Trades and Technical - Employment Market Update

TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE JUNE - DECEMBER 2016

ABOUT THIS GUIDE Chandler Macleod’s Employment Market Updates provide insight on job market conditions, permanent and contract pay rates and employment trends. Information for this guide has been provided by Chandler Macleod recruitment consultants, candidates, clients and other sources. With years of local knowledge and experience in their respective areas of expertise, our specialist recruiters have a deep understanding of their market, the roles they recruit and current pay rates.

All salary ranges and contract rates are approximate guides only. While the salary ranges listed are current at the time of publication, we are seeing increasing variations of market rates as the number of organisations basing pay rates on specific circumstances increases and mining roles continue to offer higher rates.

We acknowledge significant changes and transformation in the economy and labour market which is reflected in our research and variances in the permanent and temporary data.

Salary and pay rate data is influenced by a number of factors and we always recommend working with a specialist recruiter to conduct a thorough job and market analysis.

The permanent salaries listed are base salaries only and do not include superannuation, bonuses, incentive schemes or other benefits.

The temporary rates listed are the rate paid to the contractor and do not include superannuation, management fees, incentive schemes or other benefits or fees.

Roles marked N/A indicate insufficient data to represent the market adequately, please contact our consultants for further information about these roles.

CONTACT US Sydney 02 9269 8666 Melbourne 03 8629 1100 Brisbane

07 3003 7755

Perth 08 9217 0510 Adelaide 08 8408 9000 Canberra 02 6268 9888

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TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE

NATIONAL MARKET UPDATE Nationally, the trades and technical job market has been affected by continued downturn in the mining and heavy construction sectors, with both sectors reducing their workforces. Cost reduction is driving these sectors with job losses and wage reductions occurring across the country. We are also seeing an increased use of labour hire throughout the mining sector as companies look to lower staff costs.

We expect the market to continue to manage cost pressure through staff and wage reductions due to ongoing uncertainty across international commodity markets. This is evidenced by the recent appointment of administrators to Arrium in Australia and the Chapter 11 filing of Peabody in the US. In contrast, the residential and commercial construction sector is experiencing growth and remains reasonably buoyant across East Coast capital cities, particularly in the greater Brisbane area. Bucking the trend, this sector continues to generate job growth, predominantly for qualified trades with construction experience and transferable skills. While interest rates remain at historic lows we expect to see the residential and commercial construction sector to stay reasonably strong.

As employer preference for contingent workforces rises the trades and technical job market is characterised by a lack of long term or permanent contracts resulting in high competition for roles offering job security. We are seeing a lack of investment in apprenticeships and anticipate skills shortages as the generational shift is realised and Baby Boomers retire.

NEW SOUTH WALES The New South Wales job market is being characterised by demand for experienced trades in the manufacturing, civil and infrastructure sectors, and continued mining downturn.

Despite the decrease in mining vacancies these roles are still favoured by job seekers due to the higher pay rates, overtime and job security.

We are seeing a shortage of quality candidates in the manufacturing industry due to the uncertainty of the sector, with candidates not willing to risk leaving stable jobs as more and more manufacturing moves offshore. Crane Operators, Welders and candidates with infrastructure experience are in high demand, with shortages of qualified Sheet Metal Workers, Carpenters, Plumbers and Refrigeration Mechanics also experienced.

In Sydney, the Northwest Rail Link, WestConnex and NorthConnex infrastructure projects, and the development of residential estates in Western Sydney are engaging a large proportion of the skilled workforce. These projects will continue to influence the market and drive talent shortages in civil and infrastructure.

Moving into the second half of the year we expect the job seeker market to remain steady with areas of high demand impacting the availability of talent. Employers should consider offering permanent employment where possible and develop talent attraction strategies to secure top talent.

JUNE - DECEMBER 2016

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VICTORIA In Victoria, the decline of manufacturing continues to have a significant impact on both the metro and regional job markets. Recent and upcoming factory closures are driving an increase in the availability of skilled trades with manufacturing expertise. Despite a scarcity of permanent roles, Maintenance Fitters and Electricians with high speed manufacturing experience are well regarded with a strong talent market increasing competition for these roles.

In Melbourne, demand for quality candidates remains steady across construction and infrastructure with a number of large projects, such as the Western Distributor and Monash Freeway Upgrade, on the horizon. The Murray Basin Rail Project continues in regional Victoria with the next stage, due to commence in coming months, set to create up to 300 jobs. Employer confidence is growing with the recent Federal Budget reallocating $1.5 billion of funding, previously ear-marked for the East West Link, to a number of other massive road and rail infrastructure projects.

Candidates are favouring organisations offering above market wages and long term or permanent contracts. While the mixed job market largely favours employers and job vacancies often attracting a high number of quality applicants, employers should be working on retaining top performers.

QUEENSLAND In Queensland, decline in mining and industrial construction has seen a decrease in job numbers over the last 12 months, and moves by companies to lower costs has seen an increased use of labour hire in some areas. Market pay rates and salaries are also being driven down to levels previously seen before the mining boom.

