Skills Shortfall Predicated

According to the Workplace Futures Report, to be presented today, AUSTRALIA faces a potential skills shortfall equivalent to 1.4 million workers by 2025 unless the workforce participation rate increases. The new research recommends raising the retirement age and boosting skilled migration.

The paper, prepared by the Victorian Employers Chamber of Commerce and Industry, says the shortfall in the state by 2025 could potentially be 440,000 workers, if retirement and migration rates remain at current levels.

One of the authors, Darin Ritchie, said yesterday that if workforce trends did not change, the projected participation rate nationally in 2025 would drop from 65.2 per cent to 61.8 per cent. "To meet moderate levels of labour-demand growth, Australia's participation rate would need to be 68 per cent," he said. "This could potentially leave a shortfall of 1.4 million workers.

"To address this workforce deficit, Australia needs to raise the average retirement age, increase the workforce participation of disadvantaged groups, increase migration, or offset labour demand through productivity growth."

The paper goes on to say "The prominence of demographic change and skill shortages has recently been overtaken by the economic downturn of the last 12 months," the paper says. "With unemployment increasing over that period, it would be easy to assume we no longer have a labour or skills shortage problem. However, skills shortages still exist in many industries, and the reality of Australia's ageing workforce means we face a structural deficit of workers over the next 15 years."

Recommendations in the paper also include suggesting that the federal and state governments should work with universities to assess the potential for using overseas students to meet current and future skills and labour needs. This could include increasing the ratio of postgraduate research in overseas student enrolments and improving job opportunities for graduate overseas students.

Full article available at: http://www.theaustralian.com.au/politics/shortfall-of-14m-workers-threatens-pension-age/story-e6frgczf-1225798395249

Source: Ewin Hannan , Shortfall of 1.4m workers threatens pension age, From: The Australian, November 17, 2009

The recent article by Ewin Hannan in the Australian (above) is a little ray of sunshine after so many DIAC processing changes this year.. As we have previously said, Australian does still need skilled migrants and more reports like this can only mean good news!

At AMVL, we assist people who wish to apply for a visa under the General Skilled Migration Scheme. This scheme is part of DIAC’s contribution to addressing skills shortages which the article refers to and which will only increase with the declining population. 

Click here for more information on General Skilled Migration.