ICT Skills Snapshot The state of ICT skills in Victoria

Transcription

1 ICT Skills Snapshot The state of ICT skills in Victoria June 27 Department of Innovation, Industry and Regional Development

2 Contents Executive summary 2 Employment 3 Skills in demand 3 ICT skills supply 3 ICT skills job placements 3 In summary 4 Introduction 5 Overview 6 Methodology and data sources 6 Labour market status (ABS data) 7 Total employment 8 Employment by ICT occupations 9 Employment by age group 1 Employment by gender 1 Employment by overseas born 11 Employment by industry groups 11 Employment by full-time/part-time work status 12 Employment by hours of work 12 ICT skills demand 13 Job advertisements 14 IT&T sector 14 Multimedia sector 14 ICT Vacancy Index 15 Placements 16 Placements by ICT occupation 16 Employment by occupation 16 Placements by employment type 18 Skills in demand 18 Demand forecasts 18 ICT skills supply 2 University education 21 ICT first preference study applications 21 Enrolments 21 Commencements 22 ICT graduates 23 ICT postgraduates 24 Vocational education and training 25 Overall participation 25 Participation by organisation type 26 Participation by training package 26 Training by age 27 Training by gender 28 ICT skills job placements 29 Characteristics of job demand 3 Skills in demand 3 Occupations in demand 31 ICT job placements by industry sector 32 Employment type and term 32 Location of job origins in Melbourne 32 Advertisement of positions 34 Placements by qualifications sought 34 Salaries 34 Job supply features 35 Skills shortage 35 Characteristics of candidates 36 Mediums through which candidates applied or filled the job 38 Demand and supply (skills shortages analysis) 39 Key occupations in demand versus applications received 39 Key occupations in demand versus days to fill a position 4 Key occupations in demand versus qualifications sought by employers 41 Qualifications sought versus qualifications offered by candidates 42 Job origin versus candidates origins 43 Appendices 44 Appendix 1: References 45 Appendix 2: Participating ITCRA members 45 Appendix 3: Australian Qualifications Framework and Classification of Occupations 45 Appendix 4: Glossary and explanation of abbreviations 48 Appendix 5: OTTE VET data 48 Appendix 6: NCVER data 55 Appendix 7: University data 55

3 Executive Summary

4 Executive summary This report is a snapshot of the Victorian market for information and communication technology (ICT) skills as at December 26. The report was compiled from a range of secondary data sources and published reports which investigate the supply of and demand for ICT skills in Victoria. Employment According to the ABS Labour Force Survey 25 6, approximately 99,1 people were employed in ICT jobs in Victoria, accounting for four per cent of the total Victorian workforce. From 24 5 there was a slight increase in ICT employment in Victoria following a slow but steady decrease in the previous two years. In 25 6 Victoria had a 29 per cent share of ICT employment in Australia. In contrast, Victoria s share of total employment in Australia was relatively stable at approximately 25 per cent. Half of those employed in ICT in Victoria were employed as ICT professionals, most often as computing professionals. The property and business services sector was the largest ICT employer followed by communications services, finance and insurance and manufacturing. The majority of those employed in ICT are male, accounting for 84 per cent of ICT employment in Victoria. It is unlikely that this will change in the foreseeable future given the continued decline of females choosing to study ICT at university and Vocational Education and Training (VET). Skills in demand All sources of information on market demand continue to indicate an increasing need for ICT skills. The Olivier Internet Jobs Index continues to show an increase in online ICT job advertisements in both Victoria and Australia overall. Likewise the ICT Vacancy Index for Australia was 27.8 per cent higher in December 26 than in December 25. In addition, the Hudson Report indicated a higher level of optimism in the ICT sector compared to Victorian employers overall, and all indications are that ICT salaries will continue to increase above the inflation rate. The Department of Employment and Workplace Relations (DEWR) identified a number of ICT specialisations in shortage as at May 26. State-wide shortages in supply were identified in a range of ICT specialisations from database skills and applications development to internet/networking LAN/WAN, ERM/ CRM applications, process systems and management and security. A number of these skill areas were also listed on the Department of Immigration and Citizenships (DIAC) Migration Occupations in Demand List (MODL), suggesting that there is a similar shortage nationally and that opportunity exists to recruit people with these skills from outside Australia. ICT skills supply Although Victoria, compared to other states, continues to have the highest supply of ICT students (35 per cent), the supply of ICT skilled labour has continued to decline whilst the demand for labour is increasing. As at 25 6 a total of 3,79 people submitted first preference applications for studies in ICT in Victoria, which corresponds to a decline of 65 per cent since 2 1. Enrolments decreased in Victoria by 16 per cent between 22 and 25; and from 21 to 25, Victoria experienced a 53 per cent decline in domestic commencements (compared to an overall decrease of 46 per cent across Australia). As a consequence of the decreasing enrolments, the number of ICT graduates in Victoria has started to decrease. From 22 to 24 the number of domestic ICT graduates declined in Victoria and Australia by 6.4 per cent and 1.1 per cent respectively. Further declines are expected post-24 as a result of the decline in commencements after 21, this will be more significant for domestic students. Although there is no evidence either way, it is anticipated that the situation would be similar among ICT postgraduates. The situation was similar for VET enrolments in ICT courses with total enrolments declining since 23. The largest proportion of VET students continue to be aged between 15 and 19 years. Over the last five years the proportion of students in this group has continued to increase although the rate of increase has slowed since 23. ICT skills job placements According to the Information Technology Contract and Recruitment Association (ITCRA) from December 25 to May 26, the most sought after general ICT skills in Victoria were SkillSoft skills and ICT support, and the specific ICT skills were Windows and SQL specialisations. The top occupations in demand were in professional areas, including test engineers, and analyst programmers, with 53 per cent of advertised positions requiring some form of qualification.

