skills & training needs 2013

Skills & Training Needs 2013Victorian Rental, Hiring and Real Estate Services Industry

Published by HESG

Department of Education and Early Childhood Development

Melbourne May 2014

©State of Victoria (Department of Education and Early Childhood Development) 2014

The copyright in this document is owned by the State of Victoria (Department of Education and Early Childhood Development), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission.

An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering such an institution may copy and communicate

the materials, other than third party materials, for the educational purposes of the institution.

Authorised by the Department of Education and Early Childhood Development

2 Treasury Place, East Melbourne, Victoria, 3002.

Contents Introduction 5Products and services 7Data 7

Industry and data scope 7Key messages, issues and challenges 8Industry trends and outlook 8

Rental, Hiring and Real Estate Services trends and issues 8Economic contribution 11Employer profile 11Labour productivity 12Key messages, issues and challenges 14Employment 14

Rental, Hiring and Real Estate Services workforce and skills 14Skills composition 15Job vacancies 16Labour market characteristics 17Occupations in demand 18Specialised and in-shortage occupations 20Workforce skills needs 21Key messages, issues and challenges 22Training activity 22

Rental, Hiring and Real Estate Services vocational training provision 22Courses 24Enrolments by occupation 24Training providers 25Funding patterns 25Regional training activity 26Student characteristics 28

Appendix A 30

5Introduction

In the context of Victoria’s dynamic economy, a demand-led approach is the best way to ensure a responsive vocational training system that will help as many people as possible build skills that lead to better jobs. This is most evident in the results of the market approach embodied in the Victorian Training Guarantee, which has achieved positive outcomes for both students and the economy.

The Refocusing Vocational Training in Victoria reforms are designed to satisfy important criteria for a strong vocational training market. Through these reforms the Government is ensuring that the vocational training system continues to produce positive outcomes for students, businesses and Victoria.

Through Refocusing Vocational Training, there is a role for Government in monitoring, providing information and responding to the performance of the vocational training system. A key mechanism by which the Government exercises this role is through the Industry Participation Model. The Industry Participation Model is based on a new partnership approach between Government, industry and training providers. It increases industry influence within the training market by supporting more direct relationships between industry and training providers and by increasing direct consultation with Government.

An aim of the Industry Participation Model is to seek to improve information sharing about training provision, options, outcomes, gaps and associated barriers between industry, training providers and employers to improve alignment between industry needs and training delivery. A suite of information products and tools are being developed, of which this report is one, to support this aim and an overview of these are provided overleaf.

This report describes training and economic activity and developments related to Victoria’s Rental, Hiring and Real Estate Services industry, bringing together a range of qualitative and quantitative insights from desk research and industry engagement. It highlights both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and Government have to address these challenges. Key metrics used in this report include enrolments by sub-industry, qualification level, occupation, courses, age group, gender, learners facing

barriers, provider type, reason for study and completions. The report also covers apprentices and trainees, and an analysis of the alignment between training delivery and specific industry skills needs. The report produces industry, sub-industry and region-specific findings and, wherever possible, presents comparisons to developments at the State level.

The purpose of this report is:

1. To provide a basis for understanding the Rental, Hiring and Real Estate Services industry in relation to employment levels, skills shortage occupations, current alignment and responsiveness of the vocational training market to the needs of the sector and to provide an overview of the challenges and opportunities in meeting industry vocational skills needs both now and into the future.

2. To give detailed information around vocational training enrolments by occupation, location, qualification levels and other student characteristics, as it relates to the Rental, Hiring and Real Estate Services industry in order to gauge current trends in vocational training delivery.

3. To summarise the context of the Rental, Hiring and Real Estate Services industry in relation to the size and scale of the labour and training markets as well as the current policy, economic and social drivers that it is facing.

Introduction

6 Skills & Training Needs 2013 – Victorian Rental, Hiring and Real Estate Services Industry

Suite of Information Products & Tools

Victorian Quarterly Training Market ReportsOn-going series of quarterly reports aimed at providing a summary of Victorian training market performance following the introduction of the student entitlement system. The report covers three sections – the first provides an overview of the performance of the Victorian training market, the second section examines the participation of learners facing barriers and the third examines the alignment of training to industry skills needs http://www.education.vic.gov.au/training/providers/market/Pages/reports.aspx

Vocational Training: Victoria’s Regions Annual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building a picture of the relationship between the local training system and regional skills needs, training market performance and responsivenesshttp://www.education.vic.gov.au/training/providers/market/Pages/regionaltrends.aspx

Vocational Training: Victoria’s Industry ReportPublished annually, this report combines industry intelligence and economic analysis with training data to build a more complete picture of the relationship between industry skills needs, employment opportunities and skills training. Each of the 19 industry training profiles provide economic context and a summary of training challenges and highlights from IPM initiatives http://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Industry Sub-sector Summary Reports and Industry Factsheets46 sub-sector summary reports produced annually which highlight labour and training market dynamics with an overview of current and forecast employment needs and vocational training patterns across the sectors and at the regional levelhttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Business Toolkit and Case StudiesToolkit for employers providing information on how to get government subsidised training under the Victorian Training Guarantee; getting the best training for your business, with a helpful checklist; information of Recognition of Prior Learning; and a range of interesting employer and training provider case studieshttp://www.education.vic.gov.au/training/employers/workforce/Pages/marketfacilitation.aspx

