Skills & Training Needs 2013€¦ · Employment 12 Skills composition 13 Job vacancies 14 Labour...

Skills & Training Needs 2013Victorian Financial and Insurance Services Industry

Published by HESG Department of Education and Early Childhood Development

Melbourne February 2014

©State of Victoria (Department of Education and Early Childhood Development) 2014

The copyright in this document is owned by the State of Victoria (Department of Education and Early Childhood Development), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission.

An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering

such an institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution.

Authorised by the Department of Education and Early Childhood Development, 2 Treasury Place, East Melbourne, Victoria, 3002. ISBN 978-0-7594-0752-7

This document is also available on the internet at http://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Contents Executive summaryIntroductionIndustry and data scope

Financial and Insurance Services industry defined 3

Data 3Financial and Insurance Services industry trends and issues

Key issues and challenges 4

Economic contribution 6

Employer profile 7

Labour productivity 10Financial and Insurance Services industry workforce & skills

Key messages 11

Employment 12

Skills composition 13

Job vacancies 14

Labour market characteristics 15

Occupations in demand 16Financial and Insurance Services industry vocational training provision

Key messages 19

Training activity 20

Financial and Insurance Services industry enrolments by occupation 23

Financial and Insurance Services industry training providers 25

Funding patterns 26

Regional training activity 27

Student characteristics 29Appendix A: courses by occupation and funding band

1Introduction

In the context of Victoria’s complex and dynamic economy, a demand-led approach is the best way to ensure a responsive and dynamic vocational training system that will help as many people as possible build skills that lead to better jobs. This is most evident in the results of the market approach embodied in the Victorian Training Guarantee, which has achieved positive outcomes for both students and the economy.

The Refocusing Vocational Training (RVT) in Victoria reforms are designed to satisfy important criteria for a strong vocational training market. Through these reforms the Government will be able to more effectively manage the training market, ensuring that the vocational training system continues to produce positive outcomes for students, businesses and Victoria.

Through the RVT, there is a role for government in monitoring, providing information and responding to the performance of the vocational training system. A key mechanism by which the government exercises this role is through the Industry Participation Model (IPM). The IPM is based on a new partnership approach between government, industry and training providers. It increases industry influence within the training market by supporting more direct relationships between industry and training providers and by increasing direct consultation with government.

An aim of the IPM is to seek to improve information sharing about training provision, options, outcomes, gaps and associated barriers between industry, training providers and employers to improve responsiveness. A suite of information products and tools are been developed, of which this report is one, to support this aim and an overview of these are provided in the table following.

This report describes training and economic activity and developments related to Victoria’s Finance and Insurance Industry, bringing together a range of qualitative and quantitative insights from desk research and industry engagement. It highlights both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. Key metrics used in this report include enrolments by sub-industry, qualification level, occupation, courses, age group, gender, learners facing barriers, provider type, reason for study and completions by related industry sub-sectors. The report also covers apprentices and trainees, and an analysis of the responsiveness of training delivery to specific occupational needs. The report produces industry, sub-industry and region-specific findings and, wherever possible, presents comparisons to developments at the State-level.

The purpose of this report is:

1. To provide a basis for understanding the Financial and Insurance Services sector in relation to employment levels, skills shortage occupations, current alignment and responsiveness of the vocational training market to the needs of the sector and to provide an overview of the challenges and opportunities in meeting industry vocational skills needs both now and into the future.

2. To give detailed information around vocational training enrolments by occupation, location, qualification levels and other student characteristics, as it relates to the Financial and Insurance Services sector in order to gauge current trends in vocational training delivery.

3. To summarise the context of the Financial and Insurance Services sector in relation to the size and scale of the labour and training markets as well as the current policy, economic and social drivers that it is facing.

Introduction

2 Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry

Suite of Information Products & Tools

Victorian Quarterly Training Market ReportsOn-going series of quarterly reports aimed at providing a summary of Victorian training market performance following the introduction of the student entitlement system. The report covers three sections – the first provides an overview of the performance of the Victorian training market, the second section examines the participation of learners facing barriers and the third examines the alignment of training to industry skills needs http://www.education.vic.gov.au/training/providers/market/Pages/reports.aspx

Vocational Training: Victoria’s Regional ReportAnnual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building a picture of the relationship between the local training system and regional skills needs, training market performance and responsivenesshttp://www.education.vic.gov.au/training/providers/market/Pages/regionaltrends.aspx

Vocational Training: Victoria’s Industry ReportPublished annually, this report combines industry intelligence and economic analysis with training data to build a more complete picture of the relationship between industry skills needs, employment opportunities and skills training. Each of the 19 industry training profiles provide economic context and a summary of training challenges and highlights from IPM initiatives http://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Industry Sub-sector summary reports & Industry Factsheets46 sub-sector industry summary reports produced annually highlight industry labour and training market dynamics with an overview of current and forecast employment needs and vocational training patterns across the sectors and at the regional levelA series of factsheets are also available for 19 industrieshttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Business Toolkit and Case StudiesToolkit for employers providing information on how to get government-subsidised training under the Victorian Training Guarantee; getting the best training for your business, with a helpful checklist; information of Recognition of Prior Learning; and a range of interesting employer and training provider case studieshttp://www.education.vic.gov.au/training/employers/workforce/Pages/marketfacilitation.aspx

