Skill shortages in Australia
Hardly a day seems to go by without reference to skills shortages in the Australian media.
In almost all areas of commerce and industry there are challenges finding the people employers want. In areas as diverse as nursing, senior management positions, IT and traditional trades, employers everywhere are being held up.
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Skill shortages generally involve skills that require a significant period of training and/or experience.
Global competition and new technology have not only changed the type of skills demanded by businesses but also impact on skill formation:
- Skill training programs need to be continually developed and adapted to meet rapidly changing skill requirements;
- Existing workers need to upgrade and renew their skills; and
- New entrants to job markets must come prepared with recognised qualifications.
The causes of skill shortages are complex and hence the solutions not easy. Negative perceptions of careers in the traditional trades and the difficulties in attracting people, particularly young people, to work in some industries are common themes emerging through a broad range of research.
The Australian Government continues to address industry skill needs through a variety of mechanisms and has developed the National Skills Shortages Strategy to build on existing initiatives to provide a more comprehensive approach to addressing skills needs.
The strategy includes:
- Innovative, practical projects relating to skills shortages - eg targeting alternative entrants to the skilled workforce;
- Regional skills projects to look at skills needs on a regional basis;
- Further work on the National Industry Skills Initiative to ensure best practice strategies are communicated across sectors;
- A focus on science and technology to attract young people to take up careers in science and technology;
- Labour market forecasting and;
- A New Apprentices Roundtable to ensure direct communication between the Australian Government and people currently involved in training.
The whole area of so-called ‘traditional trades’ is particularly worrying. In many parts of the country, it is these trades where shortages are the most severe.
While some people think that trades may be dirty, dangerous and difficult, the reality is that Australians who take up trades enjoy strong prospects for lucrative, long term, challenging and independent careers.
As serious as the shortages are in Australia, the problem is being seen throughout the Western world. The New Zealand Herald has ranked skill shortages as the biggest problem for business and a recent Business New Zealand survey also showed skill shortages to be its members' biggest problem.
In the UK, skill shortages are impacting on the ability of businesses to compete. The shortages are very clearly acting as a drain on business productivity.
One recent report found that literacy, numeracy and skills levels in the UK are so poor that a quarter of employers struggle to fill job vacancies. A study by the national Skills Task Force backed up previous research by suggesting that nearly one in five adults - about seven million - have a lower level of literacy than the average 11 year old.
Because of skills shortages, employers are lowering their expectations when recruiting people and cutting back on capacity and quality levels.
In Australia, the extent of the problem is such that almost two years out from a Federal election, the Labor Opposition has released a new policy on skills.
In January 2005, Labor unveiled a $170 million-a-year proposal to encourage school leavers into apprenticeships to become carpenters, welders, plumbers, motor mechanics and electricians.
Labor said that Australia's skills shortage was so severe that young people who completed apprenticeships in traditional trades would be guaranteed jobs.
Published 2005.
