Skills & Training Needs - Rental Hiring and Real Estate



Skills & TrainingNeeds 2013 Victorian Rental, Hiring and Real Estate Services IndustryPublished by HESGDepartment of Education and Early Childhood DevelopmentMelbourne May 2014?State of Victoria (Department of Education and Early Childhood Development) 2014The 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 communicatethe materials, other than third party materials, for the educational purposes of the institution.Authorised by the Department of Education and Early Childhood Development2 Treasury Place, East Melbourne, Victoria, 3002.ContentsIntroduction5Products and services7Data7Industry and data scope7Key messages, issues and challenges8Industry trends and outlook8Rental, Hiring and Real Estate Services trends and issues8Economic contribution 11Employer profile 11Labour productivity 12Key messages, issues and challenges 14Employment 14Rental, 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 22Rental, Hiring and Real Estate Services vocational training provision 22Courses 24Enrolments by occupation 24Training providers 25Funding patterns 25Regional training activity 26Student characteristics 28Appendix A 30IntroductionIn 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 VictorianTraining 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 Governmentis 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 trainingsystem. 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 theopportunities 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 facingbarriers, 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:To provide a basis for understanding the Rental, Hiring and Real Estate Services industry in relation to employment levels, skills shortage occupations, current alignmentand 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.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.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.Introduction5Suite of Information Products & ToolsVictorian 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 training/providers/market/Pages/ reports.aspxVocational Training: Victoria’s RegionsAnnual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building apicture of the relationship between the local training system and regional skills needs, training market performance and responsiveness training/providers/market/Pages/ regionaltrends.aspxVocational 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 anda summary of training challenges and highlights from IPM initiatives training/employers/industry/Pages/ marketinfo.aspxIndustry 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 level training/employers/industry/Pages/ marketinfo.aspxBusiness 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 studies training/employers/workforce/Pages/ marketfacilitation.aspxPortfolio 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 rangeof 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 sectors training/employers/industry/Pages/ marketinfo.aspxIndustry 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 activities 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 ChildhoodDevelopment, skills.online@edumail.vic. gov.auWeb 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 regularly training/employers/industry/Pages/ marketinfo.aspxRate Your TrainingRatings tool for industry and employers which is a simple-to-use system where employers can rate the performanceof a training provider in a particular study area against selected criteria,and review and compare the ratings of other employers (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 shortlistand follow up directly with their preferred providersVictorian 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 victorianskillsgateway/Pages/home.aspxIndustry and data scopeThis 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 breakdownANZSICcodeANZSIC industry66Rental and Hiring Services (except Real Estate)661Motor Vehicle and Transport Equipment Rental and Hiring6611Passenger Car Rental and Hiring6619Other Motor Vehicle and Transport Equipment Rental and Hiring662Farm Animal and Bloodstock Leasing663Other Goods and Equipment Rental and Hiring6631Heavy Machinery and Scaffolding Rental and Hiring6632Video and Other Electronic Media Rental and Hiring6633Other Goods and Equipment Rental and Hiring n.e.c.664Non-Financial Intangible Assets (Except Copyrights) Leasing67Property Operators and Real Estate Services671Property Operators6711Residential Property Operators6712Non-Residential Property Operators672Real Estate ServicesDataThe 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 subjectto 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.As defined by the Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006.Industry and data scope7Rental, Hiring and Real Estate Services trends and issuesThis section focuses on the Rental, Hiring and Real Estate industry as a whole. It covers the key issues andchallenges including: economic conditions; new regulations; demographic changes; changing social attitudes; new technology/processes; and changing consumer tastes.Key messages, issues and challengesThe 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.2An 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.4Regulation 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.AWPA Industry snapshot 2013: Rental, hiring and real estate services.The Centre for International Economics 2013, Future forecasts: Construction and Property Services Skills 2016-26.