5 Most job placements were in the communication services industry sector which accounted for 24 per cent of job placements in Victoria. The ICT industry continues to be an area of high demand for short term positions. From December 25 to May 26, most employment contracts were short-term, three to six months (42 per cent of jobs in Victoria), with the majority of placements in the Melbourne CBD and immediate surrounds. In Victoria, 73 per cent of ICT job placements between December 25 and May 26 were advertised. Evidence of the ICT job market tightening and the growing potential for an ICT skills shortage is further highlighted by the relatively small number of applications per position advertised and the length of time to fill a position. In 25 6 there were, on average, 24.5 applications per ICT vacancy in Victoria. This is a notable decrease compared to 23 4 when there were 33.5 applications per ICT vacancy. In 25 6 it took an average of 2.8 days to fill an ICT vacancy in Victoria a notable increase from 23 4 when it took just 16.3 days to fill a vacancy in Victoria. In summary Victoria s ICT employment is in a situation where current demand for ICT skills is exceeding supply in most areas and is projected to continue increasing and in the next few years this situation is likely to worsen as the number of ICT university and VET graduates continue to decrease.

6 Introduction

7 Introduction Overview This ICT Skills Snapshot is the fifth in a series produced by the Victorian Government which began in 22. Unlike other employment sectors, ICT is continually leading and adjusting to rapid technological developments. This change impacts on the demand for skills in the sector with some becoming obsolete while others grow rapidly. The Snapshot contains a detailed analysis of trends in ICT employment and is a valuable reporting tool that will assist those who need to manage the rapid changes associated with ICT supply and demand. The Snapshot outlines the current and historical employment in ICT in Victoria and Australia, and examines in detail the supply and demand for ICT skills. The data tracks demand for ICT skills in order to assist industry and the education and training sectors plan and invest in skills and development. Although demand for ICT skills has experienced a downturn post-2, over the last two years there has been evidence of a recovery. In addition, ICT continues to be pivotal to improving industry efficiency and productivity, as well as an important tool in the public sector including health, transport and natural resource management. Methodology and data sources This Snapshot was generated from a range of secondary data sources associated with the supply and demand of ICT skills and employment nationally and, where available, within Victoria. Figures on the current size of the ICT sector were derived from the 25 6 ABS Labour Force Survey and associated time series data. The Labour Force Survey is a component of the Monthly Population Survey and has the primary purpose of measuring the civilian labour force. The survey also includes measures to describe the characteristics of the workforce by occupation, location and a range of other demographic variables. The Labour Force Survey provides estimates of the ICT sector nationally, by state, occupation, employment by geographic location, gender and ethnicity. It also provides details about ICT employment by industry sector including historical data that allows for an analysis of trends over time. The demand for ICT skills was assessed from a variety of sources including data from the Olivier Internet Jobs Index, DEWR, DIAC and the Hudson Report. Each month the Olivier Group compiles a report on the demand for labour in Australia using labour market data collected from online job boards which is published as the Olivier Internet Jobs Index 1. This report utilises data from the October 26 report. Each year DEWR compiles a report on skills in demand based on the available labour market intelligence. This report provides a picture of skills shortages in trades, professions and ICT by state and territory. DEWR also produces an ICT Vacancy Index which is based on a weekly count of ICT vacancies advertised on three sites: jobserve.com.au, seek.com.au and mycareer.com.au (ITJobs). 1 The Index itself assesses the job vacancy rate compared to January 2 when it was set at 1. DIAC maintains a list of occupations in demand for migration purposes. The MODL covers those occupations and specialisations identified by DEWR that are in short supply. Job placement data was provided by members of ITCRA. This data provides information about the skills and qualifications in demand in the ICT sector and the extent to which vacancies have been filled, which is useful in identifying skill shortages or difficulties. It also provides data on the characteristics of job applicants such as age, gender and qualifications. Demand forecast data was derived from the Hudson Report which details the results of a quarterly survey of employers intentions with respect to the recruitment of staff. A key indicator in the Hudson Report is the net effect which is calculated by taking the percentage of employers surveyed that expect to increase staff levels during the quarter and subtracting the percentage of employers surveyed that expect to decrease staff levels. Data on the supply of ICT skills is associated with the number of commencements into ICT and related courses, university enrolments and completions and comes from the Commonwealth Department of Education, Science and Training (DEST), Victorian Tertiary Admissions Centre (VTAC) and the Graduate Careers Council of Australia (Gradlink). VET data was provided by the Victorian Office of Training and Tertiary Education (OTTE) and the National Centre for Vocational Educational Research (NCVER). OTTE annually compiles data on course enrolments and participation in individual TAFE and private educational institutions in Victoria.

