Shortages in traditional trades

The skills shortage in Australia has received much attention in recent times.

It’s a problem that has affected virtually all major industries, and its impact has been far reaching. Especially in the `blue-collar’ trades, young people are simply not as interested as they might have been a few decades ago.

The situation in some areas is dire. In Western Australia, industry has responded with incentive packages usually reserved for executives. These packages have included high salaries, housing and bonuses. Both industry and government are now being pro-active about attracting people back to trades.

Why are there skills shortages in traditional trades?
There are a number of factors contributing to these shortages. Some researchers are suggesting the government is paying the price for the one billion dollar budget cuts to TAFEs in the late nineties.

TAFE institutions have primarily been the breeding ground for the traditional trades. The booming economy that we have enjoyed over the last few years has also contributed, as has globalisation, technological changes and changes in the labour force. The increased numbers of women at work may even be a factor.

Some other causes are:

• Record low levels of unemployment;
• Rising school retention rates;
• The growth of industry outstripping the supply of skilled tradespeople;
• The perception of young people that trades are dangerous, dirty and physically demanding;
• Location: many industries are regional and rural based - areas which lack a broad base of skilled tradespeople;
• Reduced interest in particular industries from potential job seekers;
• Changes in academic qualifications required for certain trade training, E.G. Year 12 Maths; and
• Technology changes in industry requiring new skills and trades.

Which industries are the most affected?

• Aerospace;
• Emerging Technologies;
• Engineering;
• Food (Commercial Cookery);
• Marine Manufacture;
• Forestry;
• Mining;
• Retail;
• Retail Motor;
• Road Freight; and
• Rural.

What is the government doing about it?
There have been a number of initiatives from both state and federal governments.

The most obvious one at present is its immigration policy. The government is undertaking the largest immigration drive since the 1960’s. Targeted mainly at Europe (and especially the UK), the drive is attracting workers to Australia with promises of shorter hours, a better climate and a lower cost of living. The current program offers immigrants a four-year employer or state-sponsored immigration, with the option to stay.

Further to this, the government instigated a legislation change in late 2005, which allowed non-citizens to take apprenticeships in regional areas.

The government also has the National Skills Shortage Strategy. This was designed to improve the image of industry and recruitment practices and engage employers in training and development. The NSW State Government, for example, has significantly increased expenditure on pre-apprenticeship training.

What is industry doing about it?
Industry is concerned about skills shortages because it puts constraints on output and jeopardises investments. It also leads to wage cost inflation, and it hinders the progress of innovation across the economy.

The response from industry has involved coordinated programs with governments to promote awareness of the problem and to begin to remedy it. Many industries have invested in expanding and enhancing their apprenticeship programs. However, the most common employer strategies for overcoming the skills shortage are to retrain existing staff, to increase investment in training, to redesign jobs and to retain mature-age workers. The harsh reality for now is that many employers will continue to look off shore to find skilled tradespeople.