Western Australia State Report

2 | Western Australia State Report

Contents

3 ......Foreword

4 ......Overview of our State’s economy

5 ......High level overview of our State’s industries and occupations

6 ......What are our top industries?

7 ......What are our top occupations?

8 ......What are our highest paying industries and occupations?

9 ......What are our niche industries and occupations?

10 ....Where are the jobs in our most niche industry?

11 .....Focus on Perth’s economy

About Emsi

Economic Modelling Specialists International (Emsi) creates tools and services that help organisations better understand the connection between economies, people and work. Through our unparalleled local and granular economic data, we work with education providers, economic developers, and employers, giving them the understanding they need in order to close skills gaps, drive growth, and increase productivity in the economies they serve.

Western Australia State Report | 3

Foreword

We often hear Government, media and employer groups complaining that there is a lack of people with the right skills in the economy, but a noticeable tendency is that of trying to fix the problem with broad brush solutions. For instance, it is often claimed that the economy needs more engineers? Perhaps, it does, but the next questions to ask are: What type of engineers are needed? Where are they needed? What will the situation look like in a few years?

The fact is that though we often talk about “the economy,” in reality there is no such thing as the “Australian economy,” as such. Rather, the “Australian economy” is simply the aggregation of a number of smaller local and regional economies, each one with very different employer needs.

For any organisation that is involved in educating and training people in the skills that are needed by employers, or in the economic development of a region, this point cannot be emphasised too strongly. If we are to see real economic growth, both education providers and economic developers need to be far more aware of demand at their local and regional level, in order to be able to respond to that demand effectively.

One of the best ways of gaining this understanding is through Labour Market Intelligence (LMI). However, although there is a wealth of publicly available data sources available, there are usually a number of problems associated with using them. To begin with, not one dataset out there gives a complete picture of the labour market. Secondly, all datasets contain strengths, weaknesses, and data suppressions. And thirdly, attempting to use the raw data is a hugely time-consuming and resource-consuming activity.

Most LMI solutions can help overcome the first and the third problem, by combining different datasets into one system. However, this still doesn’t overcome the second problem – that of weaknesses and data suppressions. Since these problems and gaps in the data tend to occur at the most specific industry and occupation levels, what most LMI solutions tend to do is to make assumptions about the granular levels based on the data and trends at the more generic levels.

This approach is bound to lead to erroneous conclusions, since many of the industries at the 3-digit level, and occupations at the 4-digit level are quite different from one another. For example, within the 2-digit Sports and Personal Service Workers occupation category, there are such disparate occupations at the 4-digit level as Beauty Therapists, Fitness Instructors, and Funeral Workers. Needless to say, these occupations are hardly likely to have been growing or declining at the same rate! The same sorts of errors occur if assumptions are made in respect to geographies, since regions are made up of sub-regions which are often far from homogenous.

At Emsi we take a different approach. Rather than taking public datasets and making broad assumptions, we economically model them together using a technique developed over many years, which allows us to retain the strengths and discard the weaknesses of each source. What we end up with is a dataset that gives a detailed and accurate picture not only of regional labour markets, but also of the sub-geographies within, right down to the most specific industries and occupations.

The intent of this report is to give you a flavour of this data, tailored specifically to your State. We hope that it will be helpful to your organisation in better understanding what industries, occupations and skills are driving your labour market, and in turn will help you think about how the use of highly granular LMI might be of use to you in your future strategy.

4 | Western Australia State Report

Overview of our State’s economy

Number of jobs in 2015:

1,352,620

Number of jobs in 2010:

1,198,785

Projected number of jobs by 2020:

1,446,629

Forecast increase in jobs between 2015 and 2020:

94,009

Forecast job growth between 2015 and 2020:

7%

A$66,404Average wage:

Western Australia State Report | 5

High level overview of our State’s industries and occupations

T O P 5 H I G H L E V E L I N D U S T R I E S

INDUSTRY 2015 JOBS 2020 JOBS

Health Care and Social Assistance 177,982

Construction 148,188161,479

Retail Trade132,797

143,755

108,519118,092

Professional, Scientific and Technical Services

100,847114,155

Education and Training

153,248

T O P 5 H I G H L E V E L O C C U PAT I O N S

OCCUPATION 2015 JOBS 2020 JOBS

Professionals 319,074

Technicians and Trades Workers 246,147260,905

Clerical and Administrative Workers180,629

182,747

157,298171,536Managers

131,825130,516

Labourers

288,183

T O P 5 H I G H L E V E L G R OW T H I N D U S T R I E S

INDUSTRY CHANGE IN JOBS (2015-2020) % CHANGE

Health Care and Social Assistance 24,734 16%

Education and Training 13,307 13%

Construction 13,291 9%

Accommodation and Food Services 11,128 13%

Retail Trade 10,958 8%

T O P 5 H I G H L E V E L G R OW T H O C C U PAT I O N S

OCCUPATION CHANGE IN JOBS (2015-2020) % CHANGE

Professionals 30,891 11%

Community and Personal Service Workers 23,180 18%

Technicians and Trades Workers 14,758 6%

Managers 14,238 9%

Sales Workers 11,003 10%

6 | Western Australia State Report

T O P 1 0 H I G H E S T G R OW T H I N D U S T R I E S

What are our top industries?

