Accommodation, Cafes & Restaurants
Industry
The Industry Profiles Site
Age Profile by Industry
Education by Age
Working Arrangements by Age
Introduction
Population ageing in Australian industries is a key driver of future supply and demand. Industry players who are able to successfully manage labour supply, sustain productivity levels and identify niche marketing opportunities will profit from a distinct competitive advantage. Proactive responses to the ageing of Australia’s population will also create economy-wide sustainability, building social capital and business viability.
The Industry Profiles Site
This site contains seventeen industry profiles that discuss the relationship between age and current industry trends. Included in this site is an age profile of each industry, comparing it to the current and predicted national demographic profile. An evaluation of working arrangements and the level of education and training undertaken by workers at different ages is also incorporated.
Age Profile by Industry
The age structure of industries across Australia today are diverse. The table below displays the average age of workers in industry. As can be seen the three oldest workforces in Australian industry today are Agriculture, Forestry & Fishing, Education and Transport & Storage. Retail and Accommodation, Cafes & Restaurants are the youngest.
Age by Education
The growth of the new economy in Australia has seen the rapid adoption of technology and other innovations resulting in an increasingly globalised, complex and changing competitive business environment which has demanded that people have current skills competency, regardless of their age. Ensuring that skills are current throughout a person’s working life will require a commitment on behalf of the individual, their organisation, and governments to ensure access to and participation in formal and informal learning that will result in an ongoing regime of skill development. Gone are the days when a formal period of study at the beginning of a working life remained relevant across a lifetime of work.
Skills required for today’s labour market are known as ‘employability skills'. The Business Council of Australia (BCA) and the Australian Chamber of Commerce and Industry (ACCI) describe employability as the ‘skills required not only to gain employment, but also to progress within an enterprise so as to achieve one’s potential and contribute successfully to the enterprises strategic directions.’
A range of personal attributes and skills make up the concept of their employability skills framework. These include communication; team work; problem solving; initiative and enterprise; planning and organising; self-management; learning and technology. The personal attributes are loyalty; commitment; honesty and integrity; enthusiasm; reliability; personal presentation; common sense; positive self-esteem; sense of humour; balanced attitude to work and home life; ability to deal with pressure; motivation; and adaptability.
Age by Working Arrangements
Changes to hours, the extent and use of family leave provisions and work intensification are all characteristic of today's working arrangements. Between 1982 and 1994, the average hours worked by full-time workers increased from 42 to 45 hours per week. An Australian Workplace Industrial Relations Survey in 1995 found that 58 per cent of workers reported that their effort had increased in the last 12 months; 50 per cent reported an increase in stress, and 46 per cent reported an increase in pace. The erosion of the "lifetime" employment contract or "the career for life" as a result of the increasing pace of change in the business environment has also meant that people are already, and will be increasingly, exposed to greater career insecurity across their working life.
Research has found however that precarious employment, excessive workloads and increased demands being placed on Australian workers has resulted in major social and economic costs. They warn of the adverse health effects in people who might be experiencing both high job strain and high job insecurity. Yet, as the labour market becomes more globalised and competitive, employees are more likely to encounter these two work conditions simultaneously.
Source:
ACTU (1997) Discussion Paper on Working Time, http://actu.labor.net.au/public/papers
D'Souza, R et al. (2003) Work and health in a contemporary society: demands, control, and insecurity, Journal of Epidemiology and Community Health, vol.57, pages 849-54.
For more information on specific industries click below:
Accommodation, Cafes and RestaurantsAgriculture, Forestry and Fishing
Communication Services
Construction
Cultural and Recreational Services
Education
Electricity, Gas and Water Supply
Finance and Insurance
Government Administration and Defence
Health and Community Services
Manufacturing
Mining
Property and Business Services
Personal and Other Services
Retail trade
Transport and Storage
Wholesale trade
Accommodation, Cafes & Restaurants
The Accommodation, Cafes & Restaurants industry has a high concentration of young people as the second youngest industry across all sectors (34.1 years). The strong reliance the industry has on young people today, creates new challenges for the future, as the growth of young people entering the labour market slows over the next five to ten years. Competition to attract a young pool of labour will intensify, leading to cost pressures due to increased wages and conditions.