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/hiringBusinesses 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 2016-17.5The 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.Tourism Forecasting Committee, 2013, ‘Forecast: 2013 Issue 1’, p. 7, .au/ tourism/Documents/tra/Forecasts/2013/TFC_Forecast_2013_Issue_1_FINAL. pdfTourism Forecasting Committee, 2013, ‘Forecast: 2013 Issue 1’, p. 7, .au/ tourism/Documents/tra/Forecasts/2013/TFC_Forecast_2013_Issue_1_FINAL. pdfDespite 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.8The 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 leasingThis 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 reproducethe 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/hiringThis 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.Service Skills Australia, ‘Tourism, Travel and Hospitality 2014 Environmental Scan Snapshot’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 operatorsProperty 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 2013.9Vacancy 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.10Rents 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 $340.11Body 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.Property Council of Australia 2014, ‘Australian office markets in transition’, Estate Institute of Victoria, ‘REIV monthly bulletin February 2014’.Department of Human Services, ‘Current Rental Report’, . gov.au/about-the-department/documents-and-resources/research,-data-and- statistics/current-rental-reportReal estate servicesReal 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 toincreased 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.13This 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 skillsGroupingChange driversSkills impactMotor vehicle rental/hiringNon-financial assets leasingOther equipment rental/hiringProperty operatorsReal estate servicesPoliticalRegulatory change=?=??EconomicGeneral economic conditions==?==Tourism trends=??==SocialChanging consumer preferences==???Increased immigration===??TechnologicalTechnological improvements?==??Key: ? 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.ABS, 6416.0 - Residential Property Price Indexes: Eight Capital Cities, Dec 2013ABS, 8731.0 - Building Approvals, Australia, Jan 2014Economic 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 $27.2 billion. This is slightly lower than the anticipated state growth rate of 14 per cent across all Victorian industries. Victorian Rental, Hiring and Real Estate saw an increase in output of 49 per cent over the five years to 2012-13.A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for Victorians to access the opportunities of a growing and changing economy, and an increasinglyEmployer profileAt the end of 2012-13, there were an estimated 56,145 businesses in the Victorian Rental, Hiring and Real Estate industry.The distribution of businesses by employment level is strongly skewed towards non-employing businesses: 88 per cent of Rental, Hiring and Real Estate businesses are non- employing, compared with the State average of 61 per cent. A smaller proportion of businesses employ between one and 19 employees (11 per cent compared with the State average of 35 per cent) and between 20 and 199 (one per cent compared with four per cent).Figure 2.2: Share of businesses by employment, Victoria, 2012100%sophisticated and information-rich society.Figure 2.1: Rental, Hiring and Real Estate output ($million), Victoria, 2012-13 to 2017-1830,00025,00020,00090%80%70%60%50%40%30%20%10%88%61%11%35%1% 4%0% 0%15,00010,00023,46526,1640%Non Employing1 to 1920 to 199200+Rental, Hiring and Real Estate ServicesAll industries5,00009532012-132017-18Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012Property Operators and Real Estate ServicesRental and Hiring Services (except Real Estate)Rental, Hiring and Real Estate businesses tend to be smaller inSource: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2013terms of turnover than the State average. Approximately72 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, 2012Labour productivity40%35%30%25%20%15%10%5%0%35%28%37%35%25%31%6%3%Labour productivity is defined as real gross value added perhour 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 JuneZero to $50k$50k to $200k$200k to $2m$2m or more Rental, Hiring and Real Estate ServicesAll industriesSource: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012As 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.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 2013Rental, Hiring and Real Estate ServicesAll Industries-0.3%1.3%-0.5%0.0%0.5%1.0%1.5%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, 2010-11MelbourneSouth YarraDandenong1 to 1010 to 2020 to 5050 to 100100 or moreMildura1 to 55 to 1010 to 2020 to 4040 or moreSheppartonBendigoBallaratWarrnamboolGeelongSource: 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).Rental, Hiring and Real Estate Services workforce and skillsThis 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 challengesThe Victorian Rental, Hiring and Real Estate industry employs approximately 44,700 people, approximately two 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 2017-1836,90035,2009,50010,00050,00045,00040,00035,00030,00025,00020,00015,00010,0005,00002012-132017-18 Property Operators and Real Estate Services Rental and Hiring Services (except Real Estate)Source: Monash Centre of Policy Studies Employment Forecasts, June 2013Skills compositionShown 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 2020-2180%Forecast 2012-13 to 2020-2170%60%50%40%30%20%10%0%2004-052006-072008-092010-112012-132014-15High Skill2016-172018-19Medium Skill 2020-21Low SkillSource: Monash Centre of Policy Studies Employment Forecasts, June 2013Note: 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 20133,000Sales Assistants (General)2,5002,0001,5001,000500Real Estate Sales Agents Receptionists SecretariesOffice Managers Other Hospitality Retail/Srvc Mg Land Economists & Valuers0Mar-11Jun-11Sep-11Dec-11Mar-12Jun-12Sep-12 Dec-12 Mar-13Jun-13Sep-13 Other Sales Assistants etc.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 ageThe 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, 2012-1313%24%20%24%18%16%24%23%21%17%Rental, Hiring and Real EstateServicesAll industries0%10%20%30%40%50%60%70%80%90%100%15-2425-3435-4445-5455+Source: Monash Centre of Policy Studies Employment Forecasts, June 2013Employment by genderThe 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, 2012-1349%52%46%54%Rental, Hiring and Real EstateServicesAll industries0%10%20%30%40%50%60%70%80%90%100%FemalesMalesSource: Monash Centre of Policy Studies Employment Forecasts, June 2013Employment by qualification levelThe 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, 2012-1340%3%15%14%29%40%3%18%14%25%Rental, Hiring and Real EstateServicesAll industries0%10%20%30%40%50%60%70%80%90%100%No post school qualsCertificate I or IICertificate III or IVDiplomaHigher educationSource: Monash Centre of Policy Studies Employment Forecasts, June 2013Occupations 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, VictoriaOccupation name2012-13employment totalAverage annual employment needsOverall employment growth to 2017-18Real Estate Sales