What can the release of the Australian Government’s industry and occupation projections reports tell us about employment trends in Australia over the coming years?
Industries in demand
The Industry Employment Projections report from the Department of Jobs and Small Businesses found that 886,100 new jobs will open up in the next five
years to May 2023, signalling a total employment growth of 7.1 per cent. These jobs are expected to grow through turnover rather than net employment growth, due to key factors such as job changes, returning to study, caring for family, retiring and travelling. Employment is predicted to increase in 17 of 19 industries by May 2023, with declines expected in the Wholesale Trade and Agriculture, Forestry and Fishing sectors. The report suggests that Australia is undergoing a structural shift in employment that is concentrated in service industries, with four of these areas being projected to contribute almost two-thirds (or 66.4 per cent) of total employment growth over the next five years.
Healthcare and Social Assistance
The report suggests that the healthcare industry will see the greatest employment growth, with an increase of 14.9 per cent (equivalent to 250,300 new jobs) projected by May 2023. This growth can be contributed to a number of different factors, including the complete implementation of the National Disability Insurance Scheme (NDIS) across 2019 and 2020, Australia’s ageing population and an increasing demand for both child and general care services.
A growth of 118,800 new jobs, or 10 per cent, is projected for the construction industry over the next five years. Strong growth is predicted in the Engineering Construction sector due to an increased investment in infrastructure, with both federal and state governments committing to new road and public transport projects. Employment growth is also projected in the Residential Construction sector, as demand for housing increases in line with the population boom that is predicted to occur in Australia over the coming years.
Education and Training
The education and training sector is predicted to see an increase of 113,000 new jobs (approximately 11.2 per cent) by May 2023. This rise has been attributed to growing numbers of school-aged populations, an increasing demand for tertiary education, the strength of Australia’s international education market and a heightened need for both part-time and non-teaching staff.
Professional, Scientific and Technical Services
The professional services industry is in line to receive a 10.2 per cent growth over the next five years, resulting in 106,600 new jobs. This increase reflects a persistent demand for the services of qualified and highly skilled workers in our modern economy. Noteworthy growth has been projected for specialised areas such as Computer System Design Services (37,700 new jobs), Legal and Accounting Services (24,300 new jobs) and Management and Related Consulting Services (16,300 new jobs).
A number of other industries are projected to experience notable growth by May 2023, with ACCOMMODATION AND FOOD SERVICES (81,400 new jobs) and ARTS AND RECREATIONS SERVICES (22,000) among those registering a net employment increase. It has been suggested that this growth will be influenced by both a surge in domestic and international tourism due to the weaker Australian dollar, and an increasingly health-conscious Australian society.
Careers in demand
A number of occupations are projected to see considerable growth over the next five years. The Employment Outlook report from the Department of Jobs and Small Businesses highlights that Professionals (325,800 new jobs, 10.9 per cent increase) and Community/Personal Service Workers (230,300 new jobs, 17.5 per cent increase) are expected to see the strongest occupational growth to May 2023. This data correlates with the projected growth in the services industries, who are the greatest employers of these occupational groups. A number of career groups are on track to experience growth below the 7.0 per cent average by May 2023 – these include Technicians and Trade Workers (99,100 new jobs, 5.5 per cent increase), Labourers (66,000 new jobs, 5.5 per cent increase) and Sales Workers (24,100 new jobs, 2.1 per cent increase). Clerical and Administrative Workers (4,200 less jobs, 0.3 per cent decline) Livestock Farmers (2,100 less jobs, 2.7 per cent decline) and Engineering Production Workers (4,300 less jobs, 23.9 per cent decline) are among occupations with projections of regression. Employment challenges in these careers could be explained by structural industry changes and the ongoing development of technology, particularly in jobs that are susceptible to automation. In contrast, which careers are projected to see high levels of growth over the next five years?
Aged and Disabled Carers
This occupation has a predicted growth of 69,200 new jobs, which is equal to 39.3 per cent.
There are 51,400 new nursing jobs projected by May 2023, an increase of 18.4 per cent.
The demand for child carers will increase by 17.6 per cent, creating 27,600 new jobs.
Software and Applications Programmers
This career will experience a projected growth of 21 per cent, opening up 25,500 new jobs.
The demand for waiters will increase by 15.8 per cent, or 21,800 jobs, in the next five years.
Over 18,800 new education aide jobs will be created by May 2023, totalling a 20.8 per cent increase.
By May 2023, this occupation will grow by 13.3 per cent to create 13,400 new jobs.
According to the Government’s Job Outlook website, occupations such as Paramedics, Barristers, Beauty Therapists, Intelligence and Policy Analysts and Veterinarians are projected to experience Very Strong Future Growth.