Partial results from the VECCI Victorian Skills Survey show that labour shortages are taking their toll on Victorian employers and the wider economy.
The Victorian Employers' Chamber of Commerce and Industry (VECCI) Victorian Skills Survey is the first statewide Victorian survey of this nature covering all industry sectors, and was distributed to Victorian enterprises earlier this year. A total of 7,469 businesses were invited to complete the survey. The survey achieved a response rate of 17% with 1,281 surveys being available for analysis.
"Nearly 60 percent of respondents reported that skills shortages were having a negative impact on the productivity of their business - the Survey also shows that labour shortages are spread across skilled, semi-skilled and unskilled occupations, from Welder/Boiler Makers to Taxi Drivers", says VECCI Chief Executive Officer, Mr Neil Coulson.
The VECCI Skills Survey has found that:
- Businesses are experiencing difficulties in filling vacancies, with over half of businesses finding it difficult to recruit skilled people to vacancies over the 6 months ahead of filling in the survey; and half of businesses finding it difficult to recruit experienced people to vacancies over the six months ahead of filling in the survey.
- Of businesses that employ apprentices and trainees, 28.3% found it difficult to recruit people to undertake an apprenticeship or traineeship with their business over the past 6 months.
- Businesses reported 1,845 skilled vacancies, with the vacancies mainly occurring in the industries of Transport and Storage; Health and Community Services; Metal and Engineering; Wholesale and Retail Trade; Manufacturing; Electricity, Gas & Water Supply; and Accommodation, Cafés, Restaurants.
- The three occupations with the largest number of vacancies were: Aged or Disabled Person Carer, Sales Assistant and Taxi Driver.
- Businesses reported 717 apprentice/trainee vacancies. Over one-third of total apprentice/trainee vacancies were for the occupation of Call Centre Agent; and other occupations with the most apprentice/trainee vacancies were: Aged or Disabled Person Carer and Welder/Boiler Maker.
- Over half of businesses (58.4%) felt that skill shortages were having a negative impact on the productivity of their business, with 10.7% reporting a very negative impact.
"Victoria's labour market faces a number of challenges: an ageing population, difficulties in attracting new entrants into traditional trades, and broad-based labour and skills shortages.
"For this reason VECCI undertook the Victorian Skills Survey, a key recommendation of the VECCI Victoria Summit held in November 2005, to ascertain the impact that labour market challenges were having on Victorian businesses. The results of the Survey will form the basis for discussion on skills leading up to the next Victoria Summit planned for November 2007.
"It is projected that should the workforce continue to retire at the current average retirement age, that in the next decade, a significant proportion of the 3.7 million baby boomers of our current 10.2 million workforce may retire, having a significant impact on the nation's labour supply.
"In fact, projections by the Department of Employment and Workplace Relations (DEWR) indicate that by as soon as 2010, Victoria will face a shortfall of 50,000 workers due to our ageing population. Labour force participation declines sharply with age and it is expected that baby boomer retirement patterns over the next 15 years will see the Australian workforce grow by only 57,000 per year for the whole decade of 2020. This compares with an estimated 175,000 new entrants to the workforce currently per year.
"The task before us is to maintain our strong economic growth and prosperity by ensuring that Victoria's workforce is highly trained to meet the productivity needs of not only now, but the future.
"We must ensure that as the population ages and the available number of Victorians of working age diminishes, that those who can work are equipped with the right skills and motivation to do so. Our schools must ensure that students are prepared appropriately for further study and work, and have the choice of study options to take them where they want to go – be it higher education, TAFE, or an apprenticeship.
"Our training system should be flexible and responsive to the needs of business and industry to ensure that the skills developed by our private and public institutions provide workers with the skills and knowledge that will lead to sustained and valued employment, and ensures that we maximise the productive capacity of our workforce.
"With a diminishing workforce population, we must ensure that we maximise the labour market participation rate, by encouraging workers to remain in the workforce for longer, by being willing to retrain and recruit with a diverse range of employees, and we must provide flexible working arrangements and ensure appropriate support is provided to address barriers that may restrict those with capacity to work.
"The start of the Bracks Government's third term is an ideal time for a renewed effort in tackling this problem in conjunction with the Federal Government, with special reference to training, immigration, ageing workforce and welfare-to-work issues.
"In a time of rapid global social and economic change, it is time to look outside the square and challenge assumptions we have held for a long time about issues such as apprenticeship age and duration, age and work and the transferability of qualifications.
"The full (VECCI) Victorian Skills Survey report will be released in the New Year", says Mr Coulson. |