To manage future supply, the industry will need to focus on skill development and flexible employee-focused working arrangements The level and currency of post-secondary qualifications held by workers within Accommodation, Cafes & Restaurants is relatively limited however, with 62 per cent of all workers having no post-secondary education. In the last 14 years, only 3 in 20 workers aged 45 and over who have completed a post-secondary qualification, did so after 1990. The working arrangements of employees within Accommodation, Cafes & Restaurants is also highly variable, with only 12 per cent of workers employed for a standard 40 hour week basis.
More Information LinkAgriculture, Forestry & Fishing
(Primary Industries)Productivity measures and the mechanisation of farming introduced into the Agriculture, Forestry & Fishing industry, have diminished opportunities for low skilled work. Yet, Agriculture, Forestry & Fishing industry has the oldest workforce across industries, with close to half of the workforce aged 45 years and over (44.4 per cent). Over two-thirds of all workers in Agriculture, Forestry and Fishing have no post-secondary education. Eighty per cent of workers aged 45 years and over who do hold post-secondary qualifications, obtained them before 1980. To remain employable within this industry, workers as they age must improve their skills base.
More Information LinkCommunication Services
Today, the average age of workers in the Communication Services industry is 38.8 years. Occupationally the age distribution of workers experienced within Communication Services is dissimilar to most other industry sectors. The oldest employees within Communication Services are Labourers and Related Workers 47 years) and the youngest group are Intermediate Clerical, Sales and Service Workers (33.5 years).
Continuous change in technology and innovation within the Communication Services industry has placed increasing demands on all occupational groups as the rate in which technical skills are becoming obsolete is increasing. Yet, as workers age the likelihood of them undertaken current training has diminished: for every one worker training aged 45 and over, there were 6.4 workers aged 15 to 44 years in training in 2000-01.
More Information LinkConstruction
The ageing of the population will provide the Construction industry with both market opportunities and supply challenges over the next ten years. The average age of the Construction industry today is around 38.5 years, yet this will increase at approximately 1.2 per cent per annum over the rest of the decade. In an work environment that has experienced a rise in casual and temporary work, subcontracting and self-employment the continuous health of ageing workers will be a key challenge. This is due to reduced familiarity of workplaces and a reduced prevalence of established OH&S and change management programs in smaller organisations.
Demographic changes have also seen emerging opportunities in Construction design. Commercial and residential design trends for example, are incorporating the Principles of Universal Housing and have involved the development of ergonomically designed structures to accommodate the physical needs of people as they age.
More Information LinkCultural and Recreational Services
The Cultural and Recreational Services industry is at the forefront of a potential boom as the number of people enter post-retirement age grows. Understanding and responding to the changing consumer needs and spending patterns of people as they age will allow this sector to capitalise on emerging demographic trends.
Sustaining a skilled workforce will also ensure that the industry can take full advantage of this growing opportunity. Today, the Cultural and Recreational Services industry workforce is the third youngest across all sectors. The average age of workers in the industry is 36.3 years and one in seven workers aged 20 to 24 years. As the growth in the pool of young labour slows however, the industry will need to diversify it's recruitment and retention strategies to attract workers of all ages.
More Information LinkEducation
Population ageing in Australia has major implications for the Education sector, both in terms of human resource management and service delivery. Education is has an ageing workforce, and is the second oldest industry across all sectors (42.1 years on average). The education sector will need to address their ageing workforce by looking at ways to attract new young people into the sector, retain and up-skill the current workforce, as well as look at ways to provide flexible work options for people across their working life.
The ageing workforce also has implications for the provision of education and training and the relative demand for entry-level training compared to the demand for education and training, related to up-skilling and retraining. As such, the Education sector has a great opportunity to expand student numbers by focusing on older people who want to participate in education and training in order to get into a new area of work, update their existing skills or for personal interest.
