Changing patterns of employment in south east Queensland - Department of State Development

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Changing patterns of employment in south east Queensland - Department of State Development
Changing patterns of employment
   in south east Queensland
Changing patterns of employment in south east Queensland - Department of State Development
The plug…
Changing patterns of employment in south east Queensland - Department of State Development
Employment in south east Queensland:
Recent history.
Roughly 1.2 million workers across south east Queensland (2011)
Roughly half in Brisbane, roughly half elsewhere
                                               Toowoomba
                                                 60,000 jobs

                                          Ipswich
            Scenic Rim                   51,000 jobs
             11,000 jobs
                                                  Brisbane
                                                 630,000 jobs   Moreton Bay   Sunshine Coast
                                                                 90,000jobs     90,000 jobs
                             Logan
                           74,000 jobs            Redland
                                                 35,500 jobs

            Gold Coast
            185,000 jobs
Changing patterns of employment in south east Queensland - Department of State Development
Employment in south east Queensland

Median income (2011) for SEQ: $46,883
                                      Toowoomba
                                            $42,300

                                  Ipswich
           Scenic Rim             $45,000
            $35,700
                                            Brisbane
                                            $53,700    Moreton Bay   Sunshine Coast
                                                         $38,900        $39,000
                        Logan
                        $41,000         Redland
                                            $38,500

           Gold Coast
            $41,000
Changing patterns of employment in south east Queensland - Department of State Development
Inner city workers (2011)

                                              Valley
                                              20,109
                         Spring Hill
                           14,549                                    New Farm
                                                                       3,374

                                     CBD
                                    116,132            Kangaroo Pt
    West End                                              2,107
      6,820
                  South Brisbane
                      22,758
Changing patterns of employment in south east Queensland - Department of State Development
Metro wide shares of employment 2011
Changing patterns of employment in south east Queensland - Department of State Development
Job ads – Brisbane region – 2010 to late 2015

    Business, finance, HR                Engineers

                                     ICT

                Legal, social, welfare               Medical, nursing
Changing patterns of employment in south east Queensland - Department of State Development
Latest (24th Feb) national job ads. 2006=100

                                Source: Fed Dept of Employment & Education.
Changing patterns of employment in south east Queensland - Department of State Development
Latest (24th Feb) national job ads. 2010=100.

                                      Less More

                   Source: Fed Dept of Employment & Education.
Changing patterns of employment in south east Queensland - Department of State Development
Brisbane vs national job ads. 2010=100.
‘National winners’                   Less                 More

                     Source: Fed Dept of Employment & Education.
Business locations SEQ   by size and type 2014
‘White collar’ businesses 2014
‘Blue collar’ 2014
(agriculture, forestry, utilities, construction, manufacturing, transport, wholesale & retail trades)
Decline in SEQ business counts 2012 to 2014 all size business
Growth in business counts 2012 to 2014 all sizes, types
Growth in ‘white collar’ businesses 2012 to 2014 all sizes
Growth in ‘white collar’ businesses more than 5 employees
Zoom on Brisbane: growth in business counts 2012 to 2014
Brisbane: growth in businesses 2012 to 2014 all types, more than
5 employees
Brisbane growth in ‘white collar’ businesses 2012 to 2014
more than 5 employees
Brisbane: decline in ‘white collar’ businesses 2012 to 2014
more than 5 employees
Change in
business counts of
20+ employees
2011 to 2015
Change in business counts of 20+ employees
2011 to 2015
Verification…
Only 7% of total trips (not including CBD) were to ‘principal activity centres’ – the other 93% were to
other suburban destinations

 Source: Queensland Household Travel Survey
Conclusions: the evidence on recent history of
employment in South East Queensland

• Spatial patterns of employment have been changing
• Employment is growing, but lately not in ‘traditional’ centres
• Increasing tendency for employment growth in non-central
  locations
• This appears to include ‘white collar’ workers also
• Is this a reflection of recent history (high rents, limited
  carparking in CBD) or signs of a longer term trend?
• Does this present opportunities for enhanced commercial
  development in regional and suburban locations?
Future Employment Patterns in SEQ
Queensland’s Economic Transition

   Recently Queensland’s growth has been underpinned by the energy and
    resources investment boom, which is now over. Drag on growth from mining
    expenditure downturn is reducing, while exports are supporting growth.
   We are moving into a services sector era – unlike any in our history.
   This will result in structural change that will require different methodologies
    for understanding and forecasting jobs and economic growth.
   The future employment will have implications for how we live, work and
    amuse ourselves.
Jobs – Queensland’s Key Economic Driver

   Globalisation, international trade, technology, wealth and demographics are
    driving growth and change in the service sector:
       Household services
       Business services
       Key growth industries for SEQ over the next five years – health care and social
        assistance; professional, scientific and technical services; education and training;
        accommodation and food services; and construction.
   Impacts on property
       New and different formats for workspace and residential formats
4 Keys Drivers of the Emerging Services Sector

