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1386.0 - What's New in Regional Statistics, June 2011  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/06/2011   
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THE CHANGING FACE OF WAGE AND SALARY EARNERS ON MELBOURNE'S OUTSKIRTS


Introduction
Business growth
What Wage and salary earners data can tell us about a region
Changes in Wage and salary earners characteristics from 2003-04 to 2007-08
Changes in Wage and salary income
Occupation changes from 2003-04 to 2007-08
Examining occupation in conjunction with income



INTRODUCTION

The urban areas on the outskirts of our major cities are of interest for regional policy, planning and service delivery, as they are often where large or rapid population growth occurs. The Australian Government is developing policy responses based on a concern that this growth 'will put pressure on existing infrastructure systems, facilities and services within capital cities' (Infrastructure Australia, State of Australian Cities 2010, p. 32). This article explores one fast growing region in outer Melbourne (in the state of Victoria), using data from Wage and Salary Earner Statistics for Small Areas, Time Series, 2003-04 to 2007-08 (cat. no. 5673.0.55.003).

Melton-Wyndham had the largest growth in estimated resident population of any Statistical Subdivision (SSD) in Melbourne Statistical Division (SD) and in Australia from 2003-04 to 2007-08, reaching 225,815 persons by 2007-08. This was an increase of 51,519 persons (29.6%) and an average annual increase of 6.7%. This compared with average annual increases of 1.9% for Melbourne SD, 1.7% for Victoria and 1.7% for Australia in the same period. Melton-Wyndham SSD had a large growth in the number of Wage and salary earners during the same period.

The region is located on the western outskirts of the capital city of Melbourne (see Map 1) and is within commuting distance to both the Melbourne Central Business District and Geelong.

Map 1: MELTON-WYNDHAM SSD
Map: Melton-Wyndham Statistical Subdivision highlighted in relation to Melbourne
Image sourced from the National Regional Profile


BUSINESS GROWTH

The following information refers to businesses that were based in Melton-Wyndham SSD, which is a mixture of rural community areas (such as the Melton township) and suburban fringe areas. From 2003-04 to 2006-07, the number of businesses increased, although some industries grew faster than others (National Regional Profile, cat. no. 1379.0.55.001).

Two of the fastest growing industries included Finance and insurance, which grew on average by 8.2% per year, and Accommodation, cafes and restaurants, which grew by an annual average of 11.5%. It is possible that the growth in Finance and insurance provided jobs within the SSD for Professionals, Intermediate Clerical, Sales and Service Workers and other administrative workers, occupation groups that all experienced large and rapid growth. Likewise, it is possible that the rapid growth in the service industry provided work locally for Intermediate Service Workers. In contrast, the Agriculture, forestry and fishing industry grew by an average of 3.1% annually, which was a small growth rate compared to other industries in the region. In 2005-06, gross value of agricultural production in the region was $91.8 million. Agriculture in Melton-Wyndham in 2005-06 was represented by various commodities including 7,809.8 hectares of Cereals for grain and 3,133.1 hectares of Vegetables for human consumption. This region also had 104,048 Sheep and lambs, 6,887 Meat cattle and 1,276 Pigs. (National Regional Profile, cat. no. 1379.0.55.001).

By 2006-07, businesses in the Construction and Property and Business Services industries represented the largest proportion of businesses in Melton-Wyndham. Construction, with 2,712 businesses, accounted for 24.7% of the total number of businesses in the region, and Property & Business Services (with 2,274 businesses) accounted for 20.7%. This compares with the Construction industry in Victoria, which accounted for 15.4% of the total number of businesses in 2006-07, and the Property and Business Services Industry at State level, which accounted for 25.5% of businesses. This contrast highlights the strength of the Construction industry in Melton-Wyndham compared with the average for the rest of the state; this is likely to have been fuelled by the demands of a larger and rapidly growing population in this region in a similar time period.

WHAT WAGE AND SALARY EARNER DATA CAN TELL US ABOUT A REGION

Wage and salary earner data can assist in understanding aspects of regional labour markets and aspects of regional economic wellbeing. Wage and salary earners are part of the 'employed' in the labour market (Labour Statistics: Concepts, Sources and Methods, Apr 2007, cat. no. 6102.0.55.001) and their income contributes to economic wellbeing in regions (Standards for Income Variables, 2010, cat. no. 1287.0).

