Media Release - 24 January 2008
Federal Government’s move to fast-track professional skills is a step in the right direction but ignores key industries, says Michael Page International
The Treasurer Wayne Swan’s move to fast-track national recognition of professional skills has finally put the professional skills crisis on a national platform, according to Phillip Guest, managing director at global recruitment firm Michael Page International.
The Treasurer’s response which is part of the Labor Government’s hardline approach to combat inflation includes plans announced this week to target the skills crisis with higher workforce participation and an overhaul of employment programs.
Mr Guest said while the Treasurer’s actions are a step in the right direction, “this is only geared to encourage job-seekers into mining, and ignores other industries in urgent need of professional accountants, engineers and lawyers – professionals that drive business in this country”.
"Australia’s economic growth depends on the success of our corporate sector, but many companies are constrained because they don’t have the skilled workforce to support their growth,” Mr Guest said.
He said the Michael Page Salary Survey 2007/2008 shows 91% of corporates predict staff numbers to increase with demand for professional skills to intensify in the next 12 months with a 5% to 7% wages growth for professionals.
“The research shows the skills shortages in professional sectors such as legal, for example, are far more acute as opposed to the broader labour force statistics with a forecast wages growth of 5% to 10% across private practice and the in-house market.”
Mr Guest said the tight labour market is being intensified as overseas firms poach Australian professionals who are regarded as hard working and highly trained. This is occurring because employers in locations such as the United Kingdom and United States are facing similar skills shortages – it’s a global issue.
“More critical skills shortages and associated inflationary pressures on salaries will be on the cards if we do not improve our strategies to retain talent in Australia and attract skilled workers to our country.
“To remain competitive in a global employment market, Australian employers need to better address career development because it is the main reason professionals are leaving the country. We also need to better utilize the untapped talent pools by offering flexibility in the workforce to retain mature-aged workers for longer and to assist stay-at-home parents back into the workforce.
“To do this there needs to be strong commitment from Australian business to restructure their workforces to provide meaningful employment – jobs that provide true flexibility. The perennial problem for many working parents is the unspoken code of squeezing a five-day working week into three.
“The problem of finding skilled workers will only get worse, with the mining sector experiencing the most intense skills crisis of any sector and the reason for the Federal Government’s focus.
“Federal and State Governments need to recognise the significant contribution professional services make to the economy, particularly in view of the former Department of Employment and Workplace Relations figures which reveal four out of every five of the 998,000 jobs created in the five years to February 2006, come from highly skilled occupation groups.
“Australia’s economic growth and investment surge with public and private growth at double-digit figures and a wages and salaries jump of 9% over the past year to $A128.4 billion reflects companies’ strong profits and the tight labour market.
“This has put undue pressure on companies needing professional skills to sustain their growth levels particularly with the latest Australian Bureau of Statistic’s Job Vacancy figures which indicated an increase of 2.4% in the number of job vacancies over the last quarter.
“This investment surge has worked its way into increased production with strong demand for professional skills in all markets from the booming mining and construction sectors, to substantial increases in demand for skilled workers in transport, property, business services, finance and communications.
“With the tightest labour market in 30 years and a very high participation rate of professionals, it’s clear that all governments, industry bodies, professional associations and recruitment firms need to take a long-term view of how to restructure the professional workforce, and how to retain and attract the best and brightest.
“Australia needs a national approach for our professional skills shortages crisis, before it impacts on our economic growth,” Mr Guest said.
Contact
Jason Hemens – Corporate Communications Manager
Ph: 02 8292 2094
Email: jasonhemens@michaelpage.com.au
About Michael Page International
Michael Page International is a leading professional recruitment consultancy specialising in the recruitment of permanent, contract and temporary positions on behalf of the world’s top employers. The consultancy operates through 141 offices in 24 countries and employs more than 4,300 people. Australian operations began in 1985 and the office network has since expanded to include Sydney, Chatswood, Parramatta, Melbourne, Wheelers Hill, Brisbane and Perth.