Portfolio Industry ReportsThese reports describe training and economic activity and developments related to key Victoria’s industry sectors. Highlighted are both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. A range of key workforce and training metrics are also provided. There are two tiers of reports. One are detailed reports, representing the focus industries for the Department in 2013, and summary reports covering other industry sectorshttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Industry BlogA forum for people interested in industry skills and training issues in Victoria, the blog features a range of topics relevant to stakeholders, information on recent industry events, groups and forums and new initiatives focused on enhancing market performance through facilitation activitieshttp://skillsblogvic.wordpress.com/

Industry Skills Update - e-AlertsRegular email update featuring the latest news about IPM activities; market facilitation and related government initiatives; reports; and training performance informationTo subscribe contact: Department of Education & Early Childhood Development, [email protected]

Web Pages – Industry Training Market Information19 webpages with information about the skills and training market for Victorian industries. For each industry, there’s a training snapshot, information about skills in demand, training market intelligence reports along with more detailed reporting for each industry sub-sector. Information is updated regularlyhttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Rate Your TrainingRatings tool for industry and employers which is a simple-to-use system where employers can rate the performance of a training provider in a particular study area against selected criteria, and review and compare the ratings of other employershttp://rateyourtraining.com.au/

E-Marketplace (in development)Website which facilitates connections between employers and training providers. Employers can anonymously post their training requirements and training providers are able to provide structured response online. Employers are then able to review the response with no obligation, create a shortlist and follow up directly with their preferred providers

Victorian Skills GatewayOne-stop-shop of Victorian vocational education and training to help find the best option for students. Searches can be performed on occupations, courses, training providers, video and written case studies. This website is also viewable via a purpose-built smartphone interface http://www.education.vic.gov.au/victorianskillsgateway/Pages/home.aspx

7Industry and data scope

This section summarises the scope of the Rental, Hiring and Real Estate Services industry1 as well as key data sources.

Products and servicesThe Rental, Hiring and Real Estate Services industry includes businesses mainly engaged in renting, hiring, or otherwise allowing the use of tangible or intangible assets (except copyrights), and businesses providing related services.

The majority of the industry comprises businesses that rent, hire, or otherwise allow the use of their own assets by others. The assets may be tangible, as in the case of real estate and equipment, or intangible, as in the case with patents and trademarks.

Businesses in the industry also provide real estate services such as selling, renting and/or buying real estate for others, managing real estate for others and appraising real estate.

Figure 1.1: Rental, Hiring and Real Estate ANZSIC breakdown

ANZSIC

code

ANZSIC industry

66 Rental and Hiring Services (except Real Estate)

661 Motor Vehicle and Transport Equipment Rental and Hiring

6611 Passenger Car Rental and Hiring

6619 Other Motor Vehicle and Transport Equipment Rental and Hiring

662 Farm Animal and Bloodstock Leasing

663 Other Goods and Equipment Rental and Hiring

6631 Heavy Machinery and Scaffolding Rental and Hiring

6632 Video and Other Electronic Media Rental and Hiring

6633 Other Goods and Equipment Rental and Hiring n.e.c.

664 Non-Financial Intangible Assets (Except Copyrights) Leasing

67 Property Operators and Real Estate Services

671 Property Operators

6711 Residential Property Operators

6712 Non-Residential Property Operators

672 Real Estate Services

1 As defined by the Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006.

DataThe main source of data on vocational training activities is the training activity database referred to as SV Training System (SVTS).

The report presents findings for the time period from 2008 to 2013, with an emphasis on developments and patterns in the 2013 calendar year. The 2013 data are based on data extracted from SVTS as at 11 February 2014 and subject to revision.

This report includes government subsidised training enrolments and domestic fee for service activities of TAFEs. However, TAFE fee for service activities below Certificate level and those provided by private RTOs and Adult Community Education (Learn Local) providers are not included. Data on completions contain all government subsidised and fee for service enrolments at any course level by all providers.

Note that enrolment numbers have been rounded to the nearest ten.

Industry and data scope


This section focuses on the Rental, Hiring and Real Estate industry as a whole. It covers the key issues and challenges including: economic conditions; new regulations; demographic changes; changing social attitudes; new technology/processes; and changing consumer tastes.

Key messages, issues and challenges • The Rental, Hiring and Real Estate industry accounts for

8 per cent of total output in Victoria, approximately $24.4 billion.

• Rental, Hiring and Real Estate businesses tend to be smaller in terms of turnover than the State average.

• The sector is dominated by real estate services and property operators. As such, growth is driven by the residential and commercial property market, which often reflects overall growth in the economy.2

• An increase in demand for real estate services will depend on the turnover of the existing stock of residential and commercial property.3 While some of the factors that drove sales volumes over the past 10 years have shifted, low interest rates and an increasing population are providing an investment window that will see buyers and investors create demand for real estate services.4

• Regulation in the property market, particularly around the zoning of land, can impact the real estate industry.

• Motor vehicle and other asset hiring/leasing face similar issues to the property sector, with the general economic outlook driving employment growth.

2 AWPA Industry snapshot 2013: Rental, hiring and real estate services.

3 The Centre for International Economics 2013, Future forecasts: Construction and Property Services Skills 2016-26.

4 Construction & Property Services Industry Skills Council (CPSISC) Environmental Scan 2013-14.

Industry trends and outlookThe Rental, Hiring and Real Estate industry is diverse, defined by the rental of goods, rather than the goods themselves or the other industries the goods may be related to.

Motor vehicle rental/hiring

Businesses in this subsector hire, lease or rent transport equipment to consumers. This equipment can include passenger cars, trucks, buses, ships, boats and aircraft. The subsector also includes the rental of shipping containers, including refrigerated containers.