IPM Portfolio Industry ReportsReleased in line with IPM Portfolio cycles, these reports describe training and economic activity and developments related to key Victoria’s industry sectors. Highlighted are both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. A range of key workforce and training metrics are also provided. There are two tiers of reports. One are detailed reports, representing the focus industries for the Department in 2013, and summary reports covering other industry sectorshttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Industry BlogA forum for people interested in industry skills and training issues in Victoria, the blog features a range of topics relevant to stakeholders, information on recent industry events, groups and forums and new initiatives focused on enhancing market performance through facilitation activitieshttp://skillsblogvic.wordpress.com/

Industry Skills Update - e-AlertsRegular email update featuring the latest news about IPM activities; market facilitation and related government initiatives; reports; and training performance informationTo subscribe contact: Department of Education & Early Childhood Development, [email protected]

Web Pages – Industry Training Market Information19 webpages with information about the skills and training market for industry sectors. For each industry, there’s a training snapshot, information about skills in demand, training market intelligence reports and factsheets along with more detailed reporting for each industry sub-sector. Information is updated regularlyhttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Rate Your Training New ratings tool for industry and employers is a simple-to-use system where employers can rate the performance of a training provider in a particular study area against selected criteria, and review and compare the ratings of other employershttp://rateyourtraining.com.au

E-Marketplace (in development)Website which facilitates connections between employers and training providers. Employers can anonymously post their training requirements and training providers are able to provide structured response online. Employers are then able to review the response with no obligation, create a shortlist and follow up directly with their preferred providers

Victorian Skills GatewayOne-stop-shop of Victorian vocational education and training to help find the best option for students. Searches can be performed on occupations, courses, training providers, video and written case studies. This website is also viewable via a purpose-built smartphone interface http://www.education.vic.gov.au/victorianskillsgateway/Pages/home.aspx

3

Industry and data scope

Industry and data scope

This section summarises the scope of the Financial and Insurance Services industry and data sources for this report.

Financial and Insurance Services industry definedThe Financial and Insurance Services sector includes organisations engaged in financial transactions involving the creation, liquidation, or change in ownership of financial assets, and/or in facilitating financial transactions.

The range of activities include:

• raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities; • units investing their own funds in a range of financial assets; • pooling risk by underwriting insurance and annuities; • separately constituted funds engaged in the provision of retirement incomes; and • specialised services facilitating or supporting financial intermediation, insurance and employee benefit programs.

Also included in this industry are central banking, monetary control and the regulation of financial activities.

Data The main source of data on vocational training activities is the training activity database referred to as SV Training System (SVTS).

The report presents findings for the time period from 2008 to 2012, with an in-depth analysis of developments and patterns in the 2012 calendar year. Latest quarterly data is also included to the June 2013 (Q2) period. The 2013 data is based on preliminary data extracted from SVTS as at August 2013 and subject to revision.

This report includes government subsidised training enrolments and domestic fee for service activities of TAFEs. However, TAFE fee for service activities below Certificate and those provided by private RTO and Adult Community Education are not included. Data on completions contain all government subsidised and fee for service enrolments at any course level by all providers.


This section focuses on the Financial and Insurance Services industry as a whole. It covers: the key issues and challenges including economic conditions, new regulations, demographic changes, changing social attitudes, new technology/processes, changing consumer tastes, environmental policy and the direction of industry restructuring.

Key issues and challenges• The Financial and Insurance Services industry covers banks, building societies, credit unions, insurers, superannuation

providers, fund managers, accountants and financial planners and advisers.1 • Financial and Insurance Services was the largest single sector in Victoria in 2012, contributing 14% of total output, more than

manufacturing (10%). The sector is also important nationally, contributing more to the Australian economy than our other largest industries – mining, manufacturing and construction.

• Forecasts show this sector remaining as the largest contributor to output in 2017 in Victoria.• The overall health of the industry is intimately tied to the state of the economy and financial markets. • The compulsory superannuation system has made an important contribution to household saving since it began to be phased

in from the mid 1980s. More recently, the increase in household saving likely reflects a combination of increased consumer caution following the Global Financial Crisis (GFC) and a return to more sustainable rates of consumption growth, after a 30 year period in which declining saving rates and strong credit growth meant that consumption grew faster than incomes.2

• On a global scale compulsory superannuation in particular has led to a large source of investable funds, which has allowed the Australian economy to weather the GFC in better shape than other advanced economies.

• Above average productivity growth and improved regulation of the system leading to the implementation of International Financial Reporting Standards for banks (Basel III) have both impacted the industry in the last 2 years, increasing the value of skills and training in a dynamic environment.

• The Asian century (as an avenue for further growth), the usage of ICT in financial services and the offshoring of lower skilled jobs all increase the reliance on training for a more highly skilled sector.

• The introduction of a carbon tax was previously expected to impact this sector via carbon accounting and will be monitored through 2013-14 in line with potential federal government policy changes.

Financial and Insurance Services industry trends and issues

1 Innovation & Business Skills Australia (IBSA) Environmental Scan, 20132 Australian Government Budget Paper No.1, Statement 4: Building Resilience Through National Saving, Budget 2012-13

5Financial and Insurance Services Trends and Issues

Table 2:1: Key trends in Financial and Insurance Services industry and their potential impacts on skills

Grouping Change drivers Skills impact

Political Regulatory Settings

Competition Policy

Consumer Protection

Economic Employment market and job skill requirements

Terms of Trade =

Overseas competition =

Performance of economy

Social Savings Rates

Technological Technological advancements

NBN rollout =

Key:

Driver has indirect impact on skills;

= Driver has low skills impact, and places marginal pressure on skills development;

Driver has high skills impact, and places upward pressure on skills development;

Driver places downward pressure on skills development.

