Major challenges ahead for skills and employment in a resurgent Australian economy / September Job Figures (ABS)
Announcement posted by SansGov 07 Oct 2010
Major challenges ahead for skills and employment in a resurgent Australian economy / September Job Figures (ABS)
This release can also be located @ http://www.sustaingroup.net/septemberjobnumbers
o Competitive skills market could put pressure on interest rates
o Employee turnover expected to increase slightly in some sectors
o Retail and hospitality jobs could be impact by a slowdown in Christmas spending
o Carbon tax and an emissions trading scheme to cause real headaches
Executive Chairman of The Sustain Group, Matthew Tukaki, has again cautioned Government and business that while the unemployment figures released by the ABS for September will continue to show consistency, as the Australian economy heads into the final quarter of 2010 we will see wage pressure make a return in addition to a fall in skill supply:
Competitive skills market could put pressure on interest rates
“The Australian economy is very strong, much more so than other nations in developed countries – however, with economic strength comes additional challenges such as supply in key skill categories declining, the development of a competitive skills market from West to East Coast which in turn is driving wages up.” Mr Tukaki said
“As an example, as more projects continue to come on-line in Western Australia, those companies will be competing for the same skills as organisations from Queensland, particularly in the North, where demand is out-stripping supply in the engineering and trades categories. What this means for a place like Darwin and the Territory, where some major projects are also coming on-line, is the affordability of skills then weighs heavily on project viability. We run the very dangerous risk of having wage increases that then, in turn, put pressure on interest rates.” Mr Tukaki said.
Employee turnover expected to increase slightly in some sectors
“We are also seeing the majority of employers now returning people to the hours they had worked pre GFC and – in addition, salaries, overall, have been restored. There is still some angst out there and ill feeling towards employers who did not move fast enough and so we will probably see higher turnover rates in sectors such as banking and finance as employees abandon employers and head to new opportunities – but that disruption in our labour market will be relatively minor and certainly not be as significant as some commentators now claim – from what I am hearing, people are seeking stability and a settling period.” Mr Tukaki said
Retail and hospitality jobs could be impact by a slowdown in Christmas spending
“We also have to be mindful that we are moving into a very heavy employment market entry period with students either leaving high school or exiting universities for the holidays. A lot of these students normally head into the retail and hospitality sectors which traditionally show demand over the peak Christmas period – this year, with no Government stimulus encouraging people to “spend” – we might see a decline in casual and part time jobs compared to 2007 / 8 figures.” Mr Tukaki said
Carbon tax and an emissions trading scheme to cause real headaches
“With the debate raging about whether or not a tax on carbon will be introduced ahead of an ETS in 2013 – the reality is, we just do not have enough skills in the economy at present to effectively manage any new regulatory environment. In our latest “Green Business Survey” (which will be released on the 12th of October) a whopping 75.8% of respondents do not believe we have enough skills in the economy to manage a new regulatory environment. Also, the demand side for green skills such as environmental engineers, sustainability directors and managers have increased thirty fold – we are finding an increasing need to look offshore for the relevant skills.” Mr Tukaki said
Mr Tukaki has said that there is an increasing need to look at the skills question versus the immigration question which seems to confuse the debate about how to effectively plan our national workforce.
Mr Tukaki indicated that skills gaps would become much more visible in the first and second quarter of 2011 and he further expected a continued decline in unemployment through to the third and final quarter of 2011.
ENDS
o For comment: Matthew Tukaki 0435 636 373
o About Matthew Tukaki: Matthew Tukaki is Executive Chairman of The Sustain Group and Australia’s Representative to the United Nations Global Compact. Matthew is also the former Head of Drake Australia, the nation’s oldest and largest employment company
o About The Sustain Group: The Sustain Group encompasses policy advisory body, SansGov. There are three divisions of the business, Recruitment, Education and Consulting Services. For more information log onto www.sustaingroup.net
Matthew Tukaki
Executive Chairman & Chief Executive Officer
The Sustain Group Pty Ltd
Level 26, 44 Market Street, Sydney NSW 2000
P: +61 2 9089 8976
F: +61 2 9089 8979
M: + 61 (0) 435 636 373
E:matthew.tukaki@sustaingroup.net
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