difficulty in retaining staff was linked to not being able to compete with higher wages offered in the mining sector.

The general level of educational attainment and qualifications in the region is below the state average. Full-time participation in secondary school is around 19 percentage points below the South Australian average; however, the region has a much higher participation rate in VET courses (112.7 people per 1,000 persons compared with 73.5 per 1,000 for South Australia as a whole).37

The region has prioritised activity to increase workforce participation by focusing on:• Building literacy, numeracy and foundation skills.• Working with industry and community to improve

workforce opportunities and outcomes for Aboriginal people (around one in five of South Australia’s total Aboriginal population lives in the Far North region).

• Developing more opportunities for young people to enter training and work.

• Promoting the natural strengths of the region to maximise sustainable employment opportunities.

31 Australian Bureau of Statistics, (ABS), Cenus of Population and Housing, 201132 Regional Development Australia—RDA (2013), Far North Regional Plan 2013-2016 33 ibid p.1234 Deloitte, Regional Mining and Infrastructure Project – Far North, p.20, 201335 Australian Government, South Australian Government and Local Government Association (2013), Upper Spence gulf – A Place-Based Strategy for Regional Transformation36 South Australian Centre for Economic Studies Regional Fact Sheets,37 South Australian Centre for Economic Studies Regional Fact Sheets http://www.adelaide.edu.au/saces/economy/regionprofiles/ [accessed October 2012]

P 87

The Commission is aware of a number of DFEEST programs that help build regional capacity for increasing workforce participation in the Far North including:• Provision of ACE has an estimated 5.1% of State

wide student contact hours for non-accredited training and 4.1% of State wide student contact hours for accredited training in 2013-14.38 This is a significant increase from previous years where there has been very little or no ACE activity.

• Engaging 287 people through Skills for Jobs in Regions39 in 2013-14 to assist:- 57 people access their Skills for All entitlement- 57 people into pathways including further

education, volunteering and work experience- 57 people into work.


The Commission also notes that, DFEEST wholly or partly funds a number of projects specific to the Far North region in addition to a number of cross regional programs.

Youth Exploring Potential Project (YEP) provides holistic support to young people (aged 15-24) to support them into education, further education, employment and training. The project is based on wrap-around servicing and uses a non-compliance driven engagement model. The program is being delivered cross-regionally in Port Augusta, Port Pirie, Peterborough and, more recently, Whyalla as part of the Skills for Jobs in Regions program.

Women in Heavy Industry Training program supports local unemployed women to gain skills which will enable them to access an employment pathway in industry areas that are traditionally male-dominated, including trades, mining, construction and transportation. Participants will complete a Certificate II in Civil Construction and tickets such as White Card, Work Safely at Heights and Confined Spaces, which provide desirable skills for a range of industries. Participants are supported by local mentors who help them to address barriers, successfully complete their studies and transition into employment.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Engineering - Production Technology• Certificate II in Automotive Mechanical• Certificate II in Automotive Vehicle Servicing• Certificate II in Business• Certificate II in Engineering• Certificate II in Construction Pathways• Certificate IV in Accounting• Certificate II in Surface Extraction Operations• Certificate I in Education and Skills Development• Certificate I in Furnishing

The Commission is aware that DFEEST is working with companies across a number of sectors in the Far North through the Skills in the Workplace program. Funding of more than $106,000, including nearly $12,000 of private investment (as at July 2013), is supporting existing workers to gain qualifications and skill sets.

38 There are four ACE providers in the Far North region delivering ACE Non-Accredited training and one ACE provider delivering Accredited training.39 The Skills for Jobs in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation projects

that respond innovatively to local skill and workforce needs by: providing people with the skills to succeed in training and employment; providing employers with access to skilled workers at the time they need them.

40 Skills for Jobs in Regions renews the Skills for All in Regions program, with a stronger focus of employment outcomes



Summary Data – Far North

Population (ABS & Census)Eyre &

Western

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 6,100 20.7% 2.1% 289,166 17.7%

Youth (15-24) 4,080 13.8% 1.8% 220,898 13.5%

Middle (25-44) 8,679 29.4% 2.0% 435,092 26.6%

Mature (45-64) 7,495 25.4% 1.7% 432,490 26.4%



People with disability (15-64) – Census 2011 524 1.9% 1.6% 32,486 2.0%


Total Employed 12,731 - 1.7% 738,446 -

Total Unemployed 686 - 1.5% 44,723 -




Mining 2,287 17.9% 23.8% 9,615 1.3%


Accommodation and Food Services 1,122 8.8% 2.4% 46,166 6.3%

Public Administration and Safety 1,066 8.4% 2.0% 52,209 7.1%


Degree or higher 1,850 9.9% 0.9% 207,758 17.7%

Diploma Level 1,037 5.6% 1.1% 95,325 8.1%




Year 12 5,831 37.0% 1.2% 497,585 54.2%

Year 11 4,157 26.4% 2.1% 196,997 21.5%

Year 10 or below 5,623 35.7% 2.6% 218,377 23.8%



VET Students 3,178 - 2.2% 146,129 -





P 89

Far North – Financial year 2011-12 compared to Financial year 2012-13:

There were an extra 100 publicly funded qualification enrolments under Skills for All in the Far North region in 2012-2013, increasing from 1,800 in 2011-2012 to 2,000 (in 2012-2013). This was a 7% increase.

The increase in course enrolments of 7% consists of:• 19% increase in Certificate I and II enrolments. • 21% decrease in Certificate III and IV enrolments.• 100% increase in Diploma and above enrolments.

The following Table summarise the figures by provider type.


Skills for All Course Enrolments - Far North SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 1,600 300 1,800 85%

2012-2013 1,700 200 2,000 88%

Change 200 (*) 100 3pp

Percentage Change 11% -13% 7% n/a

Notes: 1 Figures are rounded to the nearest 100. 2 Percentage changes are calculated using non rounded figures. 3 Totals / Changes may not sum due to the effects of rounding. 4 Figures of less than 0 and greater than -49 are represented by a (*). 5 n/a = not applicable, pp = percentage points.

Figure 42: Skills for All, Change in Enrolments, Far North, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


11%

20%16%

-2%

-43%

15%

7%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%



Fleurieu and Kangaroo Island State Government Region

The Fleurieu and Kangaroo Island (KI) State Government Region (SGR) had large proportions of residents employed in the health care and social assistance, retail trade and agriculture, forestry and fishing sectors in 2011.

The Regional Development Australia (RDA) region41 contributes an estimated $3.5 billion to the state’s Gross State Product (around 3.9%). Tourism generates around 10.4% of the region’s economic output.42

The Fleurieu and KI region is transforming from being predominantly agriculturally-based to servicing the needs of a growing and ageing population. This is likely to intensify in coming years as a result of population movements predicted in the State Government’s 30 Year Plan for Greater Adelaide. The Plan targets an additional 22,000 people and 14,500 dwellings in the region by 2036, driven by strong projected growth for Victor Harbor.43

Industry development in Fleurieu and KI will most likely be driven by replacement needs and the growth of labour-intensive service sectors. Significant business development and employment opportunities are likely to be available across the region, particularly in industries such as retail, building and construction, property and business services, hospitality, health and education. Economic development on Kangaroo Island is expected to be driven by tourism and agriculture, forestry and fishing sector growth.

In general, the proliferation of mining, defence and urban development major projects in other regions means the number and value of major projects in the Fleurieu and KI region is relatively small. A $21 million Aquatic centre in Alexandrina Council area is one major project likely to progress.

There are a number of structural adjustment pressures and cyclical challenges in the region, including the high value of the Australian dollar and the effect of the Global Financial Crisis. This negatively impacts on international tourism, on which the region is heavily reliant.

The agriculture, forestry and fishing sector is relatively large in the Fleurieu and KI region. This sector has been significantly impacted by the increasing value of the dollar, declining profitability and climate change, as well as a loss of skills and a declining labour force.

The RDA Adelaide Hills, Fleurieu and KI recognises that business viability is a major challenge in parts of the region, due to seasonal tourism, growing competition from online trading, lack of large projects (to enable economies of scale) and competition from larger operators outside the region, particularly in retail, building and civil construction.

A major challenge for the region will be to build local capacity to meet predicted future job growth. This challenge is magnified due to the skill needs of certain population groups, particularly for foundation skills development. For example, at the time of the 2011 Census, there were 13,445 people whose highest level of educational attainment was Year 11 or lower, out of a total ‘working age’ (15-64 year old) population of 24,186.

Key labour force indicators for Fleurieu and KI show lower labour force participation rates accompanied by higher rates of unemployment, compared with South Australia as a whole. Relatively low labour force participation rates can be explained in part by the older age profile of the region, attributable to its attractiveness as a retirement destination. The general level of education attainment and qualifications is below the State average.

The region has prioritised activity to increase workforce participation by focusing on:• Ensuring people in the region with low educational

attainment have the literacy and numeracy skills needed to access a training pathway.

• Assisting people who are not participating in learning and/or work to access pathways into sustainable employment.