Auxi

liary

Fin

ance

and

In

sura

nce

Ser

vice

s

Fina

nce

Insu

ranc

e an

d Su

pera

nnua

tion

Fund

s


Economic contributionVictoria’s Financial and Insurance Services industry contributed approximately $37 billion to the state economy in 2011-12, around 14 per cent of total output. The industry directly employs approximately 114,200 workers, representing 8 per cent of Victorian employment.

Looking forward, output growth of 18 per cent is anticipated in the five years to 2017, to $43 billion. This is slightly above the anticipated state growth rate of 14 per cent across all Victorian industries. Victoria has seen a very large expansion in output in the five years to 2012 of 66 per cent. Finance, easily the largest sub-sector has grown 51 per cent between 2007 and 2012, a period that included the GFC.

A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for Victorians to access the opportunities of a growing and changing economy, and an increasingly sophisticated and information-rich society.

Figure 2:1: Financial and Insurance Services output ($ million)

Source: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2012

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

02012

5 year annual historicalgrowth rate = 66%

5 year forecastgrowth rate = 18%

2017

25,300

6,900

4,800

29,800

8,200

5,500

FinanceAuxiliary Finance and Insurance Services Insurance and Superannuation Funds

7

Employer profileThere were around 44,300 businesses in the Victorian Financial and Insurance Services industry in 2012. Compared to the average across all industries in Victoria, Financial and Insurance Services organisations are more likely to be non-employing enterprises, with around 35,800 businesses in this category. Most superannuation funds are non-employing establishments and this explains the high proportion of firms in this category.

Figure 2:2: Share of businesses by employment, Victoria, 2012

Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012

Financial and Insurance Services Trends and Issues

90%

60%

50%

40%

30%

20%

10%

0%

81%

61%

18%

35%

1%4%

0.2% 0.3%

Financial and Insurance Services All industries


Non employing 1 to 19 20 to 199 200+

60%

50%

40%

30%

20%

10%

0%

49%

28%30%

35%

18%

31%

4%6%

Zero to less than $50k $50k to less than $200k $200k to less than $2m $2m or more


With regards to turnover, Victoria’s Financial and Insurance Services industry businesses are more likely to be in the low range of turnover (below $50,000 a year). In 2012, around half (21,500 firms) of all Financial and Insurance Services firms reported turnover less than $50,000.

Figure 2:3: Share of businesses by turnover size, Victoria, 2012

90%

60%

50%

40%

30%

20%

10%

0%

81%

61%

18%

35%

1%4%

0.2% 0.3%



Non employing 1 to 19 20 to 199 200+

60%

50%

40%

30%

20%

10%

0%

49%

28%30%

35%

18%

31%

4%6%

Zero to less than $50k $50k to less than $200k $200k to less than $2m $2m or more

Financial and Insurance Services establishments are overwhelmingly (over 80 per cent or 5,700 establishments) based in metropolitan Melbourne, particularly in the CBD and surrounding inner suburbs. The City of Melbourne alone accounts for nearly 20 per cent of the industry’s business establishments in the state.

Financial Services business establishments in regional Victoria are generally concentrated in the major regional centres of Ballarat, Bendigo, Latrobe Valley and Shepparton.

Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012

9

Figure 2:4: Location of Financial and Insurance Services industry establishments in Metropolitan and Regional Victoria, 2010/11

Source: Department of State Development, Business and Innovation (DSDBI), Financial and Insurance Services Industry. Business location in Victoria: A decade of change, October 2012 (based on data from WorkSafe Victoria).

Financial and Insurance Services Trends and Issues


Labour productivityLabour productivity is defined as real gross value added per hour worked. Figure 2.5 below shows the average annual compound rate of growth in labour productivity for the Financial and Insurance Services industry over the period 2000-01 to 2011-12. Nationally the average compound annual growth rate of labour productivity for Financial and Insurance Services was 2.9 per cent, while the all industries average was 1.4 per cent.

Upskilling the workforce continues to be an important focus for increasing productivity, and producing more with less. A well-trained, job-ready workforce is the life-blood of Victoria’s industry and business and the largest determinant of productivity in the State’s economy.

Figure 2:5: Labour productivity measure by Gross Value Added (GVA) per hour worked, average annual growth, 2001 to 2012

Source: Australian Bureau of Statistics (ABS), Australian System of National Accounts, 5204.0

Financial andInsurance Services

1.4%

2.9%

All Industries

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

11

This section focuses on the Financial and Insurance Services industry and sub-sector detail where appropriate. It covers: employment, industry skill level composition and forecast, advertised vacancies by occupation, labour market characteristics (age, gender and qualification level), occupations in demand including annual employment needs and projected occupation growth to 2017.

Key messages• Across the state the Financial and Insurance Services sector employs around 114,000 people of which just over half work in

the banking industry. Employment patterns over the last five years have been turbulent due to ongoing efficiencies created by technology and the impact of the global financial crisis.

• Modest growth in employment across all subsectors is expected over the coming five years with growth strongest in stock exchange and share registry services, accounting services and superannuation funds management.

• Low skill jobs as a proportion of all Financial and Insurance Services jobs have been decreasing and are expected to continue to decrease, while the opposite is true for high skill roles. Many lower skill roles are likely to be offshored. Bank workers, credit and loan officers and financial and investment advisors and managers are the roles that are immediately at risk.3 The proportion of jobs that are at risk of being offshored in this sector is twice as high as other service sectors. This highlights the importance of re-skilling in an environment of industry restructure.

