The document summarizes workforce issues and challenges in the Upper Hunter region of New South Wales, Australia. It finds that the region's population is aging, with many residents over 55, especially in Great Lakes, Gloucester and Dungog. Singleton and Muswellbrook have younger populations due to mining jobs. There are differences between local government areas in industries, jobs and unemployment. Key workforce issues for the region include an aging workforce, youth unemployment, skills shortages, and the need to improve education and training opportunities to develop the local skills base and attract new residents. The workforce is reliant on trades and many current workers lack post-secondary qualifications, posing future issues.
2. Upper Hunter Regional Workforce Plam
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Upper Hunter Regional Workforce Plan
The need for an Upper Hunter Regional Workforce Plan was identified in the findings of the Upper Hunter Economic Diversification Report
2011, which examined the future of the region, and emerging business and employment opportunities over a 20-25 year horizon.
The Workforce Plan project focussed on workforce supply and demand over the next 10 years, taking into consideration the high and
volatile demand for workers and skills (mainly due to the energy and resources sectors), the requirements for education and training, and
the longer term workforce implications of an ageing population.
UPPER HUNTER
MUSWELLBROOK
SINGLETON
DUNGOG GREAT LAKES
GLOUCESTER
Population and Age
The main concentrations of population are in Great Lakes and in
the Singleton/Muswellbrook/Upper Hunter Shire local government
areas (LGAs). The latter areas tend to have strong employment
bases in mining, mining support and agribusiness with low
unemployment rates. Great Lakes has population growth largely
driven by retirement living, a services/tourism industry base and has
higher rates of unemployment. In the smaller LGAs of Gloucester
and Dungog population has been stable and jobs are mainly
focused in agriculture and population related services.
There are significant differences between the LGAs in terms of the
age structure of their populations. Overall the population across the
Upper Hunter is ageing, with the share of the population aged over
55 increasing in all six LGAs.
Three of the LGAs have a significantly older age structure:
Great Lakes with 47% aged over 55 years, Gloucester 42%
and Dungog 33%.
The two LGAs with the increasing pool of industrial jobs
(Muswellbrook and Singleton) had a lower percentage of persons
aged over 55 years, and a higher share of the population in the
25-54 year age group. Gloucester shares some characteristics with
Great Lakes in terms of population age and lower labour force
participation rates.
The age structure has implications for the medium
term and the longer term in respect of the capacity
of an area to recruit persons to fill jobs, particularly in
population related services.
The Upper Hunter Region
The Upper Hunter is a large and diverse region
with significant differences between local
government areas in terms of:
• population size and growth
• labour force characteristics
• industry structure
• local jobs; and
• unemployment rates
A significant number of people
over the age of 55 reside in the
Great Lakes, Gloucester and
Dungog regions.
Singleton and Muswellbrook
Shires have a higher percentage
of 25-54 year olds.
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A Regional Labour Market
There is an inter-regional dimension to labour supply and employment. People
commute to jobs in adjacent areas. The two mining areas of Muswellbrook and
Singleton have more jobs than employed residents, while the other LGAs have
more employed residents than jobs.
The Upper Hunter has increasingly become an inter-linked regional labour market
with movements between the LGAs and commuting to and from the Lower Hunter.
This reflects a combination of: population size, industry structure, patterns of
growth, job locations, and residential preferences.
These job location and commute patterns have implications not only for labour
supply and demand and meeting skill requirements, but also for regional transport
(in what is a car dependent region with a narrow range of public transport options);
for access to jobs for younger people; and for access to other services including
childcare.
Regional Workforce Issues
The Upper Hunter is a region with industries that rely heavily on trades and skills,
particularly in engineering, automotive, electro technology and construction.
An increase in the number of residents commuting to jobs in adjacent LGAs;
limited jobs growth; a narrow range of job opportunities in the non-mining LGAs;
and an ageing workforce are all issues affecting the Upper Hunter Region.
