Australia’s hottest job sectors over next five years
ANYONE joining the workforce or seeking a career change would be nervous about the future. From cafes to construction, we list the 16 sectors tipped to grow in Victoria over the next five years.
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WHAT a difference a decade makes.
Many of the jobs we do today barely existed a decade ago, let alone when our parents went to university, and some of the most historically abundant industries are now experiencing the most rapid decline.
Finding a job in the noughties is like playing a game of Survivor: Workforce, where employment sectors battle to outwit, outplay and outlast each other amid a rapidly changing technology landscape.
While it’s difficult to know which jobs will be the most in demand in the future, the Australian Government’s Industry Employment Predictions 2017 report sheds light on the sectors that are most likely to be hot or not over the next five years.
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“The long term structural shift in employment towards services industries is projected to continue over the coming five years,” the report says.
“Health Care and Social Assistance is projected to make the largest contribution to employment growth (increasing by 250,500), followed by Professional, Scientific and Technical Services (126,400), Construction (120,700) and Education and Training (116,200).
“Together, these four industries are projected to provide 61.5 per cent of total employment growth over the five years to May 2022.”
For sectors such as manufacturing and electricity, gas, water and waste services — the tribe has spoken — it’s time to go.
THE SECTORS TIPPED TO GROW BY 2025
HEALTHCARE AND SOCIAL ASSISTANCE
This sector has been the primary provider of new jobs in the Australian labour market since the 1990s and that trend is likely to continue, with the sector expected to increase by 250,500 (or 16.1 per cent) over the next five years.
“Factors contributing to this strong projected growth include the full implementation of the National Disability Insurance Scheme (scheduled for 2019-20), Australia’s ageing population, and increasing demand for childcare and home based care services,” the report says.
PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES
Think you don’t need to go to university? Think again. The projected high rate (12.5 per cent) of employment growth in the professional, scientific and technical services industry reflects ongoing demand for qualified and highly educated workers.
“Employment is expected to grow particularly strongly in the Computer System Design and Related Services sector, which is projected to grow by 54,200 (or by 24.6 per cent) after having grown by 83.9 per cent over the past ten years to its current employment level of 220,200.
The data gold rush also shows no signs of slows, with market research and statistical services expected to be bolstered by a 19.2 per cent increase.
EDUCATION AND TRAINING
You’re never too old to learn — or too young, for that matter — and if the Department of Employment’s industry projections are accurate, it’s preschool and adult education that are driving the growth of this sector, which is tipped to increase by 12 per cent. Adult education is projected to increase by 40,000, while preschool demand is set to drive 13,100 more jobs.
Continued strength in the international education sector will also contribute to the sector’s growth.
ACCOMMODATION AND FOOD SERVICES
The next time someone says smashed avo is the reason you can’t afford a house — tell them you’re brunching for your job future. The demand for cafes, restaurants and takeaway food services are set to increase by 13.8 per cent, adding an extra 84,100 jobs to the market, with the overall accommodation and food services sector tipped to grow by 11.2 per cent.
The reports says: “This is supported by a burgeoning Australian cafe society and improvements in both domestic and international tourism as a result of the lower Australian dollar and an expanding middle class in Asia.”
ARTS AND RECREATION SERVICES
Melbourne is the sporting capital of the country so it comes as no surprise, then, that sports and recreation activities are set to see a 16,900 (14.5 per cent) increase in jobs over the next five years. The arts and recreation sector, on the whole, is tipped to experience a 9.9 per cent surge, with creative and performing arts, parks and gardens operation, horse and dog racing activities and gambling predicted to see reasonable jobs creation gains.
PUBLIC ADMINISTRATION AND SAFETY
The government is set to bolster its workforce with public administration and safety projected to grow by 9.3 per cent, or 75,000. Much of this growth will be underpinned by state (16.3 per cent) and local government (9.2 per cent) increases, with are set to put on 42,800 and 12,800 respectively.