A large part of the motor vehicle rental/hiring subsector services the tourism and business travel market with hire cars. Both of these markets were hit by the global financial crisis, and the subsequent high Australian dollar stunted the recovery of the tourism industry, increasing prices for international tourists and increasing the attractiveness of an overseas holiday for Australian tourists.

Despite these factors, Australia’s international visitor expenditure increased by six per cent over the year to June 2013, 1.8 percentage points above world-wide growth in tourism expenditure. The Tourism Forecasting Committee expects international visitation to increase by an average 4 per cent per annum to 2016-17.5

The year to June 2013 saw record increases in visitation from China (17 per cent increase), Singapore (14 per cent increase), Malaysia (10 per cent increase) and India (up by eight per cent). China is now Australia’s second largest source market for international arrivals.6 The increase in tourism from Asia means the car hire sector is working to provide high quality customer service to these potential clients.

5 Tourism Forecasting Committee, 2013, ‘Forecast: 2013 Issue 1’, p. 7, ret.gov.au/ tourism/Documents/tra/Forecasts/2013/TFC_Forecast_2013_Issue_1_FINAL.pdf

6 Tourism Forecasting Committee, 2013, ‘Forecast: 2013 Issue 1’, p. 7, ret.gov.au/tourism/Documents/tra/Forecasts/2013/TFC_Forecast_2013_Issue_1_FINAL.pdf

Rental, Hiring and Real Estate Services trends and issues

9Rental, Hiring and Real Estate Services trends and issues

Despite the importance of international tourism, domestic tourism still accounted for 73.5 per cent of Australia’s overnight tourism expenditure in June 2012.7 This market is relatively stable and has returned to pre-global financial crisis demand levels – a positive sign for motor vehicle hiring firms.8

The car hire industry has been significantly impacted by improvements in internet booking systems, with a large segment of car hire bookings now taking place online. In addition to individual car hire company websites, price comparison websites are also operating, allowing consumers to easily compare car hire options, encouraging increased competition in the sector. Improved technology has made car share schemes increasingly viable, potentially expanding the market to people who may not have previously considered hiring a car in their home town.

Non-financial assets leasing

This subsector involves holding intellectual property (including trademarks) or other non-financial intangible assets (except copyright). Businesses derive income from fees paid to them for the use of the assets, including the right to reproduce the assets. This can include brand-name leasing, franchise agreement leasing, mineral exploration right on-leasing.

This subsector is quite diverse, and is being impacted by a range of government policies. For example, patent leasing is often impacted by government policy made in response to free trade agreements Australia signs. Taxi cab plate leasing is currently undergoing major regulatory reform in Victoria with the recent completion of the Taxi Industry Inquiry. Similarly radio spectrum right leasing is influenced by Commonwealth Government policy, which is regularly reviewed.

Other equipment rental/hiring

This varied subsector includes the hiring of heavy machinery and scaffolding to the agricultural, construction and mining industries. It also includes renting or hiring of electronic media, art work, bicycles, costumes, furniture, suits, and sports equipment.

7 Service Skills Australia, ‘Tourism, Travel and Hospitality 2014 Environmental Scan Snapshot’

8 Service Skills Australia, ‘Environmental Scan 2014’.

Some of this subsector is exposed to the tourism market, the trends of which have been outlined above. Other parts are likely to be struggling in the face of changing consumer demands – for example DVD hiring has been hit hard by the growth in online consumption of movies and other media.

Property operators

Property operators rent or lease residential and non-residential property, including space in such properties. The businesses may be owner lessors or they may sublease properties of which they are themselves lessees. Properties these businesses lease include apartments, houses, agricultural land, commercial or industrial property (including office space) and shopping centre spaces. The subsector includes property body corporate operations.

The outlook for property operations is tied closely to the general economic outlook for Australia. When business activity is strong, commercial property is constructed and leased out. Conversely, when business activity is weak, commercial property vacancies rise and property operators must work harder to lease commercial property. A similar dynamic exists in the residential rental market.

The commercial property vacancy rate in the Melbourne CBD was 8.7 per cent in January 2014, the second lowest rate among the Australian capitals, and down from 9.8 per cent in July 2013.9

Vacancy rates for residential property in Melbourne are also quite low at 2.9 per cent in February 2014. The vacancy rate in regional Victoria was 2.6 per cent.10

Rents in Victoria have been increasing indicating continuing demand for rental properties. Weekly rents rose 2.4 per cent throughout Victoria in 2013 to a median average of $340.11

Body corporate services are an important part of this subsector and require companies to keep up to date with relevant regulations such as the Subdivision Act, Owners Corporation Act and Owners Corporation Regulations.

9 Property Council of Australia 2014, ‘Australian office markets in transition’, http://www.propertyoz.com.au/vic/Article/NewsDetail.aspx?p=16&id=8907

10 Real Estate Institute of Victoria, ‘REIV monthly bulletin February 2014’.

11 Department of Human Services, ‘Current Rental Report’, http://www.dhs.vic.gov.au/about-the-department/documents-and-resources/research,-data-and-statistics/current-rental-report


Real estate services

Real estate services companies value, purchase, sell, manage or rent real estate for clients. This includes brokering services, auctioning, real estate management services, and valuing properties.

Like the property operators subsector, real estate services are significantly exposed to the economic cycle. In periods of strong economic growth, low unemployment and real wage growth, house prices often rise and consumers look to upgrade their housing situation. Both of these trends lead to increased activity for real estate services businesses and can increase profits due to the subsector’s commission-based price model. Conversely, in periods of weak economic growth and rising unemployment, consumers are often reluctant to change their housing situation.

