State's skills gap worsens

The shortage of skilled labour in Western Australia has worsened significantly over the past three years to record levels, in sharp contrast to the rest of the country where the problem has passed its peak.

New Federal Government data shows that skilled vacancies in WA increased by 13.3 per cent over the year to July 2005, while skilled vacancies nationally actually fell by 6 per cent over the same period.

WA aside, skilled vacancies fell in every mainland state, including Queensland, which is also enjoying a resources-led investment boom.

The extent of the skills shortage in WA is highlighted by long-term trends in the Department of Employment and Workplace Relations’ skilled vacancies index.

Historically, WA and Australia have followed a similar pattern, as shown in the attached graph, but that has changed dramatically over the past three years.

Since mid 2001, when skilled vacancies hit a trough, the index has risen by 5.8 per cent nationally but by 131 per cent in WA.

The vacancies data comes at a time when both the federal and state governments have been promoting their plans to deal with the skills shortage, through increases in skilled migration and extra funding for training.

However, a WA Business News boardroom forum on this topic held this month heard from a range of industry leaders who believe both government and the business sector need to do more to deal with the problem (see page 12).

The critics include Dale Alcock, a director of home building group Alcock/Brown-Neaves, who is concerned that union influence is standing in the way of much-needed reform to the apprenticeship system.

“This State Government needs to get some political will,” Mr Alcock said.

“The unions aren’t the be all and end all. The unions have a part to play, they have a voice, but they cannot control the agenda in terms of trade training in this state.”

The big increase in skilled vacancies in WA corresponds with economic data showing the state outperforming the rest of the country by a wide margin.

For the past two years, WA’s economy has grown at about double the rate of the national economy.

WA is expected to continue to outperform the nation in 2005-06, with forecast growth of 4.5 per cent compared with 3 per cent nationally.

WA’s Education and Training Minister, Ljiljanna Ravlich, said the booming resources sector and a rampant domestic housing market had created unprecedented levels of demand for skilled workers in the trades.

“The Government is deeply conscious of the threat the problem poses to WA’s buoyant economy,” she said. “We have identified a number of areas where prompt action is needed and these will be addressed as a matter of urgency.”

The minister said the Government had already put in place a $21 million program to tackle the shortages.

These include plans to have 30,000 apprentices and trainees in training by 2009, extra funding for “rapid response training” to address shortages, and a statewide School Apprenticeship Link program to introduce teenagers to the trades while still at school.