A welcome Budget boost to address skills shortage

Although this year's Federal Budget offers little in the way of handouts, recruitment industry observers have given a thumbs up to several components, including the announcement of a $661m training, apprenticeship and adult literacy package to help ease the growing national skills shortage.

Deb Loveridge, Randstad CEO, said these initiatives confirm recent research indicating an acute skills shortage in particular sectors was well under way, and that future growth of the nation depended on immediate action.

"This shortage is expected to worsen as the economy improves, unemployment falls and sectors such as construction, infrastructure, renewable energy and resources continue to grow. The Government's announcement to boost training will go some way to ensure employees acquire the skills they need and assist employers to find the skilled staff they require for growth," she said.

Recent research released by Randstad revealed one in four businesses were worried they would be unable to fuel future growth because they are unable to attract skilled workers. The research also showed more than a third (35%) of Australian respondents believed the skills shortage has never left their sector, while a similar percentage (34%) believe a skills shortage began emerging in the first quarter of 2010, following the brief reprieve of the GFC.

Loveridge said that support for businesses to claim back costs of training would give many firms, especially SMEs, the ability to offer skills and training to their employees, boosting retention and increasing performance and productivity as the economy improves.

She added that the government's appointment of an expert panel to look at ways to improve training quality, and encourage labour market mobility was a positive step.

"The issue of employment in Australia cannot be solved just by Federal and State governments. It requires the collaboration of policy makers, employers and the recruitment industry to find ways to maintain a healthy, growing economy that contains a highly skilled and competitive workforce."

David Anderson, managing director & market leader for Mercer in Australia and New Zealand has also welcomed the announcement of a 50% tax discount on the first $1,000 of interest earned on deposits, bonds, debentures and annuity products. Mercer said the Budget announcements in relation to savings and financial services build upon the Government's response to the Henry tax review that the Superannuation Guarantee would be gradually increased to 12%, over several years, starting from 1 July, 2013. 
  
Anderson said, "Mercer is pleased to see a Federal budget that further encourages savings, both inside and outside of superannuation. The tax discount on certain interest bearing products gives greater focus to savings. This initiative can be built upon in future years and could help to create a savings culture, in particular amongst younger people."

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