Employers call for enhanced incentive scheme to resolve talent crunch
Skills shortages in Australia are still "elevated" with more occupations reporting a lack of talent than last year, according to the latest government figures.
The inaugural Jobs and Skills Report released this week found that 332 out of 916 occupations (36%) monitored were in national shortage in 2023. This is a five per cent increase from the previous year, according to the report.
Occupations in the Technicians and Trades Workers category reported the largest lack of talent across Australia, with 50% of roles in the group in national shortage.
The shortage can also be observed for the Professionals group, where about 48% of occupations there in the shortage this year.
"A common thread among shortages in these occupations is that they require a high level of skills and knowledge, qualifications, and experience," the report said.
According to the report, skills shortages were "more pronounced in regional areas," especially for the highly skilled.
Occupations that have a highly gender-skewed workforce are also more likely to be experiencing shortages than other occupations with a more even gender balance, it added.
New shortages emerge, persistent
Meanwhile, there were 66 new jobs that are in shortage this year, particularly among high-skilled professional occupations.
"The main drivers included a decrease in fill rates for these occupations and employers receiving fewer and qualified applicants for vacancy," the report said.
On the other hand, 266 roles remain in shortage this year as they did the year before, according to the report.
Nearly half (47%) of these "persistent" shortages were found in occupations related to health, engineering, information communication technology, and science. Another 33% were from technician and trade roles.
"The overwhelming conclusion from this assessment is how persistent many skills shortages are," the report said. "The standout problem is the persistence of shortages among Technicians and Trade Workers, though there are also persistent shortages in Community and Personal Service Workers, a range of Professionals occupations, and Machine Operators and Drivers."
Wage growth not as effective?
Meanwhile, the report also found that wage adjustments do not appear to be effective in solving persistent talent crunch in some occupations.
"The existence of extensive persistent skill shortages in our labour market implies that it is one in which wage adjustments of this kind are not solving the problem," the report said.
It attributed this factor as to why only around one per cent of employers adjusted remuneration to attract skilled workers to fill vacancies.
"While this is surprisingly low, it was up significantly on the 2022 result when 0.4% of employers adjusted remuneration for this purpose," the report said.
Enhanced incentives needed
To improve the current situation, the Australian Chamber of Commerce and Industry (ACCI) called for an "enhanced incentives scheme" to encourage more employers to engage apprentices.
"The apprenticeship model plays a vital role in skills development and successful transitions from education to employment. To ensure that job seekers possess the skills and training required for the jobs of today and tomorrow, we must get the incentives right," said ACCI chief executive Andrew McKellar in a statement.
According to McKellar, having an enhanced scheme would empower young Australians to embark on their careers and contribute to the skilled workforce.
Australia's current incentives system include a Priority Wage Subsidy, which provides up to three years of assistance to employers, as well as a Hiring Incentive for eligible employers who will be paid in two instalments at six and 12 months after commencement.
Meanwhile, Jobs and Skills Australia said the report calls for a "well-functioning national skills system supported by accurate data and comprehensive assessments."
It also calls for collaboration between the vocational and higher education sectors, industry stakeholders, and an efficient migration system.
"Immediate action is imperative because many of Australia's future skills needs are within occupations currently experiencing shortages," the agency said on its website.