House prices have been strong in recent years in Australia, with not even the global financial crisis able to significantly dampen aggregate demand. In 2013, house prices in Melbourne rose 7.9 per cent,12 with the trend estimate for the total number of dwelling units approved in Victoria up each month since April 2013, with a similar steady rise seen in the number of private sector houses.13

This increased activity has been driven by a combination of rising incomes, population growth through immigration, and, in some cases, restrictions on building heights and types. The likely persistence of these trends means the real estate services sector is likely to continue to grow.

Table 2.1: Key trends in the Rental, Hiring and Real Estate industry and their potential impacts on skills

Grouping Change drivers Skills impact

Motor vehicle rental/hiring

Non-financial assets leasing

Other equipment rental/hiring

Property operators

Real estate services

Political Regulatory change = # = # #

Economic General economic conditions

= = 1 = =

Tourism trends = # # = =Social Changing

consumer preferences

= = $ 1 1

Increased immigration = = = # #

Technological Technological improvements # = = # #

Key: 1 Driver has indirect impact on skills; = Driver has low skills impact, and places marginal pressure on skills development; # Driver has high skills impact, and places upward pressure on skills development; $ Driver places downward pressure on skills development.

12 ABS, 6416.0 - Residential Property Price Indexes: Eight Capital Cities, Dec 2013

13 ABS, 8731.0 - Building Approvals, Australia, Jan 2014


Economic contributionVictoria’s Rental, Hiring and Real Estate industry contributed approximately $24.4 billion to the State economy in 2012-13, around eight per cent of total output. The industry directly employs approximately 44,700 workers, representing two per cent of Victorian employment.

Output growth of 12 per cent is anticipated over the five years to 2017-18, to around $27.2 billion. This is slightly lower than the anticipated state growth rate of 14 per cent across all Victorian industries. Victorian Rental, Hiring and Real Estate saw an increase in output of 49 per cent over the five years to 2012-13.

A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for Victorians to access the opportunities of a growing and changing economy, and an increasingly sophisticated and information-rich society.

Figure 2.1: Rental, Hiring and Real Estate output ($million), Victoria, 2012-13 to 2017-18

Property Operators and Real Estate Services

2012-13 2017-18

Rental and Hiring Services (except Real Estate)

0

5,000

10,000

15,000

20,000

25,000

30,000

23,465

953

26,164

1,072

Source: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2013

Employer profileAt the end of 2012-13, there were an estimated 56,145 businesses in the Victorian Rental, Hiring and Real Estate industry. The distribution of businesses by employment level is strongly skewed towards non-employing businesses: 88 per cent of Rental, Hiring and Real Estate businesses are non-employing, compared with the State average of 61 per cent. A smaller proportion of businesses employ between one and 19 employees (11 per cent compared with the State average of 35 per cent) and between 20 and 199 (one per cent compared with four per cent).

Figure 2.2: Share of businesses by employment, Victoria, 2012

Non Employing 1 to 19 20 to 199 200+

Rental, Hiring and Real Estate Services All industries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

88%

61%

11%

35%

1% 4%0% 0%

Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses,

including entries and exits, 2012

Rental, Hiring and Real Estate businesses tend to be smaller in terms of turnover than the State average. Approximately 72 per cent of Rental, Hiring and Real Estate businesses turned over less than $200,000 in 2012-13, compared with the State average of 63 per cent. A smaller proportion of businesses turned over between $200,000 and $2 million (25 compared with 31 per cent). Only three per cent of Rental, Hiring and Real Estate businesses turned over more than $2 million, compared with the State average of six per cent.


Figure 2.3: Share of businesses by turnover size, Victoria, 2012

Rental, Hiring and Real Estate Services All industries

0%

5%

10%

15%

20%

25%

30%

35%

40%

Zero to $50k $50k to $200k $200k to $2m $2m or more

35%

28%

37%35%

25%

31%

3%6%

Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses,

including entries and exits, 2012

As shown in Figure 2.5, in metropolitan Melbourne, Rental, Hiring and Real Estate industry firms are distributed relatively evenly. There are higher concentrations of firms in the inner, South-West, South-East and North-West, with relatively fewer firms in the North, North-East and Eastern parts of the metropolitan area.

In regional Victoria, the industry is similarly evenly distributed, with concentrations in most population centres.

Labour productivityLabour productivity is defined as real gross value added per hour worked. Figure 2.4 shows the average annual compound rate of growth in labour productivity for the Rental, Hiring and Real Estate industry over the period 2003 to 2013. Nationally, the average annual growth rate of labour productivity for Rental, Hiring and Real Estate was slightly negative: -0.3 per cent. Labour productivity growth was negative in all years over the period except for the two years to June 2009 and June 2010, when there was strong growth of just under 10 per cent, and the year to June 2012, when labour productivity grew by approximately four per cent. Over the same period, the labour productivity growth rate for all industries was 1.3 per cent.

Up-skilling the workforce continues to be an important focus for increasing productivity, and producing more with less. A well-trained, job-ready workforce is the life-blood of Victoria’s industry and business and the largest determinant of productivity in the State’s economy.

Figure 2.4: Labour productivity measure by gross value added (GVA) per hour worked, average annual growth, 2003 to 2013

Rental, Hiringand Real Estate Services

All Industries

-0.5% 0.0% 0.5% 1.0% 1.5%

-0.3%

1.3%

Source: Australian Bureau of Statistics (ABS), Australian System of National

Accounts, 5204.0.