• The Financial and Insurance Services industry has a natural focus on knowledge and analytical skills requiring candidates from both higher education and those with vocational industry-based skills.

• Victoria has the second highest proportion of Finance and Insurance workers compared to other States and Territories at approximately 4.3 per cent.4

• Changes in the economic cycle are likely to impact differently in the areas of banking and insurance. Banking (and investment) is impacted more directly than insurance where there is an economic slowdown. Insurance is likely to be impacted later in the cycle as the negative effects flow through the system.

• In a climate of dynamic change and restructure Financial Services skills currency and skills development provide the opportunity for longevity within the sector.

Financial and Insurance Services industry workforce & skills


3 Innovation & Business Skills Australia (IBSA) Environmental Scan, 20134 Industry workforce development plan, Financial, Administrative and Professional Services Training Council, September 2010


EmploymentApproximately 114,000 people are employed in Victoria’s Financial and Insurance Services industry. The industry has seen employment growth of 10 per cent over the last five years, equating to approximately 10,500 employees. The outlook over the next five years is for employment to increase by approximately 6 per cent (or 6,500 jobs).

The Finance sub-sector accounts for the largest proportion of industry employment, 51 per cent of the total or approximately 58,200 employees.

While employment grew 10 per cent over the 5 years to 2012, output grew 66 per cent over the same period, led by the Finance sub-sector which showed the largest proportional growth in output. (see Figure 2.1)

Figure 3.1: Financial and Insurance Services Employment in Victoria

Source: Monash Centre of Policy Studies Employment Forecasts, June 2012

140,000

120,000

100,000

80,000

60,000

40,000

20,000

02012

5 year annual historicalgrowth rate = 10%

5 year forecastgrowth rate = 6%

2017

58,200

30,400

25,600

61,600

31,900

27,200

FinanceAuxiliary Finance and Insurance Services Insurance and Superannuation Funds

13

Skills composition The Financial and Insurance Services sector has a highly educated workforce and forecasts suggest that high skill jobs as a proportion of all Financial and Insurance Services positions will increase from 31 per cent to 41 per cent over the period to 2019-20. At the same time low skill roles as a proportion of all positions are forecast to decrease from 20 per cent to 15 per cent. Forecast figures are shown as dashed lines on the graph and are subject to ongoing revision.

Figure 3:2: Victorian Financial and Insurance Services industry skill levels

Source: Monash Centre of Policy Studies Employment Forecasts, June 2012

Note: High skill—managers and professionals. Medium skill—technicians and trades workers, community and personal service workers. Low skill—clerical and administrative workers, sales workers, machinery operators, drivers and labourers.


45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

2003-4

2004-5

2005-6

2006-7

2007-8

2008-9

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-2

0

High skill

Forecast 2013-20

Low skill


Job vacanciesFigure 3.3 highlights the number of vacancies posted online in Victoria over the last two years for selected key Financial and Insurance Services occupations. The number of online job advertisements is trending downwards across majority of the larger Financial and Insurance Services occupations, consistent with trends seen in the national Internet Vacancy Index.5

Despite this decline, there were still approximately 1,200 newly lodged vacancies in the Financial and Insurance Services occupation groups in June 2013. The graph below shows that Financial Investment Advisers and Managers, Credit and Loans Officers and Bank Workers all had over 200 vacancies advertised and are the largest occupation groupings over the series.

Figure 3:3: Number of newly lodged online vacancies in Financial and Insurance Services occupations in Victoria, January 2011 to May 2013

Source: Department of Education, Employment and Workplace Relations (DEEWR) Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK, My Career, CareerOne and Australian JobSearch), major advertising occupations only. Note: caution advised when using monthly occupation data as it is susceptible to fluctuation from month to month.

5 Department of Education, Employment and Workplace Relations, DEEWR Vacancy Report, February 2013

600

500

400

300

200

100

0

Jan 11

Mar 11

May 11

Jul 11

Sep 11

Nov 11

Jan 12

Mar 12

May 12

Jul 12

Sep 12

Nov 12

Jan 13

Mar 13

May 13

Financial Dealers

Credit and Loan Officers

Insurance, Money Market and Statistical Clerks

Financial Brokers

Bank Workers

Financial Investment Advisers and Managers

Insurance Investigators, Loss Adjusters and Ris

Insurance Agents

15

Labour market characteristicsEmployment by age

The Financial and Insurance Services industry workforce employs a lower proportion of 15-24 year olds, compared to the all industries average and a higher proportion of 35-44 year olds. The other age groups are broadly similar to the all industries distribution.

Figure 3:4: Employment by age (proportion), 2011-12

Source: Monash Centre of Policy Studies

Employment by gender

The Financial and Insurance Services industry employs a perfectly balanced workforce. In 2012, 50 per cent of the workforce was female, higher than the all industry average of 46 per cent.

Figure 3:5: Employment by gender (proportion), 2011-12



Financial andInsurance

Services

All industries

0%

9% 26% 28% 23% 15%

16% 23% 22% 21% 17%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15-24 25-34 35-44 45-54 55+


Services

All industries

0%

50% 50%

54% 46%

20% 40% 60% 80% 100%

Male Female


Employment by qualification

Employees in the Financial and Insurance Services industry tend to have higher level qualifications, compared to the all industries average. A large proportion of the Financial and Insurance Services industry workforce (41 per cent) has Higher Education qualifications, significantly higher than the all industry average of 29 per cent.

