Stephen Porter, CEO
Skill Shortages in Tasmania 2010
5th March 2010
In 2010 we reflect on an Occupational Skills Shortage Analysis for Skills Tasmania undertaken in 2008 by Lisa Taylor Consulting . The analysis defined skill shortages and the causes of the shortages in Tasmania as well as identified the specific occupations in short supply by industry sector. It identified that:
1) In Tasmania, there are not enough fully qualified and experienced trades people to provide the appropriate ratio of trades people to apprentices and trainees;
2) University education does not provide commercially or workplace ready and able graduates. Two to three years of additional on the job experience is required until graduates are considered viable;
3) For many of the occupations in short supply, education and training is not provided in Tasmania; and
4) Education and training courses have not, and are not, keeping pace with innovation and technological change in the workplace.
In 2008 industry suggested that training had reached its capacity. That is, it was difficult to increase the numbers of people being trained due to the need for experienced employees to supervise and mentor apprentices, trainees or graduates and the limitations this placed on the number of new entrants that could be employed and trained.
Additionally, the population age structure of Tasmania will lead to the retirement of a large proportion of the Tasmanian workforce sooner rather than later. The added implication for growing Tasmanian industries will be that not only will they need to replace the retiring workforce but add to the overall number as well. In Tasmania the number of labour market entrants to exits crossed over during 2009, that is, there are now more people exiting the workforce than entering it.
Impacts
The consequences of skill shortages can be long lasting and serious and have the potential to impact on the competitive and comparative advantages of an organisation being located in Tasmania.
It is important to recognise that the causes and implications of skill and labour shortages have not changed since 2008, in fact, they will continue to increase without intervention.
In 2010, skill shortages will continue to place a significant level of stress on industry, government and education and training providers, as the primary causes of skill shortages in Tasmania are still prevalent. The specific causes for Tasmania are predominantly population ageing and net losses in interstate migration in the working age population. In addition, the following lists a number of factors that contribute to skill and labour shortages worldwide
Determinants of skill shortages
· Cyclical factors
· Participation rates
· Underemployment
· Demographic factors
· Generational replacement of labour
· Locational mismatch between the demand and supply of labour
· Education, training and skill development
· Changing skill needs within occupation
· The level of remuneration
· Organisational culture and employment conditions
· Industry image
Potential Solution
Lisa says "I believe that increasing the training capacity of Tasmanian industries and employers is the predominant solution to many of the issues arising from the current skill and labour shortages.
By increasing the training capacity of Tasmanian industries and employers, the following will result:
· Increase in labour market participation
· Increase in population
· Increase in productivity
· Reduction in youth unemployment rate
· Decrease in premature structural population ageing
· Higher quality education and training
· Reduction in level of non-completion of apprenticeship and traineeships
· Increase in percentage of Tasmanians with year 12 education qualifications and/or with a Certificate III education qualification or greater
· Decrease attrition and turnover
· Reduction in workplace safety risk
· Reduction in long term unemployment
· Increased tax revenues
· Shorter hospital waiting lists
· Greater access to aged and community care services
· Greater support for international migrants
· Greater ability to attract investment
Each of the issues listed are directly dependent on the ability to adequately train and educate the available supply of labour to address the existing skill and labour shortages we have.
Increasing the training capacity of Tasmanian industries and employers can only be achieved by attracting qualified and experienced interstate migrants. International skilled migration will not assist achieve an increase in training capacity in the short or medium term.
While there are a number of existing Tasmanian government initiatives and programs to address the issues outlined above, these are often considered in isolation of each other. I believe the potential of these programs and initiatives will not be successfully achieved if not considered in conjunction with increasing the training capacity of Tasmanian industries and employers."
Further information can be obtained through Searson Buck and the author, Lisa Taylor.