8 Labour market status (ABS data)

9 Labour market status (ABS data) Total employment According to the ABS Labour Force Survey 25 6, Victoria continues to be the second largest employer of ICT workers in Australia, behind NSW, with 99,1 people employed in ICT. This figure represents 29 per cent of the total number of ICT jobs in Australia, a three per cent increase from 24 5 and marginally higher than 21 2 levels. In contrast, Victoria s share of total employment in Australia has remained relatively stable at approximately 25 per cent for the past four years. ICT workers account for four per cent of the total workforce in Victoria, higher than the national average of 3.4 per cent. Total ICT employment in Victoria and Australia, 21 2 to 25 6 Source: ABS No. employed (') Australia Victoria Proportion of workers in Victoria and Australia who work in ICT, 21 2 to 25 6 Source: ABS Percentage Australia Victoria

10 Employment by ICT occupations In 25 6, computer professionals accounted for half of the ICT employment in Victoria (47 per cent nationally), this represents a lower level than between 21 and 24 when computer professionals accounted for 58 per cent of the total Victorian ICT employment. The remainder of occupations in the sector were relatively evenly distributed, each accounting for between three per cent and 11 per cent of total ICT employment. Proportion of ICT employment by industry occupation in Victoria and Australia, 21 2 to 25 6 Source: ABS Percentage Australia Victoria 1 Information technology managers Computing professionals Computing support technicians Electrical and electronics engineers Electronic engineering associate professionals Electronic and office equipment tradespersons Communications and electrical tradespersons Trend in ICT employment in industry occupation in Victoria, 21 2 to 25 6 Source: ABS Percentage Information technology managers Computing professionals Computing support technicians Electrical and electronics engineers Electronic engineering associate professionals Electronic and office equipment tradespersons Communications and electrical tradespersons

11 Employment by age group In 25 6, the largest proportion of ICT workers in Victoria and Australia were aged between 25 and 34 years (33 per cent) and 35 and 44 years (3 per cent) respectively. Employment by gender Females continue to be under represented in the sector, accounting for just 16 per cent of the ICT workforce in Victoria. In comparison, females account for 45 per cent of the total workforce in Victoria. These figures have been relatively stable over the last two years. Percentage Age distribution of ICT employment in Victoria and Australia, 25 6 Source: ABS Australia Victoria ICT employment in Victoria and Australia by gender, 25 6 Source: ABS Australia Victoria Percentage Males Females 1

12 Employment by overseas born People born outside of Australia account for 4 per cent of the ICT workforce in Victoria, this is significantly higher than the total workforce where people born outside of Australia account for 25 per cent. These figures have been relatively stable since Employment by industry groups Trend in ICT employment in Victoria and Australia (overseas born), 21 2 to 25 6 Source: ABS ICT employment in Australia ICT employment in Victoria Total employment in Australia Total employment in Victoria The main industry group employer of ICT workers in Victoria was property and business services, accounting for 4 per cent of all ICT workers. Other significant industry sectors in terms of ICT employment were communications services, finance and insurance and manufacturing. Percentage It is interesting to compare ICT employment against total employment in each of the industry groups. By industry group, the communications and business services group has the largest proportion of ICT employees. Although the property and business services group employs a larger share of ICT workers, the proportion employed in ICT is relatively small, due to the large number of people employed in a wide range of occupations Share of ICT employment by industry in Victoria and Australia, 25 6 Source: ABS Percentage Manufacturing Australia Victoria Electricity, Gas and Water Supply Construction Wholesale Trade Retail Trade Transport and Storage Communication Services Finance and Insurance Property and Business Services Government Admin and Defence Education Health and Community Services Cultural and Recreational Services Others 11

13 Employment by full-time/ part-time work status Share of ICT employment by work status in Victoria and Australia, 25 6 Source: ABS The ICT sector is dominated by full-time 1 workers 2 with just nine per cent of the ICT workforce in Victoria employed part-time 3. In comparison 29 per cent of the total workforce in Victoria is employed part-time Australia Victoria Employment by hours of work The hours of work of ICT workers are on average slightly less in Victoria and Australia overall for full-time workers than the average across all occupation groups but slightly higher for part-time workers. In Victoria, the average part-time ICT worker worked for more than three additional hours per week compared to the overall Victorian part-time workforce. Percentage Full-time Part-time Average hours of total employed in ICT versus economy-wide in Victoria and Australia, 25 6 Source: ABS 45 Employed full-time Employed part-time Total employed Average hours A full-time worker is defined as a person who worked 35 hours or more a week (in all jobs). 3 A part-time worker is defined as a person who usually works less than 35 hours a week (in all jobs). Average hours of total employed in ICT Victoria Average hours of total employed in Victoria Average hours of total employed in ICT Australia Average hours of total employed in Australia 12