Data from Wage and Salary Earner Statistics for Small Areas, Time Series, 2003-04 to 2007-08 (cat. no. 5673.0.55.003) include age, sex, income range and occupation. These data can assist planners and service deliverers in understanding whether the Wage and salary earners who live in this region have particular characteristics, and whether those characteristics have changed over time. Analysis of occupations in Melton-Wyndham, for example, shows higher average annual growth rates of Professionals and Associate Professionals in this period compared with the growth rate of all Wage and salary earners in Melton-Wyndham SSD.

These Wage and salary data provide information on the characteristics of Wage and salary earners living in Melton-Wyndham SSD; however, it is outside the scope of this article to analyse whether they worked locally within the SSD, in Melbourne, Geelong or elsewhere.


CHANGE IN WAGE AND SALARY EARNERS CHARACTERISTICS FROM 2003-04 TO 2007-08

From 2003-04 to 2007-08, Melton-Wyndham SSD had one of the largest increases in Wage and salary earners for SSDs in Australia, with an average annual increase of 8.2%. This was an increase from 80,530 to 110,219 Wage and salary earners (see Graph 1) and compares with an average annual increase of 3.7% in Victoria.

Graph 1: WAGE AND SALARY EARNERS, By Sex - Melton-Wyndham SSD

Graph: Wage and salary earners by sex, Melton-Wyndham SSD, 2003-04 to 2007-08


Changes in age and sex

The split between male and female Wage and salary earners in Melton-Wyndham was relatively consistent from 2003-04 to 2007-08. In 2007-08, 58,589 (53.2%) of Wage and salary earners were male, whilst 51,591 (46.8%) were female. This region had a slightly higher proportion of Wage and salary earners that were male than Victoria, (51.8% male and 48.3% female) in 2007-08.

Similarly, the distribution of Wage and salary earners between age groups varied little in the period from 2003-04 to 2007-08. There was growth across all age groups in Melton-Wyndham during this period (see Graph 2). Those aged 25 - 44 constituted just over half of Melton-Wyndham's Wage and salary earners in this period, and 51.5% in 2007-08, compared with 46.5% of Wage and salary earners in Victoria.

Graph 2: WAGE AND SALARY EARNERS, By Age - Melton-Wyndham SSD
Graph: Wage and salary earners by age group, Melton-Wyndham SSD, 2003-04 to 2007-08

In each of the five Statistical Local Areas (SLAs) that make up Melton-Wyndham SSD, the proportion of Wage and salary earners in each age group were generally similar to that of the SSD. However, in Melton - Bal SLA (which is located in the North-West of the SSD, encompassing the Melton township and surrounding rural areas), those aged 15-24 represented slightly more of the SLA's Wage and salary earners than in the other SLAs in 2007-08. The region also had a smaller proportion of Wage and salary earners in the 25 - 34 and 35 - 44 age groups and a larger proportion in the 55 - 64 age group compared with the other SLAs (see Table 1).

Table 1: PROPORTION OF WAGE AND SALARY EARNERS BY AGE GROUP - By SLA, 2007-08

Age Group
Melton - East
Melton - Bal
Wyndham - North
Wyndham - South
Wyndham - West
Melton-Wyndham SSD
%
%
%
%
%
%

15 - 24
17.9
21.5
18.3
16.4
17.1
18.5
25 - 34
30.2
24.0
25.7
27.8
27.8
26.7
35 - 44
26.2
20.3
25.5
26.7
25.9
24.8
45 - 54
17.4
20.7
20.2
19.2
19.0
19.5
55 - 64
7.8
12.5
9.4
8.7
9.3
9.6
65+
0.6
1.1
1.0
1.2
1.1
1.0


CHANGES IN WAGE AND SALARY INCOME

The average income earned from Wages and salaries in Melton-Wyndham steadily increased between 2003-04 and 2007-08, from $36,738 to $42,889. This was higher than the average for Victoria ($42,782) but lower than the averages for Melbourne SD ($44,837) and Australia ($43,921) in 2007-08.

The average annual growth rate of average Wage and salary income from 2003-04 to 2007-08 in Melton-Wyndham was 4.0%, compared with 3.7% for Melbourne SD and 3.8% for Victoria. There were very different rates of growth in the number of Wage and salary earners in each income range, with the fastest growth in the highest income ranges (Table 2).


