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What skill shortage? The trades in economic downturns

Published
18 February 2011

As Australia’s economy recovers following the recent slump, new research shows that there is no evidence of persistent skill shortages in the construction, automotive and engineering trades during economic downturns.

The report, released by the National Centre for Vocational Education Research (NCVER) also finds that there is no convincing proof of continued skill shortages in the electrotechnology and telecommunications trades, the food trades and hairdressing.

Dr Tom Karmel, Managing Director, NCVER said the construction, automotive and engineering trades are closely linked to the economic cycle which is why they fluctuate in times of boom and bust.

“This report examines the evidence for persistent skill shortages in the trades over the past 20 years,” Dr Karmel said.

“Despite reports of continued shortages in the trades during the recent Global Financial Crisis, this report highlights that there is little or no evidence that skill shortages endure during downturns.”

Additionally, the report suggests that apparent persistent skill shortages in the food trades and hairdressing have more to do with people in these occupations regularly changing employers than an insufficient supply of workers.

Copies of Skill shortages in the trades during economic downturns are available from www.ncver.edu.au/publications/2333.html

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