14 ICT skills demand

15 ICT skills demand Job advertisements IT&T sector The Olivier Internet Jobs Index reports figures for what they describe as the information technology and telecommunications (IT&T) sector, which is synonymous with the ICT sector referred to throughout this report. During 25 6 the Olivier Internet Jobs Index continued to show an increase in online ICT job advertisements in both Victoria and Australia. The number of online ICT jobs advertised in the 12 months to October 26 has increased by 43.2 per cent in Victoria and 51.1 per cent nationally. Multimedia sector As at October 26 the Olivier Internet Jobs Index continued to show an increase in online Multimedia job advertisements in both Victoria and Australia overall. The rate of increase in Victoria for the 12 months to October 26 was slower than for Australia overall, with Victoria achieving a 95.1 per cent increase in comparison to a national increase of per cent. The difference in the rate of increase between Victoria and the national average may be associated with supply and demand issues in cities such as Perth and Brisbane. In these cities there isn t necessarily substantial growth in the number of ICT jobs advertised, but because there is a greater mismatch between supply and demand, positions are not being filled and continue to be advertised and counted each week (Douglas, 26). Online job advertisements IT&T Sector, December 1999 to October 26 Source: ABS Number of jobs advertised 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Dec 99 Feb Apr Jun Aug Oct Dec Feb 1 Apr 1 Jun 1 Aug 1 Oct 1 Dec 1 Feb 2 Apr 2 Jun 2 Aug 2 Oct 2 Dec 2 Feb 3 Apr 3 Jun 3 Aug 3 Oct 3 Online job advertisements Multimedia sector, December 1999 to October 26 Source: ABS Number of jobs advertised 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Dec 3 Feb 4 Apr 4 Jun 4 Aug 4 Oct 4 Seasonally adjusted IT&T, National Seasonally adjusted IT&T, Victoria Dec 4 Feb 5 Apr 5 Jun 5 Aug 5 Oct 5 Dec 5 AUST VIC Feb 6 Apr 6 Jun 6 Aug 6 Oct 6 Seasonally adjusted Multimedia, Internet and Graphic Design, Victoria Seasonally adjusted Multimedia, Internet and Graphic Design, National AUST VIC Dec 99 Feb Apr Jun Aug Oct Dec Feb 1 Apr 1 Jun 1 Aug 1 Oct 1 Dec 1 Feb 2 Apr 2 Jun 2 Aug 2 Oct 2 Dec 2 Feb 3 Apr 3 Jun 3 Aug 3 Oct 3 Dec 3 Feb 4 Apr 4 Jun 4 Aug 4 Oct 4 Dec 4 Feb 5 Apr 5 Jun 5 Aug 5 Oct 5 Dec 5 Feb 6 Apr 6 Jun 6 Aug 6 Oct 6 14

16 ICT Vacancy Index The DEWR ICT Vacancy Index is based on a weekly count of ICT vacancies advertised on three sites: jobserve.com.au, seek.com.au and mycareer.com.au (ITJobs) 4. These three Australian ICT online recruiting sites averaged around 22,4 vacancies in the four weeks to mid December 26. During the October to December 26 quater, the ICT Vacancy Index for Australia was at its highest level since August 21. Over the four weeks to mid December 26, the DEWR ICT Vacancy Index was steady, and 27.8 per cent higher than in December 25. The ICT Vacancy Index by state, for the four week average to mid December 26, shows strong growth since the same period in 25, with Victoria, NSW and the ACT, showing 36 per cent, 38 per cent and 28 per cent growth respectively. ICT Vacancy Index January 22 to December 26 Vacancies Jan-2 Apr-2 Jul-2 Oct-2 Jan-3 Apr-3 Jul-3 Oct-3 Jan-4 Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul-5 ICT vacancy by state four week average to mid December 26 Jobs advertised 14, 12, 1, 8, 6, 4, 11,974 8,684 5,58 4,13 November 22 = 1 Oct-5 Jan-6 Apr-6 Jul-6 Oct , 1,993 1, ,941 1,511 NSW VIC QLD SA WA TAS NT ACT 4 For details of the ICT Vacancy Index refer to the DEWR Vacancy Report February 27. Note that because of differences in methods of counting vacancies between sites and possible duplication of ICT vacancies between sites the ICT Vacancy Index should be viewed as a broad indicator of trends in the demand for ICT skills. 15

17 Placements Placements by ICT occupation During 25 6 the largest share of ICT job placements in Victoria was in the support/quality assurance/test engineer group of occupations, which accounted for 23 per cent of placements (19 per cent nationally). In comparison the largest share of placements across Australia was in the analyst programmer/software developer/engineer group of occupations, which accounted for 21 per cent of placements (19 per cent in Victoria). Job placements by ICT occupations in Victoria and Australia overall, 25 6 Source: ITCRA Help desk/support technician/web administrator Network engineer/admin/analyst Account mgr/business development mgr/sales rep Telecommunications specialist Business analyst/consultant/systems analyst Analyst programmer/software developer & engineer Multimedia specialist/web developer Web or multimedia designer Support, QA or test engineer ICT manager/cio/project manager Employment by occupation Since August 1996, allowing for seasonal fluctuations, the Labour Force Survey has continued to show a steady growth in ICT employment in Victoria, with the greatest rate of growth in information technology placements. Database/systems administrator/security specialist Other (not identified as an ICT occupation) Australia Trainer (ICT) Victoria Telecommunications engineer Percentage While computing professionals had the largest proportion of ICT employment in Victoria, computing professionals also had the greatest fluctuations in employment compared to information technology managers and computing support technicians, with the number employed trending downwards since July 23. The other key area of ICT employment in Victoria is in electronics and communications. Significantly the number of people employed in electronics and communications in Victoria peaked in August 26 at approximately 34,. The main area of growth was in the employment of communications tradespersons, which has steadily increased over the last 18 months. In contrast, the number of electronic engineering associate professionals has been declining over the last three years. Trends in ICT occupations in Victoria, August 1996 to August 26 Source: ABS Quarterly labour force survey Employed persons ( ) Aug 96 Feb 97 Total ICT Information Technology Communications Aug 97 Feb 98 Aug 98 Feb 99 Aug 99 Feb Aug Feb 1 Aug 1 Feb 2 Aug 2 Feb 3 Aug 3 Feb 4 Aug 4 Feb 5 Aug 5 Feb 6 Aug 6 16