   Globalisation
   Digital Trade
   Information and Communication Technology
   Demographics and Wealth
Globalisation                                              Digital Trade
   Queensland’s global opportunity will be driven by       Digital trade i.e. domestic commerce and
    Asian population and economic growth.                    international trade conducted on the internet has
                                                             already had far reaching effects on global economies
   Significant opportunities from demand for Qld
                                                             and city shapes in Australia (e.g. Bitcoin)
    education and tourism subject to competitive price
    points                                                  It has fundamentally transformed many aspects of the
                                                             way businesses operate and interact with each other.
   The globalisation of services is a key driver of
                                                             This includes:
    structural change in the Australian economy and
    Australian city building is a key to Australia’s            Lowering barriers to market entry for small and medium
    services sector competitiveness.                             size enterprises (SME’s)
                                                                Increasing production efficiency. For example in the
   QLD examples – gathering pace of offshore                    services sector the way ideas are recorded, developed and
    accountancy, legal, financial professionals and              replicated.
    technicians in India, China, Malaysia.
                                                                Blockchain and Bitcoin by passing financial intermediaries
                                                                 “ Blockchain will revolutionise the world” (Blythe Masters:
                                                                 economist and former executive at JPMorgan Chase; Paul
                                                                 Brody: former IBM executive and EY strategy leader for
                                                                 the technology sector)

                                                            Other example includes
                                                                Distribution of services via ‘on demand’ technologies (e.g.
                                                                 movies via Netflix or Hulu)
                                                                Creation of major new services e.g. Online gaming, which
                                                                 is now a bigger industry than the film industry
Technology & Information and                                       Population:
     Communication Technology                                   Fast Growth Implications
   The fast-changing dynamics and location preferences       By 2031, South East Asia will accommodate a 1.7
                                                               billion person middle class, an increase of 1.2
    for employees will be driven by information
                                                               billion persons.
    technology and new growth industries (e.g. health,        Australia demographics to drive household
    finance, retail, tourism, education)                       services sector into the 2030’s
                                                                  Real gross national income per person will increase by
   This works in concert with emerging household                  32% (2014 to 2034)
    characteristics (such as growth in single person              Real expenditure per person on health will increase by
    households, remote and mobile workers, rapid                   25% (2014 to 2034)
    increases in the workforce participation rate of the          Real expenditure on aged care per person will increase
                                                                   by 44% (2014 to 2034)
    65+ age group, increased job churn in two person
    households).                                                  Real consumption directed to services will increase in
                                                                   terms of percentage share

                                                              Nationally, we just hit 24 million population -
                                                               increased life expectancy, immigration and a spike
                                                               in birth rate. 17 years earlier than previous
                                                               forecasts predicted.
                                                              QLD Demographics
                                                                  The population will increase by 2.4 million people
                                                                   (50.2%) from 4.7 million in 2014 to 7.1 million in 2036
                                                                  Household formation and dwelling numbers will
                                                                   increase by 65.2% from 1.8 million in 2011 to 2.9
                                                                   million in 2036
   Largest growth will be in the
                                                                           following industries
                                                                              Retail Trade - 2,954 jobs
                                                                              Construction – 3,379 jobs
                                                                              Health Care and Social Assistance
                                                                               – 5,148 jobs
                                                                              Accommodation and Services –
                                                                               3,106 jobs
                                                                              Professionals, Scientific and
                                                                               Technical Services – 1,666 jobs

                                                                          Across the Moreton Bay LGA, it
                                                                           forecast that there will be
                                                                           approx. an additional 23,500
                                                                           jobs (2014 to 2019) by
                                                                           November 2019. The majority
                                                                           of these jobs will be across the
                                                                           5 categories above with an
                                                                           additional    contribution    of
                                                                           Transport,      Postal      and
                                                                           Warehousing
                                                                          Diverse       urban,       coastal
                                                                           hinterland        and        rural
                                                                           communities - slowly less reliant
Hassell architects’ impression of the planned USC campus for Moreton       on traditional industries.
Bay University Precinct
20-year MBRC employment projections