A good place to start when trying to understand what is driving your State’s economy is to look at which industries are driving employment both in terms of total numbers employed and in terms of future growth. However, simply looking at the headline industries will not tell you an awful lot. To come to a really good understanding of the drivers in your State, it is crucial to drill right down to the most specific industries (3-digit ANZSIC). Our data tool, Analyst, allows users to do just this, and the information below shows both the biggest industries and the highest growth industries in your State, right down to the most granular levels.

T O P 1 0 B I G G E S T I N D U S T R I E S

INDUSTRY 2015 JOBS 2020 JOBS

Cafes, Restaurants and Takeaway Food Services 70,095

School Education 55,87461,873

Architectural, Engineering and Technical Services

47,88155,515

45,46840,222Metal Ore Mining

38,57843,303

Building Installation Services

Hospitals

31,95935,987

Supermarket and Grocery Stores28,441

30,663

State Government Administration27,822

31,549

Building Completion Services26,115

27,779

Legal and Accounting Services 25,50626,409

61,797

INDUSTRY CHANGE IN JOBS (2015-2020) % CHANGE

Cafes, Restaurants and Takeaway Food Services 8,298 13%

Architectural, Engineering and Technical Services 7,635 16%

School Education 5,999 11%

Other Social Assistance Services 5,266 23%

Hospitals 4,725 12%

Allied Health Services 4,233 24%

Tertiary Education 4,145 18%

Building Installation Services 4,028 13%

State Government Administration 3,727 13%

Medical Services 3,202 17%

Western Australia State Report | 7

T O P 1 0 H I G H E S T G R OW T H O C C U PAT I O N S

The industry data tells us a good deal, but we also need to look through the lens of occupations to see which jobs are driving the State’s economy. As with the industry data, our Analyst tool can drill right down to the most granular detail, and so below we have set out the Top 10 occupations in your State both in terms of total numbers employed, and forecasted change to 2020 at the 4-digit ANZSCO level.

What are our top occupations?

T O P 1 0 B I G G E S T O C C U PAT I O N S

OCCUPATION 2015 JOBS 2020 JOBS

Sales Assistants (General) 60,531

Metal Fitters and Machinists 27,17026,559

General Clerks24,42824,879

24,21124,620Retail Managers

22,88227,077

Receptionists

Registered Nurses

22,24822,841

Electricians22,061

25,877

Truck Drivers21,974

24,348

Accountants20,131

23,709

Primary School Teachers 18,05320,223

53,504

OCCUPATION CHANGE IN JOBS (2015-2020) % CHANGE

Sales Assistants (General) 7,026 13%

Aged and Disabled Carers 4,807 29%

Registered Nurses 4,195 18%

Electricians 3,816 17%

Accountants 3,578 18%

Education Aides 3,101 24%

Child Carers 3,099 27%

Chefs 2,575 20%

Truck Drivers 2,374 11%

Real Estate Sales Agents 2,341 21%

8 | Western Australia State Report

What are our highest paying industries and occupations?

Another important aspect of unlocking your labour market is to look at how much industries and occupations pay. As with the data presented on previous pages, we have drilled right down to the most granular ANZSIC and ANZSCO codes to unlock the highest paying industries and occupations in your State.

I N D U S T R I E S – M E D I A N A N N UA L S A L A RY

O C C U PAT I O N S – M E D I A N A N N UA L S A L A RY

A$268,694

A$209,452A$189,527 A$183,991 A$182,922 A$179,163 A$174,415 A$168,720 A$167,540 A$164,247

Anaesthetists

Psychiatri

sts

Chemical, G

as, Petro

leum and Power

Generation Plant O

perators

Train and Tr

am Drivers

Other Medica

l Practit

ioners

Medical P

ractitioners

nfd

Mining Engineers

Other Build

ing and

Engineering Te

chnicia

ns

Commissioned O

fficers

(Management)

