SKILLS SHORTAGES are a key factor in revised Treasury forecasts which have shown that Australia’s economy is slowing down, according to the ACTU
SKILLS SHORTAGES are a key factor in revised Treasury forecasts which have shown that Australia’s economy is slowing down, according to the ACTU.
“The latest data showing that Australia’s economy is expected to slow is proof that the $9 billion skills shortage is starting to bite and have a negative effect on growth,” said ACTU President Sharan Burrow.
“Australia’s skills crisis is a problem that has been a long time in the making and which will now take a long time to fix.”
The shortage of skilled workers in the traditional trades has forced many companies to turn to overseas countries to fill vacancies, with welding, carpentry, bricklaying, plastering and plumbing some of the trades hardest hit.
Furthermore, a recent survey of investor confidence by the Australian Chamber of Commerce and Industry found that the number one constraint for investment was the availability of suitably qualified employees.
Burrow said the Federal Government had known for some time that labour shortages were emerging in the economy but had persisted with policies that are worsening the problem.
These included a failure to ensure enough trades apprenticeships, with Burrow estimating that less than a third of the 400,000 apprenticeships the Federal Government claimed it supported were actual trades apprenticeships.
“The Government dishonestly inflated its figures during the election campaign by including short-term trainees such as kitchen-hands in fast food outlets in apprentice numbers,” said Burrow.
Government policies that compounded the skills shortage included the abolition of the Australian National Training Authority and election “gimmicks” such as toolkits and new tech colleges.
“Instead of fixing the fundamental problems in the skills and training systems, the Government resorted to gimmickry,” Burrow said.
The new system of tech colleges, especially in regional areas, would take years to set up and compete with local high schools and TAFE colleges – leading to a reduction in resources and options for students, she added.
However, the Government defended the technical colleges, claiming they will play a key role in getting vocational education the community recognition it deserves. Minister for Vocational and Technical Education Gary Hardgrave said that 24 colleges will be backed by a $289 million investment from the Government over four years, with the first colleges to open their doors in 2006 and all of them up and running by 2008.
Minister for Employment and Workplace Relations, Kevin Andrews acknowledged that vacancies for skilled trades had risen by about 50 per cent in the last three years, and expected the trend to continue.
“Skill shortages are of continuing concern to the Government and to industry,” he said, pointing to skills shortages in the engineering, automotive, chef, cook, construction, electro-technology and hairdressing sectors.
Nikki Giles, national practice manager for Hudson Australia’s Sales & Marketing and Communication division added that “over the past year we have noticed a growing need from our clients for merchandise and marketing skills, but suitable candidates to fill these roles are very difficult to find in Australia.”
Whilst employers were willing to invest in training Australians, some skills require years of education and experience and employers need to fill roles immediately, she said.
As a result, increasing numbers of employers are choosing to recruit overseas, and experienced candidates can be hired relatively easily using a 457 visa, which allows a four-year stay and does not require the sponsoring company to advertise a position locally before filling it.