         MRBC Employment by Industry (POW) 2015-16 to 2035-36 Top 3                  MBRC POW Employment Projections 2015-16 to 2035
                                                                                                                                                        Average
                                                       2035-36    2015-16
                                                                                                                                            Total Job   annual
                         Other Services
                                                                                                                                             Growth     Growth
          Arts and Recreation Services
                                                                                     Agri cul ture, Fores try a nd Fi s hi ng                     239         12
     Health Care and Social Assistance
                                                                                     Mi ni ng                                                     396         20
                 Education and Training
                                                                                     Manufacturing                                             5,343        267
      Public Administration and Safety
                                                                                     El ectri ci ty, Ga s , Wa ter a nd Wa s te Servi ces       3,025        151
  Administrative and Support Services
                                                                                     Construction                                              7,509        375
 Professional, Scientific and Technical…
                                                                                     Whol es a l e Tra de                                         540         27
Rental, Hiring and Real Estate Services
                                                                                     Reta i l Tra de                                              772         39
      Financial and Insurance Services
                                                                                     Accommodation and Food Services                           2,962        148
                 Information Media and…
                                                                                     Tra ns port, Pos ta l a nd Wa rehous i ng                  1,138         57
   Transport, Postal and Warehousing
                                                                                     Informa ti on Medi a a nd Tel ecommuni ca ti o               136          7
   Accommodation and Food Services
                                                                                     Fi na nci a l a nd Ins ura nce Servi ces                     -84         -4
                            Retail Trade
                                                                                     Renta l , Hi ri ng a nd Rea l Es ta te Servi ces           1,742         87
                       Wholesale Trade
                                                                                     Professional, Scientific and Technical                    4,231        212
                           Construction                                              Admi ni s tra ti ve a nd Support Servi ces                 2,404        120
     Electricity, Gas, Water and Waste…                                              Publ i c Admi ni s tra ti on a nd Sa fety                  2,180        109
                         Manufacturing                                               Education and Training                                    6,542        327
                                 Mining                                              Health Care and Social Assistance                        11,773        589
      Agriculture, Forestry and Fishing                                              Arts a nd Recrea ti on Servi ces                             358         18
                                       0   10,000   20,000       30,000     40,000   Other Servi ces                                            1,514         76
                                                                                     Total persons employed                                    52,719       2636
        Source: QGSO/ MacroPlan
                                                                                      Source: QGSO/ MacroPlan
   For Logan LGA, the largest growth
                                                  will be in the following industries
                                                     Health Care and Social Assistance –
                                                      2,411 jobs
                                                     Education and Training – 1,316 jobs
                                                     Public Administration and Safety –
                                                      878 jobs
                                                     Accommodation and Food Services –
                                                      1,112 jobs
                                                     Professionals, Scientific and Technical
                                                      Services – 606 jobs

                                                 Across the Logan LGA it forecast
                                                  that there will be approx. an
                                                  additional 9,000 jobs (2014 to
                                                  2019) by November 2019.
                                                 The majority of these jobs will be
                                                  across the 5 categories above, as
                                                  well as the construction industry,
                                                  which is forecast to increase by 7%
                                                  or 1,163 jobs
                                                 Employment containment boost
                                                  through investment across range of
                                                  services industries
              Upgrade of M1:
Major link connecting Logan Central and SEQ
   For Ipswich, the largest growth
    will be in the following
    industries
       Health Care and Social
        Assistance – 4,342 jobs
       Education and Training – 2,121
        jobs
       Accommodation and Services –
        1,400 jobs
       Professionals, Scientific and
        Technical Services – 1,382 jobs
       Administrative and Support
        Services – 1,101 jobs
   Across the Ipswich LGA, it
    forecast that there will be
    approx. an additional 15,100
    jobs (2014 to 2019) by
    November 2019.
   The majority of these jobs will
    be across the 5 categories
    above – emerging signs of the
    second CBD
   Hub of the Western Corridor
    accommodating      significant
    numbers of new dwellings and
    jobs     –     enabled      by
    infrastructure
                                          Springfield CBD
SEQ - Top 5 Employment by Industry
   50,000
                                                                                44,989
   45,000
   40,000
   35,000                                              31,289                            Construction
   30,000
                                                                                         Accommodation and Food Services
   25,000
                                       19,481                          19,613            Professional, Scientific and Technical Services
   20,000               18,008
                                                                                         Education and Training
   15,000
                                                                                         Health Care and Social Assistance
   10,000
    5,000
          -
                                                Top 5 SEQ Industries

    Source: Dep’t Employment and Training; MacroPlan

  Top 5 SEQ’s employment by Industry (2014-2019)
      •       Health Care and Social Assistance – 44,989 jobs
      •       Professionals, Scientific and Technical Services – 31,289 jobs
      •       Education and Training – 19,613 jobs
      •       Accommodation and Food Services – 19,481 jobs
      •       Construction – 18,008 jobs
Geographic distribution of LGA all projected employment
 Employment data for                                        LGA                        Projected increase           Share %
  Somerset,        Lockyer
  Valley, Scenic Rim and                                     Brisbane                                     80,324                   42%
  Redland is not included                                    Gold Coast                                   44,952                   23%
 Brisbane generates 42%                                     Moreton Bay                                  23,489                   12%
  projected jobs (all
  industries) of SEQ for                                     Sunshine Coast                               18,543                   10%
  the 2019 forecast
                                                             Ipswich                                      15,077                   8%
 Top     5    industries
                                                             Logan                                           8,906                 5%
  generate approximately
  130,000 jobs                                               SEQ (Total)                                 191,291                 100%