Table 2: GROWTH IN WAGE AND SALARY EARNERS, By Income range - Melton-Wyndham SSD

Income range
2003-04
2007-08
Change
2003-04 to 2007-08
Average annual change
2003-04 to 2007-08

no.
no.
no.
%

$0 to less than $13 200
14 084
17 374
3 290
5.4
$13 000 to less than $20 800
8 210
9 524
1 314
3.8
$20 800 to less than $31 200
12 903
13 890
987
1.9
$31 200 to less than $41 600
14 900
17 066
2 166
3.5
$41 600 to less than $52 000
12 412
16 346
3 934
7.1
$52 000 to less than $67 600
10 521
17 818
7 297
14.1
$67 600 to less than $83 200
4 514
9 595
5 081
20.8
$83 200 to less than $104 000
1 971
5 343
3 372
28.3
$104 000 or more
1 013
3 227
2 214
33.6



Sex and income in 2007-08

In 2007-08, only 5.5% of female Wage and salary earners (2,855) were in the top three income ranges (earning $67,600 or more), compared with 26.1% of males (15,310). Graph 3 shows that there were more male than female Wage and salary earners in all of the income ranges from $41,600 and above.

Nearly half of female Wage and salary earners (49.5%) in 2007-08 had incomes of less than $31,200. These data are for all Wage and salary earners and do not take into account part-time, casual or temporary work patterns.

Graph 3: WAGE AND SALARY EARNERS, By Income range and Sex - Melton-Wyndham SSD, 2007-08

Graph: Wage and salary earners by Income range and Sex, Melton-Wyndham, 2007-08

OCCUPATION CHANGES FROM 2003-04 TO 2007-08

From 2003-04 to 2007-08, the number of Wage and salary earners in all Major occupation groups grew, although the growth rates of different occupations varied. The fastest growing occupation groups in Melton-Wyndham SSD were Associate Professionals and Professionals, with average annual growth rates of 12.1% and 11.6% respectively. At the Melbourne SD level, the two fastest growing Major occupation groups were also Associate Professionals (an average of 7.8% annually) and Professionals (an average of 5.7% annually); however the growth was not as rapid.

The different growth rates in Melton-Wyndham resulted in changes in the proportions of each occupation group, with Professionals moving from third to second largest number of Wage and salary earners by 2007-08.

The remainder of this occupation analysis looks at the differences in Wage and salary earners' occupation groups in terms of income and growth.

Major occupation groups in 2007-08

In 2007-08, the Major occupation group Intermediate Clerical, Sales and Service Workers represented the largest proportion of Melton-Wyndham's Wage and salary earners at 19.0% (20,944 persons). The next largest Major occupation groups were Professionals, followed by Labourers and Related Workers, which represented 13.2% and 10.7% of the region's Wage and salary earners respectively.

At the state and Melbourne SD levels, the data show a different occupational mix. Victorian Professionals comprised the largest proportion of Wage and salary earners at 20.0%, whereas Intermediate Clerical, Sales and Service Workers followed, representing 17.2% of Wage and salary earners. Managers and Administrators were the third largest group of Wage and salary earners in Victoria, making up 10.0% of the State total. In Melbourne SD, Professionals accounted for 21.0% of the total number of Wage and salary earners, which was the greatest proportion. Intermediate Clerical, Sales and Service Workers accounted for 17.5% of the total, while Managers and Administrators were the third largest group, representing 10.6%. These proportions were similar to those in Victoria.

Growth in Major occupation groups

The Major occupation group that proportionally contributed the most to the overall growth in Melton-Wyndham's Wage and salary earners in 2003-04 to 2007-08 was Intermediate Clerical, Sales and Service Workers, representing 20.0% of the growth in Wage and salary earners, which was an increase of 5,930 persons (see Table 3). This was followed by Professionals (17.4% of the overall growth) and Intermediate Production and Transport Workers (9.9%).

Table 3: WAGE AND SALARY EARNERS GROWTH RATES - By Major occupation group, 2003-04 to 2007-08

2003-04
2007-08
Change 2003-04 to 2007-08
(Melton-Wyndham)
Average annual change
(Melton-Wyndham)
Average annual change
(Victoria)
no.
no.
no.
%
%

Associate Professionals
4 688
7 393
2 705
12.1
7.2
Professionals
9 412
14 583
5 171
11.6
5.2
Intermediate Clerical, Sales & Service Workers
15 014
20 944
5 930
8.7
4.6
Managers & Administrators
6 757
9 277
2 520
8.3
3.7
Not Stated
7 080
9 563
2 483
7.8
1.0
Intermediate Production & Transport Workers
8 535
11 457
2 922
7.6
3.1
Labourers & Related Workers
8 891
11 805
2 914
7.3
1.9
Elementary Clerical, Sales & Service Workers
8 270
10 920
2 650
7.2
4.0
Tradespersons & Related Workers
9 707
11 710
2 003
4.8
2.2
Advanced Clerical & Service Workers
2 166
2 524
358
3.9
-0.2



The number of Intermediate Clerical, Sales and Service Workers in Melton-Wyndham increased, on average, 8.7% per year from 2003-04 to 2007-08. Approximately 77.0% of the people in this major occupation group were female in each year. In 2007-08 more than half of Wage and salary earners employed as Intermediate Clerical, Sales and Service Workers were specifically employed as Intermediate Clerical Workers. This sub-major occupation group accounted for 58.4% of Intermediate Clerical, Sales and Service Workers and 11.1% of the region's total wage and salary earners.

