Employment Developments in Australia

1694 words (7 pages) Essay

18th May 2020 Employment Reference this

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Australian Jobs 2019 Report

Top Employing Industries (page 12)


Health Care and Social Assistance is the top employing industry in Australia, employing approximately 1,685,100 people, according to the Australian Jobs Report 2019. Employment in   Health Care and Social Assistance has grown by 21.4% since 2013 and is projected to increase further in the next five years. The driving cause behind the increasing demand for health care workers is the ageing population of Australia. The “baby boomers” generation is ageing as one in seven Australians are aged 65 and over, according to the Australian Institute of Health and Welfare (AIHW) 2017. Hence, many Australians require health care/social assistance as statistics show that 57% of people aged 65 and over consulted a health specialist over the last 12 months compared to 11% of younger Australians (AIHW, 2013).  Thus, older Australians are more likely to visit a health professional, increasing the demand for health care workers as there are many elderly in Australia. The Australian Jobs Report 2019 also projected that the healthcare and social assistance industry will have the strongest employment growth in the coming years, which can be justified by the ageing population, as the percentage of Australians aged 65 and over is estimated to grow from 15% to 22% in 2057 (ABS, 2017). Therefore, the statistics highlight that employment growth in the top employing industry of Health Care and Social Assistance is supported by Australia’s ageing population, which demands for these services.


Australia’s Changing Industry Structure (page 14)

The Australian industry structure is changing as the economy is moving from being highly dependent on agricultural produce and manufactured goods in 1988 to the services based industries in 2018. Manufacturing was the largest employing industry in Australia three decades ago, however, it has shifted from employing 15% of the workforce to 8% of the workforce. Jobs are majority services based as “over 25 years of uninterrupted economic growth and increase in real income per household has allowed households to typically spend more of their income on household services, such as health, education and restaurant meals, rather than on goods” said Alexandra Heath, Head of Economic Analysis, RBA. Australians are spending more on services than goods, hence, increasing the demand for jobs in those industries. Along with changing customer spending patterns, offshore manufacturing is a major cause of the decline in non-services jobs in Australia. Many companies are offshoring their factories due to the cheap labour and low import tariffs with countries such as China. In 2016, the last car manufactured in Australia was a Holden Commodore as all the other Australian car manufacturers already offshored their factories. Thus, the Australian manufacturing industry has substantially declined since 1988 due to offshoring factories and the services industry is booming as households tend to spend more on household and professional services. Therefore, due to the decline in manufacturing jobs and increased demand for services, the Australian industry structure has changed from being dominated by manufacturing jobs to service jobs.

New South Wales- Jobs by Location (page 5)


New South Wales is the top employing state in Australia and has a prosperous economy as employment and participation rate is increasing and unemployment is decreasing. Employment growth is substantial in the professional, scientific and technical services sector in NSW and has grown by 116, 800 since the past five years. SGS economist Terry Rawnsley says that “Australia is very competitive globally in these industries,as world-class providers of professional services, education and tourism, financial services, energy and mining-related services, environmental services and financial technology”. Thus, employment in the services sector is expected to increase, especially in the country’s most populated state. Sydney’s dense CBD and other employment rich areas such as Macquarie Park, Ultimo/Pyrmont and Parramatta house many firms and the city’s large population can fulfil the various professional, technical and scientific jobs offered. Therefore, due to the competitive global market for Australia services, employment in NSW has steadily increased by 13.3% since 2013, especially in the services industries.



Mining (page 19)


Employment in the Australian mining industry is forecasted to grow by 2.4% over the next five years after facing continuous declines, since 2013. The mining industry lost 31.2% jobs between 2014 to 2015 as coal, copper and iron ore dramatically lost value, discouraging mining export companies to streamline their projects. Fortunately, the industry has recovered strongly in the past-year as mining industry jobs increased by 38.7% in 2016-17 according to the DFP Mining Index. Job opportunities will continue to grow as the price of commodities has increased globally and  several new projects have been introduced by BHP, Rio Tinto and a $16bn thermal coal mine by Indian company Adani. The Adani coal mine will generate more than 1500 direct jobs on the mine and rail project and is expected to generate 6750 more indirect jobs in nearby towns, according to the company’s plans. The new projects will impact the mining industry positively, increasing jobs and economic growth. Therefore, mining employment is expected to grow in the next five years, as large-scale mining projects have been introduced and the price of commodities has risen again, reviving jobs in mining exports.




Industry Outlook (page 34)


Employment is forecasted to rise in 17 of the 19 broad industries in Australia over the next five years, according to the Australian Jobs Report 2019. There will be approximately 886, 000 more jobs by 2023 and two-thirds of them will come from these four industries; Health Care and Social Assistance, Construction, Education and Training and Professional, Scientific and Technical Services. Australia’s population demands for more health care services due to the significant amount of people aged 65 and over and since the number of school-aged children is growing, there is a demand for teachers and education professionals.  Construction jobs will also increase as there will be more investments in infrastructure to support Australia’s growing population, which could reach 30 million by 2029 according to projections by the ABS. Over 90% of jobs introduced over the next five years will require a post-school education as jobs in the professional and services industries are projected to grow the strongest, and these roles require tertiary qualifications. Thus, Australia’s ageing population demands for more health care professionals and the growing population also needs more educators and infrastructure to accommodate it, increasing jobs in both industries. Therefore, the strong employment growth forecasted in most Australian industries is justified by our rapidly growing population.


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