Figure 2.5: Location of Rental, Hiring and Real Estate industry establishments in metropolitan and regional Victoria, 2010-11

Melbourne

South Yarra

Dandenong

10 to 20

50 to 100

100 or more

20 to 50

1 to 10

BallaratBallarat

MilduraMildura

BendigoBendigo

SheppartonShepparton

WarrnamboolWarrnamboolGeelongGeelong

40 or more

5 to 10

20 to 40

10 to 20

1 to 5

Source: Department of State Development, Business and Innovation (DSDBI), Rental, Hiring and Real Estate Industry. Business location in Victoria: A decade of change,

October 2012 (based on data from WorkSafe Victoria).


This section focuses on the Rental, Hiring and Real Estate Services industry’s workforce. It covers employment levels and trends, as well as workforce characteristics such as age and skill level.

Key messages, issues and challenges• The Victorian Rental, Hiring and Real Estate industry employs approximately 44,700 people, approximately

2 per cent of the Victorian workforce. Employment growth has been slightly weaker than the average over the five years to 2012-13, a trend that is expected to continue for the next five years to 2017-18.

• Average annual demand for new jobs due to growth and replacement over the period is expected to be approximately 1,990 jobs.

• The workforce is strongly dominated by high-skill roles. This is not expected to change over the period to 2020-21.

• The industry employs almost as many females as males, and the age profile is approximately the same as the State average.

• The qualification profile is approximately the same as the State average, with a slightly greater proportion of Diplomas, Advanced Diplomas and higher education qualifications.

EmploymentApproximately 44,700 people were employed in Victoria’s Rental, Hiring and Real Estate industry in 2012-13. Employment in the industry grew by six per cent over the five years to 2012-13. Over the next five years to 2017-18, employment is expected to increase by five per cent (another 2,300 jobs).

In comparison, employment in all Victorian industries grew by 10 per cent in the five years to 2012-13. Statewide employment is expected to grow by eight per cent over the next five years to 2017-18, slightly more strongly than the expected growth in Rental, Hiring and Real Estate employment.

Figure 3.1: Rental, Hiring and Real Estate employment, Victoria, 2012-13 and 2017-18

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

35,200

9,500

36,900

10,000

2012-13 2017-18

Property Operators and Real Estate Services Rental and Hiring Services (except Real Estate)

Source: Monash Centre of Policy Studies Employment Forecasts, June 2013

Rental, Hiring and Real Estate Services workforce and skills

15Rental, Hiring and Real Estate Services workforce and skills

Skills composition Shown in Figure 3.2 are the relative proportions of high- and low-skill jobs in the Rental, Hiring and Real Estate industry. The industry is dominated by low-skill roles, making up approximately 70 per cent of the workforce. Approximately 25 per cent of the workforce is low-skill roles, with the remainder – around five per cent – medium-skill. These proportions are not forecast to change materially over the period to 2020-21.

Figure 3.2: Victorian Rental, Hiring and Real Estate industry skill levels, Victoria, 2004-05 to 2020-21

0%

10%

20%

30%

40%

50%

60%

70%

80%

2020-212018-192016-172014-152012-132010-112008-092006-072004-05

Low SkillMedium SkillHigh Skill

Forecast 2012-13 to 2020-21


Note: High skill—managers and professionals. Medium skill—technicians and trades workers, community and personal service workers. Low skill—clerical and

administrative workers, sales workers, machinery operators, drivers and labourers.


Job vacanciesThe figure below highlights the number of vacancies posted online in Victoria over the two years to September 2013 for selected key Rental, Hiring and Real Estate occupations. The number of online job advertisements across the larger occupations has remained approximately constant over the period, with a small recent increase.

There were approximately 7,200 newly lodged vacancies in the Rental, Hiring and Real Estate occupational groupings in September 2013. Sales assistants made up the majority of these, with 2,275 vacancies.

Figure 3.3: Number of newly lodged online vacancies in Rental, Hiring and Real Estate occupations in Victoria, 2011 to 2013

0

500

1,000

1,500

2,000

2,500

3,000 Sales Assistants (General)

Real Estate Sales Agents

Receptionists

Secretaries

Office Managers

Other Hospitality Retail/Srvc Mgrs

Land Economists & Valuers

Other Sales Assistants etc.

Sep-13Jun-13Mar-13Dec-12Sep-12Jun-12Mar-12Dec-11Sep-11Jun-11Mar-11

Source: Department of Education, Employment and Workplace Relations (DEEWR) Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK,

My Career, CareerOne and Australian JobSearch), major advertising occupations only. Note: caution advised when using monthly occupation data as it is susceptible to

fluctuation from month to month.


Labour market characteristicsEmployment by age

The age profile of the Rental, Hiring and Real Estate industry is similar to the State average. There is a slightly smaller proportion of workers aged 15-24 (13 per cent compared with the State average of 16 per cent) and slightly greater proportion of workers aged 45+ (42 per cent compared with 39 per cent).

Figure 3.4: Proportion of employment by age, Victoria, 2012-13

Rental, Hiringand Real Estate

Services

All industries

15-24 25-34 35-44 45-54 55+

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13% 24% 20% 24% 18%

16% 24% 23% 21% 17%


Employment by gender

The Rental, Hiring and Real Estate industry workforce has a more even gender profile than the State average: 49 per cent of the workforce is female, compared to the average 46 per cent.

Figure 3.5: Proportion of employment by gender, Victoria, 2012-13

Females Males


Services

All industries

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

49% 52%

46% 54%



Employment by qualification level

The qualifications profile of the Rental, Hiring and Real Estate industry workforce is similar to the State average. The workforce has the same proportion without post-school qualifications and with Certificates I and II, a slightly lower proportion with Certificates III and IV and a slightly higher proportion with Diplomas and higher education qualifications.