18 Computing professionals employment in VIctoria, August 1996 to August 26 Source: ABS Quarterly labour force survey Information Technology Managers Computing Professionals Computing Support Technicians Total Aug 96 Feb 97 Aug 97 Feb 98 Aug 98 Feb 99 Aug 99 Feb Aug Feb 1 Aug 1 Feb 2 Aug 2 Feb 3 Aug 3 Feb 4 Aug 4 Feb 5 Aug 5 Feb 6 Aug 6 Employed persons ( ) Electronic and Communications employment in Victoria, August 1996 to August 26 Source: ABS Quarterly labour force survey Employed persons ( ) Electrical and Electronics Engineers Electronic Engineering Associate Professionals Electronic Instrument Tradespersons Electronic and Office Equipment Tradespersons Communications Tradespersons Total 5 Aug 96 Feb 97 Aug 97 Feb 98 Aug 98 Feb 99 Aug 99 Feb Aug Feb 1 Aug 1 Feb 2 Aug 2 Feb 3 Aug 3 Feb 4 Aug 4 Feb 5 Aug 5 Feb 6 Aug 6 17

19 Placements by employment type Three types of employment are identified by ITCRA: permanent full-time positions, permanent part-time positions and contract positions. In Victoria in 25 6, 78 per cent of ICT job placements were for contract positions. Skills in demand Each year DEWR prepares a list of skills in demand for each state and territory which covers trades, professions and ICT skills. Shortages are identified as state-wide, regional or metropolitan. As at May 26, the following ICT specialisations were identified as skills in demand in Victoria (see table opposite page). Job placements by ICT occupations in Victoria and Australia overall, 25 6 Source: ITCRA 21% 1% C ontract P ermanent full-time P ermanent part-tim e DIAC also maintains a list of skills in demand. The MODL covers those occupations and specialisations identified by DEWR that are in short supply for the purpose of migration. As at September 26, there was a number of computing professional ICT occupations listed on the DIAC list 5. Specialist skills in demand included: CISSP C++/C#/C * Java J2EE Network Security Oracle PeopleSoft SAP SIEBEL. 5 Full details are located on: au/skilled/general-skilled-migration/skilledoccupations/occupations-in-demand.htm. Note that this data is only available nationally, not for individual states. Demand forecasts 78% According to the Hudson Report, October to December 26 quarter, the Victorian ICT sector had a higher level of optimism in relation to permanent employment expectations than Victorian employers overall, with a net affect of +38 per cent compared to per cent. However, it is worth noting that the level of optimism in the ICT sector in Victoria is 5.7 per cent lower than the national level. This may be attributable to the high level of optimism in the ACT (55.6 per cent), reflecting the large number of developments stemming from federal government support for technology developments and IT refreshment projects, for example the implementation of the Access Card. Each year the Association of Professional Engineers, Scientists and Managers, Australia (APESMA) conducts a remuneration survey of members of the Australian Computer Society. The 26 Australian Computer Society Remuneration Survey provides insights into future demand for ICT positions. Based on the results of the survey, it is anticipated that salaries paid to ICT professionals over the next months will continue to increase, possibly by around four per cent per annum. 6 A summary of the report is available on =noticedetails&notid=671 18

20 Victorian skills in demand Source: DEWR ICT specialisation State-wide shortage Regional shortage Database Oracle Microsoft SQL server Sybase SQL server Data warehousing General application development/software engineering Internet, networking, LAN/WAN ERM/CRM applications Operating systems Process and system management Systems analysis Java Advanced Web Design J2EE SAP PeopleSoft Siebel Oracle E-Business Suite Project management PowerBuilder C++/C#/C.Net technologies ASP XML UNIX VMS Broad commercial business understanding Security Network security/firewall/internet security Risk management CISSP (Certified information systems security professional) PKI E-Commerce security (non programming) 19

21 ICT skills supply

22 ICT skills supply University education ICT first preference study applications First preference ICT 7 applications in Victoria have been declining steadily since 2 1. In Victoria, as at 25 6 a total of 3,79 people submitted first preference applications for studies in ICT, which corresponds to a decline of 65 per cent since 2 1. Males continue to represent the largest proportion of ICT first preference study applicants with 84 per cent of applications in 25 6 compared to 76 per cent in Enrolments Total enrolments According to DEST, in 25 there were an estimated 65, ICT students in Australia and 22, in Victoria. Compared to other states, Victoria continues to have the highest supply of ICT students. In 25, Victoria s share of university enrolments in ICT courses was 35 per cent of all students across Australia. Both Victoria s and Australia s ICT enrolments peaked in 22. Since then both Victoria and Australia have experienced significant decreases in ICT enrolments. Across Australia enrolments decreased by 19 per cent between 22 and 25, while in Victoria they decreased by 16 per cent. Victorian ICT first preferences study applications, 1999 to 25 6 Source: VTAC Annual reports and statistics Number of applications All ICT students in Victoria and Australia, 21 5 Source: DEST, Selected student statistics Number of students 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Female Male Total Australia Victoria Appendix 7 outlines the courses included in the definition of ICT in relation to the university data. 21