In Brisbane we are seeing growth in residential and commercial construction (two storeys and above) with a large number of development approvals for mixed residential/ commercial projects from inner city to outer suburbs, including the Gold Coast. This is driving demand for Electricians, Carpenters, Plumbers, Riggers, Scaffolders and Trades Assistants with recent residential construction experience. Candidates with transferable skills, such as Working at Heights and Asbestos tickets, are highly sought after due to the volume of two+ storey construction projects.

Employers are navigating an experience gap on the Gold Coast after a previously quiet residential market saw talent transition to other markets during the mining and construction boom. With a shortage of construction candidates we are seeing high demand for qualified tradespeople with recent residential experience.

Moving down from the mining boom in regional centres and transitioning to residential construction growth in the South-East, Queensland candidates are seeking employers that can offer security through longer term projects or permanent jobs.

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TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE

WESTERN AUSTRALIA The employment market in Western Australia has largely been impacted by the decline in the mining industry and mining-related construction projects. We continue to see a preference for flexible temporary workforces and expect to see more temporary/casual jobs available rather than long term/permanent jobs.

Across the state we are seeing high demand for Boilermaker/Welders and Pipefitters with Alloy experience, compounded by a shortage of candidates with appropriate experience.

FIFO and DIDO roles offer additional benefits and are popular with applicants, however due to a shortage of jobs most candidates are willing to consider all opportunities.

With job growth expected to remain static across all trades, the supply of talent will continue to exceed job vacancies. We encourage employers to design recruitment strategies to identify applicants that will best fit the role, culture and organisation.

SOUTH AUSTRALIA The completion of several large construction projects and the declining manufacturing industry has greatly impacted the South Australian employment market. We are seeing a number of organisations looking to downsize or re-configure their workforce over the next 6 months and expect this to result in an increase in the number of temporary/casual jobs on offer.

Across the state the closure of many manufacturing factories and looming closure of Holden and its suppliers is driving candidates back to the job market in search of security.

This is causing an excess of trades candidates in the marketplace, particularly with manufacturing skillsets.

We are seeing demand for Engineers with mining or project experience being driven by the expansion of Olympic Dam – which will have a long term positive impact on the local job market. A number of other current and future projects, including the Darlington Upgrade and several newly announced ASC Defence contracts, have the potential to ease current market conditions.

Employers with looming projects are advised to communicate volume staffing requirements with recruiters ahead of schedule to allow time for recruiting and onboarding processes. With a high number of job seekers in the market employers can afford to be picky to ensure the best applicants are selected. In a highly competitive job market candidates need to be able to stand out from the crowd and clearly communicate their strengths.