Figure 3.6: Proportion of employment by qualification level, Victoria, 2012-13


Services

All industries

No post school quals Certificate I or II Certificate III or IV Diploma Higher education

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

40% 3% 15% 14% 29%

40% 3% 18% 14% 25%


Occupations in demandTable 3.1 highlights the occupations at four-digit ANZSCO level (Australian and New Zealand Standard Classification of Occupations) that align to the Rental, Hiring and Real Estate industry. Note that while some occupations also align to other industries, the figures shown are specific to the Rental, Hiring and Real Estate industry.

Forecasts presented in the table estimate the annual demand for employment from growth and replacement, in terms of the average number of jobs required for each occupation annually up to 2017-18.

Employment growth is the net number of new jobs that are currently forecast for the occupation within the industry. Replacement demand is the number of existing workers required to replace those that are forecast to leave each occupation through attrition, either via retirement or other movement out of the occupation.

Current employment projections indicate that the Rental, Hiring and Real Estate industry may require an average of 1,990 jobs each year to 2017-18 to satisfy employment growth and replacement demand.

The occupation Real Estate Sales Agents dominates the industry, with the largest total employment (over 15,000 roles), largest average annual replacement needs due to growth and replacement demand (970 roles) and largest overall growth expected to 2017-18 (1,320 roles).

Another key occupation in terms of employment numbers – Land Economists and Valuers – is expected to experience significant negative growth to 2017-18, reducing from the 2012-13 total of 1,910 to 1,630. Despite this, the occupation still has positive employment needs, as attrition rates are higher than the negative employment growth rate.


Table 3.1: Estimated annual employment growth and replacement demand figures for occupations in the Rental, Hiring and Real Estate industry, Victoria

Occupation name 2012-13 employment total

Average annual employment needs

Overall employment growth to 2017-18

Real Estate Sales Agents 15,120 970 1,320

Receptionists 2,510 120 170

Land Economists and Valuers 1,910 110 -280

Sales Assistants (General) 1,550 100 90

General Clerks 1,250 60 90

Office Managers 1,130 20 -50

Other Sales Assistants and Salespersons 1,080 70 160

Other Hospitality, Retail and Service Managers 1,020 70 200

Accounting Clerks 1,000 40 110

Secretaries 970 50 70

Bookkeepers 890 40 50

Accountants 870 50 120

Advertising and Sales Managers 840 50 110

Retail Managers 810 30 60

Personal Assistants 590 30 40

Chief Executives and Managing Director 460 30 60

Financial Investment Advisers and Managers 380 20 60

Commercial Cleaners 360 20 30

Contract Program and Project Administrators 350 20 70

Construction Managers 320 20 30


VET occupations highlighted in green.


Specialised and in-shortage occupations This section focuses on current skills shortages in specific occupations related to the Rental, Hiring and Real Estate industry as well as those occupations that are specialised.14 The Department’s analysis of skill shortages considers both quantitative evidence and intelligence gathered through industry consultation.

No occupations directly aligned to the Rental, Hiring and Real Estate industry have been identified as experiencing skills shortages in Victoria. However, as set out in Table 3.2, there is one key employing occupation aligned to the Rental, Hiring and Real Estate industry that has been classified as specialised – Land Economists and Valuers.

Table 3.2: Occupations ‘in-shortage’ or ‘specialised’

Occupation name In shortage Specialised

Real Estate Sales Agents No No

Receptionists No No

Land Economists and Valuers No Yes

Sales Assistants (General) No No

General Clerks No No

Office Managers No No

Other Sales Assistants and Salespersons No No

Other Hospitality, Retail and Service Managers No No

Accounting Clerks No No

Secretaries No No

14 DEECD uses the Australian Workforce and Productivity Agency (formerly Skills Australia) list of specialised occupations. These occupations have a long lead-time for training, high economic value and a significant match between training and employment.


As outlined in the Industry trends and outlook section above, the performance of the housing and tourism markets is having a significant impact on the Rental, Hiring and Real Estate industry.

Technological advancements are also impacting the industry and its workforce, and will require continued up-skilling in information technology and other areas. Generic ICT skills and ‘digital literacy’ have emerged as prerequisites or highly desired skills for many jobs across the sector, and are also central to the process of learning, institutions increasingly utilise technology in the delivery of educational programs.

Some businesses in the sector, such as real estate websites and car hire companies, are increasingly generating large amounts of data on their services. As such, the industry will need workers with the skills to interrogate, interpret and explain these data to improve the quality of services and efficiency of price setting. This will include quantitative skills such as in statistics and programming.

In the car hire business, the changing composition of international visitation has considerable implications for the skill needs of Australia’s tourism and hospitality workforce, with the key needs being language skills and culturally aware service skills.15

In response to labour shortages within the industry, businesses are investigating ways of attracting workers, including greater numbers of mature age workers as a growing number of older people are looking to delay retirement or seeking new careers. Other groups include people with disabilities which may require some employers to make reasonable adjustments to employment arrangements and workplace practices.16

15 Service Skills Australia, ‘Environmental Scan 2014’.

16 Service Skills Australia, ‘Tourism, Travel and Hospitality 2014 Environmental Scan Snapshot’.

Within the Rental, Hiring and Real Estate industry there is scope to improve literacy and numeracy skills. For example, low literacy and numeracy has been found to impact significant proportions of clerical and administrative staff and ICT workers. As organisational structures flatten out and ICT skills become more important, workers are under more pressure to develop their literacy and numeracy skills.

