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National skills crisis set to re-emerge as Clarius Skills Index reports further increase in demand

20 April 2010


Australia’s move towards yet another national skills shortage has been confirmed in the latest Clarius Skills Index, with demand for skilled labour reporting a significant upswing.
 
In the March quarter, 15 of the 20 skilled occupations measured in the Index reported an increase in demand with eight of those skilled categories showing demand exceeding the available labour.
 
The eight categories are Building and Engineering and Computer Professionals, Building and Engineering and Chefs in the Associate Professionals category and Metal, Automotive, Wood and Hairdressers in the Tradespersons categories, which all scored above 100 in the Index.
 
A score of 100 indicates equal tension between labour supply and demand. Anything greater than 100 indicates a skills shortage.
 
This follows significant increases in demand for 17 of the categories in the December 09 quarter.
 
The overall Index for 20 categories rose from 99.0 in the December quarter to 99.6 for the March quarter, compared with 98.3 in the September quarter and 98.9 in the June quarter, as the economy continues to emerge from the GFC.
 
Clarius Group Chief Operating Officer, Kym Quick, said today: “While the shortage of talent was a distant memory for many employers last year, we are quickly seeing it re-emerge as one of the most significant issues facing business.
 
 “We are seeing major infrastructure projects and programs, such as the National Broadband Network and Building the Education Revolution program, already being affected by a lack of quality skilled staff in the construction and computing professions and trades.
 
“The Federal Government will be under growing pressure from a policy position and demands from employers, particularly in the big end of town, facing skills shortages and requiring clarity on the 457 Visa rules which many will feel need to be more flexible. 
 
“We predicted a potential war for talent when the December quarter Index came out showing strong demand increases coming out of the GFC in those 17 occupation categories. Firms have been preparing for expansion. And we are seeing it now getting into full swing across a number of recruitment sectors,” Ms. Quick said.
 
Download the latest March 2010 Quarter Clarius Skills Index to learn more about the latest labour demand and supply in Australia.
 
The Clarius Skills Index is Australia’s first ever National skills index that measures the extent of skilled labour shortages or oversupply across 20 occupation categories, using labour force data supplied by the Department of Employment and Workplace Relations and the Australian Bureau of Statistics. 


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