Australia has moved from a jobs slump to the brink of a skills crisis in just six months, according to the December 2009 quarter Clarius Skills Index, despite most leading economists predicting spiralling unemployment.
The Clarius Skills Index, which is the only measure of underlying demand and supply of skilled labour, revealed that as employers emerge from the bad dream that was the global financial crisis, they have quickly discovered an old nightmare hasn’t gone away.
Skills shortages are again rapidly emerging in key industries, warning employers of an impending war for talent, potentially compromising labour requirements for key national projects.
For the December 2009 quarter, the index is trending upwards, rising from 98.2 in the September quarter to a balanced 99.0 (its highest level in six months)where laboursupply outstrips demand by just 0.5 per cent or 17,000 skilled workers across the economy.
A score of 100 in the Clarius Skills Index indicates equal tension between labour supply and demand. Anything greater than 105 on the skills shortage side of the Index is regarded as extreme shortage. A score of 95 to 98 is moderate. 95 or less is considered low.
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. By comparison, 19 of the 20 occupations had index readings under 100 (oversupply) in the September 2009 quarter. This illustrates the clear upswing in the December quarter back to balanced labour market conditions.