Latest statistics show labour and skills shortage 'only getting worse'
As labour and skills shortages continue to afflict Australian businesses, the Australian Chamber of Commerce and Industry (ACCI) has called for “swift action” from the government to address the issue.
Australia’s workforce shortage is far from over, as the Australian Bureau of Statistics (ABS) data on 30 June showed that the number of advertised positions increased 14% over the past three months to almost half a million.
“Persistent labour and skills shortages continue to plague Australian businesses, with job vacancies reaching a record 480,000 positions in May,” the ACCI said.
ACCI chief executive Andrew McKellar described the continued challenge of Australian employers in the labour and skills crisis as “only getting worse”.
“Businesses big and small, across every sector, and right around the country are facing enormous pressures to recruit and retain staff,” he said. “Workforce shortages are holding back business and holding back the economy.”
McKellar said the crisis-level skills shortages proved unhelpful for Australian businesses, given that it came at a time when unemployment was at its lowest in 48 years, and consumer demand was strengthening. “Businesses are finding there just aren’t enough people to fill jobs,” he said.
Considering the workforce shortage, McKellar said that Australian businesses have turned to alternatives such as having current employees work additional hours where possible, reducing their operating capacity, or ceasing their operations completely.
“According to a recent OECD report, Australia is experiencing the second-worst skills crisis in the developed world, reinforcing the need for swift action from government to ensure businesses have access to the workers they need,” he said.
Addressing the workforce crisis
In line with Australia’s current workforce shortage, the ACCI released a workforce policy position paper, primarily addressed to the government, aiming to present proposals on alternative solutions to future-proof the Australian economy’s labour market.
The ACCI’s report proposed a three-pronged approach to discuss the workforce shortage, which aims to “develop skills, encourage increased workforce participation and rebuild sustainable migration.”
Among the suggested solutions of the ACCI to further develop the skills of existing and potential employees include a long-term consistent and actual budget increase for Australian Vocational Education and Training (VET) to satisfy not only skill shortages but also skill needs.
“All sectors of our education and training system need to be both effective in the quality and relevance of the skills they deliver, as well as efficient in ensuring the best possible return on public and private investment,” the ACCI said.
Moreover, the ACCI also said that to increase workforce participation, the government should provide adequate funding for the employment services system to establish a better connection between the long unemployed to appropriate job opportunities.
The business sector also encouraged the government to tap into broader skilled talents, including mature-aged workers, youth, women and parents, and people with disabilities.
To use migration as an effective tool to address skills and labour shortages, the ACCI also recommended an increase in permanent migration intake, including a noteworthy rise in the cap for skilled migration to 200,000 for at least the next two years to replace the skills lost during the pandemic.
“A strong migration uptake is one of the key policy levers available to address workforce shortages that cannot be filled by Australians or that require highly specialised skills, to grow our country’s workforce, and drive our post-pandemic economic recovery,” the ACCI said.