The number of Professionals (which includes five sub-major occupation groups, ranging from science, engineering and business to health and education) increased an average of 11.6% annually over the same period. There were slightly more females than males in this group, with 55.3% being female in 2007-08. The Sub-major group, Business and Information Professionals (which includes accountants, marketing and computing professionals) was the fastest growing at an annual average rate of 15.5%. In 2007-08, they represented 33.8% of Professionals, followed by the Sub-major groups, Health (22.1%) and Education (20.4%) Professionals.

The number of Intermediate Production and Transport Workers (who work in manufacturing, mining, construction and road and rail transport) grew by an average of 7.6% annually from 2003-04 to 2007-08. Of the 11,457 Wage and salary earners in this group in 2007-08, 88.5% were male. The Sub-major group Road and Rail Transport Drivers represented 35.8% of Intermediate Production and Transport Workers, while 33.8% were classified as Other Intermediate Production and Transport Workers (e.g. Intermediate Mining and Construction Workers and miscellaneous Intermediate Production and Transport Workers).

EXAMINING OCCUPATION IN CONJUNCTION WITH INCOME

For the purposes of the following sections, "lower income" encompasses the bottom three income brackets (up to $31,200 per year). "Higher income" refers to the top three income brackets, ranging from $67,600 to $104,000 or more. These definitions of lower and higher income do not encompass the three middle salary ranges and do not include the average and median salary amounts for the region, State or Australia.

The data related to Sub-major occupation groups and income show that although all types of Wage and salary earners in Melton-Wyndham increased, more people earning higher incomes were employed in professional or management occupations. Additionally, Wage and salary earners in the lower income range were in the clerical, sales and service-related occupations.

Higher income

Of the 18,116 persons earning Wages and salaries of $67,600 or more in Melton-Wyndham in 2007-08, the top three Sub-major occupation groups represented by these higher income earners were: Business and Information Professionals (10.9% of the Wage and salary earners in the top income brackets, or 1,968 persons), Managers and Administrators, nfd (10.5% or 1,893 persons) and Specialist Managers (6.1% or 1,112 persons). (See Graph 4). These sub groups are part of the Major occupation groups of Professionals and Managers and Administrators, which were also two of the top four fastest growing Major occupation groups in Melton-Wyndham SSD from 2003-04 to 2007-08.

Graph 4: GROWTH IN TOP 3 SUB-MAJOR OCCUPATION GROUPS - Wage and salary earners earning $67,600 or more, Melton-Wyndham SSD
Graph: Growth in top 3 sub-major occupation groups - Wage and salary earners earning $67,600 or more, Melton-Wyndham SSD, 2003-04 to 2007-08

The number of Business and Information Professionals earning $67,600 or more grew at an average annual rate of 31.0% (an increase of 1,299 from 2003-04 to 2007-08). The number of Managers and Administrators, nfd grew on average by 19.2% each year; this equated to 955 more people in 2007-08 compared with 2003-04. The number of Specialist Managers increased by an average of 21.2% per year, which was an increase of 597.

Lower income

In 2007-08, 40,697 Wage and salary earners in Melton-Wyndham earned up to $31,200, which was more than double the number of persons earning $67,600 or more.

The most common Sub-major occupation groups represented in this low income group in Melton-Wyndham SSD were: Elementary Sales Workers (who at 6,833 represented 16.8% of the total number of Wage and salary earners in this range), Intermediate Clerical Workers (4,894 or 12%) and Intermediate Service Workers (4,279 or 10.5%).


FOR MORE INFORMATION

For more Wage and salary data related to Melton-Wyndham SSD and other regions, see Wage and Salary Earner Statistics for Small Areas, Time Series, 2003-04 to 2007-08 (cat. no. 5673.0.55.003). This publication contains detailed data from the Australian Taxation Office (ATO) relating to Wage and salary earners on a range of geographic levels for 2003-04 to 2007-08. Data are available by age, sex, occupation and income for Local Government Areas, Statistical Local Areas, Statistical Subdivisions, Statistical Divisions, states/territories and Australia.

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