Supporting Business to Address Skills Issues

Background Economic powerhouse Diversify the economy by facilitating the development of emerging industries and continuing to build on the strength of our foundational industries Major infrastructure initiatives eg:- $82 billion South East Queensland Infrastructure Plan Queensland’s economy –Growth rate – above average rate of 5.5% - more than double the estimated Australian figure of 2.5% –Population growing – rate of 1.9% (46% above the national average)

The Issues July 2007 – Queensland responsible for over one quarter (30.7%) of all jobs created nationally Unemployment figure lower than the national figure – record 37 consecutive months Challenge of significant skill and in some cases labour shortages Not a local issue but a global issue Understanding the cause of the shortage can give Government useful direction and guidance to determine appropriate strategies to be implemented Currently major shortages in Queensland – building and construction, engineering and associated professions and health workers

The Response Multi faceted Affecting public sector and private sector Growing economy and tight labour market creating challenges for business productivity and performance The Government is taking proactive role – skilling of its resident population and significant marketing and attraction strategies to expand the pool of skilled workers

Sectoral Programs Queensland’s foundational industries (mining, tourism, agriculture) Priority sectors (those industries that have the capacity to drive the future development of the Queensland economy) Need to understand where sectors are growing at a rate that cannot be sustained by current labour supply to meet future needs Queensland’s priority sectors include: Skills Formation Strategies are one example of the Government working with industry and key stakeholders to build innovative solutions to workforce management Advanced manufacturingEnvironmental & mining services Alternative fuels & technologiesInformation & communication technologies AviationMarine industries BiotechnologyPharmaceuticals & nutraceuticals Creative IndustriesProcessed food

A Sectoral Case Study - Manufacturing Ability of manufacturers to attract and retain a skilled workforce is vital for the industry’s future growth and improved productive performance Rapidly changing nature of the economy, globalisation, trend towards outsourcing, increasing importance of ‘knowledge workers’ – facts that impact on the skills required in manufacturing firms Independent research established the main skills related issues affecting Queensland’s manufacturers and confirmed the nature and extentof the sector’s skills and training requirements Number of specific initiatives implemented

A Sectoral Case Study – Manufacturing (cont) The Manufacturing Strategy targets the following objectives in addressing skills shortages: –Establish proactive projects where schools provide a ‘feeder’ of talented new entrants into the industry –Improve the consistency and quality of training provided to ensure that it responds to current and future industry needs through activities including: Preparation of a manufacturing skills development plan for priority manufacturing industry groupings with a regional focus; and Targeting of resources to meet industry-specific skills requirements –Encourage greater involvement by industry in training and staff development by: Targeting growth companies for training take-up and delivering tailored assistance; Encouraging and supporting clusters of companies collaborating on training

A Sectoral Case Study – Manufacturing (cont) Improve collaboration between industry, government, educational institutions and training providers to enhance training outcomes for the manufacturing sector The Department of State Development’s Office of Advanced Manufacturing, in conjunction with its partners has focused on assisting the manufacturing sub-sectors to identify and recruit the people they require through the creation of labour supply chains The overarching strategy involves the formation of industry/school partnerships to assist in building links between industry (the jobs) and schools (potential employees)

Pharmaceuticals and Nutraceuticals The ability to attract and retain a skilled workforce is vital for companies engaged in manufacturing or R&D within this sector –There is a growing shortage of qualified, technically competent and knowledgeable staff A Skills Formation Strategy was initiated for the sector in This strategy is now being led by industry through the Queensland Pharmaceuticals and Nutraceuticals Industry Forum which will continue to focus its efforts on workforce development projects. A series of actions have been facilitated by the Forum –Skilling Ensuring that school, university and TAFE curricula meet industry needs Supporting innovative solutions to structural impediments preventing joint TAFE/university servcie delivery Seek opportunities for cadetships

Pharmaceuticals and Nutraceuticals (cont) –Attracting Auditing the skills needs of industry and identifying options for supply of needed skills Profiling the industry and its career opportunities Promoting the benefits of careers in science to students in high schools, TAFEs, universities and other agencies –Retraining Encouraging collaborative and other innovative industry solutions to workforce development challenges Working to identify future skills needs early

Business Programs Small and medium sized businesses – important part of the Queensland economy Government facilitates and delivers management education services which leads to an increase in innovative business practice for business Mentoring for Growth program - supported by private sector mentors, assists enterprises in high or rapid growth mode and provides access to a panel of business mentors who help address commercial challenges QMI Solutions – not-for-profit company that helps businesses, primarily manufacturing-related ones, become aware of how the latest technologies and practices can increase productivity, profitability and achieve manufacturing excellence Effectively lift productivity within businesses without necessarily requiring more labour

Regional Programs State wide issue and there is a need to capitalise on the opportunities for the benefit of regional Queensland Centres of Enterprise initiative – 6 key regions across the state to drive the development of the industries to transform these local economies Example:- Far North and Cairns and the Wide Bay Burnett around Bundaberg have competitive advantages in aviation, Mackay and the Whitsundays in mining and marine expertise, Fitzroy and the Central West in manufacturing and the Darling Downs in food processing Centres of Enterprise now actioning plans to attract new investment and new skilled workers to meeting the opportunities The Department, in partnership with key local stakeholders are developing plans to specifically address some of the skills issues

Regional Programs (cont) Example:- the development of specific campaigns to attract professionals and skilled workers from overseas to areas of regional Queensland

Expanding the Pool – Attraction Campaigns National and international attraction campaign to supplement the skill development and training activities driven at the State, sectoral and business level Migration and Skills Recruitment Queensland had an ongoing role in sponsoring skilled and business migrations Now a broader role to maximise attraction opportunities in more effectively addressing private and public sector skills shortages Key role in the identification of critical skills shortages, development and implementation of targeted and proactive attraction and recruitment campaigns Example:- Queensland Government participation in recruitment and career expos, domestic and international road shows to showcase skill needs of the State, matching skilled migrants with job vacancies in areas of critical need and positioning Queensland as a career and lifestyle destination of choice

Expanding the Pool – Attraction Campaigns (cont) Series of national and international events are planned for 2007/08

Conclusion Department of State Development will continue to maintain a long- term focus on increasing productivity in Queensland’s business sector and supporting those industries that compete in the global economy To achieve a knowledge-based, innovative and creative Queensland – getting the right people on board is absolutely critical.