• Assisting young people who are disadvantaged in the labour market to gain access to a supported pathway that leads to sustainable employment.

41 The Regional Development Australia (RDA) Adelaide Hills, Fleurieu and Kangaroo Island region comprises two State Government Regions (SGRs) – Fleurieu and Kangaroo Island SGR and the neighbouring Adelaide Hills SGR.

42 RDA, RDA Adelaide Hills, Fleurieu and Kangaroo Island Regional Roadmap Reviewed 2012, p.10, 201243 Department of Planning and Local Government – DPLG, The 30-Year Plan for Greater Adelaide, Government of South Australia, Adelaide, p.135, 2010

P 91

The Commission is aware that DFEEST supports a number of participation and equity programs to address regional priorities, including:• Provision of Adult Community Education (ACE)—

Fleurieu and Kangaroo Island has an estimated 7.8% of State wide student contact hours for non-accredited training and 12.0% of State wide student contact hours for Accredited training in 2013-14.44

• Engaging 480 people through Skills for Jobs in Regions45 in 2013/14 to assist:

• 94 people access their Skills for All entitlement• 94 people into pathways including further

education, volunteering and work experience• 96 people into work


The Commission is aware of the breadth of DFEEST funded projects in the region. For example, the Youth Worx project (delivered as part of the Skills for Jobs in Regions program) engages with ‘at risk’ young people in local schools and the broader community by delivering case management to address barriers to participation, and assisting young people in navigating career opportunities. A Project advisory group has been established comprising stakeholders from across the region.

The Employment Assistance (Mature Aged and Retrenched Workers) project provides advice on training and employment opportunities to mature age job seekers. Participants are given advice on transferring skills or re-skilling and then linked to Skills for All courses for full qualifications. Links with local employers help participants to seek and gain employment.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Hospitality• Certificate I in Hospitality• Certificate I in Education and Skills Development• Diploma of Youth Work• Certificate IV in Alcohol and Other Drugs• Diploma of Accounting• Certificate III in Micro Business Operations• Certificate II in Business• Certificate III in Aged Care• Certificate III in Business Administration47

The Commission notes that DFEEST is working with companies across a number of sectors in the Fleurieu and KI region through the Skills in the Workplace program. Funding of over $380,000, including private investment of $42,000 (as at July 2013) is supporting existing workers to gain relevant qualifications and skill sets to help increase productivity.

44 There are three ACE providers in the Fleurieu and Kangaroo Island region delivering ACE non-accredited training and two ACE Providers delivering accredited training.45 Skills for Jobs in Regions reaches, engages and supports people who are least likely to connect with learning and work by developing and implementing tailored,

local projects that provide pathways to training and jobs. Projects link people to learning, training, skills and jobs, while also meeting the labour and skill needs of industry and employers. These ‘pre-employment’ and ‘pre-training’ projects prepare people to make meaningful and supported transitions into non-accredited VET, entry-level accredited VET (Cert I and Cert II), accredited VET (Cert III and above), volunteering and jobs. The South Australia Works participant figures include Career Development Services participants.

46 Skills for Jobs in Regions renews the Skills for All in Regions program, with a stronger focus of employment outcomes.47 ibid.



Summary Data – Fleurieu and Kangaroo Island

Population (ABS & Census)

Fleurieu & Kangaroo

Island

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 7,276 15.5% 2.5% 289,166 17.7%

Youth (15-24) 4,341 9.2% 2.0% 220,898 13.5%

Middle (25-44) 8,881 18.9% 2.0% 435,092 26.6%

Mature (45-64) 14,325 30.4% 3.3% 432,490 26.4%





Total Employed 18,589 - 2.5% 738,446 -






Retail Trade 2,143 11.5% 2.6% 83,012 11.2%


Construction 1,795 9.7% 3.2% 55,499 7.5%


Degree or higher 4,198 12.1% 2.0% 207,758 17.7%

Diploma Level 3,146 9.1% 3.3% 95,325 8.1%




Year 12 10,268 43.3% 2.1% 497,585 54.2%

Year 11 6,090 25.7% 3.1% 196,997 21.5%

Year 10 or below 7,309 30.8% 3.3% 218,377 23.8%



VET Students 4,619 - 3.2% 146,129 -





P 93

Fleurieu and Kangaroo Island – Financial year 2011-12 compared to Financial year 2012-13:

There were an extra 400 publicly funded course enrolments under Skills for All in the Fleurieu and Kangaroo Island region in 2012-2013, increasing from 1,100 in 2011-2012 to 1,600 (in 2012-2013). This represents a 38% increase in training.


The following Table summarise the figures by provider type.


Skills for All Course Enrolments - Fleurieu and Kangaroo Island SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 900 200 1,100 82%

2012-2013 1,100 500 1,600 68%

Change 100 300 400 -14pp



Figure 43: Skills for All, Change in Enrolments, Fleurieu and Kangaroo Island, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


44%

24%

34%

-4%

13%

-53%

38%

-60%

-40%

-20%

0%

20%

40%

60%


P 95

Limestone Coast State Government Region

The Limestone Coast State Government Region (SGR) has an above average labour force participation rate and relatively low unemployment, compared with the South Australian average.

The region generates significant wealth from its agriculture, viticulture, forestry and fishing48 and manufacturing sectors. Agriculture largely comprises beef, dairy, sheep meat and wool production, while important primary production crops for the region include grain, pasture, vegetable seed, potatoes, onions and fruit crops. Established wine producing areas such as Coonawarra, Padthaway, Wrattonbully and Mount Benson make valuable contributions to the State’s annual wine crush. Food production and value-added processing is a key potential growth opportunity.

More than 31% of employment in the Limestone Coast is concentrated in agriculture, viticulture, forestry and fishing and manufacturing sectors, which is well above the state average.49 Forestry is the largest employer in the region, with operations in and around Mount Gambier, Millicent, Tarpeena and Nangwarry. Manufacturing enterprises within the region are related to agriculture, forestry, and food and wine processing and make up the second largest employment sector.50 The skill levels sought by agricultural and manufacturing employers are likely to increase as global competition intensifies and technological advances accelerate. As the region is characterised by low educational attainment and an ageing workforce, there is a strong need for retraining, re-skilling and up-skilling. Building the capacity of local Skills for All training providers to deliver training in the skills industry needs is of major importance.

A number of initiatives and projects are helping to diversify the economic base of the region. Future labour market opportunities in the region are projected for water use and management, renewable energy projects, high-end tourism opportunities, food and beverage production, retail, health (including aged care) and in the education sectors.51

The proliferation of major projects in mining, defence and urban development in other regions means the number and value of major projects in the Limestone Coast region is relatively small. This not only impacts on the economic development potential of the region, but also the ability to attract and retain skilled workers from higher paying jobs in other regions.

The Commission notes the current projects in the region that include:• A $16 million upgrading of Timberlink’s Tarpeena

saw mill. Almost half of the funding comes from the State Government’s $27 million South East Forestry Partnerships Program.

• South Australian Government grants totalling $8.6 million to five South East timber companies for business improvement. The grants are the first to be allocated from the government’s forward sale of timber harvests in the South East.

• $2.6 million State Government funding for the establishment of two premium food and wine innovation clusters, including one in the Limestone Coast. This initiative aims to improve the long-term growth and competitiveness of South Australian Agriculture, Food and Wine industries.

• A $12 million expansion to University of South Australia’s Mount Gambier site, tripling the size of the current facility. In addition, ICT facilities will be significantly upgraded to improve regional learning opportunities. Funding for the project will come from the Commonwealth Government’s Regional Priorities, Education Investment Fund.

• A $7 million wave energy converter. The demonstration plant would be built by Oceanlinx, which has received $4 million of Commonwealth Government funding for the project.52

48 Referred to as agriculture for the remainder of the document49 Australian Bureau of Statistics, Cenus of Population and Housing, 201150 http://www.livelimestonecoast.com.au/the-limestone-coast-economy.html [accessed August 2013]51 Strickland, H, Limestone Coast Workforce: Analysis of supply, demand, emerging trends and opportunities and strategies for regional workforce

development, Regional Development Board, South East, 200952 DEEWR, South Australia Employment Services Area Profiles, July, 2013



The region’s agricultural, viticultural and manufacturing sectors have experienced a number of cyclical and structural difficulties in recent years, including droughts, a wine grape glut, the impact of the Global Financial Crisis and a reduction in private investment.

Uncertainty around future growth in the forest industry and subsequent wood processing industries is a concern for residents in the region. However, confidence in the region is now growing as a result of the industry developments highlighted above.

The region has prioritised activity to increase workforce participation by focusing on:• Supporting those who are vulnerable or not

participating in the local labour force to access support services and skills development opportunities.

• Supporting individuals to develop mobile and easily transferable skills that meet current and future industry needs in the region.

The Commission notes that there have been several DFEEST program responses that support Limestone Coast to build its capacity to increase workforce participation, these include:• Provision of Adult and Community Education

(ACE)—Limestone Coast has an estimated 4.8% of State wide student contact hours for Non-Accredited Training and 3.5% of State wide student contact hours for Accredited Training in 2013-14.

