Labour shortages have intensified in the automotive, electrical, engineering and food trade sectors while the situation has improved in construction, according to new data.
The Department of Education, Employment and Workplace Relations’ latest Skilled Labour Shortage – Western Australia report shows automotive, electrical, engineering and food trade employers have found it increasingly difficult to recruit staff since June last year.
Employers specifically reported losing workers to the resources industry and cited perceptions of low wages as a contributing factor.
The situation is making it difficult for employers because they are forced to increase wages in a bid to compete with those offered in the resources sector, which average about $114,000, according to figures provided by CommSec.
A dichotomy had also emerged within the electrical industry between resources and non-resources sector businesses.
“Employers reported that some applicants actively seek work in the resources sector due to perceptions around wages,” the report said.
“This can lead to retention problems for other industries.”
In addition, electrical workers who had purely mining experience were not considered adequately qualified for residential or commercial projects, and vice-versa.
Peter Dyball, director of Perth-based consultancy Pit Crew, said its latest labour market forecast predicted a worsening situation for the electrical, engineering and automotive trades.
“Demand for these services is expected to ramp up towards the end of this year, becoming more acute in 2013 for the metal trades and 2014 for electrical trades,” Mr Dyball said.
The high demand for heavy diesel fitters was expected to become an area of key concern.
The difficulty in recruiting staff in the food and hospitality industry has also worsened, with chefs and cooks in short supply. Of the vacant roles advertised, only 57 per cent were filled within four weeks.
Mal Gammon, chief executive of WA’s creative and leisure industries training council, FutureNow, said labour had been tight in the food trades for near on 10 years, but the situation had reached critical levels.
Mr Gammon said the hospitality industry, which paid an average wage of $50,000, had a tough battle when faced with the competitive wages offered by resources-based employers.
“It’s very difficult for youngsters these days, they hear about mining, they hear about money that can be made elsewhere and the numbers of kids going into hospitality are declining.”
WA’s Department of Training and Workforce Development has invested $45,000 into a Perth-based program to encourage students to take up food trade apprenticeships.
Training and Workforce Development Minister Peter Collier told WA Business News the competition between resources and non-resources-based industries was one of the biggest issues WA faced.
He advised those stepping into the workforce to look past the money. “Don’t take the short-term option of gaining a few extra bucks in the north, stay back, get your qualification – it’ll stay with you for life,” Mr Collier said.
The previously tight labour situation has improved in the construction industry, with shortages reported in the department’s June 2011 report easing because of less activity in the market.
Master Builders Association of WA director of housing Gavin Forster said both the housing and commercial market were flat with no signs of immediate improvement.
But employers were still reluctant to lay off workers in case they are snapped up by the resources industry, Mr Forster said.