23 Domestic enrolments University student enrolments fall into two categories domestic students and overseas students. The domestic students represent the potential new supply of labour at course completion. All domestic ICT students in Victoria and Australia, 21 5 Source: DEST, Selected student statistics 35, 3, Australia Victoria In Victoria there were 1,617 domestic enrolments in 25, accounting for 32 per cent of all national enrolments. The number of domestic ICT students in Victoria peaked at approximately 15,34 in 22. Since then the number has declined to just over 1, in 25, a decrease of 31 per cent (compared to an overall decrease of 29 per cent across Australia). Number of students 25, 2, 15, 1, 5, Commencements The number of commencing students is a broad indicator of the supply of new ICT graduates three to four years hence, depending on the duration of the course. Total commencements In Victoria there were approximately 6,97 ICT commencements in 25, accounting for 33 per cent of national commencements. The number of commencing ICT students peaked at approximately 1,554 in 22. Since then the number has declined to approximately 7, in 25, a decrease of 35 per cent (compared to an overall decrease of 33 per cent across Australia). The sharpest decrease was between 24 and 25 when Victoria s ICT commencements decreased by 28 per cent ICT commencing students in Victoria and Australia, 21 5 Source: DEST, Selected student statistics Number of students 18, 16, 14, 12, 1, 8, 6, 4, Australia Victoria 2,

24 Domestic commencements A more useful predictor of the supply of new ICT graduate labour three to four years hence, is the number of domestic commencements. In 25 there were 9,277 domestic commencing ICT students across Australia and 2,752 in Victoria (29.7 per cent of national commencements). The number of domestic commencing ICT students has been steadily declining since 21. From 21 to 25, Victoria experienced a decline of 53 per cent (compared to an overall national decrease of 46 per cent). ICT commencing domestic students in Victoria and Australia, 21 5 Source: DEST, Selected student statistics Number of students 18, 16, 14, 12, 1, 8, 6, 4, Australia Victoria ICT graduates The most recent data available for the number of ICT graduates is for 24. 2, Total graduates From 21 to 24, the number of ICT graduates in Victoria grew 24 per cent from approximately 5,297 in 22 to over 6,581 in 24. The increase in graduates during this period is a result of the high number of commencements from 1999 to 22. Given the continued decline in commencements since 22, the number of ICT graduates in Victoria is expected to begin to decline post-24. Trends on ICT graduates in Victoria and Australia, 21 4 Source: DEST, Selected student statistics 25, 2, 15, 1, Australia Victoria 5,

25 Domestic graduates Over the period 21 to 24 the aggregate number of domestic ICT graduates increased by approximately two per cent in Victoria and by approximately three per cent in Australia overall. This was due to the growth in ICT domestic graduates between 21 and 22 when there was a nine per cent increase in the number of domestic ICT graduates in Victoria and 14 per cent increase across Australia. From 22 to 24 the number of domestic ICT graduates in Victoria and Australia dropped by 6.4 per cent and 1.1 per cent respectively. Further declines are expected post-24. ICT postgraduates Each year DEST compiles national and state based data on postgraduate enrolments and course completions across Australia and by state. This data provides a comprehensive national picture of enrolments by qualification (for example Bachelor s degree, Masters, Doctorate), field of study (for example information technology) and place of study (for example Monash University) within states. However, by inference it is possible to obtain a crude estimate of ICT postgraduates in Victoria. The most recent data available at the time of preparing this report was for 25. In 25, there were 263,54 postgraduate students (Graduate certificate or above) studying in Australia. Trends on ICT domestic graduates in Victoria and Australia, 21 4 Source: DEST, Selected student statistics Number of students Annual and aggregate percentage change in ICT graduates in Victoria and Australia, 21 4 Source: DEST, Selected student statistics Percentage 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, Australia Victoria Australia Victoria In 25 there were 71,65 postgraduate students in Victoria accounting for approximately 27 per cent of postgraduate students nationally. There were 2,377 postgraduate students enrolled in information technology courses

26 across Australia. Assuming that Victorian information technology postgraduate students in Victoria also account for 27 per cent of the national postgraduate population (based on the national proportion), it is estimated that there were 5,54 information technology postgraduate students in Victoria in 25. Vocational education and training Data for this section of the report was provided by the NCVER and OTTE. At the time of preparing this report the most current data available was for the 25 academic year. The data provides information about the total number of enrolments by organisation type, training package, level of qualification offered by the course, and students age and gender. Please note the NCVER data measures students studying information technology at VET, whereas the OTTE data uses a broader definition of ICT. These definitions are further defined in Appendices five and six. VET ICT students in Australia and Victoria, 22 5 Source: NCVER National and Victorian VET provider collections (released July 26) Year Australia enrolments ( ) Victoria enrolments ( ) Change in VET students in Victoria and Australia, 21 4 Source: NCVER Percentage Australia Victoria Aggregate change Overall participation According to OTTE between 21 and 23 the number of VET ICT students increased in Victoria, from approximately 13, students in 21 to approximately 27, students in 23. However since 23 the total number of students has been declining to a 25 figure of just under 25, NCVER estimated that in 25 there were 15,2 students enrolled in IT vocational education and training courses in Victoria (not including communications), somewhat less than the 23 peak of 19,1 students but comparable to the 22 enrolment of 15,5 students. From 22 to 23 VET enrolments in IT in Victoria increased by approximately 23 per cent. However, since then the number has been steadily declining. From 24 to 25, Victorian VET IT enrolments declined at almost twice the rate of decline in enrolments across Australia. 25