• Engaging 693 people through Skills for Jobs in Regions in 2013-14 to assist:- 190 people into work;- 174 people access their Skills for All entitlement;- 174 people into pathways including further

education, volunteering and work experience.53


53 The Skills for Jobs in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation projects that respond innovatively to local skill and workforce needs by: providing people with the skills to succeed in training and employment; providing employers with access to skilled workers at the time they need them.

54 Skills for Jobs in Regions renews the Skills for All in Regions program, with a stronger focus of employment outcomes.

P 97

55 ibid.

The Commission also notes that DFEEST funds many programs in the region. For example, Career Services across the region assist people to manage their career by making informed decisions on and smooth transitions into learning, training and work. Work preparation and employability skills programs targeting mature aged people, people with a disability and retrenched workers will also be funded throughout the year to support people into work.

This project will engage participants from low socioeconomic backgrounds who are early school leavers, long-term unemployed, disengaged, marginalised and predominately experience low incomes. Training will focus on enhancing literacy, numeracy and digital skills in the area of computer technology and prepare participants for employment.

Skills for Jobs in Regions is engaging extensively with industry by supporting business associations and awards as part of its Jobs and Skills Regional Network. The Commission has seen how this actively embeds DFEEST into business functions to acquire regional intelligence and promotes local awareness of the suite of services available through State Government agencies.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Business• Certificate I in Education and Skills Development• Certificate III in Education Support• Certificate II in Aged Care• Diploma of Management• Certificate III in Children’s Services• Certificate IV in Accounting• Certificate II in Retail Services• Certificate II in Financial Services• Certificate II in Information, Digital Media

and Technology55

The Skills in the Workplace program is working with a number of companies in the Limestone Coast region including:• Whiteheads Timbers: training using various

skills clusters that enable multi-tasking and boost productivity. The whole of the workforce is undertaking either a Certificate III in Competitive Manufacturing or Certificate IV in Front Line Management.

• Boandik Lodge, which is the largest aged care provider in the Limestone Coast. Boandik has a strong training focus and works closely with the University of South campus in Mount Gambier. With DFEEST assistance, skill sets in Lifestyle Support are being delivered, as Boandik strives to provide contemporary care solutions to clients.

• Seven businesses in the Mount Gambier area are undertaking a Diploma of Salon Management, through TAFE SA Regional at Mount Gambier campus.


Summary Data – Limestone Coast

Population (ABS & Census)Limestone

Coast

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 12,822 20.0% 4.4% 289,166 17.7%

Youth (15-24) 7,575 11.8% 3.4% 220,898 13.5%

Middle (25-44) 16,107 25.1% 3.7% 435,092 26.6%

Mature (45-64) 17,601 27.5% 4.1% 432,490 26.4%





Total Employed 30,180 - 4.1% 738,446 -






Manufacturing 4,218 14.0% 5.4% 77,808 10.5%

Retail Trade 3,603 11.9% 4.3% 83,012 11.2%



Degree or higher 4,072 9.0% 2.0% 207,758 17.7%

Diploma Level 2,642 5.8% 2.8% 95,325 8.1%


Certificate Level I or II 1,082 2.4% 5.4% 20,061 1.7%


Year 12 13,947 39.5% 2.8% 497,585 54.2%

Year 11 9,885 28.0% 5.0% 196,997 21.5%

Year 10 or below 11,258 31.9% 5.2% 218,377 23.8%



VET Students 8,009 - 5.5% 146,129 -





P 99

Limestone Coast – Financial year 2011-12 compared to Financial year 2012-13:

There were an extra 2,000 publicly funded course enrolments under Skills for All in the Limestone Coast region in 2012-2013, increasing from 4,200 in 2011-2012 to 6,300 (in 2012-2013). This represents a 48% increase.


The following Table summarises the figures by provider type.


Skills for All Course Enrolments - Limestone Coast SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 3,800 500 4,200 89%

2012-2013 5,000 1,300 6,300 79%

Change 1,200 800 2,000 -10pp



Figure 44: Skills for All, Change in Enrolments, Limestone Coast, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


43%

15%

52%

166%

54%

111%

48%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%


P 101

Murray and Mallee State Government Region

Economic activity in the Murray and Mallee56 is based on agricultural primary product production, including horticulture, viticulture, dairy farming and livestock production. More than any other State Government Region (SGR), Murraylands and Riverland is dependent on agricultural production to drive employment and economic growth57. At the time of the 2011 Census, 19.0% of the Murraylands and Riverland workforce were employed in the agriculture, viticulture, forestry and fishing sector. Over 50% of people employed in the region in 2011 worked in just four industry sectors, namely, agriculture, health care and social assistance, retail trade and manufacturing.

While this industry structure has remained relatively constant over time, the nature of these industries is changing.

It is estimated that the region contributes around $2.2 billion of the State’s estimated $15 billion gross food and wine production, predominantly in the areas of fruit, milk, vegetable, meat and grain production and processing. The region is the State’s largest producer of wine grapes, potatoes and onions and hosts the largest family owned business in South Australia.58

According to the Regional Development Australia, Regional Roadmap, Murraylands and Riverland’s location on key transport routes, affordable land and available workforce will attract future investment in the region. Growth of primary production and manufacturing is expected to continue, while renewable energies, transport and logistics and tourism are expected to be high growth areas in the future.59

The identified regional economic strengths are based around:• Sustainable environmental management.• Innovation in food and beverage production.• Tourism.• Opportunities deriving from the digital economy.• Liveability.60

Major projects in the region include Murray Zircon’s Mindarie Sands mine, which commenced operating in December 2012 and is expected to produce up to 120,000 tonnes of heavy mineral concentrate each year for export to China for processing.61

The 2013-14 State Budget included $2.6 million over four years for the establishment of two premium food and wine innovation clusters, including one in this region. This initiative aims to improve the long-term growth and competitiveness of the South Australian agriculture, food and wine industries.62

The Riverland Sustainable Futures Fund has provided $1.2 million grant funding to Berri-based manufacturing company Valls Styrene to expand its operations to include the manufacture of environmentally-friendly building insulation products.

South Australian diamond tool maker Syntec has also received over $1.4 million through this fund, to move its manufacturing plant from China to the Riverland.

The State Government has matched funding provided through the Regional Development Infrastructure Fund, benefitting economic and business development in the Riverland.63

Three local projects within the Murraylands and Riverland region have been granted a total of $928,580 in funding through Round Three of the Commonwealth Government’s Regional Development Australia Fund.

There are also two economic development programs in the region initiated as part of the Murray Darling Basin Plan.64

56 Referred to as Murraylands and Riverland for the remainder of this document57 South Australian Centre for Economic Studies, Regional Fact Sheets http://www.adelaide.edu.au/saces/economy/regionprofiles/ [accessed October 2012]58 Regional Development Australia – RDA, Regional Development Australia Murraylands and Riverland – Regional Roadmap 2013-2016, p.6, 201359 ibid, p.1360 ibid, p.3161 DEEWR, South Australia Employment Services Area Profiles, July, 201362 ibid63 ibid64 RDA Murraylands and Riverland e-newsletter, Issue 5, June 2013, accessed at http://www.rdamr.org.au/fileadmin/user_upload/Riverland/June_2013_-_RDA_

Murraylands__Riverland_e-news_newsletter.pdf, September 2013



Despite these positive industry developments, the Murraylands and Riverland region faces a number of economic development challenges, including.• The ability to attract and retain labour with the

relevant skills and knowledge in expanding sectors;• Pockets of entrenched disadvantage in regional

centres such as Murray Bridge and Berri; • The region’s dependence on commodities,

making it vulnerable to global markets; • The lingering effects of the Global Financial Crisis.65

The region is characterised by older workers in the key sectors of agriculture and manufacturing. As such, there is likely to be high demand to replace people exiting the labour force over the coming years. However, systemic barriers to workforce participation—such as transport infrastructure—may inhibit these employment opportunities being filled.

When compared with the state average, Murraylands and Riverland have low levels of educational attainment and qualifications, particularly at degree and diploma levels, as well as low labour force participation. Therefore, the region has prioritised activity to increase workforce participation that focuses on:• Ensuring people with low educational attainment

can access learning, training and employment pathways.

• Assisting individuals who are marginalised in the labour market to transition into sustainable learning, training and employment pathways.

• Increasing workforce participation by taking advantage of regional opportunities for economic growth.

The Commission notes that DFEEST has several program responses that help build the capacity of the region to increase workforce participation, these include:

1. Provision of Adult Community Education (ACE)—Murraylands and Riverland has an estimated 6.1% of State wide student contact hours for non-accredited training in 2013-14.66

2. Engaging 553 people through Skills for Jobs in Regions67 in 2013-14 to assist:• 100 people access their Skills for All entitlement• 110 people into pathways including further

education, volunteering and work experience• 110 people into work.