Figure 3:6: Employment by qualification level (proportion), 2011-12


Occupations in demandTable 3.1 highlights the occupations at four-digit ANZSCO level (Australian and New Zealand Standard Classification of Occupations) that align to the Financial and Insurance Services industry. Some of these occupations also align to other industries however the figures shown are specific to the Financial and Insurance Services industry.

Forecasts presented in the table estimate the employment growth + replacement demand in terms of the average number of jobs required for each occupation annually up to 2016-17.

Employment growth is the net number of new jobs that are forecast for the occupation (within the industry). Replacement demand is the number of existing workers that are forecast to leave each occupation (for example, through retirement or moving on) that require replacement to meet existing employment needs.

Across all occupations in the Financial and Insurance Services industry (including office support occupations such as book-keepers, receptionists etc.) the average employment + replacement demand figure between 2011-12 and 2016-17 for jobs to support the sector is around 5,700 per year.


Services

All industries

0%

31% 3% 11% 13% 41%

37% 4% 20% 10% 29%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

No post school quals Certificate I or II Certificate III or IV Dip-Av Dip Higher Ed

17

Table 3:1: Estimated annual employment growth + replacement demand figures for occupations in the Financial and Insurance Services sector across Victoria

VET occupations highlighted in green


Occupation name 2011-12 employment total

Average annual employment needs

Overall employment growth to 2016-17

Bank Workers 14,760 670 -390

Finanl Investm Advisers etc 9,770 600 400

Ins, Money Mkt & Stats Clerk 6,940 270 80

Credit & Loans Officers 5,980 260 0

Accountants 4,940 280 310

Oth Hospty Rtail & Srvc Mgrs 4,720 220 470

Financial Brokers 4,700 80 -410

Software & applicn Progmrs 3,860 200 180

Advertising & Sales Managers 3,590 200 380

Financial Dealers 3,160 60 -260

General Clerks 2,850 120 250

Inquiry Clerks 2,560 150 180

Mgment/Organisation Analysts 2,410 160 430

Finance Managers 2,340 170 340

Accounting Clerks 1,960 100 110

Contract/Prog/Project Admin 1,940 110 340

ICT Managers 1,740 100 120

Call/Contact Centre Workers 1,630 90 110

Insurance Agents 1,610 180 0

Personal Assistants 1,540 -20 -240

ICT Business & Sys Analysts 1,530 80 70

Keyboard Operators 1,380 -10 -200

Office Managers 1,310 50 60

Auditors etc 1,190 130 210


Key messages at the occupational level are that there is currently forecast to be substantial employment growth + replacement demand to 2016-17 in:

• Bank Workers – forecast to have high average annual employment needs (+670 annually), but an overall employment decrease of around 390 workers between 2011-12 and 2016-17

• Financial Investment Advisers (+600 on average annually), and an estimated overall employment growth in the occupation of around 400 workers between 2011-12 and 2016-17

• Insurance, Money Market & Statistics Clerk (+270 annually), and an estimated overall employment growth in the occupation of around 80 workers between 2011-12 and 2016-17

• Credit and Loans Officers (+260 annually) with overall employment estimated to remain the same size • Financial Brokers (+80)• Financial Dealers (+60)• Insurance Survey/Adjustors (+60)

Occupation name 2011-12 employment total

Average annual employment needs

Overall employment growth to 2016-17

Advertising & Marketing Prof 1,080 60 150

Database & Sys Admintor etc 1,060 50 40

ICT Support Technicians 990 80 110

Receptionists 960 40 -30

Human Resource Managers 950 70 180

ICT Support & Test Engineers 880 50 70

Other Specialist Managers 860 60 130

Bookkeepers 850 20 -40

Chief Executs & Mgr Director 770 40 150

Call Centre etc Mgrs 760 40 110

Debt Collectors 750 40 80

General Managers 720 40 140

Training & Development Profs 690 40 100

Human Resource Profs 680 40 90

Secretaries 670 -10 -100

Insur Survey/Adjustors 670 60 -90

19Financial and Insurance Services industry vocational training provision

This section focuses on training provided for the Financial and Insurance Services industry. It covers training activity (including a regional analysis), courses, providers and student characteristics.

Key messages• There were approximately 2,000 government subsidised enrolments in Financial and Insurance Services courses in Q2 2013.

The majority of enrolments are at the Certificate III-IV level. • The course with the most enrolments, Diploma of Financial Planning and Certificate III in Financial Planning, accounted for

53 per cent of all enrolments.• The Financial and Insurance Services occupation with the most enrolments is Bank Worker. Financial Investment Adviser

enrolments have grown between 2008 and 2012 to become the second largest occupation. • The majority of training is with private providers, who accounted for over 92 per cent of industry enrolments in 2012,

compared to only 8 per cent in 2008 and this pattern is replicated in Q2 2013. • 64 per cent of government subsidised enrolments in Financial and Insurance Services courses are in subsidy band C, with the

remainder in Band D6.