Youth unemployment is a major issue in the region, with limited availability of
entry level positions for young people and evidence of some youth disengaging
from education and training.
The LGAs that make up the Upper Hunter Region differ in their industry structure
but experience some common workforce issues:
• difficulties in recruiting professionals in local government and other service
industries;
• competition for skilled labour and tradespersons with mining;
• a need to improve the local delivery of VET programs and higher education;
• difficulties in recruiting childcare workers and securing a sustainable
workforce in the aged care sector; and
• the impacts of the volatility in the coal sector.
Skills and Education
The Upper Hunter Region’s population has a high incidence of vocational education and
training (VET) qualifications. Males with post school qualifications mainly have certificate
level qualifications (66%). This reflects regional employment patterns that require trade
qualifications. Females have a higher incidence of higher education qualifications (29%
with a qualification have a bachelor degree or above compared with 16% of males). This
reflects female employment in sectors/occupations that require degrees, including health,
education and some professional services.
However of persons 15 years and over who are in employment, 41% of employed males
and 44% of employed females have no post school qualifications.
A major current and future issue
is that the number of lower skill
jobs, which require no formal
qualifications is declining and
the main growth is in jobs
requiring vocational or higher
education qualifications.
In summary:
The major factors that will affect labour supply
and regional workforce planning over the next
10 years are:
• population growth
• age structure of industry workforces
• retirement pattern of skilled workers
(creating a need for an increase in supply to
cover both growth and replacement demand
for retiring workers)
• industry skills shortages
• attraction of persons to the region.
With the labour market becoming more
dynamic and inter-linked, a cross-regional
approach to labour supply and workforce
planning needs to be taken.
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Developing Skills in the Region
There are a number of issues in relation to workforce development and program
delivery in the Upper Hunter Region.
These include: the need to improve regional access to higher education
(including local delivery of university courses); further development of vocational
education and training; a need for improved flexibility in industry training; and
encouraging more training activity in small and medium sized businesses.
The high incidence of occupations in the Upper Hunter requiring
trade qualifications indicates potential demand for: update
training for tradespersons; transition programs from trades
to higher qualifications; and replacement demand for older
tradespersons who are planning retirement.
Greater industry involvement is a key requirement: to enable better planning of
the regional workforce; to address changes in labour demand; and to deal with
specific skill shortages and skill gaps.
Recommendation
Establish an Upper Hunter Workforce Planning Group.
Establish a position of Upper Hunter Workforce Development Coordinator to initiate workforce projects.
Create Industry Taskforces in sectors experiencing skill shortages (eg. aged care, children’s services, agribusiness, tourism) and
initiate industry skills projects.
Implement initiatives to broaden the workforce - covering mature workers and unemployed workers.
Attract a university to deliver courses in the Muswellbrook/Singleton area.
Provide support to Opportunity Hub Upper Hunter program.
Maintain and expand programs of Specialist Skills Centres in the region.
Continue development of Muswellbrook as mining industry skills hub.
Support continuation and extension of the ME Program.
Provide support for Equine Industry skills initiatives.
Provide support to small and medium sized businesses for workforce planning, productivity improvement and skills
development.
Secure agreement to an annual mining industry survey.
Encourage more industry involvement in industry workforce and skills programs through engagement with local chambers
and industry associations.
Review age structure of major industries in the region.
Develop an initial regional labour market report.
Ensure workforce issues covered in regional and local plans and strategies.
Implementation Priorities
There is a need to initiate the workforce plan and to commence acting on initial priorities. The following are recommendations in relation to
the first year of operation of the plan.
Major skill requirements for
the Upper Hunter
Many people heading for retirement are:
• tradespersons
• skilled workers with other VET qualifications
• or are degree qualified professionals
Replacement of people leaving the workforce
will require:
• a sustained uplift in apprentice intakes
• continuous up-skilling of existing workers
• training and upgrades of trade skills
• delivery of other education and training
opportunities in the region (including higher
education programs).