The Jobs in Industry Program is one DFEEST funded initiative that helps address identified workforce participation priorities in the Riverland region. This project has been developed with industry to meet the seasonal need of wineries, by providing participants with pre-training in industry relevant skill sets and clusters, as well as other necessary licenses and training needs. Making the connection with industry can open up many doors, as well as provide participants with a variety of skills and recognised local work history. These skills can translate across many industries in the region —not just the wine industry.

65 Regional Development Australia – RDA, Regional Roadmap 2013-2016, p.16, 201366 There are six ACE providers in the Murray and Mallee region delivering ACE non-accredited training. 67 Skills for Jobs in Regions reaches, engages and supports people who are least likely to connect with learning and work by developing and implementing tailored,

local projects that provide pathways to training and jobs. Projects link people to learning, training, skills and jobs, while also meeting the labour and skill needs of industry and employers. These ‘pre-employment’ and ‘pre-training’ projects prepare people to make meaningful and supported transitions into non-accredited VET, entry-level accredited VET (Cert I and Cert II), accredited VET (Cert III and above), volunteering and jobs. The South Australia Works participant figures include Career Development Services participants.


P 103

The Community Support Program (to be undertaken in Murraylands) works directly with the disability support industry to up-skill and attract new workers to sustain a predominantly part time and casual workforce. Participants are provided with pre-employment training in skill sets to help them gain industry-relevant skills, such as working within work, health and safety regulations and manual handling training. The project is working alongside state and Federal partners to explore up-skilling opportunities for existing staff who may be vulnerable due to inadequate qualifications.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Retail Services• Certificate I in Education and Skills Development• Certificate II in Hospitality• Certificate III in Children’s Services• Certificate II in Business• Certificate II in Engineering• Certificate III in Aged Care• Certificate II in Agriculture• Certificate II in Education and Skills Development• Certificate IV in Training and Assessment69

The Commission also notes that DFEEST is working with companies across a number of sectors in the Murraylands and Riverland region through the Skills in the Workplace program, with total funding of around $51,000 (as at July 2013) to support existing workers gain qualifications and skill sets.

69 ibid.


Summary Data – Murrary and Mallee

Population (ABS & Census)

Murray and

Mallee

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 12,748 18.5% 4.4% 289,166 17.7%

Youth (15-24) 8,175 11.8% 3.7% 220,898 13.5%

Middle (25-44) 16,155 23.4% 3.7% 435,092 26.6%

Mature (45-64) 19,688 28.5% 4.6% 432,490 26.4%





Total Employed 28,834 - 3.9% 738,446 -







Retail Trade 3,102 10.8% 3.7% 83,012 11.2%

Manufacturing 3,079 10.7% 4.0% 77,808 10.5%


Degree or higher 3,546 7.4% 1.7% 207,758 17.7%

Diploma Level 2,771 5.8% 2.9% 95,325 8.1%




Year 12 12,937 35.7% 2.6% 497,585 54.2%

Year 11 9,452 26.1% 4.8% 196,997 21.5%

Year 10 or below 13,599 37.5% 6.2% 218,377 23.8%



VET Students 7,541 - 5.2% 146,129 -





P 105

Murray and Mallee – Financial year 2011-12 compared to Financial year 2012-13:

There were an extra 1,300 publicly funded course enrolments under Skills for All in the Murray and Mallee region in 2012-2013, increasing from 2,500 in 2011-2012 to 3,800 (in 2012-2013). This was a 53% increase.


The following Table summarises the figures by provider type.


Skills for All Course Enrolments - Murray and Mallee SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 1,800 700 2,500 73%

2012-2013 2,500 1,400 3,800 64%

Change 600 700 1,300 -9pp



Figure 45: Skills for All, Change in Enrolments, Murray and Mallee, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


46%

72%

57%

26%

57%53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

12%



Yorke and Mid North State Government Region

The region is transitioning from a significant reliance on the agriculture sector70 (which accounted for 17.3% of total employment in the region in 2011), to a more diverse economic base. Regional Development Australia (RDA) Yorke and Mid North is supporting specific industry sectors in the region to expand, including value-added agriculture, intensive livestock, building and construction, service industries (particularly for the new mining population), mining and mineral processing, and renewable energy and alternative water sources.71 Diversification is also being driven by major projects in minerals and energy, such as renewable energy developments in wind farms and geothermal energy.

Major projects include:• Nyrstar has reached an in-principle funding

and support agreement with the state and Commonwealth Governments to redevelop the Port Pirie smelter (the “Transformation”). The Transformation, subject to feasibility studies, would include investment in new technology to upgrade the facility to an advanced poly-metallic processing and recovery facility capable of processing a wide range of high value, high margin raw materials. Assuming the Transformation is completed as expected, commissioning of the new plant is expected to occur early in 2016.

• Rex Minerals aims to commence building its $900 million Hillside copper and gold mine in the first half of 2014. It is expected to generate $11 billion in revenue over the 15 year life of the mine.

• A number of wind farm proposals are being considered, including near Black Point and Snowtown.

• Ice cream manufacturer Golden North is spending $3 million to add new product lines and initiate export sales into South East Asia.72

It is estimated there are around 19 mining projects (either operating, developing or in prospect) in the Yorke and Mid North region, with activity predominantly in exploration and early stage developments, especially for copper, iron ore and uranium.73

The entire Upper Spencer Gulf region of South Australia is undergoing a significant economic transition as it moves towards a more diversified and stronger economic base. Over the next decade, the region will see potentially $36 billion of investment in the mining, minerals processing, renewable energy, and associated services sectors.

In order to secure these investments and maximise the significant economic and social dividends, the Upper Spencer Gulf has recognised that it needs to be on the front foot in establishing an investor-friendly environment and supporting sustainable communities that will be the key to long-term economic and social growth.

A Memorandum of Understanding for a place-based approach in the Upper Spencer Gulf (the MOU) was signed by the three spheres of government in 2012. The purpose of the MOU is to facilitate the development of coordinated, strategic, cooperative arrangements for the Upper Spencer Gulf and includes a governance framework structure to support its implementation.

The Yorke and Mid North State Government Region (SGR) must build the capacity of the local labour force to take up job openings in growth industries, currently and in the future. This is particularly important in industries where skilled and experienced workers are needed to fill vacancies. With Year 12 completion rates well below the state average, up-skilling, re-skilling and foundation skills development are of vital importance in Yorke and Mid North.

70 Agriculture remains the largest employer in the region but over recent years has moved from broad-acre farming to more intensive farming and animal husbandry (i.e. pig and poultry farming), feed lots and horticulture.

71 Regional Development Australia – Regional Development Australia Yorke and Mid North Regional Roadmap p.9, 201272 DEEWR, South Australia Employment Services Area Profiles, July, 201373 Deloitte, Regional Mining and Infrastructure Project – Yorke and Mid North/Braemer, p.17, 2013

P 107

The health and community services sector exemplifies this skills challenge, with increasing demands due to an ageing population and the lifestyle attraction of the region for mature aged people.

There are a number of structural adjustment pressures facing the region. For example, the local agriculture and viticulture industries have been significantly impacted by the value of the dollar, world gluts and shortages and droughts.74

Such structural change, as well as cyclical influences, brings employment losses that are keenly felt in the region due to its relatively narrow industry base.

The Yorke and Mid North SGR, compared with the state average, has population decline and low levels of educational attainment and post-school qualifications compared with the state average.

Therefore, the region has prioritised activity to increase workforce participation by focusing on:• Delivering education and skill attainment programs

that assist individuals to increase their foundation skill levels and enter pathways into further education and training.

• Developing coordinated initiatives that engage individuals who are not working and support them to participate in the labour force.

• Supporting youth engagement and participation by better connecting services and increasing transition options for young people into further education, training and employment.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Hospitality• Certificate I in Education and Skills Development• Certificate II in Engineering – Production

Technology• Certificate III in Agriculture• Certificate II in Retail Services• Certificate II in Automotive Vehicle Servicing• Certificate II in Horticulture• Certificate IV in Youth Work• Certificate III in Aged Care• Agricultural Chemical Skill Set75

The Commission is aware that DFEEST is working with companies across a number of sectors in the Yorke and Mid North region through the Skills in the Workplace program. Funding of over $290,000, including private investment of more than $33,000 (as at July 2013) is supporting existing workers to gain relevant qualifications and skill sets to increase productivity.