Financial and Insurance Services industry vocational training provision

6 As part of the Refocusing Vocational Training reform, the government is retaining and strengthening the individual entitlement to a subsidised training place to ensure that businesses and students continue to have choice over what and where they study and ensuring the cost of such access remains sustainable and in areas of greatest public value. Under the new arrangements, higher hourly subsidy rates have been attributed to foundation and apprenticeship qualifications, and lower rates to diplomas and above (where there is higher private benefit and income contingent student loans available) and to lower-level certificates where direct vocational benefit is lower. The subsidy for each course reflects an assessment of its current “public value”- with courses of greatest public value receiving the highest level of subsidy (Band A), and courses of lowest public value the least (Band E).


Training activityEnrolments

Enrolments in Financial and Insurance Services courses have increased significantly between 2008 and 2012, up 504 per cent to 6,289 in 2012.

Government subsidised activity accounts for 95 per cent of enrolments in 2012. TAFE fee for service had around 2,000 enrolments in 2008 but fell to current levels in 2009 (around 300 enrolments).

Apprentices and trainees

There were around 540 apprentice or trainee enrolments in courses relating to Financial and Insurance Services in 2012, 8.6 per cent of all enrolments in this industry. Most of the trainee positions relate to the Bank Worker occupation, which has been consistent over the period 2008 to 2012.

Financial and Insurance Services has a very low proportion of apprentices and trainees compared to all industries at 25.5 per cent of enrolments.

Specialised7 and in-shortage occupations

Approximately 13 per cent of Financial and Insurance Services industry enrolments are linked to specialised and in-shortage occupations. Of these, the majority (88 per cent) are linked to the Finance sub sector.

The vast majority (99 per cent) of the specialised and in-shortage enrolments are in qualifications that link to the Finance Broker occupation.

Qualification level

A majority of Financial and Insurance Services enrolments are at Certificate III-IV level. As at 2012, Certificate III-IV level enrolments accounted for 61 per cent of enrolments, with Diploma + making up 39 per cent. Only 5 enrolments were recorded in Certificate I-II. Ninety-four per cent of all enrolments were in the Finance sub sector.

Completed qualifications

In 2012, Financial and Insurance Services sector completions grew by 146 per cent to 4,600 in total.

Completions at Certificate III–IV levels accounted for the largest share (66 per cent), while Diploma and above accounted for 34 per cent.

Ninety eight per cent of all completions were in the Finance subsector.

7 DEECD used the Australian Workforce and Productivity Agency (formerly Skills Australia) list of specialised occupations. These occupations have a long lead-time for training, high economic value and a significant match between training and employment


Table 4:1: Key training activity in the Financial and Insurance Services industry, 2008–2012, Q2 2012–Q2 2013

Apprentice or Trainee

Specialised or in-shortage

Industry Subdivision

2008 2009 2010 2011 2012 2011–12 Q2 2012 Q2 2013 Q2 2012–13

Auxiliary Finance and Insurance Services

80 80 60 60 20 -62% 10 10 17%

Finance 970 1,280 1,650 6,580 5,940 -10% 5,040 1,820 -64%

Insurance and Superannuation Funds

- - 30 100 330 228% 210 210 3%

All Financial and Insurance Services

1,040 1,350 1,730 6,730 6,290 -7% 5,260 2,050 -61%


2008 2009 2010 2011 2012 2011–12 Q2 2012 Q2 2013 Q2 2012–13


<10 <10 <10 10 10 -29% <10 <10 -75%

Finance 210 350 380 530 440 -17% 360 230 -36%


- - - - 100 - 50 90 88%


210 350 380 540 540 1% 414 325 -21%


2008 2009 2010 2011 2012 2011–12 Q2 2012 Q2 2013 Q2 2012–13


- - - <10 <10 - <10 <10 -

Finance 280 270 410 1,030 720 -31% 710 100 -85%


- - 10 10 90 1063% 30 50 86%


280 270 420 1,040 810 -22% 740 160 -79%

Government subsidised enrolments


Qualification levels 2012

Completed qualifications

Industry Subdivision – 2012 Cert. I-II Cert. III-IV

Dip.+ Total Cert. I-II Cert. III-IV

Dip.+ Total


- 20 <10 20 0% 86% 14% 100%

Finance 10 3,660 2,270 5,940 0% 62% 38% 100%


- 150 180 330 0% 46% 54% 100%


10 3,830 2,450 6,290 0% 61% 39% 100%

Industry Subdivision 2008 2009 2010 2011 2012 2011-2012

Auxiliary Finance and Insurance Services 30 20 20 30 10 -82%

Finance 710 1,120 1,440 1,830 4,500 147%

Insurance and Superannuation Funds - 10 10 10 80 1560%

All Financial and Insurance Services 730 1,150 1,460 1,860 4,590 146%


Financial and Insurance Services industry courses The top 15 courses in Financial and Insurance Services account for 87 per cent of industry enrolments. Certificate IV in Financial Services attracted most enrolments in 2012, 37 per cent of the total.

Table 4:2: Top 15 Financial and Insurance Services qualifications ranked by 2012 enrolments, government subsidised, 2008-2012, Q2 2012 - Q2 2013

Note: course totals include equivalent superseded courses.