Surgeons

Oil and Gas E

xtracti

on

Water Freight T

ransport

Coal Mining

Pipeline and O

ther Transp

ort

Metal Ore M

ining

Other Mining Support

Services

Electricit

y Generatio

n

Other Non-M

etallic M

ineral

Mining and Quarry

ing

Exploration

Basic N

on-Ferrous

Metal Manufacturin

g

A$1

42,2

11

A$1

35,4

31

A$1

33,8

35

A$1

31,3

21

A$1

31,2

43

A$1

24,3

77

A$1

22,7

24

A$1

20,6

99

A$1

16,6

59

A$1

15,6

85

Western Australia State Report | 9

Where things begin to get really interesting is when we uncover the industries that make your economy unique. Our Analyst tool contains a function known as Location Quotient, which is a statistical measure of industry or occupation concentration in an area compared to the rest of the country. Location Quotient works on a benchmark basis, with 1.0 indicating the national average. Therefore, industries and occupations with a score of more than 1.0 indicates that they have an employment profile that is greater than the national average.

What are our niche industries and occupations?

I N D U S T RY L O CAT I O N Q U O T I E N T

O C C U PAT I O N L O CAT I O N Q U O T I E N T

INDUSTRY 2015 LQ 2020 LQ

Metal Ore Mining 6.20

Other Non-Metallic Mineral Mining and Quarrying

5.095.10

Exploration4.16

3.95

4.124.02Administrative Services, nfd

4.113.74

Oil and Gas Extraction

Other Mining Support Services

3.663.67

Food and Beverage Services. nfd3.63

2.69

Other Services, nfd3.54

4.45

Pipeline and Other Transport3.15

2.27

Mining, nfd 3.082.79

5.92

OCCUPATION 2015 LQ 2020 LQ

Legal, Social and Welfare Professionals nfd 8.64 8.75

Miscellaneous Labourers nfd 8.51 8.30

Design, Engineering, Science and Transport Professionals nfd 6.87 6.97

Sales Support Workers nfd 5.81 3.71

Miscellaneous Factory Process Workers nfd 5.27 5.64

Geologists and Geophysicists 4.43 4.30

Mining Engineers 4.11 4.15

Information and Organisation Professionals nfd 4.00 4.18

Arts and Media Professionals nfd 3.39 3.19

Accountants, Auditors and Company Secretaries nfd 3.32 3.20

10 | Western Australia State Report

Where are the jobs in our most niche industry?

The data on page 9 showed which industries are most unique to your State, with the Metal Ore Mining industry coming on top. However, we might then ask the question, what are the occupations that this sector employs? Through our Staffing Pattern function in Analyst, we can answer this question. The data below gives a breakdown of the Top 10 occupations within this sector, including numbers employed, employment forecast, and the % of people employed in this occupation within the industry. The significance of this information is that you can find out quickly and simply what the occupations are in an industry, and therefore the skillset for that sector. It is worth noting that the process can also be run in reverse, whereby users can begin with an occupation (rather than an industry) and run an Inverse Staffing Pattern to quickly identify the industries that employ this position.

DESCRIPTION EMPLOYED IN INDUSTRY (2015)

EMPLOYED IN INDUSTRY

(2020)

CHANGE (2015-2020)

% CHANGE (2015-2020)

% OF TOTAL JOBS IN

INDUSTRY (2015)

Drillers, Miners and Shot Firers 7,954 5,573 -2381 -29.93% 17.5%

Metal Fitters and Machinists 4,912 4,402 -510 -10.38% 10.8%

Other Building and Engineering Technicians 3,561 3,257 -304 -8.54% 7.8%

Truck Drivers 2,283 2,274 -9 -0.39% 5.0%

Electricians 1,516 1,526 10 0.66% 3.3%

Geologists and Geophysicists 1,429 1,292 -137 -9.59% 3.1%

Production Managers 1,405 1,330 -75 -5.34% 3.1%

Mining Engineers 1,346 957 -389 -28.90% 3.0%

Other Stationary Plant Operators 1,266 1,219 -47 -3.71% 2.8%

Occupational and Environmental Health Professionals 886 887 1 0.11% 1.9%

Western Australia State Report | 11

Focus on Perth’s economy

Number of jobs in 2015:

909,980

Number of jobs in 2010:

803,981

Projected number of jobs by 2020:

976,054

Forecast increase in jobs between 2015 and 2020:

66,074

Forecast job growth between 2015 and 2020:

7%

A$64,651Average wage:

To find out more about how Emsi can help your organisation build a better regional economy, contact Andy Durman:

Email: andyd@economicmodelling.com.au Phone: +44 (0)7720 641 651

Web: www.economicmodelling.com.au Blog: www.economicmodelling.co.uk/blog

Twitter: @Emsi_UK