74 Regional Development Australia – ibid p.3075 ibid.



Summary Data – Yorke and Mid North

Population (ABS & Census)Yorke &

Mid North

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 13,419 18.1% 4.6% 289,166 17.7%

Youth (15-24) 7,656 10.3% 3.5% 220,898 13.5%

Middle (25-44) 15,229 20.5% 3.5% 435,092 26.6%

Mature (45-64) 22,008 29.6% 5.1% 432,490 26.4%





Total Employed 29,714 - 4.0% 738,446 -







Retail Trade 3,297 11.1% 4.0% 83,012 11.2%

Manufacturing 2,668 9.0% 3.4% 77,808 10.5%


Degree or higher 4,360 8.1% 2.1% 207,758 17.7%

Diploma Level 3,166 5.9% 3.3% 95,325 8.1%




Year 12 13,878 36.2% 2.8% 497,585 54.2%

Year 11 10,954 28.6% 5.6% 196,997 21.5%

Year 10 or below 13,392 34.9% 6.1% 218,377 23.8%



VET Students 7,805 - 5.3% 146,129 -





P 109

Yorke and Mid North – Financial year 2011-2012 compared to Financial year 2012-2013:

There were an extra 1,000 publicly funded course enrolments under Skills for All in the Yorke and Mid North region in 2012-13, increasing from 2,700 in 2011-2012 to 3,800 (in 2012-2013). This was a 37% increase consisting of:• a 87% increase in Certificate I and II enrolments. • a 14% increase in Certificate III and IV enrolments.• a 10% increase in Diploma and above enrolments.

The Table below summarises the figures by provider type, level of education and the top ten largest qualification growth:

The Figure below depicts the change (in percentage terms) for enrolments under Skills for All between 2011-12 and 2012-13 for selected cohorts.

Skills for All Course Enrolments - Yorke and Mid North SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 2,000 700 2,700 73%

2012-2013 2,600 1,200 3,800 69%

Change 600 400 1,000 -4pp



Figure 46: Skills for All, Change in Enrolments, Yorke and Mid North, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


37%

17%

33%

5%

31%

27%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%



Metropolitan and Greater Metropolitan Regions employment make up and qualifications under Skills for All

0.0%

Adelaide Hills

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors57.7%

Health13.6%

Retail10.5%

Education9.7%

Const-ruction8.5%

23.6%

10.7%

19.7%

1.6%

0.0%

Eastern Adelaide

10.0% 20.0% 30.0% 40.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors53.1%

Health15.7%

Retail10.0%

Education10.6%

Professional Services

10.6%

35.1%

9.6%

11.8%

1.0%

0.0%

Northern Adelaide

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors53.0%

Health12.7%

Retail12.1%

Public Admin.8.3%

Manufacturing13.9%

12.4%

7.4%

20.6%

2.0%

Source: ABS, Census of Population and Housing, 2011

P 111

0.0%

Southern Adelaide

5.0% 10.0% 15.0% 20.0% 25.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors54.6%

Health15.7%

Retail11.8%

Education8.8%

Manufact.9.1%

19.9%

9.2%

20.2%

1.7%

0.0%

Western Adelaide

4.0% 8.0% 12.0% 16.0% 20.0%

Degreeor higher

DiplomaLevel


CertificateI or II

Other Sectors57.2%

Health13.1%

Retail11.0%

PublicAdmin7.7%

Manufact.11.0%

18.7%

8.3%

17.8%

1.4%



Adelaide Hills State Government Region

The Adelaide Hills State Government Region (SGR) performs relatively well across a number of economic and demographic indicators, compared to South Australia as a whole:• the proportion of residents with post-school

qualifications is above the state average,• the labour force participation rate is well above

the state average, and• the unemployment rate is significantly lower.

The region is heavily reliant on its natural assets to provide comparative advantage. Significant industries include manufacturing (including wine making and food processing), agriculture, forestry and fishing, building and construction, retail and tourism.

The region has a very high proportion of micro and small businesses. In 2012, over 65% of businesses were sole operators and a further 20% employing had fewer than four employees. The two major employing industries for Adelaide Hills residents in 2011—health care and social assistance, and retail trade—are the same as for South Australia as a whole. In 2011-12, there were about 32,000 jobs in the Regional Development Australia (RDA) region76 for a labour force of over 60,000 people, meaning a significant number of employed residents work outside the region.77

Industry development in Adelaide Hills in coming years will be heavily influenced by the 30 Year Plan for Greater Adelaide and, in particular, the projected population growth for Mount Barker, Nairne and Littlehampton. The precinct’s population is expected to increase by around 15,000 over the next 15 years, generating 4,270 full-time equivalent jobs and resulting in a $500 million increase in gross regional product. Significant business development and employment opportunities are anticipated in labour-intensive industries, such as retail, construction, hospitality, health and community services and education.78

The RDA Adelaide Hills, Fleurieu and Kangaroo Island recognises that business viability is a major challenge in parts of the Adelaide Hills region subject to seasonality, growing competition from online trading, lack of large projects (to enable economies of scale) and competition from larger operators outside the region, particularly in retail, building and civil construction.79

The number and value of major projects in the Adelaide Hills region is modest compared to other regions that have large mining, defence and urban development projects. However, the proximity of this region to adjoining metropolitan and non-metropolitan areas means residents can benefit from major project and industry development opportunities in other regions.

Specific projects in Adelaide Hills include:• A new $4.9 million medium density housing

development (approved), the development of over 120 new lots (being considered) and more than 540 homes in two new housing estates (being considered) in Mount Barker

• A supermarket, speciality shops, residential units and a community hub for Nairne, in the early planning stages; and the development of 99 new lots (being considered)

• A $14 million 80-bed nursing home at Mount Barker, due for completion in late 2014.80

There are a number of structural adjustment pressures and cyclical challenges facing the region. This includes the negative impact of a high Australian dollar on international tourism, on which the region is so dependent. This has a negative flow-on effect to many micro, small and medium-sized enterprises in the Adelaide Hills.

76 Comprising Adelaide Hills and Fleurieu and Kangaroo Island SGRs77 Econsearch, Socioeconomic Profile of the Adelaide Hills, Fleurieu Kangaroo Island Regional Development Australia Region, 201378 Regional Development Australia Adelaide Hills, Fleurieu and Kangaroo Island—RDA, Regional Roadmap, Reviewed 2012, pp.27-29. In

addition to the Adelaide Hills, the Roadmap also includes neighbouring State Government Region Fleurieu and Kangaroo Island. 201279 RDA, ibid, p.20, 201280 DEEWR, South Australia Employment Services Area Profiles, July, 2013

P 113

The RDA sees the major challenge for Adelaide Hills as identifying business and industry development opportunities that service a growing population but that do not compromise the status of existing surrounding industries, such as agriculture and tourism. The provision of more local jobs for local people has been targeted in order to ease pressure on already taxed transport infrastructure and to retain more of the economic benefits of a growing regional population.

The region has prioritised activity to increase workforce participation by focusing on:• Young people who are disengaged from learning

and work to make effective transitions between school, training and work, and

• People who are marginalised in the labour market—such as newly-arrived migrants, people with disability and Aboriginal people—to transition to sustainable learning, training and employment pathways.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate IV in Leisure and Health• Certificate I in Education and Skills Development• Certificate II in Tourism• Certificate III in Children’s Services• Certificate II in Resources and Infrastructure

Work Preparation• Certificate II in Holiday Parks and Resorts• Certificate II in Drilling Operations• Certificate III in Nutrition and Dietetic Assistance• Certificate III in Events• Certificate III in Allied Health Assistance81

The Commission notes that in addition to the implementation of Skills for All, DFEEST supports a number of participation and equity initiatives to address regional priorities, including:• Provision of Adult Community Education (ACE)—

Adelaide Hills has an estimated 6.8% of State wide student contact hours for non-accredited training and 10.2% of State wide student contact hours for accredited training in 2013-14.82

• Engaging 312 people through Skills for Jobs in Regions83 in 2013/14 to assist:- 62 people into work- 62 people access their Skills for All entitlement- 62 people into pathways including further

education, volunteering and work experience.


The Commission is aware of a number of Skills for Jobs in Regions projects in the region, including YEAH (Youth Engage, Adelaide Hills) to help address the issue of disengaged young people. Participants can access experiential learning opportunities, career advice, driver training and case management support to help them re-engage with learning, training and work.

Mature aged job seekers and retrenched workers are supported by the Employment Assistance project, which provides advice to participants about local training and employment opportunities, and helps them to identify transferrable skills and access re-skilling opportunities through Skills for All.

The Commission is aware that the Skills in the Workplace program is co-investing in the region with over 14 enterprises in a range of sectors, assisting 40 employees to gain relevant qualifications and skill sets.

81 ibid.82 There are four ACE providers in the Adelaide Hills region delivering ACE non-accredited training and two ACE providers delivering accredited training.83 The Skills for Jobs in Regions pogram engages South Australians who are disconnected from learning, training and work, in tailored workforce

participation projects that respond innovatively to local skill and workforce needs by: providing people with the skills to succeed in training and employment; providing employers with access to skilled workers at the time they need them.