Agents15,1209701,320Receptionists2,510120170Land Economists and Valuers1,910110-280Sales Assistants (General)1,55010090General Clerks1,2506090Office Managers1,13020-50Other Sales Assistants and Salespersons1,08070160Other Hospitality, Retail and Service Managers1,02070200Accounting Clerks1,00040110Secretaries9705070Bookkeepers8904050Accountants87050120Advertising and Sales Managers84050110Retail Managers8103060Personal Assistants5903040Chief Executives and Managing Director4603060Financial Investment Advisers and Managers3802060Commercial Cleaners3602030Contract Program and Project Administrators3502070Construction Managers3202030Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 VET occupations highlighted in green.Specialised and in-shortage occupationsThis 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 nameIn shortageSpecialisedReal Estate Sales AgentsNoNoReceptionistsNoNoLand Economists and ValuersNoYesSales Assistants (General)NoNoGeneral ClerksNoNoOffice ManagersNoNoOther Sales Assistants and SalespersonsNoNoOther Hospitality, Retail and Service ManagersNoNoAccounting ClerksNoNoSecretariesNoNoDEECD 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.Workforce skills needsAs 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.15In 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.16Service Skills Australia, ‘Environmental Scan 2014’.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 willcontinue to be a challenge, but firms are likely to find it in their best interests to maintain their focus on developing a skilled workforce.Rental, Hiring and Real Estate Services vocational training provisionThis 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 challengesIn 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 wereby 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.EnrolmentsGovernment 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 traineesTrainees 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 occupationsThere are no enrolments aligned to specialised or in-shortage occupations in the Rental, Hiring and Real Estate industry.Qualification levelThe 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 pleted qualificationsIn 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.Table 4.1: Key training activity in the Rental, Hiring and Real Estate industry, 2008 to 2013Government subsidised enrolmentsIndustry Subdivision200820092010201120122013Property Operators and Real Estate Services6206601,0001,5502,2901,720Grand Total6206601,0001,5502,2901,720Apprentice or traineeApprentice trainee status200820092010201120122013Trainee230260270370380250Apprentice------Grand Total230260270370380250Qualification Levels - 2013Enrolments% totalCert I-II<100%Cert III-IV1,66097%Diploma+503%Grand Total1,720100%Completed qualificationsIndustry Subdivision200820092010201120122013Property Operators and Real Estate Services140450440660390420Grand Total140450440660390420CoursesFive 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 2013Course name200820092010201120122013Certificate IV in Property Services (Real Estate)-3408501,4102,2001,660Diploma of Property Services (Asset and Facility Management)--10302030Diploma of Facility Management---<101020Certificate III in Property Services (Agency)-<10105040<10Diploma of Property Services (Agency Management)----10<10Note: 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 2013Occupation200820092010201120122013Real Estate Representative6206509201,4102,2101,670Property Manager-20801408040Facilities Administrator---<10<1020Please see Appendix A for occupations and associated qualifications with funding bands (available for 2012 and 2013).Training providersA 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 2013Provider type200820092010201120122013TAFE85%75%77%64%52%52%Private15%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 bandThe 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, 2013Subsidy Band2013% totalBand A-0%Band B-0%Band C450%Band D450%Band E-0%Enrolments by Funding BandMost 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 2013.97%3%99%1%Figure 4.1: Enrolments by subsidy band, government subsidised, 2012 and 201320132012Regional training activityBand CBand DIn 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 2013Region200820092010201120122013Eastern Metropolitan1702505508601,230730Southern Metropolitan5060210260560510Western Metropolitan220160100100230260Northern Metropolitan---1107090Hume203020708040Gippsland2050<103030<10Note: 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 regionFigure 4.2: Rental, Hiring and Real Estate industry training providers and enrolments, 2013Grampians 0 providers0 enrolmentsLoddon Mallee 0 providers0 enrolmentsHume<10 providers40 enrolmentsBarwon South West 0 providers0 enrolmentsSee metro inlayGippsland<10 providers<10 enrolmentsNorthern Metropolitan<10 providers90 enrolmentsWestern Metropolitan (inc. CBD)<10 providers260 enrolmentsEastern Metropolitan<10 providers730 enrolmentsSouthern Metropolitan<10 providers510 enrolmentsStudent 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 2013Learner Groups200820092010201120122013Indigenous-<10<10<10<10<10Disability202030404050CALD140150330360530440Unemployed305070190390400Aged 25+34039067099014601,100Compared 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, 2013Bachelor Degree or Higher Degree level0.5%1%Advanced Diploma, Diploma or Associate DegreeCertificate III-IVYear 12 or Certificate IICertificate IYear 11 or below1%2%0.4%1%21%20%23%35%42%54%Rental, Hiring and Real Estate Services All industriesThe 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, 201334%9%22%20%To get a jobI wanted extra skills for my jobTo try for a different careerFor personal interest or self-developmentOther14%Appendix ATable 5.1: Enrolments by occupation, course and subsidy band, 2012 and 2013OccupationCourse nameFunding band20122013Facilities AdministratorDiploma of Facility ManagementBand D<1020Total<1020Property ManagerCertificate III in Property Services (Agency)Band C40<10Certificate IV in Property Services (Operations)Band C20-Diploma of Property Services (Asset and Facility Management)Band D2030Total8040Real Estate RepresentativeCertificate IV in Property Services (Real Estate)Band C2,2001,700Diploma of Property Services (Agency Management)Band D10<10Total2,2001,700 ................
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