OPTOMETRIST:

OCCUPATIONAL SKILL SHORTAGE ASSESSMENT

Current Situation: No shortage

Short-term Outlook: No shortage

Executive Summary

Growth in demand for optometrists has been driven by a number of factors including: population growth, ageing of the population, rising income levels, and greater recognition of the importance of vision care. The demand for optometrists, as measured by total hours worked by all optometrists, has risen by 2.5% per annum between 2000 and 2005.

The supply of newly qualified optometrists has remained relatively steady in recent years with the number achieving a Bachelor of Optometry fluctuating between 22 and 29 over the period 2001 to 2005. However, strong growth in the number of migrants registering with the Optometrists and Dispensing Opticians board and a low number of optometrists retiring each year has seen supply grow strongly. Since 2001, the number of optometrists purchasing annual practising certificates has increased on average by 7.4% per annum.

The Department of Labour’s analysis does not provide a strong basis for concluding that a shortage of optometrists exists. Supply growth has been strong and has most likely outstripped growth in demand. While the total hours worked by all optometrists has increased, strong growth in the number of optometrists has meant that the average number of hours worked per week by each optometrist has decreased strongly over the last five years from 39.1 in 2000 to 34.0 in 2005. In addition, the number of optometrists per 100,000 people is increasing and appears to be adequate.

The key factors driving demand for optometrists are likely to continue in the short-term. Over the longer term, demand is expected to grow further due to an ageing population and an increasing recognition of the importance of vision care. Growth in the number of newly qualified optometrists is expected to increase as the number of places being offered to new optometry students is raised. In addition, high levels of net inward migration are expected to continue in line with high levels of residency and work permit approvals. As current supply trends are likely to be maintained, the Department of Labour predicts the absence of a shortage to persist over the next one to two years.

Introduction

The purpose of this report is to investigate skill shortages for optometrists in New Zealand.

The following section presents key findings from the Department of Labour’s (the Department’s) Survey of Employers who have Recently Advertised (SERA). This survey provides an indication of employer’s success in filling advertised vacancies for optometrists. The next two sections investigate trends in the demand for, and supply of, optometrists. The penultimate section presents some of the issues that arise from the matching of demand and supply in the labour market, such as wage rates. Finally, the ‘Assessment’ section considers all the information presented in the report and provides a view on whether the occupation is in shortage, and if so, the type of shortage being experienced. A short-term outlook for the shortage situation is also offered.

Further background to this occupational report, including a discussion of the methodology; a glossary of terms; and an overview of the Department’s Survey of Employers who have Recently Advertised, including the survey questionnaire, can be found in the Background and technical note.

Optometrists in New Zealand

Optometrists (code 22261 in the New Zealand Standard Classification of Occupations 1999 [NZSCO]) examine, diagnose, treat and manage vision disorders and diseases and provide correction where required. They prescribe spectacles, contact lenses or vision training where necessary.

This report focuses specifically on optometrists and excludes ophthalmologists and dispensing opticians. An Optometrist is a specialist in vision care who is trained to detect, measure and correct vision problems. Optometrists are trained to detect signs of disease and diagnose eye conditions. They refer patients for medical attention as required, usually to an Ophthalmologist. An Ophthalmologist is a qualified medical practitioner, who undertakes both medical management and surgical procedures for eye disease. A Dispensing Optician is qualified to advise on what frames and lenses best suit your needs, prescription and consequently make up the spectacles for you. A Dispensing Optician does not test eyes¹ .

In order to work in New Zealand, all optometrists need to be registered and hold an annual practising certificate (APC). This certificate must be renewed annually to ensure the holder is aware of current legislation, codes of practices and safe working procedures. In 2005, there were 660 optometrists active in the workforce in New Zealand, according to the Optometrists and Dispensing Opticians Board. About 60% of optometrists are self-employed either in sole or group practice, and nearly the entire workforce is employed in private practice². The optometry workforce has a relatively even gender distribution with about 57% of the workforce being male.

Note on Occupational Classification

Household Labour Force Survey and External Migration data from Statistics New Zealand are only available at the 3-digit occupational level, with Optometrists falling in the 3-digit category health professionals (except nursing). As optometrists comprise only a very small proportion of this broader group (3% in the 2001 Census), trends in employment and migration cannot be assessed through these sources.

Survey of Employers who have Recently Advertised

The SERA allows the Department to gain insights into skill shortages by investigating how difficult it is for employers to fill vacancies. A ‘fill rate’ is calculated for occupations with adequate sample size – the fill rate being the proportion of vacancies included in the SERA sample which were filled with an adequately qualified and experienced person within ten weeks of advertising. A fill rate has not been calculated for optometrists as there were not enough records included in the SERA. Only three employers, who were trying to fill four vacancies, were interviewed. Three of the four vacancies were filled.

Demand for Optometrists

This section investigates trends in the demand for optometrists and the factors underlying these trends. Demand is measured by the number of optometrists required by employers at current wage rates.

Historical Demand

Employment growth in the ‘Optometry and Optical Dispensing’ sector (of which about a third are optometrists) suggests there has been a strong increase in the number of employed optometrists. Employment in the sector grew by 6.1% per annum in the four years to 2005 (see Table 1). This level of growth was greater than the total employment growth in the economy of 4.1%, as measured by Business Demographic Statistics, over the same period.