Summary Data – Adelaide Hills

Population (ABS & Census)Adelaide

Hills

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 14,167 20.2% 4.9% 289,166 17.7%

Youth (15-24) 9,029 12.9% 4.1% 220,898 13.5%

Middle (25-44) 17,108 24.4% 3.9% 435,092 26.6%

Mature (45-64) 20,989 29.9% 4.9% 432,490 26.4%





Total Employed 35,427 - 4.8% 738,446 -






Retail Trade 3,718 10.5% 4.5% 83,012 11.2%

Education and Training 3,447 9.7% 5.9% 58,592 7.9%

Construction 3,023 8.5% 5.4% 55,499 7.5%


Degree or higher 11,842 23.6% 5.7% 207,758 17.7%

Diploma Level 5,347 10.7% 5.6% 95,325 8.1%




Year 12 24,299 60.0% 4.9% 497,585 54.2%

Year 11 8,603 21.2% 4.4% 196,997 21.5%

Year 10 or below 7,539 18.6% 3.5% 218,377 23.8%



VET Students 6,327 - 4.3% 146,129 -





P 115

Adelaide Hills – Financial year 2011-12 compared to Financial year 2012-13:

There were an extra 1,000 publicly funded course enrolments under Skills for All in the Adelaide Hills region in 2012-2013, increasing from 3,600 in 2011-2012 to 4,600 (in 2012-2013). This was a 29% increase.


The following Table summarises course enrolments by provider type.

The Figure below depicts the change (in percentage terms) for enrolments under Skills for All between 2011-2012 and 2012-2013 for selected cohorts.

Skills for All Course Enrolments - Adelaide Hills SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 2,900 700 3,600 81%

2012-2013 3,500 1,000 4,600 77%

Change 700 400 1,000 -3pp



Figure 47: Skills for All, Change in Enrolments, Adelaide Hills, Selected Groups, 2011-12 and 2012-13 (%)

Aged16-24

Aged 55& older


45%

26% 27%

-4%

51%

-5%

29%

-10%

0%

10%

20%

30%

40%

50%

60%



Eastern Adelaide State Government Region

The Eastern Adelaide State Government Region (SGR) encompasses the Local Government Areas (LGAs) of Adelaide, Burnside, Campbelltown, Norwood Payneham and St Peters, Prospect, Unley, and Walkerville.

The general level of educational attainment in Eastern Adelaide is high; the percentage of residents having a bachelor’s degree or higher is double the state average. In the labour market, Eastern Adelaide has a higher participation rate, and a lower unemployment rate than the South Australian average.

Key employing industries for residents include Health Care and Social Assistance (15.7%), Education and Training (10.6%), Professional Services (10.6%), and Retail (10%).85

As the region includes the Adelaide Central Business District, the industry structure is dominated by government administration, educational institutions, hospitals, finance and business services and hospitality premises.

The 30 Year Plan for Greater Adelaide targets a net increase of 56,000 jobs over the planning period. Eastern Adelaide has a number of urban development infrastructure projects committed over coming years. Many are in Adelaide, such as the new Royal Adelaide Hospital development, the Adelaide Oval re-development, the Riverbank precinct development; and new hotels, including the Ibis on Grenfell Street, and the Mayfair on King William Street.

Eastern Adelaide’s concentration of head office and administrative centres in finance, property and business services means the region will also benefit from mining, defence and urban development projects located across the state.

While the region experiences lower levels of unemployment than the state average, there are many people—including young people, people with low educational attainment and newly-arrived migrants with language, literacy and skill recognition needs—who face disadvantage in the labour market.

Therefore, the region has prioritised activity to increase workforce participation by focusing on ensuring that:• Young people who are at-risk in the labour market

are linked with appropriate support services.• People with low educational attainment are able to

improve their foundation skills.• Culturally and Linguistically Diverse (CALD)

migrants are assisted to improve their language and literacy skills.

The Commission is aware of a number of DFEEST program responses that help build regional capacity for increasing workforce participation in Eastern Adelaide including:• Provision of Adult Community Education (ACE) —

Eastern Adelaide has an estimated 7.6% of State wide student contact hours for non-accredited training and 11.7% of State wide student contact hours for accredited training in 2013-14.86




85 Australian Bureau of Statistics, (ABS), Census of Population and Housing, 201186 There are four ACE providers in the Eastern Adelaide region delivering ACE non-accredited training and three ACE Providers delivering accredited training.87 The Skills for All in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation

projects that respond innovatively to local skill and workforce needs by: providing people with the skills to succeed in training and employment; providing employers with access to skilled workers at the time they need them.


P 117

Project examples include:• The Working Solutions for Homeless People

project engages those at the margins of the labour force and community into a training pathway leading to paid employment. The project links participants to health and housing services, and provides literacy and numeracy training to enable participants to identify training and employment options that can meet their immediate and medium-to-long term goals.

• The Careers for a Lifetime project provides assistance for unemployed young people to gain training and employment in the Health and Community Services industry. The project provides pre-entry training, mentoring, and individual learner case management to help participants to complete Certificate III level training and identify employment opportunities.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate II in Hospitality• Certificate I in Spoken and Written English• Certificate III in Aged Care• Certificate III in Fitness• Certificate III in Children’s Services• Certificate IV in Training and Assessment• Certificate II in Business• Certificate I in Hospitality• Certificate III in Health Support Services• Diploma of Nursing (Enrolled-Division 2 Nursing)89

The Commission is also aware that the Skills in the Workplace program is currently engaging over 70 enterprises, assisting 866 employees gain relevant qualifications and skills sets. The private investment of $690,000 in training has been supported by public investment in excess of $1,500,000.

89 ibid.



Summary Data – Eastern Adelaide

Population (ABS & Census)Eastern

Adelaide

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 31,576 14.5% 10.9% 289,166 17.7%

Youth (15-24) 33,576 15.4% 15.2% 220,898 13.5%

Middle (25-44) 59,572 27.4% 13.7% 435,092 26.6%

Mature (45-64) 55,098 25.3% 12.7% 432,490 26.4%





Total Employed 101,587 - 13.8% 738,446 -







Professional, Scientific and Technical Services 10,731 10.6% 26.5% 40,521 5.5%

Retail Trade 10,192 10.0% 12.3% 83,012 11.2%


Degree or higher 56,167 35.1% 27.0% 207,758 17.7%

Diploma Level 15,314 9.6% 16.1% 95,325 8.1%




Year 12 94,836 76.2% 19.1% 497,585 54.2%

Year 11 16,002 12.9% 8.1% 196,997 21.5%

Year 10 or below 13,144 10.6% 6.0% 218,377 23.8%



VET Students 14,298 - 9.8% 146,129 -





P 119

Skills for All Course Enrolments - Eastern Adelaide SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 15,500 13,800 29,300 53%

2012-2013 22,800 22,800 45,600 50%

Change 7,400 9,000 16,300 -3pp



Figure 48: Skills for All, Change in Enrolments, Eastern Adelaide, Selected Groups, 2011-12 and 2012-13 (%)

Female Aboriginal Disability Low-SES AllAged16-24

Aged 55& older

55%

83%

64%

12%

78%

42%

56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Eastern Adelaide – Financial year 2011-2012 compared to Financial year 2012-2013:

There were an extra 16,300 publicly funded course enrolments under Skills for All in the Eastern Adelaide region in 2012-2013, increasing from 29,300 in 2011-2012 to 45,600 (in 2012-2013). This was a 56% increase.






Northern Adelaide State Government Region

The Northern Adelaide State Government Region (SGR) encompasses the Local Government Areas (LGAs) of Playford, Salisbury and Tea Tree Gully, and the Port Adelaide Enfield East and Inner Statistical Local Areas (SLAs).

The region has a participation rate slightly lower than the state average, while unemployment rates are presently just over a percentage point higher in the region compared with South Australia as a whole.

Industry development in Northern Adelaide over coming years will be heavily influenced by the large number of major projects occurring across a range of sectors, including urban development, defence, education, health and other services, water management and manufacturing. These projects will assist in diversifying the regional industry base away from its historical reliance on the manufacturing sector.

The expected increase in the region’s population, as predicted in the 30 Year Plan for Greater Adelaide, is also likely to drive substantial industry development. The plan targets net employment growth of 79,000 over the period. Industries such as construction, retail and health and social assistance are expected to be significantly influenced by population growth.90 Stakeholder feedback has identified that there are already significant skills and labour demands for the community services sector.

At the time of the 2011 Census, people employed in the region were predominantly working in manufacturing, health care and social assistance, and retail trade. The greatest increase in the share of employment among Northern Adelaide residents in recent years has been in the health care and social assistance sector, according to the Blueprint for Skills and Employment91 commissioned by Northern Futures in 2010.

Within the manufacturing sector, employment growth in defence manufacturing may partially offset declining demand for labour in automotive manufacturing.92 However, the skill needs of defence manufacturing are generally higher level and more specialised than those of the automotive sector, and the defence manufacturing sector is relatively small.

The City of Playford has recently received $11.3 million funding from the Australian Government towards the Stretton Centre. The Centre will deliver skills training, support co-location of business support services and conduct local employment research to support a growing population.

There are a number of structural adjustment pressures and cyclical challenges facing the region. The high value of the Australian dollar and the impact of the global financial crisis have put pressure on the trade-exposed manufacturing sector, on which the region is reliant. Recent layoffs at General Motors Holden—despite production of the Holden Cruze commencing—illustrate this point. If these pressures on the manufacturing sector continue, this is likely to impact on the expected population growth in the region, with flow-on effects to other industries.

