Clarius Skills Index predicts labour shortages
What is Australia’s skill shortage outlook?
The Clarius Skills Index shows the latest trends in the Australian job market for skilled labourers and workers. This is the only report that indexes
the shortage or oversupply of skilled labour in Australia.
In its latest version, the report states that “seventeen out of the 20 skilled occupations featured in the Clarius Skills Index for the December quarter recorded an increase in demand for skilled labour, with nine of the categories now recording a shortage of skilled people”.According to the Index, there was a “significant and surprising turnaround in fortunes for the majority of skilled occupations across Australia considering doom and gloom predictions by some experts only six months ago”.
The report shows a clear upswing in the December 2009 quarter back to balanced market conditions.
The Index covers three occupational groups: professionals, associate professionals and tradespersons. The professionals group is a particular bright spot as they are the group most typically involved in the early planning phases of any projects (for example, large infrastructure projects announced by the government in combat with the economic downturn).
The Clarius Skills Index for the December 2009 quarter alleges that:
- Changes in career choices will put more pressure on skills shortage
- The Australian labour market is responding to improved economic conditions
- The group skills indexes for professionals, associate professionals and tradespersons all rose into the balanced range in the December quarter
- The increase in labour demand was recorded across almost all occupations
Current top ten occupations with highest level of skills shortages
The top ten occupations currently experiencing the highest level of skills shortages in Australia are assessed in the Index. In order of highest to lowest, the top ten are:
- Chefs
- Wood tradespersons
- Metal tradespersons
- Building and engineering professionals
- Hairdressers
- Food tradespersons
- Health professionals
- Building and engineering associate professionals
- Automotive tradespersons
- Computing professionals
Good news for skilled workers
Despite recent changes to the skilled migration programme, there is good news for skilled workers in Australia.
“As the economy picks up and demand for skilled labour begins to put pressure on employers and infrastructure projects, there are indications a blend of the GFC and an aging population is also changing career decisions at both ends of the age scale,” reads the report. “A combination of employee turbulence at the younger end and brain drain from the older employment market as baby-boomers make retirement-or-not decisions is likely to make it difficult for employers across the board.”
The report shows that the demand for additional skilled labour is lower than the available supply. However, the upward trend seen in the Index shows that the labour market is moving toward a more balanced situation.
“The rise in the Index for the December quarter reflects an acceleration in recruitment activity, particularly in the second half of the quarter (end November and December). Over the last six months, firms have been preparing for expansion and those plans are now being implemented.”