Course 2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Certificate IV in Financial Services 300 380 350 3,970 2,560 2,580 30

Certificate III in Financial Services 270 450 380 510 770 400 530

Diploma of Financial Planning 30 620 350 550

Diploma of Financial Services (Financial Planning)

30 70 330 590 370 370 30

Diploma of Financial Services 260 230 250 510 360 360 40

Advanced Diploma of Financial Services (Financial Planning)

10 50 270 280 290 30

Diploma of Financial Services (Finance/Mortgage Broking Management)

30 150 440 280 270 60

Diploma of Finance/Mortgage Broking Management

170 40 130

Certificate IV in Banking Services 10 170 110 140

Certificate IV in Financial Services (Finance/Mortgage Broking)

<10 20 70 130 100 120 40

Diploma of Life Insurance 90 20 50

Advanced Diploma of Financial Services 10 10 10 90 80 80

Advanced Diploma of Financial Planning 10 70 30 100

Diploma of Personal Injury Management

40 70 60 30

Certificate IV in Finance and Mortgage Broking

70 20 60


Financial and Insurance Services industry enrolments by occupationThe top three Financial and Insurance Services related occupations took in 90 per cent of industry enrolments in 2012. Bank Worker enrolments were the largest occupational grouping and expanded rapidly between 2008 and 2011. Financial Investment Adviser has also grown rapidly over the period 2008 to 2012 to become the second largest occupation.

Table 4:3: Top 14 Financial and Insurance Services Occupations ranked by 2012 enrolments, government subsidised, 2008-2012, Q2 2012 - Q2 2013

Please see Appendix A for occupations/associated qualifications with Funding Bands (available for 2011 and 2012)

Occupation 2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Bank Worker 660 880 750 4,500 3,500 3,100 720

Financial Investment Adviser 30 80 380 900 1,340 1,040 710

Finance Broker 270 270 410 1,030 800 730 160

Credit or Loans Officer 80 100 130 180 360 170 280

Insurance Agent 70 140 110 80

Insurance Consultant 10 80 60 80

Financial Investment Manager 30 30 10

Insurance Loss Adjuster 20 20 20 20 <10

Insurance Broker 10 10 10 10 <10

Stockbroking Dealer 20 30 20 <10 <10 <10


Financial and Insurance Services industry training providers The top 15 providers accounted for 97 per cent of all enrolments in 2012. A total of 36 training providers delivered government subsidised Financial and Insurance Services sector training 2012, however of those only 21 had more than 10 enrolments. The number of providers delivering government subsidised training has increased from 24 in 2008.

The majority of training is with private providers, who accounted for over 90 per cent of industry enrolments in 2012. This has increased from 11 per cent since 2008. TAFE’s share of industry enrolments has declined from 85 per cent to 8 per cent over the same period. ACE Institute provision was minimal from 2010 onwards.

Table 4:4: Financial and Insurance Services provider types ranked by 2012 enrolments, government subsidised, 2008-2012, Q2 2012 - Q2 2013

Provider type 2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Bank Worker 4% 4% 1% 0% 0% 0% 0%

Financial Investment Adviser 11% 13% 49% 90% 92% 92% 88%

Finance Broker 85% 83% 50% 10% 8% 8% 12%


Funding patternsCourses by funding band8

Of those Financial and Insurance Services courses which recorded government subsidised enrolments in 2012, 52 per cent were in Band C and 48 per cent were in Band D. No enrolments were recorded in Bands A, B or E.

Table 4:5: Financial and Insurance Services courses by funding subsidy band, 2012

Enrolments by funding band

In terms of training delivery, 64 per cent of Financial and Insurance Services enrolments were concentrated at subsidy level C, equating to around 4,000 enrolments. Enrolments in courses in subsidy Band D have remained broadly consistent with around 2,000 enrolments in 2011 and 2,300 in 2012 (36 per cent).

See Appendix A for a list of courses with associated subsidy bands for 2011 and 2012.

Figure 4:1: Enrolments by subsidy band, government subsidised, 2012

8 As part of the Refocusing Vocational Training reform, the government is retaining and strengthening the individual entitlement to a subsidised training place to ensure that businesses and students continue to have choice over what and where they study and ensuring the cost of such access remains sustainable and in areas of greatest public value. Under the new arrangements, higher hourly subsidy rates have been attributed to foundation and apprenticeship qualifications, and lower rates to diplomas and above (where there is higher private benefit and income contingent student loans available) and to lower-level certificates where direct vocational benefit is lower. The subsidy for each course reflects an assessment of its current “public value”- with courses of greatest public value receiving the highest level of subsidy (Band A), and courses of lowest public value the least (Band E).

Subsidy band Number of courses % total

Band A 0 0%

Band B 0 0%

Band C 16 52%

Band D 15 48%

Band E 0 0%


Services

All industries

0%

36%64%

14% 25% 25% 12% 24%

100%80%60%40%20%

Band A Band B Band C Band D Band E


Regional training activityIn 2012, the largest region in terms of Financial and Insurance Services training delivery was Inner Melbourne, accounting for 90 per cent of industry enrolments. There has been a large relative decrease in Southern Melbourne which had 2% of all enrolments in 2011 and 1% in 2012.

Loddon Mallee is the largest rural region for Financial and Insurance Services training, followed by Barwon South West. These two regions, however, accounted for just 1 per cent of Financial and Insurance Services enrolments in 2012.