90 Carson, E and Kerr, L, Northern Adelaide Skills, Workforce and Employment Blueprint, report prepared for Northern Futures, 201091 ibid92 ibid. p.6-7

P 121

The Northern Adelaide SGR, compared with the State average, has:• Persistent high levels of unemployment and • Lower levels of educational attainment and

qualifications, particularly at degree and diploma levels.

The region has prioritised activity to increase workforce participation by focusing on:• Strengthening links between industry and

education, training and employment providers.• Supporting engagement in learning and

employment and growing aspiration at the individual, family and educator levels.

These priorities reflect the need to address inter-generational disadvantage in the labour market — a major inhibitor of workforce participation — that is prevalent in parts of Northern Adelaide.

There are a number of program responses that help build regional capacity for increasing workforce participation in Northern Adelaide including:• Provision of Adult Community Education (ACE)

— Northern Adelaide has an estimated 23.9% of State wide student contact hours for Non-Accredited training and 33.4% of State wide student contact hours for Accredited training in 2013-14.93

• Engaging 1,377 people through Skills for Jobs in Regions94 in 2013/14 to assist:- 275 people into work- 273 people access their Skills for All entitlement- 273 people into pathways including further

education, volunteering and work experience

The Jobs and Skills Policy announced by the State Government in September increases the focus on creating and filling job opportunities. The Commission is aware that Skills for Jobs in Regions95 will support more people into work and employment pathways, in addition to the above numbers.

The Commission is also aware that DFEEST wholly or partly funds many projects in the region. For example, the Blokes and Beauties on the Block project provides intensive support to men and women who have disengaged from learning, training and work. The project supports participants to address complex problems such as homelessness, substance abuse and domestic violence, before assisting them complete a Certificate II level qualification, and identifying work and options for further training.

The Powerful Pathways for Women project works with women from disadvantaged backgrounds to secure employment in the energy utilities sector. Participants will complete a variety of Certificate II level qualifications, and skills sets nominated by industry.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate I in Education and Skills Development• Certificate II in Driving Operations• Certificate II Business• Certificate III in Aged Care• Certificate II in Warehousing Operations• Certificate II in Animal Studies• Certificate II in Nail Technology• Certificate III in Dental Assisting• Certificate II in Retail Make-Up and Skin Care• Certificate III in Children’s Services96

The Skills in the Workplace program is currently engaged with 25 enterprises, assisting 60 employees gain relevant qualifications and skills sets. The private investment of $31,000 in training has been supported by public investment in excess of $280,000.

93 There are ten ACE providers in the Northern Adelaide region delivering ACE Non-Accredited training and six ACE providers delivering Accredited training.94 The Skills for Jobs in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation





Summary Data – Northern Adelaide

Population (ABS & Census)Northern Adelaide

% of Region

Total

% of State Total

South Australia

State Total


Net Change in ERP 2011 to 2012 3,872 - 44.0% 8,798 -


Children (0-14 years) 71,300 19.3% 24.7% 289,166 17.7%

Youth (15-24) 53,478 14.5% 24.2% 220,898 13.5%

Middle (25-44) 106,391 28.8% 24.5% 435,092 26.6%

Mature (45-64) 90,154 24.4% 20.8% 432,490 26.4%





Total Employed 160,355 - 21.7% 738,446 -





Manufacturing 22,231 13.9% 28.6% 77,808 10.5%


Retail Trade 19,456 12.1% 23.4% 83,012 11.2%



Degree or higher 32,079 12.4% 15.4% 207,758 17.7%

Diploma Level 19,082 7.4% 20.0% 95,325 8.1%




Year 12 101,625 48.5% 20.4% 497,585 54.2%

Year 11 47,499 22.7% 24.1% 196,997 21.5%

Year 10 or below 57,997 27.7% 26.6% 218,377 23.8%

Did not go to school 2,278 1.1% 42.8% 5,320 0.6%


VET Students 35,071 - 24.0% 146,129 -

Indigenous Students 1,233 3.5% 20.3% 6,074 4.2%

Students Reporting Disability 2,396 6.8% 25.3% 9,478 6.5%



P 123

Northern Adelaide – Financial year 2011-2012 compared to Financial year 2012-2013:

There were an extra 6,400 publicly funded course enrolments under Skills for All in the Northern Adelaide region in 2012-2013, increasing from 16,900 in 2011-2012 to 23,300 (in 2012-2013). This was a 38% increase.




Skills for All Course Enrolments - Northern Adelaide SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 12,600 4,200 16,900 75%

2012-2013 16,500 6,800 23,300 71%

Change 3,800 2,600 6,400 -4pp



Figure 49: Skills for All, Change in Enrolments, Northern Adelaide, Selected Groups, 2011-12 and 2012-13 (%)


Aged 55& older

40%

60%

40%

27%

37%39%

38%

0%

10%

20%

30%

40%

50%

60%

70%



Southern Adelaide State Government Region

The Southern Adelaide State Government Region (SGR) encompasses the Local Government Areas of Holdfast Bay, Marion, Mitcham and Onkaparinga. The region contains more than one-fifth of the total population of South Australia.

Southern Adelaide has higher rates of labour force participation than the state average. The region benefits from its proximity to Flinders University, with Southern Adelaide residents having higher levels of educational attainment and qualifications compared with the South Australian average, particularly at degree and diploma levels.

Southern Adelaide’s gross regional product is estimated to be worth over $6.4 billion.97

The three largest employing industries in the region are health care and social assistance (15.7%), retail trade (11.8%) and manufacturing (9.1%).98 The share of total employment in health care and social assistance in Southern Adelaide is the equal highest of all SGRs.

Southern Adelaide’s industry development over coming years will benefit from a number of extremely large projects that will further diversify the industry structure. These major projects are occurring across infrastructure, urban development, education, health and other services and manufacturing sectors, and include the Southern Expressway duplication, the Sustainable Industries Education Centre, rail electrification projects and the planned expansion of Westfield Marion.

Population growth projected in the 30 Year Plan for Greater Adelaide is likely to drive industry development trends and will be a key influence for major urban development projects earmarked for the region. The Plan projects an additional 82,000 residents and 40,500 dwellings in Southern Adelaide by 2036, and has a target of a net additional 43,000 jobs.99

The recently released Southern Adelaide Economic Development Plan 2011-2021, which articulates the economic development vision of the region, targets growth industry sectors including clean technologies, advanced manufacturing and technology, food, wine and tourism, and high value services. The Plan also focuses on harnessing the digital economy through, for example, the National Broadband Network rollout.100

There are a number of structural adjustment pressures and cyclical challenges facing the region. For example, the transition from a heavy reliance on manufacturing means that job openings in growth sectors may not match the skill sets of displaced workers.

The region is characterised by small and medium size enterprises that comprise around 98% of businesses, including a high proportion of home-based businesses. The large number of major projects offers leveraging opportunities for local business, but may also make it more difficult for smaller businesses to attract and retain staff. This issue is compounded by the high percentage of Southern Adelaide residents currently working outside of the region.

The region has prioritised activity to increase workforce participation by focusing on:• Facilitating sustainable workforce engagement.• Addressing the labour market disadvantage of

young people.• Improving pathways for people in entrenched

unemployment, those with multiple barriers and those residing in disadvantaged pockets of the region.

• Matching workforce demand and supply.

97 Southern Adelaide Economic Development Board, The Southern Adelaide Economic Development Plan 2011-2021 (for the region encompassing the Cities of Marion and Onkaparinga), 2012

98 Australian Bureau of Statistics (ABS), Census of Population and Housing, 201199 Department of Planning and Local Government – DPLG (2010), Housing and Employment Land Supply Program (HELSP) Report 2010,

Greater Adelaide, Government of South Australia, Adelaide, p.91100 Southern Adelaide Economic Development Board (2012), ibid

P 125

The Commission is aware that there are a number of DFEEST program responses that help build regional capacity for increasing workforce participation in Southern Adelaide including:• Provision of Adult Community Education (ACE)

— Southern Adelaide has an estimated 11.1% of State wide student contact hours for non-accredited training and 15.56% of State wide student contact hours for accredited training in 2013-14.101

• Engaging 931 people through Skills for All in Regions102 in 2013/14 to assist:- 186 people into work- 184 people access their Skills for All entitlement- 184 people into pathways including further



Project examples include:

The Skills CRH (Construction & Civil, Retail & Hospitality) project skills individuals to work in industries with increasing demand in Southern Adelaide. This project works with business and industry to identify workforce needs; and then prepares individuals to satisfy that demand. Support for individuals includes language, literacy and numeracy development; and assistance to access further training.

The Passing Go project focuses on Aboriginal people and those from culturally and linguistically diverse backgrounds. The project addresses the foundation literacy and numeracy skills needed to enable individuals to complete further training, or to find employment.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate III in Aged Care• Certificate II in Engineering – Production

Technology• Certificate II in Hospitality• Certificate II in Driver Competence• Certificate II in Nail Technology• Certificate II in Driving Operations• Certificate II in Retail Make-Up and Skin Care• Certificate II in Business• Certificate II in Electrotechnology (Career Start)• Certificate II in Education and Skills Development104

The Commission is also aware that the Skills in the Workplace program is currently engaged with 19 enterprises, assisting 370 employees gain relevant qualifications and skills sets. The private investment of $328,000 in training has been supported by public investment in excess of $1,303,000.