RENTAL, HIRING AND REAL ESTATE SERVICES
Thanks to technology advances the likes of AirBnB, the rental, hiring and real estate services industry is tipped to grow by 18,000, or 8.5 per cent. Much of this growth comes courtesy of property operators and real estate services, which is projected to increase by 163,000 — or 9.6 per cent.
CONSTRUCTION
While residential construction employment is expected to grow at a slower pace, construction industry employment overall is projected to grow by 120,700 (or 10.9 per cent) over the five years to May 2022.
“Significant infrastructure investment is expected to underpin employment growth in the engineering construction sector now that the unwinding of the mining boom is almost complete,” the report predicts.
ADMINISTRATIVE AND SUPPORT SERVICES
Demand for administration services is set to remain strong over the next five years, with the sector tipped to grow by 8.4 per cent. Areas such as packaging services (projected to grow by 17.7) per cent) and building cleaning and pest control (10.8 per cent) are projected to see the biggest gains.
TRANSPORT, POSTAL AND WAREHOUSING
Tourism and online shopping are contributing to a 6.5 per cent growth in the transport, postal and warehousing sector. Road transport is projected to increase by 18,400, and air and space transport by 4,400. Warehousing and storage services are also set to increase by 14.5 per cent.
FINANCIAL AND INSURANCE SERVICES
The finance and insurance services sector is projected to experience moderate growth over the next five years. Some serious gains will come from increased demand for auxiliary finance and investment services — which is projected to increase by 19,700 — or 17.2 per cent. That includes financial consultants and advisers, insurance fund management services, credit card administration, money-changing services and stock exchange operation.
RETAIL TRADE
Retail Trade employment is projected to grow by 45,600 or 3.7 per cent.
“The two main factors inhibiting employment growth in the Retail Trade industry, compared with the pre-GFC period, are relatively slow discretionary consumer spending growth and more intense domestic and international competition that has forced retailers to reduce staff-to-revenue ratios in order to lower costs,” the report says.
Population growth is expected to sustain employment growth in non-discretionary goods sectors, such as supermarket and grocery stores, which are projected to grow by 24,000 (or 8.1 per cent) over the five years to May 2022.
INFORMATION MEDIA AND TELECOMMUNICATIONS
That the internet will continue to get bigger over the next five years hardly seems surprising. The information media and telecommunications industry is set to grow by a modest 3.3 per cent. Within this, employment in the motion picture and video sector is set to increase by 14 per cent, adding 4,600 to its workforce — a sign of encouragement to keep watching hours of cat videos on YouTube.
OTHER SERVICES
This industry is set to see an increase of just 2.5 per cent, but the real success story here is that the demand for personal care services is tipped to increase by 9,400 (or 9.1 per cent). That’s good news for hairdressers, barbers, beauty, nail and skincare salons, and make-up artists.
Our increasingly busy lives mean we will also be outsourcing more of our life admin, which is why private households employing staff are set to grow by 12.3 per cent.
MINING
Employment in mining is projected to grow by 5600 (or 2.4 per cent) over the five years to May 2022. Though the industry is still predicted to grow, it is 13.7 per cent smaller than its peak in 2012.
“The lower level of employment reflects the passing of the mining investment boom, with the transition eased by a favourable dollar and commodity prices,” the report says. “Employment growth in the industry is expected to be supported by increasing investment in exploration, particularly of gold, and increases in metal ore mine production from existing mines.”
WHOLESALE TRADE
Growth in this industry overall is minimal at 0.5 per cent but is being bolstered by increased demand for grocery, liquor and tobacco products and agricultural products, which are set to grow 7.7 and 5.3 per cent each.
MANUFACTURING
While this sector, on the whole, is tipped to shrink by about 4.2 per cent, there are some manufacturing industries predicted to see significant growth over the next five years. Chemical, pharmaceutical and medicinal product manufacturing are projected to grow by up to 15 per cent. Structural metal product manufacturing is tipped to grow by 14.3 per cent. Furniture and food and beverage-related product manufacturing are also set to grow by more than seven per cent.
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