TREASURER Tim Pallas told a jobs forum in Frankston, Thursday, that making Victoria a so-called “Education State” would lead to a stronger economy.
The forum, at the Frankston Mechanics’ Hall, in Plowman Place, was attended by 60 people and hosted by Frankston MP Paul Edbrooke.
In the audience were members of Frankston business network, Frankston City Councillors and staff, business owners, education providers, such as Skill Plus and Chisholm TAFE, and students.
Mr Pallas said the economy was diversifying from its former industrial base and moving towards being a knowledge-based economy with a focus on services.
“Jobs growth in Victoria is currently strongest in those industries that employ highly skilled Victorians with post-school qualifications,” he said.
“As the economy continues to transition to skilled jobs, the government will act to ensure that the people of Frankston are not left behind.”
However, the city’s Draft Economic Development Strategy 2016-2022 shows this may prove harder than expected. “Along with employment creation (particularly white collar), Frankston City’s labour force is a key area that requires attention”, it says.
“With low levels of education attainment (only 11.9 per cent have bachelor or higher qualification, compared with 23.6 per cent across greater Melbourne) the municipal labour force struggles to compete for employment.
“This is particularly the case in the rapidly growing health sector, which requires a range of qualifications and skills. The most recent data suggests that 56 per cent (3949 employees) of people employed in health in Frankston City reside in other municipalities.”
The Frankston City economy – as described in the draft strategy – shows that Frankston has 0.29 jobs per resident “making it one of only two municipalities in Melbourne’s south east that is trending upward (up by 0.03 since 2011)”.
However, this is still well below the Greater Melbourne average of 0.39 jobs per resident.
“Despite a growing job-to-population ratio in Frankston City, unemployment continues to trend upward – now at a 15-year high of 8.3 per cent.”
Mr Pallas said the state government was boosting its Back to Work Scheme with payments of up to $12,000 for employers hiring long-term unemployed workers (now 26 weeks unemployed, reduced from 52 weeks).
It says it will pay employers up to $5000 for hiring retrenched workers, out-of-trade apprentices, and young people aged 15-25 who have been unemployed for three months or more.
He said the unemployment rate was 7.8 per cent in 2014-15.
“We will make sure that people entering the workforce have the skills they need to boost their employability through supporting the TAFE network and by delivering on our commitment to make Victoria the ‘Education State’,” he said.
Mr Pallas said the government would continue to support demand for skilled manufacturing workers by providing a “pipeline of transport projects that have the potential to provide for more than 10,000 new jobs”.
He said the government would declare tram-and-train manufacturing a strategic project under the Victorian Industry Participation Policy with a minimum of 50 per cent local content.
“We have committed to making Victoria the ‘Education State’, because we understand the vital importance of an educated and highly skilled workforce in delivering a prosperous future,” he said.
“We are also helping people experiencing a transition now with funding for education and skills, local content rules for transport projects, and by enhancing back-to-work incentives for employers taking on the long-term unemployed and those in need of a second chance.”
Mr Edbrooke said: “The Andrews Labor Government was elected on a platform of getting Victorians back to work – and I am proud to be part of a team that is doing everything it can to deliver on that commitment for the people of Frankston.
“The forum has been a great opportunity for local leaders, employment and training providers, supporters and members of the community to discuss with the Treasurer of the challenges that our region faces.”