Due to the importance of skills development to the industry, there will always be a need at different times for Rental, Hiring and Real Estate businesses to invest in the skills of their workforce. Finding the time and resources for this will continue to be a challenge, but firms are likely to find it in their best interests to maintain their focus on developing a skilled workforce.

Workforce skills needs


This section focuses on training provided for the Rental, Hiring and Real Estate Services industry. It covers training activity (including a regional analysis), courses, providers and student characteristics.

Key messages, issues and challenges• In 2013, there were 1,720 government-subsidised

enrolments in Rental, Hiring and Real Estate VET courses in Victoria. This was down from 2012, but up from 2011. The small number of enrolments in Rental, Hiring and Real Estate courses generally means that enrolment trends should be interpreted cautiously.

• Beginning in 2013, the Certificate IV in Property Services (Real Estate) was the Rental, Hiring and Real Estate related qualification with the highest number of enrolments.

• Training is provided by TAFE and private providers in almost equal proportions. This reflects a move to private providers over the last six years.

• In 2013, the largest region in terms of Rental, Hiring and Real Estate training delivery was Eastern Metropolitan Melbourne, accounting for 45 per cent of industry enrolments.

• The majority of enrolments in Rental, Hiring and Real Estate industry training were by students 25 years of age or older. In 2013, around 23 per cent of enrolments were by unemployed students, a rise from 2008 where around 5 per cent were looking for work.

Training activityTable 4.1 opposite gives a summary of training activity for the Rental, Hiring and Real Estate industry over the period 2008 to 2013.

Enrolments

Government subsidised enrolments in Rental, Hiring and Real Estate courses increased significantly over the period 2008 to 2012, almost tripling to 2,290. In 2013 this number fell back to 1,720, which was still higher than the number of enrolments in 2011.

Over the same period, TAFE fee for service enrolments have risen from around 450 in 2008 to 650 in 2013.

In 2013, Rental, Hiring and Real Estate courses accounted for 0.4 per cent of all government subsidised enrolments in Victoria, making it the 16th largest industry training sector.

Apprentices and trainees

Trainees account for a relatively small proportion of Rental, Hiring and Real Estate training, accounting for around 15 per cent of enrolments in 2013. There are no apprentices in courses aligned with this industry.

Specialised or in-shortage occupations

There are no enrolments aligned to specialised or in-shortage occupations in the Rental, Hiring and Real Estate industry.

Qualification level

The vast majority of Rental, Hiring and Real Estate enrolments are at the Certificate III-IV level (97 per cent) with a small number at the Certificate I-II and Diploma or above level.

Completed qualifications

In 2013, there were 420 completed qualifications in courses associated with the Rental, Hiring and Real Estate industry – an increase on the number in 2012, but down from the peak number of completions in 2011.

Rental, Hiring and Real Estate Services vocational training provision

23Rental, Hiring and Real Estate Services vocational training provision

Table 4.1: Key training activity in the Rental, Hiring and Real Estate industry, 2008 to 2013

Government subsidised enrolments

Industry Subdivision 2008 2009 2010 2011 2012 2013

Property Operators and Real Estate Services 620 660 1,000 1,550 2,290 1,720

Grand Total 620 660 1,000 1,550 2,290 1,720

Apprentice or trainee

Apprentice trainee status 2008 2009 2010 2011 2012 2013

Trainee 230 260 270 370 380 250

Apprentice - - - - - -

Grand Total 230 260 270 370 380 250

Qualification Levels - 2013

Enrolments % total

Cert I-II <10 0%

Cert III-IV 1,660 97%

Diploma+ 50 3%

Grand Total 1,720 100%

Completed qualifications

Industry Subdivision 2008 2009 2010 2011 2012 2013

Property Operators and Real Estate Services 140 450 440 660 390 420

Grand Total 140 450 440 660 390 420


CoursesFive courses in Rental, Hiring and Real Estate industry captured all enrolments in 2013. The Certificate IV in Property Services (Real Estate) attracted the most enrolments in 2013, and represents 97 per cent of all enrolments in courses related to the industry.

Table 4.2: Rental, Hiring and Real Estate qualifications ranked by 2013 enrolments, government subsidised, 2008 to 2013

Course name 2008 2009 2010 2011 2012 2013

Certificate IV in Property Services (Real Estate) - 340 850 1,410 2,200 1,660

Diploma of Property Services (Asset and Facility Management) - - 10 30 20 30

Diploma of Facility Management - - - <10 10 20

Certificate III in Property Services (Agency) - <10 10 50 40 <10

Diploma of Property Services (Agency Management) - - - - 10 <10

Note: course totals include equivalent superseded courses.

Enrolments by occupationThree Rental, Hiring and Real Estate industry related occupations account for all of the industry’s enrolments. Real Estate Representative is the largest occupation, having shown strong growth over the period 2008 to 2012. Enrolments related to the Property Manager occupation peaked in 2011, before falling in 2012 and 2013. While low, enrolments in Facilities Administrator courses have been rising.

Table 4.3: Rental, Hiring and Real Estate occupations ranked by 2013 enrolments, government subsidised, 2008 to 2013

Occupation 2008 2009 2010 2011 2012 2013

Real Estate Representative 620 650 920 1,410 2,210 1,670

Property Manager - 20 80 140 80 40

Facilities Administrator - - - <10 <10 20

Please see Appendix A for occupations and associated qualifications with funding bands (available for 2012 and 2013).


Training providers A total of 14 training providers delivered government subsidised Rental, Hiring and Real Estate industry training in 2013.

A slight majority of training is with TAFEs, which accounted for 52 per cent of industry enrolments in 2013. This is a significant change from 2008 where 85 per cent of enrolments were with TAFEs.

