Labour market policies focused on increasing the number of new tradies are the way to tackle skill shortages in the trades, according to new research published by the National Centre for Vocational Education Research (NCVER).
Attrition in the trades, by Tom Karmel, Patrick Lim and Josie Misko, uses data from the ABS Labour Mobility Survey to analyse whether the attrition rate in trade occupations is a possible factor of skill shortages.
Dr Tom Karmel, Managing Director, NCVER said the study was timely in light of Australia’s strengthening economy after the recent global financial crisis and perceptions about skill shortages.
It finds that, on the whole, there are almost as many people moving jobs or changing occupations in the trades as there are in the professions, although there is substantial variation in all occupations.
“Our analysis shows that policies focused on the supply of qualified tradespeople are more important than policies aimed at reducing attrition. While, no doubt, attrition could be reduced it does not stand out as being the issue to tackle”, says Dr Karmel.
Interestingly, the study showed that attrition rates in both the trades and professions are not greatly affected by the economy, be it in boom or bust.
“It’s true to say that in boom times there is greater job churn; tradies and professionals alike change jobs more often. However, the rate at which they change occupations varies very little. Increased labour mobility is not a cause of skill shortages, as it is often perceived.
“In bad times, however, there is a difference between the trades and the professions. Tradespeople when compared with professionals are much more likely to lose their jobs and exit their occupation”.
The study also provided the opportunity to test the idea that having a trade provides a good foundation for another career, outside of the trades. The results were mixed, with only the electrotechnology trade providing a good springboard into other careers.
Copies of Attrition in the trades, are available from www.ncver.edu.au/publications/2420.html
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