1. Career Education Association of Victoria Thursday 23 rd April 2009

2. Overview Introduction to Securing Jobs for Your Future – Skills for Victoria What are skill gaps and skill shortages? Where are the persistent skill shortages? (Selected industries) What factors are driving persistent skill shortages? (Selected industries) Impact of Skills Reform Questions

3. An increase in the number of Victorians undertaking training in the right skill areas, and at the levels needed A system that engages more effectively with individuals and businesses and is easier to navigate Responsiveness to changing needs of Victoria’s industry and workforce Creating a culture of lifelong skills development Objectives

4. Overall Implementation Program Skills for Growth Expanded Role of ITABS Skills Pledge Apprenticeships – Retention Completion bonus ACFE preaccredited Training Enhancement of State Register Qualifications Navigator Reaching the Market – Communications Strategy World Class TAFE facilities TAFE Broadband TAFE Workforce ACFE Stronger Providers Training System Development and Implementation Support Contestable Funding

5. Information Provision – Labour Market Analysis Skills Victoria website – Consolidated Information Service Facilitate better decision making Focussed research and analysis Quantitative and qualitative Forward looking

6. What are skill shortages? Skill gaps: Lack of appropriate qualifications, experience or specialised skills Specialist skills or experience Skill shortages: Demand greater than available supply at the given labour market conditions A lack of more substantial skills Skills that could normally be acquired through longer term formal training Persistent skill shortages: Skill shortages that exist over a longer time. Likely to reflect structural differences Growth constraint May jeopardize business or industry viability Training may play a substantial role

7. Persistent skill shortage areas Building and Construction Current economic outlook: Activity and employment is decreasing Commercial sector hardest hit Housing outlook is more positive...........in the short term Civil construction will benefit from large scale projects Impact on skills:  Persistent skill shortages: engineering and project managers, architects, civil engineers, building, architectural and civil engineering associates; and all the building and constructions related trades  Some shortages are easing, particularly in the commercial sector  Skills to remain in high demand: finishing trades and trades related to housing demand

8. Persistent skill shortage areas Transport and Storage Current economic outlook: Outlook is positive Freight task expected to double between 2000 and 2020 Government initiatives are being rolled out Impact on skills: Skills shortages across a number of occupations Despite short term contraction, skill shortages likely to prevail in metropolitan rail operations, long haul delivery and supply chain management skills, including drivers in the road freight and rail sectors

9. Persistent skill shortage areas Health and Community Services Current economic outlook: Downturn less pronounced Impact of population growth and ageing to increase demand further Demand for social services may increase in downturn Impact on skills: Skill shortages across a number of occupations Government regulations impose higher skill requirements Skills expected to remain in shortage: all categories of registered and mental health nurses, nurse managers and educators, occupational therapists, physiotherapists, radiographers, clinical psychologists and social workers, aged care and child care workers and child care coordinators

10. Persistent skill shortage areas Agrifood Current economic outlook: Expectations positive due to stable demand Export demand may decrease. Weaker Australian dollar helps Impact of drought and climate change Impact on skills: Evolving job roles Skills to remain in shortage: natural resource management, water security, biosecurity, regulatory compliance, risk management and emergency pest and disease response activities. sophistication of manufacturing technology requires machine operators, electricians, fitters and turners, and employees with high level skills in food science and technology.

11. Persistent skill shortage areas Electricity, Gas and Water Current economic outlook: Industry provides essential services and utilities May see marginal decline in energy consumption. Impact on skills: Impact of climate change and water security Victorian Government water projects are underway Implementation of the Government’s Carbon Pollution Reduction Scheme Critical shortage in traditional trades

12. Impact of Skills Reform Victorian Training Guarantee will boost participation Better information More choice – for students and employers More responsive providers Greater role for industry

13. Impact of Skills Reform Eligibility criteria and exemptions - $10 million Industry and regional engagement Training is not always the solution to skills shortages – especially in the short-term

14. QUESTIONS?