27 Participation by organisation type In Victoria three types of organisations provide vocational education training in ICT. They include: ACE (adult and community education), PRTO s (private registered training organisations) and TAFE organisations. Trend VET ICT students by organisation type in Victoria, 21 5 Source: OTTE 3, 25, Between 21 and 23 the number of VET ICT students increased in all Victorian organisation types. In 25, as with previous years, TAFE organisations had the largest proportion of ICT students in Victoria. However, the number has been slightly declining since 23. In contrast the number of students enrolled in ACE organisations reached its highest level over the five year period to 25. Participation by training package Number of students 2, 15, 1, 5, ACE PRTOs TAFE Total Within the VET sector there is a number of course types covering several areas of ICT training. These include: ICA covering information technology, computers, computer programming and related disciplines Other national training packages which include UTE (covering electronics and electrotechnology), ICT (covering telecommunications and some aspects of ICT) and ICP (covering printing and graphic arts training package) Victorian accredited ICT courses. The largest proportion of VET ICT students are enrolled in ICA courses, followed by a range of Victorian accredited ICT courses. Participation by ICT course type Source: OTTE Percentage of students ICA Other national training packages (UTE, ICT and ICP) Victorian accredited ICT course 26

28 Completion of a VET course of study leads to various levels of qualification, ranging from a level one certificate (Certificate I) through to a Diploma, Advanced Diploma or a Graduate Certificate. The most common level of VET ICT qualification s are the basic level one and two Certificates followed by the higher level qualifications including Diplomas, Advanced Diplomas and Graduate Certificates. Since 21 there has been strong growth in the percentage of students undertaking the basic and higher level VET courses. Training by age The largest proportion of VET students continue to be aged between 15 and 19 years. Over the last five years the proportion of students in this cohort has continued to increase although the rate of increase has slowed since 23. The increase may be attributed to the uptake of VET in schools during this period. There has also been a steady increase in the number of ICT students aged 5 and above. In contrast, since 23 the number of VET students aged between 25 and 49 years has steadily decreased. VET ICT course enrolement by AQF qualification in Victoria, 21 5 Source: OTTE Percentage of students VET ICT students by age group in Victoria, 21 5 Source: OTTE Number of students 12, 1, 8, 6, 4, Basic (Certificates I and II) Middle (Certificates III and IV) Higher (Diplomas, Advances Diplomas and Graduate Certificates) 2, Age group 27

29 Training by gender Males continue to make up the largest proportion of ICT VET students. In 25 they accounted for approximately 63 per cent of students. However the proportion of male students has declined since 22 when it reached a peak of approximately 72 per cent. Trend in VET ICT female student proportions by organisation type in Victoria, 21 5 Source: OTTE In TAFE organisations in 25, females accounted for just under 3 per cent of students, whereas they were the majority in ACE organisations, accounting for approximately 7 per cent of all students. This may be attributed to the focus of ACE organisations on the delivery of computer literacy programs and basic business applications. Proportion of students (%) Total TAFE PRTOs ACE

30 ICT skills job placements

31 ICT skills job placement Characteristics of job demand Since 22, ICT job placement data has been collected by the ITCRA. Each year ITCRA collects data from its members about positions advertised and applications received. The data collection is based on a model developed jointly by ITCRA and Multimedia Victoria. Most of the information on job demand is derived from data for 554 Victorian job placements collected between December 25 and May 26 (1,335 nationally). Top ten general skills in demand in Victoria, December 25 to May 26 Source: ITCRA Percentage of placements Skills in demand 5 General skills According to the ITCRA data, the most sought after general ICT skills in Victoria were in the following areas: SkillSoft Support Technical Software Customer service Testing Implementation Communications Server Helpdesk 22 per cent of all advertised ICT positions required SkillSoft skills 13 per cent required skills in ICT support. Specialist software skills According to the ITCRA data the most sought after specialist ICT skills in Victoria were in the following specialisations: 16 per cent of all advertised ICT positions required a Windows specialisation 13 per cent required an SQL specialisation. Top ten software skills in demand in Victoria, December 25 to May 26 Source: ITCRA Percentage of placements Windows* *SQL* Wellfleet Oracle* SAP* Java Unix *C++ Citrix FOCUS 3