    45%                     42%
    40%
    35%
                                                                                                                      Brisbane
    30%
                                                                                                                      Gold Coast
    25%                                        23%
                                                                                                                      Moreton Bay
    20%
                                                                                                                      Sunshine Coast
    15%                                                              12%
                                                                                 10%                                  Ipswich
    10%                                                                                8%
                                                                                                    5%                Logan
     5%
     0%
                                                                           LGA

          Source: Dep’t Employment and Training; MacroPlan
2019 LGA Total Additional Jobs Forecast

                 Ipswich
                  15,077
         Logan                                        Sunshine Coast
         8,906       Brisbane/Redland                    18,543
                                        Moreton Bay
                          80,324          23,489
   Gold Coast
    44,952
Major Projects/infrastructure
Sunshine Coast
   Sunshine Coast Airport Expansion (A$347 million, due to be
    completed in2020), generates 1,538 operational jobs once
    completed
   Maroochydore CBD (Anticipated Gross Land Value: A$375
    million, development and investment opportunities offered over
    the next 20 years), projected to create 10,000 jobs for the
    region
   Light Rail Extension (A$2 billion, first stage completed in 2020)
   Public University Hospital (A$1.8 billion, opens in late 2016),
    generates 1,500 jobs, has capacity for expansion
                                                                        Moreton Bay
                                                                           University Precinct for University of Sunshine
                                                                            Coast, cater for 10,000 students within the first
                                                                            10 years (from 2020), generates approximately
                                                                            1,000 jobs
                                                                           University Hospital
                                                                           Moreton Bay Rail Link: 12 km, completion
                                                                            expected by the end of 2016

  Ipswich
                                                                             Logan
     Another CBD in the form of Springfield
                                                                                Logan Hospital expansion, $145 million
      ($85 billion investment
                                                                                Hubs for Cultural Services and Activities
     GE Headquarters ($72 million office
                                                                                Wembley Road and Logan Motorway
      complex).
                                                                                 Interchange with 3,000 industry jobs
     QLD Rail: Springfield and Springfield
                                                                                Widen 16 km Pacific Motorway through
      Central station
                                                                                 City of Logan
     Amberley (ADF) and Ebenezer
                                                                                South East Busway Extension
      (industrial)
                                                                                Upgrade of Mt Lindesay highway
Major Projects/infrastructure
    Brisbane
     Queen Wharf Precinct: Priority Development Area
         (PDA), 3,000 jobs during construction and 8,000
         ongoing jobs
     1 William Street (1,000 in construction)
     Brisbane Airport Corporation with its new
         development plan for new Brisbane Charter Terminal,
         generates 5,000 additional full-time jobs (investment
         phase), by 2034, 5,200 full-time equivalent jobs
     $1.54 billion Brisbane Metro (Light Rail), built over
         six years for a 100 year life

                                                                                                      Queens Wharf Precinct

                                                                 Gold Coast
                                                                  2018 Commonwealth Games ($41 million Gold Coast
                                                                     Aquatic Centre, $114 million upgrade to the Carrara
                                                                     Sports Precinct, $40 million Coomera Sports and
                                                                     Leisure Centre construction)
                                                                  Gold Coast CBD (Southport): attracting an additional
                                                                     workforce of 24,857 people (Construction kicks off in
                                                                     2014)
                                                                  Health and Knowledge Precinct (Gold Coast
                                                                     University Hospital, Griffith University): potential for
                                                                     over 11,000 jobs; commence greenfield development
                                                                     in early 2019
                                                                  Light Rail: 13 km, $1.6 billion

Gold Coast Light Rail
Strategy implications/risks?
•   Growth industries of the future (eg health, social, education) are reliant on proximity to
    their markets, not so much proximity to each other (which is a CBD model). They are not
    ‘centralised’ industries but are suburban or regional by nature – good opportunity for
    Moreton Bay
•   Requires policies that provides Moreton Bay with blend of local population based non-
    tradable services jobs – education and training, administration, health care and social
    assistance & construction with tradable jobs in tourism, international education, advanced
    manufacturing.
•   Ongoing Research to de-risk the strategy: Investigate the growth sectors, Identify which
    companies within that sector are potential targets, Investigate their locational preferences,
    What industry drivers will influence future location decisions, Are there suitable sites - On
    Logan Council land and other sites?
•   IF the nature of work is changing to a more suburban/regional model in SEQ, what does this
    mean for traditional location strategies for development in Moreton Bay?
•   This is a big “IF”. But the alternative is to suggest that the nature of work is NOT changing.
THANK YOU
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