5 sectors to watch for new employment opportunities
As students head back to high school and university to prepare themselves for the world of work, IBISWorld has identified 5 diverse sectors that could offer good employment opportunities in the near future.
The firm’s Senior Industry Analyst James Thomson expects data storage services, craft beer production, aquaculture, preschool education and courier pick-up and delivery services to post rapid employment over the next few years.
More generally, increasing demand for skilled employees will provide solid opportunities for young people with market ready qualifications. Demand for more experienced professionals with advanced degrees is also expected to rise and more employees are likely to upskill or reskill their workforce to satisfy their growing needs for more qualified staff.
Data Storage Services
The Data Storage Services industry is expected to grow by 9.8% in 2017-18. Data storage service providers allow users to upload, download, back up and access their files and systems on servers managed by third parties. “The industry is expected to continue benefitting from growing internet traffic, the increasing prominence of cloud computing and the rising number of businesses outsourcing data storage. This is expected to drive industry employment growth of 7.9% in 2017-18,” said Mr Thomson.
Employees include engineers, information technology specialists and technical support personnel, which manage and maintain operations. Businesses are becoming more comfortable outsourcing their data management requirements, and more aware of the potential savings in switching away from an in-house server. As a result of growing industry demand, industry employment is forecast to increase at an annualised 5.0% over the five years through 2022-23.
Preschool Education
Demand for preschools is expected to grow strongly in the short-term, as preschools accommodate enrolment growth and provide longer opening hours in line with the new government policies. The number of children aged between three and five is expected to increase over the next five years.
As this preschool aged population group expands, demand for preschool education will rise. Government campaigns to increase preschool participation rates will also boost demand. The number of new industry entrants is likely to rise as private operators recognise the industry’s growth potential. “As a result, industry employment is expected to grow at an annualised 4.0% over the five years through 2022-23,” said Mr Thomson.
The implementation of the Federal Government’s National Quality Framework has also boosted industry employment. The framework set compulsory standards for industry operators, such as higher staff-to-student ratios, greater individual care for children and increased skills and qualifications for educators. This resulted in a rise in the number of employees required to fulfil the regulatory requirements, with industry employment set to grow by 9.3% in 2017-18.
Craft Beer Production
Changing consumer tastes, particularly the move towards premium beers, and a growing emphasis on quality across liquor retailing are driving growth in the Craft Beer Production industry. “The industry’s nationwide expansion is expected to boost industry employment by 9.0% in 2017-18,” said Mr Thomson.
Because many craft brewers do not have the capital to invest heavily in equipment, craft brewers rely more on labour than traditional beer manufacturers. In addition, many industry operators prefer to work more with labour functions to differentiate the product from mass-produced beer. The industry’s future prospects are promising.
Consumers are anticipated to continue opting for premium and craft beers, particularly small, seasonal batches with a local or regional focus. Exports of craft beer are also projected to grow strongly over the next five years, as demand from Asian markets strengthens. Overall, industry employment is forecast to increase at an annualised 3.8% over the five years through to 2022-23.
Courier Pick-up and Delivery Services
“The Courier Pick-up and Delivery Services industry is forecast to grow in 2017-18, and expand further over the next five years,” said Mr Thomson. Retailers, especially online stores, require the industry’s services to deliver goods to customers.
While local retailers have been responsible for most of this growth, a large portion has been coming from international ecommerce sites that require parcel delivery services. Furthermore, the boom in food delivery services such as Menulog and Deliveroo has boosted demand for courier services that deliver food from restaurants and cafes to households. As a result, industry employment is expected to increase by 4.3% in 2017-18.
E-commerce, particularly through custom transport services for online retailers, is projected to drive industry growth over the next five years. The industry is more labour-intensive than other transport industries due to the amount of labour time required in the ‘last kilometre’ of delivery. As a result, industry employment is expected to grow at an annualised 3.1% over the five years through 2022-23.
Aquaculture
The Aquaculture industry has benefitted from rising seafood consumption and growing domestic prices over the past five years, with industry employment expected to grow by 4.9% in 2017-18. Further expansion is projected over the next five years, as sustainable fishing practices become critical in the face of falling wild-fish stocks.
A projected rise in disposable incomes and increasing health consciousness are anticipated to boost demand for seafood over the next five years. “With exports of Australian seafood expected to grow at an annualised 12.4% over the five years through 2022-23, industry employment is expected to increase to meet the growing demand,” said Mr Thomson.
Labour is needed for a variety of industry tasks, such as monitoring and feeding fish. Industry employment is expected to grow at an annualised 2.6% over the five years through 2022-23, due to firms expanding their operations.