32 Occupations in demand The ITCRA data is provided in a raw (unanalysed) format. It contains specific position titles such as: test analyst, midrange manager and help desk first level support. To provide insights into the key occupations in demand, each of the 25 6 ITCRA job placements was assigned to an ICT occupation category using the ABS 26 Australian and New Zealand Standard Industry Classification (ANZIC). In 25 6, the top ten occupations by job availability in Victoria were as follows: Top ten ICT occupations in demand in Victoria, December 25 to May 26 Support, quality assurance or test engineer Analyst programmer/software developer & engineer Help desk/support technician/web administrator Business analyst/consultant/systems analyst Network engineer/administration/analyst ICT manager/cio/project manager Database/systems administrator/security specialist Account manager/business development manager/sales rep Multimedia specialist/web developer Web or multimedia designer Percentage of jobs to be filled Advertisements 23 per cent 19 per cent 18 per cent 13 per cent 9 per cent 8 per cent 5 per cent 3 per cent 2 per cent <1 per cent 31

33 ICT job placements by industry sector According to the ITCRA data for Victoria, the largest proportion of ICT jobs placed between December 25 and May 26 was in the communication services industry sector (this sector accounted for 24 per cent of job placements). Notably, compared to Australia overall the government, administration and defence sector accounted for a relatively small proportion of ICT placements in Victoria (six per cent in Victoria compared to 13 per cent nationally). However, the property and business sector accounted for six per cent of placements in Victoria compared to three per cent nationally. Employment type and term From December 25 to May 26, contract positions accounted for 79 per cent of advertised ICT positions The majority of these were short-term, ranging from between three and six months (33 per cent of jobs in Victoria and across Australia). Location of job origins in Melbourne Melbourne city (including the CBD and immediate surrounds) accounted for 7 per cent of all ICT jobs placed in metropolitan Melbourne. The eastern and south eastern suburbs collectively shared another 24 per cent while the remaining six per cent were filled in the northern and western suburbs. ICT job placement by industry in Victoria, 25 6 Source: ITCRA 3 Note that sectors in which less than 1 per cent of ICT placements were made are not shown 25 Percentage of placements Communication services Finance and insurance Personal and other services Retail trade Manufacturing Transport and storage Government administration and defence Property and business services Education Electricity, gas and water supply Health and community services 32

34 Employment term in Victoria and Australia, December 25 to May 26 Source: ITCRA 4 35 Australia Victoria 3 Percentage of placements < Non-contract Length of contract (months) Job placements by location in Victoria, 25 6 Source: ITCRA 11% 4% City (includes CBD and immediate surrounds) Eastern Suburbs 2% Northern Suburbs South Eastern Suburbs 13% Western Suburbs 7% 33

35 Advertisement of positions In Victoria, 73 per cent of ICT job placements between December 25 and May 26 were advertised (76 per cent nationally). Placements by qualifications sought Depending on the nature of the position, various levels of qualification are sought by ICT employers, ranging from no qualifications through to university postgraduate degrees. As at 25 6, 47 per cent of advertised positions did not require any qualification and 26 per cent required a university/ bachelor s degree. Salaries The 26 Australian Computer Society Remuneration Survey found that the average salaries paid to ICT professionals increased by an average of 4.3 per cent over the 12 months to May 26. In real terms, taking into account a CPI of three per cent, this corresponded to a slight increase in ICT salaries over that period. General Management ICT professionals had the highest median salary package of more than $145,751 per annum, whereas the median salary package for Computer Support professionals was just under $68,81 per annum. Qualifications sought by employers in Victoria, 25 6 Source: ICTRA Percentage Job function University Postgraduate Degree University Bachelor s Degree Average salary by ICT profession Source: ACS Remuneration survey TAFE Diploma TAFE Certifcate Industry Certifcate General Management $145,751 Sales & Marketing $132,45 Consulting $127,2 IT Management $126,636 Project Management $11,651 Project Leader $13,5 Research & Teaching $92,977 Other Median total package None Database Administrator $88,945 Business Analyst $84, Software Engineer $79,92 Systems Management $79,612 Teaching/Training only $77,942 Programmer/Analyst $75,942 Computer Support $68,81 34

36 Job supply features Skills shortage The ITCRA data can be used to assess skills shortage by inference from the following ITCRA variables: the average number of applications per job placement the average number of days to fill a placement. A relatively small number of applications per placement suggests that there is a skills shortage, whereas a relatively large number of applications suggests a surplus of skills. In contrast to the average number of applications per placement indicator, in times of skills shortage, the number of days to fill a vacancy would increase, as it takes longer to match a suitable candidate to a job Average number of applications received per job In 25 6 there were, on average, 24.5 applications per ICT vacancy in Victoria. This was a notable decrease compared to 23 4 when there were 33.5 applications per ICT vacancy. The top three ICT occupations where there was a relative shortage of applications in Victoria, compared to the average, were: telecommunications engineers (ten applications per vacancy); ICT trainers (1.5 applications per vacancy) database/systems administrators/security specialists (15.5 applications per vacancy). Number of ICT applications per placement by occupation in Victoria, 25 6 Source: ITCRA 4 No of applicants per vacancy Average no. of applications Help Desk/Support Technician/ Web Administrator Network Engineer/Admin/Analyst Account Mgr/Business Development Mgr/Sales Rep Telecommunications Specialist Business Analyst/Consultant/ Systems Analyst Analyst Programmer/Software Developer & Engineer Multimedia Specialist/ Web Developer Web or Multimedia Designer Occupations Support, QA or Test Engineer ICT Manager/CIO/Project Mgr Database/Systems Administrator/ Security Specialist Trainer (ICT) Telecommunications Engineer Other (not identified as an ICT occupation) 35