JUNE - DECEMBER 2016

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PERMANENT

SALARY GUIDE

6

NSW

VIC

QLD

WA

SA

TRADES

$’000

$’000

$’000

$’000

$’000

Trades Assistant

40 - 70

40 - 60

35 - 75

45 - 75

40 - 80

Scaffolders

60 - 70

N/A

45 - 80

65 - 95

45 - 100

Riggers

60 - 70

N/A

45 - 80

60 - 95

45 - 100

Crane Operators

45 - 70

N/A

45 - 75

65 - 100

45 - 110

Toolmaker

50 - 70

50 - 80

50 - 80

65 - 100

50 - 65

Sheet Metal Worker

50 - 75

45 - 80

50 - 100

65 - 100

55 - 110

Electrical Instrumentation Technician

40 - 90

65 - 100

50 - 80

65 - 85

60 - 120

Coded Welder

40 - 90

50 - 70

50 - 80

60 - 100

60 - 120

Pipefitter

45 - 80

45 - 80

50 - 80

65 - 100

55 - 120

Plumber

45 - 90

50 - 90

50 - 70

65 - 100

55 - 110

Carpenter

50 - 90

45 - 80

50 - 80

65 - 100

40 - 100

Boilermaker

50 - 80

50 - 100

50 - 95

65 - 110

55 - 120

Heavy Duty Fitter

50 - 90

50 - 100

50 - 80

65 - 110

55 - 100

Maintenance Fitter

60 - 75

50 - 100

50 - 80

65 - 100

55 - 120

Electrician

65 - 80

65 - 110

50 - 90

65 - 100

60 - 120

Refrigeration Mechanic

65 - 75

50 - 90

60 - 90

70 - 100

55 - 110

TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE

PERMANENT

SALARY GUIDE NSW

VIC

QLD

WA

SA

TECHNICAL

$’000

$’000

$’000

$’000

$’000

Draftsperson

65 - 75

N/A

70 - 110

70 - 100

60 - 110

Maintenance Planner

60 - 120

50 - 100

80 - 120

80 - 155

60 - 130

Civil Engineer

70 - 150

N/A

70 - 160

95 - 180

90 - 160

Electrical Engineer

70 - 160

90 - 140

80 - 180

95 - 150

90 - 160

Mechanical Engineer

60 - 120

N/A

70 - 140

95 - 150

90 - 160

Chemical Engineer

90 - 140

N/A

70 - 150

95 – 155

90 - 160

JUNE - DECEMBER 2016

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TEMPORARY

SALARY GUIDE

8

NSW

VIC

QLD

WA

SA

TRADES

HOURLY

HOURLY

HOURLY

HOURLY

HOURLY

Trades Assistant

25 - 40

25 - 35

20 - 50

20 - 45

25 - 40

Scaffolders

30 - 40

N/A

25 - 50

30 - 65

30 - 45

Riggers

30 - 40

N/A

25 - 50

30 - 65

30 - 45

Crane Operators

30 - 45

N/A

25 - 50

40 - 70

30 - 50

Toolmaker

30 - 40

30 - 40

30 - 50

35 - 55

30 - 35

Sheet Metal Worker

35 - 45

30 - 40

30 - 65

30 - 60

30 - 50

Electrical Instrumentation Technician

25 - 50

35 - 80

30 - 50

40 - 80

40 - 60

Coded Welder

35 - 60

N/A

30 - 50

35 - 60

35 - 55

Pipefitter

35 - 45

30 - 40

30 - 50

35 - 60

30 - 50

Plumber

30 - 50

30 - 45

30 - 45

40 - 65

35 - 50

Carpenter

25 - 55

25 - 40

30 - 50

35 - 55

30 - 45

Boilermaker

30 - 45

32 - 50

30 - 60

30 - 60

30 - 50

Heavy Duty Fitter

30 - 50

35 - 50

30 - 50

35 - 60

30 - 50

Maintenance Fitter

30 - 45

32 - 45

30 - 50

30 - 60

30 - 50

Electrician

30 - 60

35 - 60

30 - 60

35 - 75

35 - 60

Refrigeration Mechanic

35 - 45

30 - 45

35 - 55

45 - 60

35 - 50

TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE

TEMPORARY

SALARY GUIDE NSW

VIC

QLD

WA

SA

TECHNICAL

HOURLY

HOURLY

HOURLY

HOURLY

HOURLY

Draftsperson

60 - 65

N/A

45 - 70

50 - 100

35 - 50

Maintenance Planner

35 - 70

30 - 45

50 - 75

55 - 110

40 - 55

Civil Engineer

45 - 90

N/A

45 - 90

60 - 100

50 - 70

Electrical Engineer

40 - 90

55 - 75

50 - 115

75 - 135

50 - 70

Mechanical Engineer

50 - 80

50 - 75

45 - 90

65 - 105

50 - 70

Chemical Engineer

60 - 100

N/A

45 - 95

75 - 135

50 - 70

JUNE - DECEMBER 2016

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ABOUT US Chandler Macleod’s Staffing Services team has been supplying Australian businesses with specialised recruitment and HR services since 1959. Our experienced recruitment teams source, recruit and manage temporary, contract and permanent employees across a broad range of sectors. We are proud to supply tailored HR solutions to many of the region’s largest organisations, Government departments and not-for-profits.

At the core of our recruitment and selection process is our BestFit™ formula, which states that a person’s behaviour is a function of who they are, their skills and temperament, combined with the environment in which they work. We employ a range of leading edge appraisal tools, assessments and methodologies to find the candidate who is the BestFit™ for the position, team and organisation.

25 MILLION HOURS WORKED BY CMG EMPLOYEES IN 2015

1655

SAFETY ASSESSMENTS CONDUCTED IN 2015

SAFETY IS ALWAYS OUR FIRST PRIORITY

1,417

INDIGENOUS AUSTRALIANS PLACED OVER THE LAST 3 YEARS

286,000 CANDIDATE JOB APPLICATIONS RECEIVED IN 2015

57 YEAR HERITAGE AND THE

WORLDS 5TH LARGEST

RECRUITMENT ORGANISATION

ONE OF AUSTRALIA’S LARGEST EMPLOYERS OF

ORGANISATIONAL PSYCHOLOGISTS

Our specialist recruitment teams have demonstrated expertise across a variety of specialisations, including:

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Accounting & Finance

Human Resources

Banking & Financial Services

Infrastructure & Rail

Business Support & Call Centre

IT

Construction

Manufacturing

Engineering & Technical

Mining & Energy

Executive

Sales & Marketing

Government

Supply Chain & Procurement

Graduate

Trades

Health

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Utilities

TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE

This publication has been produced by Chandler Macleod Group as general information only and does not consider anyone’s specific objectives, situation or needs. Accordingly, the publication is not to be taken as legal or professional advice. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this paper. Neither the authors nor Chandler Macleod Group accept any duty of care or liability to anyone regarding this publication or any loss suffered in connection with the use of this publication or any of its content.

Chandler Macleod, Unleashing Potential and our logo are trademarks of Chandler Macleod Group Limited and must not be used without the prior, specific, written permission of Chandler Macleod Group. All rights reserved.

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