More Information LinkElectricity, Gas and Water Supply
(Utilities)The Electricity, Gas and Water Supply industry faces a number of challenges in recruiting and retaining a skilled workforce for the future. The average age of workers in this industry is 41.2 years. The oldest employees of whom are Managers and Administrators, aged 44.6 years. There is also an approx 20-40-40 hour split in the working arrangements of employees within Electricity, Gas and Water Supply. Just over one fifth of the workforce are employed for 40 hours a week; with a four-fifth working either over or under forty hours a week on average. To enable long term sustainable growth, the industry will need to modify it's current work practices and introduce comprehensive learning and development strategies for workers of all ages.
More Information LinkFinance & Insurance
Nationally the over 55s account for 25% of the country's disposable income, 39% of total wealth and 54% of financial assets. For the Finance and Insurance industry this represents a huge opportunity to grow market share by facilitating individuals to effectively manage their money into the future. To capitalise on this opportunity the Finance and Insurance industry must maintain a highly skilled and flexible workforce to compete in today's global marketplace. Critical to this is an integrated culture of learning within Finance and Insurance organisations. Yet at present, training is focused exclusively on meeting regulatory requirements and structured development of comprehensive skills within the industry is limited. Access to consistent and high quality training, trainers and resources as well as flexible training delivery modes will assist the sector in developing future priorities for learning and development, beyond the immediate scope.
More Information LinkGovernment Administration and Defence
Government Administration and Defence will be effected by the ageing population for many reasons. The age profile of the workforce is older than that of other industries, so factors such as the bulk retirement of senior staff is likely to come into play sooner in the Government Administration and Defence than in other industries. Generous superannuation provisions through the now-closed Commonwealth Superannuation Scheme (CSS) make it financially attraction for older scheme members to leave just prior to their 55th birthday, with almost one quarter of the Australian Public Service workforce likely to leave over the next five years.
The provision of appropriate services for an ageing population is also of particular concern for governments, with a wide range of portfolio areas affected by demographic change. Directly this includes health care, pensions, housing services for the aged, including carers; income security policies and programs, services for people with disabilities, community support services, the settlement of migrants, the international competitiveness of Australian industries, economic, fiscal and monetary policy and taxation.
More Information LinkHealth and Community Services
The Health and Community Services industry has projected employment to grow 20 per cent over the next 6 years. Skill shortages are present across a number of health professions, including nursing. Population ageing will intensify these challenges with shrinking labour force growth and the relatively old age of workers in the industry.
Coupled with the supply of labour there is also extensive debate today about the health costs to the nation associated with an ageing population. The Commonwealth Department of Health and Ageing suggest that continually rising health expenditures as the population ages is not inevitable. This relationship depends on a wide range of factors that affect health services including the demand for health services, the types of health services delivered, advances in medical science and the cost of supplying services causing the increased public health outlays.
More Information LinkManufacturing
Australian Manufacturers are increasingly focused on lean design and a simplification of production methods through the introduction of new product and process technologies that allow businesses to focus on core activities and comparative advantages. This has required employees to be more flexible, multi-skilled and technically adept. To enable workers to sustain their work capacity as they age, re-skilling and organisational re-deign are an imperative as approximately half of all workers in Manufacturing have no post-secondary education and 79 per cent of workers aged 45 years and over who do hold post-secondary qualifications, obtained them before 1980. This issue requires attention to ensure the education and training of existing workers is given priority by employers.
More Information LinkMining
The Mining industry faces a number of challenges in recruiting and retaining a skilled workforce for the future. The decline in rural populations in key Mining regions through the permanent loss of youth limited the level of access to a skilled workforce. The industry has an 'old economy' image, which has also reduced it's attractiveness to some potential workers.
The ageing of the Mining workforce and a lack of skill currency amongst workers has also accentuated the challenges for industry in managing labour supply. The average age of the Mining industry is 39.3 years. The oldest employees within Mining are Managers and Administrators, aged 45.1 years on average and Intermediate Clerical, Sales, and Service Workers, aged 40.5 years. Forty-two per cent of all workers in Mining have no post-secondary education and 84 per cent of workers aged 45 years and over who do hold post-secondary qualifications, obtained them before 1980. Negligible numbers of workers in this age group studied in 2000-01.
