April 2009 03 93294777 Anna Henderson Business Skills Victoria

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Presentation transcript:

April Anna Henderson Business Skills Victoria

Broad Trends Property and Business Services is Australia’s second largest employing industry and it has experienced strong employment growth over the past 5 years. It is a diverse industry, including activities such as real estate, legal services, scientific research and equipment leasing. Over the past five years 182,000 new jobs have been created, mainly driven by Business Services, particularly Technical Services (50,000 new jobs) and Marketing and Business Management (41,600). Employment growth is expected to remain strong over the next five years with 157,000 new jobs projected, a growth rate of 2.4 percent per annum. Source: Australian Jobs 2008,

Economic Trends Dr Chris Richardson, Access Economics predicted that the global economic influences are increasing the wealth and complexity of our society. This has created a greater reliance of accountants, lawyers, IT consultants, marketers and advertisers – the groups which dominate Property and Business Services. There has been a 135 percent job growth in Property and Business Services between 1985 and Dr Chris Richardson, predicted a further 32 percent job growth in Property and Business Services over the next 30 years, however recently he noted that Australia may be moving into recession because of the global financial crisis.

Skill Shortages and Future skill requirements A TAFE study described ‘skill shortage’ as the following four varying identifiers: 1.Skill shortages due to insufficient workers being trained. 2.Skill shortages as a result of people choosing to work in occupations other than that for which they have been trained. 3.Skill gaps, defined as the difference between the skill level of existing workers and the skill level required by industry. 4.Future skills requirements. Source: Skill Shortages and future skill requirements for the labout force in Victoria. Report prepared by RMIT University, Kangan Batman TAFE, Box Hill Institute and Chisholm Institute 2008

Emerging trends in Business Services : More inputs will be required from knowledge- intensified business services (KIBS) in product design and development, risk management, financial services and insurance and in other business services. By 2015 it is expected that professional, managers and associate professionals will account for one third of all jobs compared to one quarter in Source: Report prepared by RMIT University, Kangan Batman TAFE, Box Hill Institute and Chisholm Institute 2008

 Globalisation – Global Financial crisis  Ageing population  Sustainability Industry Change Drivers

Global Financial Crisis What does this mean for Business Services?

Shedding of middle-management roles and support functions. Management had been identified as a skill shortage area. Some businesses services could experience increased demand with cost-cutting strategies resulting in increased outsourcing. Training in business services provides skills that are needed in many job roles across the economy, business service skills, used across all industries are likely to remain in relatively strong demand. Need to train in periods of recession to overcome future skill shortages.

Ageing population What does this mean for Business Services?

[1 The ageing of the labour force is expected to lead to strong replacement demand in a range of occupations. Many workers are continuing to work past retirement age. This enables organisations to retain capable, experienced staff but it also presents challenges in managing an older workforce. Replacement demand in areas such as business administration and business management will be very high once the recession subsides. Source: Boston consulting group 2008

Sustainability What is it about? ‘ Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. ’ Source: Our Common Future, World Commission on Environment and Development (the Brundtland Commission) Enough – for all forever Source: African Delegate to Johannesburg (Rio+10)

Environmental Sustainability What does this mean for Business Services?

In a McKinsey global survey consumers say that corporations performance in addressing the problems of the environment and climate change affects not only how much they trust the company but also whether they would buy its products Australia is to cut carbon emissions from 2000 levels by between 5 to 15 percent by Measurement of actual emissions is costly and time consuming. Industry will have to develop tools to measure actual emissions. Changes in the way we work will be required.

‘However good our future research may be, we shall never be able to escape from the ultimate dilemma that all our knowledge is about the past and all our decisions are about the future’ Ian Wilson General Electric Future Vision

Skill Shortages in Area of Study Generic business skills and business administrative officers. Finance, accounting and business services. Integration of sustainability skills in all aspects of business practice. Global financial crisis strategy: train our way out of the recession.