Table 4:6: Victorian regions ranked by 2012 enrolments, government subsidised, 2008¬–2012, Q2 2012–Q2 2013

Note: regional enrolment figures sum to slightly more than the overall Victoria-wide figures due to a small number of students undertaking training in campuses in more than one region

Region 2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Melbourne CBD 610 580 1,090 5,900 5,490 4,680 1,590

Northern Metropolitan 20 10 20 250 310 200 210

Eastern Metropolitan 160 100 130 200 190 130 90

Southern Metropolitan 100 170 180 160 40 30 10

Loddon Mallee 50 130 110 60 40 30 20

Barwon South West 10 20 30 30 30 30 10

Gippsland 40 30 20 20 20 20 40

Grampians 20 10 <10 10 10 <10

Hume <10 10 10 10 10 10 <10

Western Metropolitan 40 40 30 40 10 <10 <10


Figure 4:2: Numbers of providers and enrolments in Financial and Insurance Services in Victoria, 2012


Student characteristicsStudents from diverse backgrounds engage in vocational training in Financial and Insurance Services fields. Students aged 25 and over are the largest group, with around 3,600 enrolments in 2012, growing 11 per cent from 2011 levels. There were some declines in enrolments across the other learner groups between 2011 and 2012. Enrolments by students with Culturally and Linguistically Diverse Backgrounds (CALD) fell by 8 per cent and enrolments by unemployed students fell 17 per cent.

Table 4:7: Learners Facing Barriers enrolments, government subsidised, 2008–2012, Q2 2012–Q2 2013

Learner Groups 2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Indigenous <10 20 <10 20 30 20 20

Disability 40 60 40 130 160 110 80

CALD 490 440 450 1,850 1,700 1,390 660

Unemployed 200 170 210 1,600 1,330 1,100 390

Aged 25+ 310 660 1,000 3,260 3,620 1,470 310


Within the Financial and Insurance Services sector, 48 per cent of students had a highest prior qualification of Certificate II or Year 12, compared with 41 per cent across all vocational training students (see Figure 4.3).

The main reasons students gave for enrolling in vocational training related to Financial and Insurance Services were Interest (21 per cent), with Job Requirement and Job Skills equal on 14 per cent. A high proportion of students did not give a reason for enrolling (37 per cent).

Figure 4:3: Vocational training enrolments in Financial and Insurance Services by highest prior qualification, government subsidised, 2012

Figure 4:4: Vocational training enrolments in Financial and Insurance Services by reason for study, government subsidised, 2012

Year 11 or Below

Certificate I

Year 12 or Certificate II

Certificate III-IV

Advanced Diploma, Diploma or Associate Degree

Bachelor Degree or Higher

36%31%

41%48%

18%19%

2%1%

1%1%

1%0%

All industry Financial and Insurance Services

Interest

Not stated

Job requirement

Job skills

Get work

Get better job or promotion

Enable further study

Change careers

Develop my business

Other

Start own business

31Appendix A – Courses by occupation and funding band

Appendix A – Courses by occupation and funding band

Occupation Course name Funding band

2011 2012 Q2 2012

Q2 2013

Bank Worker Certificate I in Financial Services Band D 10 10

Certificate II in Financial Services Band D <10 30

Certificate III in Financial Services Band C 510 770 400 530

Certificate IV in Banking Services Band C 10 170 110 140

Certificate IV in Financial Services Band C 3,970 2,560 2,580 30

Diploma of Financial Services (Banking) Band D 20

Total 4,500 3,500 3,100 720

Credit or Loans Officer

Certificate IV in Credit Management Band C <10 10 10 10

Certificate IV in Finance and Mortgage Broking Band C 70 20 60

Certificate IV in Financial Services (Credit Management)

Band C 50 <10

Certificate IV in Financial Services (Finance/Mortgage Broking)

Band C 130 100 120 40

Diploma of Finance and Mortgage Broking Management

Band C 40

Diploma of Finance/Mortgage Broking Management

Band C 170 40 130

Total 180 360 170 280

Finance Broker

Advanced Diploma of Financial Services Band D 90 80 80

Diploma of Financial Services Band D 510 360 360 40

Diploma of Financial Services (Finance/Mortgage Broking Management)

Band D 440 280 270 60

Diploma of Life Insurance Band D 90 20 50

Total 1,030 800 730 160

Financial Investment Adviser

Advanced Diploma of Financial Planning Band D 10 70 30 100

Advanced Diploma of Financial Services (Financial Planning)

Band D 270 280 290 30

Diploma of Financial Planning Band D 30 620 350 550

Diploma of Financial Services (Financial Planning) Band D 590 370 370 30

Diploma of Banking Services Management Band D 30 30 10

Total 900 1,380 1,070 720


Occupation Course name Funding band

2011 2012 Q2 2012

Q2 2013

Insurance Agent

Certificate III in Personal Injury Management (Claims Management)

Band C 10 10 20 20

Certificate IV in General Insurance Band C 30 <10 20

Certificate IV in Personal Injury Management (Claims Management)

Band C 20 30 30 20

Diploma of Personal Injury Management Band D 40 70 60 30

Total 70 140 110 80

Insurance Broker

Diploma of Insurance Broking Band D <10 <10 <10 <10

Diploma of Personal Injury Management (Workers Compensation)

Band D 10 10 10

Total 10 10 10 <10

Insurance Consultant

Advanced Diploma of Superannuation Band D 20 10 20

Certificate III in Insurance Broking Band C 10 <10 <10

Certificate IV in Superannuation Band C 60 50 60

Diploma of Superannuation Band D <10

Total 10 80 60 80

Insurance Loss Adjuster

Certificate III in Financial Services (Workers Compensation)

Band C <10 <10 <10

Certificate IV in Financial Services (Workers Compensation)

Band C 10 10 10

Certificate IV in Premium Compliance Band C 10 10 10 <10

Total 20 20 20 <10

Stockbroking Dealer

Diploma of Share Trading and Investment Band D 20 <10 <10 <10

Total 20 <10 <10 <10

33Appendix A – Courses by occupation and funding band

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