Australia is facing a significant skill shortage in certain industries and professions, which is making it difficult for employers to find qualified workers. This skill shortage is particularly acute in certain regions of the country and in certain sectors, such as construction, healthcare, and technology.
One of the ways that Australia is addressing this skill shortage is through immigration. The country has a robust skilled migration program, which allows skilled workers from around the world to come to Australia to work in industries where there is a shortage of skilled workers. This program is designed to fill skills gaps and help employers find the workers they need to grow their businesses.
Despite the unemployment rate being at a 48-year low, Australia is still facing a skill shortage in certain industries and professions. This is evident as job vacancies remain high at nearly double pre-pandemic levels, with 444,000 recorded in November. The government is taking action to address this shortage by working to expedite visa processing in order to bring in 195,000 permanent migrants into the country during this financial year.
Some employers in Australia are calling for the elimination of the skilled migration lists, which determine which skilled migrants are allowed to enter the country. They argue that doing so would give businesses an advantage in the competitive global market for talent by allowing high-income earners to migrate to Australia more easily. Business groups and experts also argue that these lists are no longer relevant, failing to identify future skill shortages and adding unnecessary bureaucratic obstacles.
According to Kate Pounder, CEO of Tech Council, certain jobs such as data scientist and cybersecurity expert were recently included on the skills list, highlighting the dynamic and ever-changing nature of the skills shortage in Australia. She argues that the problem is not a lack of labor, but rather a shortage of experience and skills in specific fields.
Some employers in Australia are calling for the elimination of the skilled migration lists
In recognition of this, Home Affairs Minister Clare O’Neil launched an immigration review in September to address the complexity and bureaucracy of the current system, which includes 70 visas and various sub-categories. The review aims to streamline the system, but will not cover offshore processing or Operation Sovereign Borders. An interim report is expected to be delivered to the government by the end of February, with a final report anticipated before the May budget.
The process of obtaining a skills visa in Australia takes much longer than in other countries, with a timeframe of three to six months, compared to just 10 days in the United Kingdom, 15 days in the United States, 20 days in New Zealand and Canada.
Some argue that due to the length of time it takes to process a skills visa in Australia, it becomes less attractive to skilled workers in comparison to other Western economies.
Brendan Coates, Director of Grattan Institute’s economic policy program also agrees that the current system is slow and cumbersome, with the added complexity of three different occupation lists. These lists, which are based on the ANZSCO from the Australian Bureau of Statistics, are updated with a lag, further exacerbating the problem.
The Australian Council of Trade Unions (ACTU) has submitted a proposal to the government, advocating for an increase in the salary floor for skilled migrants to the November 2021 average full-time weekly earnings of Australians, which stands at $90,916.80. Additionally, they are calling for the inclusion of unions and the Fair Work Ombudsman to monitor and independently verify the salary levels of migrant workers.
The ACTU also wants more stringent labor market testing before businesses are allowed to recruit from overseas, as many businesses have been granted blanket exemptions from having to prove they have looked for local workers.
The Tech Council and the Business Council of Australia (BCA) also support this proposal, and echo the need to eliminate the occupation lists for high-income earners. Kate Pounder, CEO of Tech Council, added that employers would not pay a substantial wage if there was not a genuine need for it.
While the skilled migration program is helping to address the skill shortage in Australia, it is also raising concerns about the impact of immigration on the Australian economy and society. Some argue that the influx of skilled workers is pushing down wages and taking jobs away from locals, while others argue that it is helping to boost economic growth and create new jobs.
Overall, the skill shortage in Australia is a complex issue that requires a multi-faceted solution, including both investment in training and education for locals and a well-managed immigration program to bring in skilled workers from abroad.
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Australia is facing a significant #skill shortage in certain industries & professions, which is making it difficult for employers to find qualified #workers. This skill shortage is particularly acute in certain regions of the country. #TheIndianSunhttps://t.co/fvX30xosn6
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