101 There are eight ACE providers in the Southern Adelaide region delivering ACE non-accredited training and three ACE providers delivering accredited training.102 The Skills for Job in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation





Summary Data – Southern Adelaide

Population (ABS & Census)Southern Adelaide

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 60,475 17.3% 20.9% 289,166 17.7%

Youth (15-24) 47,378 13.5% 21.4% 220,898 13.5%

Middle (25-44) 92,158 26.3% 21.2% 435,092 26.6%

Mature (45-64) 94,625 27.0% 21.9% 432,490 26.4%





Total Employed 164,557 - 22.3% 738,446 -






Retail Trade 19,460 11.8% 23.4% 83,012 11.2%

Manufacturing 14,982 9.1% 19.3% 77,808 10.5%



Degree or higher 50,578 19.9% 24.3% 207,758 17.7%

Diploma Level 23,419 9.2% 24.6% 95,325 8.1%




Year 12 115,712 57.8% 23.3% 497,585 54.2%

Year 11 42,094 21.0% 21.4% 196,997 21.5%

Year 10 or below 41,696 20.8% 19.1% 218,377 23.8%



VET Students 27,684 - 18.9% 146,129 -





P 127

Southern Adelaide – Financial year 2011-2012 compared to Financial year 2012-2013:

There were an extra 3,400 publicly funded course enrolments under Skills for All in the Southern Adelaide region in 2012-2013, increasing from 10,100 in 2011-2012 to 13,400 (in 2012-2013). This was a 33% increase.


The Table below summarises the figures by provider type:

The Figure below depicts the change (in percentage terms) for enrolments under Skills for All between 2011-2012 and 2012-2013 for the selected cohorts:

Skills for All Course Enrolments - Southern Adelaide SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 7,200 2,800 10,100 72%

2012-2013 8,300 5,100 13,400 62%

Change 1,100 2,300 3,400 -10pp



Figure 50: Skills for All, Change in Enrolments, Southern Adelaide, Selected Groups, 2011-12 and 2012-13 (%)


Aged 55& older

43%

51%

35%

54%

44%

27%

33%

0%

10%

20%

30%

40%

50%

60%



Western Adelaide State Government Region

The Western Adelaide State Government Region (SGR) encompasses the Local Government Areas (LGAs) of Charles Sturt and West Torrens, and the Statistical Local Areas (SLAs) of Port Adelaide Enfield – Coast, Park and Port.

The three largest employing industries of Western Adelaide residents, at the time of the 2011 Census, were health care and social assistance (13.1%), manufacturing (11.0%) and retail trade (11.0%).

Industry development in Western Adelaide over coming years will be heavily influenced by major projects occurring across a number of sectors, including defence (submarines and air warfare destroyer), infrastructure, urban development (at St Clair and Bowden), water management and manufacturing. These projects, which also include industrial development at the Adelaide Airport site and construction of the $812 million South Road Superway, will assist the region in diversifying its industry base and will provide a number of job openings.

The 30 Year Plan for Greater Adelaide targets an additional 40,500 jobs, an additional 83,000 residents and 42,560 dwellings for Western Adelaide by 2036.105 This growth is, and will continue to be, a major influence on industry development.

Like all regions, Western Adelaide’s industry development remains vulnerable to structural and cyclical influences, particularly its manufacturing sector. These influences include the high value of the Australian dollar and the impact of the Global Financial Crisis, which has put pressure on trade-exposed sectors in the region. In addition, funding decisions of the Commonwealth Government are a determining factor on the continuation of defence projects.

Western Adelaide experiences slightly lower levels of labour force participation than South Australia as a whole and rates of unemployment that are slightly higher than the state average. Some population groups in the region experience significant labour market disadvantage.

Therefore, the region has prioritised activity to increase workforce participation by focusing on ensuring that:• the high numbers of people not in the labour

force with low educational attainment can access learning, training and employment pathways.

• the large number of people in the region who are marginalised or not in the labour force (in particular mature aged males) can access to pathways into learning, training or employment.

• non-English speaking migrants are assisted to improve their language and literacy skills.

The Commission is aware that there a number of DFEEST program responses that help build regional capacity for increasing workforce participation in Western Adelaide including:• Provision of Adult Community Education (ACE) —

Western Adelaide has an estimated 13.1% of State wide student contact hours for non-accredited training and 10.8% of State wide student contact hours for accredited training in 2013-14.106


education, volunteering and work experience

The Jobs and Skills Policy announced by the State Government in September increases the focus on creating and filling job opportunities. The Commission understands that Skills for Jobs in Regions108 will support more people into work and employment pathways, in addition to the above numbers.

105 Department of Planning and Local Government – DPLG, Housing and Employment Land Supply Program (HELSP) Report 2010, Greater Adelaide, Government of South Australia, Adelaide, p.72, 2010

106 There are five ACE providers in the Western Adelaide region delivering ACE Non-Accredited training and two ACE providers delivering Accredited training.107 The Skills for Jobs in Regions program engages South Australians who are disconnected from learning, training and work, in tailored workforce participation



P 129

Project examples include:• The Introduction to the Australian Workforce

project provides holistic support to humanitarian and skilled migrants, many of whom are not eligible for Australian Government assistance. It specifically gives them an understanding of Australian workplace culture, using work experience placements. Participants are encouraged to canvass for work through video presentations on social media websites.

• The Pathways to Engineering Industry project has a strong focus on personal development and provides pre-entry training and individual case management to assist participants through the Certificate II in Engineering. Participants can target apprenticeships within the sector at the completion of the project.

Qualifications and skills sets with the biggest increase in enrolments under Skills for All from 2011-12 to 2012-13 in the region were:• Certificate IV in Customer Contact• Certificate I in Education and Skills Development• Certificate II in Hospitality (Kitchen Operations)• Certificate III in Children’s Services• Diploma of Electrical Engineering• Certificate III in Aged Care• Diploma of Management• Certificate III in Transport Distribution

(Maritime Operations)• Certificate II in Civil Construction• Certificate III in Plumbing109

The Commission is also aware that the Skills in the Workplace program is currently engaged with 16 enterprises, assisting 398 employees to gain relevant qualifications and skills sets. The private investment of $231,000 in training has been tripled by public investment of $462,000.

109 ibid.



Summary Data – Western Adelaide

Population (ABS & Census)Western Adelaide

% of Region

Total

% of State Total

South Australia

State Total




Children (0-14 years) 34,687 15.5% 12.0% 289,166 17.7%

Youth (15-24) 30,059 13.4% 13.6% 220,898 13.5%

Middle (25-44) 63,851 28.5% 14.7% 435,092 26.6%

Mature (45-64) 56,639 25.3% 13.1% 432,490 26.4%





Total Employed 100,025 - 13.5% 738,446 -






Manufacturing 11,048 11.0% 14.2% 77,808 10.5%

Retail Trade 10,966 11.0% 13.2% 83,012 11.2%



Degree or higher 30,350 18.7% 14.6% 207,758 17.7%

Diploma Level 13,410 8.3% 14.1% 95,325 8.1%




Year 12 75,455 59.7% 15.2% 497,585 54.2%

Year 11 23,618 18.7% 12.0% 196,997 21.5%

Year 10 or below 26,215 20.7% 12.0% 218,377 23.8%

Did not go to school 1,059 0.8% 19.9% 5,320 0.6%


VET Students 18,426 - 12.6% 146,129 -





P 131

Western Adelaide – Financial year 2011-2012 compared to Financial year 2012-2013:

There were an extra 6,100 publicly funded course enrolments under Skills for All in the Western Adelaide region in 2012-2013, increasing from 23,600 in 2011-2012 to 29,700 (in 2012-2013). This represents a 26% increase.

The increase in course enrolments of 26% consists of:• 36% increase in Certificate I and II enrolments. • 19% increase in Certificate III and IV enrolments.• 42% increase in Diploma and above enrolments

The Table below summarises the figures by provider type:


Skills for All Course Enrolments - Western Adelaide SA Government Region TAFE SA


providers Total

TAFE Market

Share

2011-2012 14,100 9,400 23,600 60%

2012-2013 17,300 12,300 29,700 58%

Change 3,200 2,900 6,100 -2pp



Figure 51: Skills for All, Change in Enrolments, Western Adelaide, Selected Groups, 2011-12 and 2012-13 (%)


Aged 55& older

20%

27%

47%

-20%

20% 19%

26%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%




www.tasc.sa.gov.au


SKILLS FOR JOBSThe Training and Skills Commission Five-Year Workforce Development Plan

www.tasc.sa.gov.au

November 2013 // Volume 2


2013 12 skills for jobs plan volume 2

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