It is time for a more finely-tuned analysis of the problem of skills shortages in Australian business, according to a National Centre for Vocational Education Research (NCVER) report released today.
The report, Skill shortages: prevalence, causes, remedies and consequences for Australian businesses , by Joshua Healy, Kostas Mavromaras and Peter Sloane, analysed the Australian Bureau of Statistics’ Business Longitudinal Database to add empirical evidence to the ongoing debate on skills shortages in the Australian labour market.
Co-author, Dr Joshua Healy, said that shortages occur for many reasons.
“A lack of specialist knowledge, uncertainty in future demand, slow recruitment processes and high market wages all contribute to employers reporting skills shortages,” Dr Healy said.
“Skills shortages emanating from one primary cause should not be depicted as a crisis.
“Rather, it can be seen as a marker of a buoyant business. Such shortages are typically overcome by a shift in internal management practices and better use of existing staff.
“On the other hand, skill shortages resulting from a combination of causes can tend to be persistent and can be associated with firm decline.”
The full report is available at: www.ncver.edu.au/publications/2464.html
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