Table 4.4: Proportion of enrolments by provider type, government subsidised, 2008 to 2013

Provider type 2008 2009 2010 2011 2012 2013

TAFE 85% 75% 77% 64% 52% 52%

Private 15% 25% 23% 36% 48% 48%

Funding patternsFrom July 2012 funding bands for government subsidised training were introduced. The allocation of funding within these bands is designed to better target areas of greatest public benefit and future jobs growth. Where there is not a strong need for Government support the training subsidies are lower.

Courses by funding band

The eight Rental, Hiring and Real Estate industry courses were evenly split between funding Bands C and D in 2013.

Table 4.5: Courses by subsidy band, 2013

Subsidy Band 2013 % total

Band A - 0%

Band B - 0%

Band C 4 50%

Band D 4 50%

Band E - 0%


Enrolments by Funding Band

Most of the enrolments in Rental, Hiring and Real Estate industry courses in 2013 were in subsidy Band C, 97 per cent of the total. The remaining enrolments were in Band D.

See Appendix A for a list of courses with associated subsidy bands for 2012 and 2013.

Figure 4.1: Enrolments by subsidy band, government subsidised, 2012 and 2013

2013

2012

Band C Band D

97% 3%

99% 1%

Regional training activityIn 2013, the largest region in terms of Rental, Hiring and Real Estate training delivery was Eastern Metropolitan, accounting for around 45 per cent of industry enrolments. Training enrolments in Eastern Metropolitan rose steadily from 2008 to 2012, before falling significantly to 730 in 2013.

Other significant regions for enrolments in Rental, Hiring and Real Estate related courses include Southern Metropolitan and Western Metropolitan. Southern Metropolitan has seen significant growth in enrolments since 2008.

Table 4.6: Victorian regions ranked by 2013 enrolments, government subsidised, 2008 to 2013

Region 2008 2009 2010 2011 2012 2013

Eastern Metropolitan 170 250 550 860 1,230 730

Southern Metropolitan 50 60 210 260 560 510

Western Metropolitan 220 160 100 100 230 260

Northern Metropolitan - - - 110 70 90

Hume 20 30 20 70 80 40

Gippsland 20 50 <10 30 30 <10

Note: regional enrolment figures sum to slightly more than the overall Victoria-wide figures due to a small number of students undertaking training in campuses in more

than one region


Figure 4.2: Rental, Hiring and Real Estate industry training providers and enrolments, 2013

Gippsland<10 providers<10 enrolments

See metro inlayBarwon South West0 providers0 enrolments

Grampians0 providers0 enrolments

Loddon Mallee0 providers0 enrolments

Hume<10 providers40 enrolments

Western Metropolitan(inc. CBD)<10 providers260 enrolments

Northern Metropolitan<10 providers90 enrolments

Eastern Metropolitan<10 providers730 enrolments

Southern Metropolitan<10 providers510 enrolments


Student characteristicsSince 2008, more than 55 per cent of enrolments in Rental, Hiring and Real Estate related courses were by students aged 25 years or older. In 2013, around 23 per cent of enrolments were by unemployed students, a rise from 2008 where around five per cent did not have a job.

In 2013, 26 per cent of enrolments were by students from a Culturally and Linguistically Diverse (CALD) background. Students with a disability made up around three per cent of Rental, Hiring and Real Estate enrolments.

Table 4.7: Learners Facing Barriers enrolments, government subsidised, 2008 to 2013

Learner Groups 2008 2009 2010 2011 2012 2013

Indigenous - <10 <10 <10 <10 <10

Disability 20 20 30 40 40 50

CALD 140 150 330 360 530 440

Unemployed 30 50 70 190 390 400

Aged 25+ 340 390 670 990 1460 1,100


Compared to students from all industries, students enrolling in Rental, Hiring and Real Estate courses were more likely to have obtained a qualification at the Year 12 or Certificate II level or the Certificate III-IV level prior to beginning their studies in the sector in 2013.

Rental, Hiring and Real Estate students were less likely to have finished their prior education at Year 11 or below than the average student.

Figure 4.3: Enrolments by highest prior qualification, government subsidised, 2013

Bachelor Degreeor Higher Degree level

Advanced Diploma,Diploma or Associate Degree

Certificate III-IV

Year 12 or Certificate II

Certificate I

Year 11 or below

Rental, Hiring and Real Estate Services

All industries

0.5%

1%

1%2%

21%

20%

54%

42%

0.4%

1%

23%

35%

The main reason students gave for enrolling in vocational training related to Rental, Hiring and Real Estate was ‘To get a job’ (22 per cent). The next two most important reasons were ‘I wanted extra skills for my job’ (20 per cent) and ‘To try for a different career’ (14 per cent), as shown in Figure 4.4.

Figure 4.4: Enrolments by reason for study, government subsidised, 2013

To get a job

I wanted extra skillsfor my job

To try for a different career

For personal interestor self-development

Other

22%

20%

14%

9%

34%


Table 5.1: Enrolments by occupation, course and subsidy band, 2012 and 2013

Occupation Course name Funding band 2012 2013

Facilities Administrator

Diploma of Facility Management Band D <10 20

Total <10 20

Property Manager Certificate III in Property Services (Agency) Band C 40 <10

Certificate IV in Property Services (Operations) Band C 20 -

Diploma of Property Services (Asset and Facility Management) Band D 20 30

Total 80 40

Real Estate Representative

Certificate IV in Property Services (Real Estate) Band C 2,200 1,700

Diploma of Property Services (Agency Management) Band D 10 <10

Total 2,200 1,700

Appendix A