Skills shortage in Australia a big concern for the economy

Australia, 26th March: Australia is facing severe skills shortage and it is proving to be a major concern for the economy of the nation.

According to a survey by the CEOs (chief executing officers) in the manufacturing and the services industry, the skills shortages in Australian economy will continue to increase even as the country takes steps into further growth and development in the next year.

The national survey by CEOs of Deloitte and the Australian Industry Group felt increase in the skills shortage and its effect on the job scenario and wages even as the Australian economy recovers in the year 2010.

It was also revealed by the survey that services sector sales were expected to grow 6.6 percent while nominal value of sales was likely to rise 5.6 percent.

Meanwhile, construction industry sales were to increase just 2.5 percent in the year 2010 due to rising interest rates and falling stimulus package by the Australian government. Job growth in the construction sector is expected to grow just by 0.5 percent.

According to Heather Ridout, CEO of AiGroup, fading financial stimulus by the government coupled with stronger Australian dollar capping on exports was likely to offset the positive impact of increasing household income, growing consumer confidence and increased exposure to accelerating growth in China’s economy.

Keeping all this in mind, the companies need to gear up and take strong and immediate steps to help the economy recover in the current year, asserted Damon Cantwell, a Deloitte partner.

Moreover, the Australian economy was likely to have inconsistent recovery as companies dealing with markets in US or Western Europe would fare poorly as compared to those with markets in India and China.

Clue for better recovery of Australian Economy—

• Acquisitions and mergers between companies;

• Investments that help increase productivity and involve greater workers’ participation especially in tourism, agriculture, education, manufacturing and non-mining industries.
• Reduction of carbon emissions and improvements in energy efficiency;

• Increased business investments in technical innovation together with research and development;

• Investments in various training and education initiatives;

• Beginning energy efficiency programs.

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