More Information LinkPersonal and Other Services
A changing population structure, market trends, working arrangements and household structures have lead to an expansion in demand for Personal and Other Services. Increasing numbers of dual-income households as well as growing working hours for example, have created a demand for the outsourcing of many traditional domestic duties.
Reflecting the changes in demand, the business environment has also changed. Technological advancements and innovation; the shift from labour intensive to knowledge intensive work; and changing working arrangements have all had a significant impact on the Personal and Other Services industry. This has led to an increased need for lifelong learning and development. The level and currency of post-secondary qualifications held by workers within Personal and Other Services therefore demonstrate the ability of the industry to remain productive into the future. Yet, at present 44 per cent of all workers in Personal and Other Services have not post-secondary education. Close to 48 per cent of older workers (45 years and over) have no qualifications, compared to 43 per cent of younger workers.
More Information LinkProperty and Business Services
The Property and Business Services industry is at the centre of the new economy, with economic growth dependent on a supply of workers with the flexible, generic skills to respond to new challenges and new technologies. The new economy business environment encapsulates an open, competitive product and capital market; greater fiscal and monetary discipline; communications-based infrastructure; technology convergence; and globalisation. Resulting from this has been changed national growth patterns and productivity; export performance and competitiveness; demand for quality; changed the way people communicate, work and learn; and altered the way data is networked, knowledge is disseminated and information is accessed. These changes have placed many older workers at a disadvantage as they have had the longest exposure to earlier structures and cultures. The availability and suitability of retraining for business needs will be a critical issue to be addressed.
More Information LinkRetail Trade
The Retail industry has traditionally relied on a low-skilled, young and female workforce. As such, Retail Trade is now the youngest sector across all industries, with an average age of 33.4 years. In the face of population ageing in Australia however, retailers will need to consider how they will sustain themselves into the future. Critical to this will be the growth of strong learning and development pathways, particularly in small business environments as well as a review of itinerate working conditions, with only one in eight Retail Trade workers employed on a standard full-time, 40 hour week basis.
Population ageing also creates huge opportunities for Retailers. People aged 45 to 54 years are the biggest consumers of retail products (including food, beverages, tobacco products, clothing and footwear and household furnishings and equipment), spending $315 weekly on such items. This is 15 per cent more than people aged under 45 years. Given the significance of the mature age market segment, retail marketers must have a good understanding of the consumer preferences of this group.
More Information LinkTransport & Storage
Like many other industry sectors, technological innovation within Transport and Storage has required workers to enhance their technology, literacy and numeracy skill levels. Skill development at the line management and executive level has also been critical in terms of change management and supervision in a new technology driven environment. To facilitate ongoing learning and development within the industry a stronger learning culture is required and clearer vocational pathways need to be sort.
Competing for skilled labour is and will continue to be a challenge for the Transport and Storage industry. The industry has to attract workers with a comparatively low wages and conditions; the industry has a 'dirty' image; the job opportunities are often in remote locations; and the ageing workforce. Yet through re-skilling and flexible work arrangements new opportunities will emerge.
More Information LinkWholesale Trade
The Wholesale Trade industry has been marked by significant change due to restructuring trends in supply chain management. Wholesalers have been by-passed by retailers or final consumers, through the rise of warehouse outlets and technology driven B2B and B2C trade. This has lead to significant declines in employment over the last six years. Job insecurity amongst workers in the industry is significant, particularly for older employees.
The level and currency of post-secondary qualifications held by workers within Wholesale Trade will be significant in determining the capacity of the industry to regain momentum through the utilisation of innovative technological developments. Fifty-seven percent of all workers in Wholesale Trade however do not have post-secondary education. Seventy-eight per cent of workers aged 45 years and over who do hold post-secondary qualifications, obtained them before 1980. For workers aged less than 45 years, 42 per cent had completed their qualification prior to 1990.
More Information Link