AUSTRALIA’S LOOMING SKILLS SHORTAGE?
I read an article a short time ago which high-lights the possible future Australian Skills Shortage.
The article warns Australian businesses of the growing list of skills now in short supply in Australia’s available labour market which was released in a June – September Quarterly Report.
With Australia’s unemployment rate sitting around 5.1%, being able to draw on a pool of unemployed workers to fill a business’ skills shortages is going to become harder, with employers likely to end up in a bidding war for the required skills.
It has been mentioned that Australia’s job market is very healthy as businesses ramp up their hiring activity and activity in some sectors are now back to the levels seen just prior to the Global Financial Crisis (GFC) hitting Australia.
Businesses are switching part time staff to permanent positions, soaking up some of the excess productive capacity in the labour market and the point can be made that we, Australia, are closing in on the point where skills are in short supply.
The article went on to say that employers are putting on permanent as well as temporary staff and those organisations that reduced headcount during the GFC are now growing their teams to take advantage of business conditions. Even at the support level employers are recruiting to fill skills gaps.
Increased demand has quickly exposed the underlying shortage of specialist skills. The employee’s worries about job security may have gone, but now employers are bracing themselves for these shortages which are forecast.
In order to help overcome emerging skills shortages, it has been suggested that employers take action before it becomes a problem.
The article went further by intermating that most employers are aware that the market is becoming candidate short. Subsequently, there has been an increase in the number of candidates who receive multiple job offers and counter offers. Employers are also starting to shorten their recruitment timeframes in response to the growing competition for the top talent, becoming flexible in their set requirements. They’re also investing in their branding in order to ensure the best possible market perception.
Employers may take note of what is happening, so the they can plan for their future, now, by differentiating their offering to appeal to potential candidates. Knowing what factors each jobseeker is likely to base their decision making on is critical to a successful hire – i.e. – communicate clear progression opportunities.
Migration Program Statistics
The following was made available on the Department of Immigration and Citizenship (DIAC) site.
The following table contains migration program outcomes for 2005–06 to 2009–10 and planning levels for 2010–11.
| Category | 2005–06 Outcome | 2006–07 Outcome | 2007–08 Outcome | 2008–09 Outcome | 2009–10 Outcome | 2010–11 Planning Levels9 |
| Partner1 | 36 374 | 40 435 | 39 931 | 42 098 | 44 755 | 42 000 |
| Child2 | 2547 | 3008 | 3062 | 3238 | 3544 | 3300 |
| Preferential/Other Family3 | 1869 | 2136 | 2378 | 2530 | 2468 | 750 |
| Parent4 | 4501 | 4500 | 4499 | 8500 | 9487 | 8500 |
| Total Family | 45 291 | 50 079 | 49 870 | 56 366 | 60 254 | 54 550 |
| Employer Sponsored5 | 15 226 | 16 585 | 23 762 | 38 026 | 40 987 | 44 150 |
| Skilled Independent | 49 858 | 54 179 | 55 891 | 44 594 | 37 315 | 35 200 |
| State/Territory Sponsored6 | 8024 | 6928 | 7530 | 14 055 | 18 889 | 23 000 |
| Skilled Australian Sponsored7 | 19 062 | 14 167 | 14 579 | 10 504 | 3 688 | 3 500 |
| Distinguished Talent | 99 | 227 | 211 | 201 | 199 | 200 |
| Business Skills8 | 5060 | 5836 | 6565 | 7397 | 6789 | 7800 |
| 1 November Onshore | 7 | 0 | 2 | 0 | 1 | 0 |
| Total Skill | 97 336 | 97 922 | 108 540 | 114 777 | 107 868 | 113 850 |
| Skill as percent of total program | 68.1 | 66.1 | 68.4 | 67.0 | 64.0 | 67.5 |
| Total Special Eligibility | 306 | 199 | 220 | 175 | 501 | 300 |
| Total Program | 142 933 | 148 200 | 158 630 | 171 318 | 168 623 | 168 700 |
Note: Numbers have been rounded and totals may not be the exact sum of components.
Migration Program numbers do not include New Zealand citizens or holders of Secondary Movement Offshore Entry (Temporary), Secondary Movement Relocation (Temporary) and Temporary Protection Visas and are detailed at the top of the planning range.
1 Includes spouse, fiancé and interdependent. Net outcome as places taken by provisional visa holders who do not subsequently obtain permanent visas are returned to the Migration Program in the year that the temporary visas expire.
2 Includes Child-adoption, Child Dependent and Orphan Minor.
3 Includes Aged Dependent, Carer, Orphan Unmarried and Remaining Relatives.
4 Includes Designated, Contributory and Non-contributory Parents.
5 Includes Employer Nomination Scheme, Labour Agreement, Regional Sponsored Migration Scheme.
6 Includes State/Territory Nominated Independent Scheme and Skilled Independent Regional.
7 Includes brothers, sisters, nieces, nephews, non-dependent children, working age parents, grandchildren and first cousins who have been skill tested.
8 Net outcome as cancelled visas are returned to the Migration Program in that year.
9 Initial Planning Level.
TOURISM QUEENSLAND’S $100,000 SPENDING SPREE
“Queensland – Where Australia Shines”
Following on from the highly successful Best Job in the World promotion in 2009, Queensland Tourism Minister, Mr. Peter Lawlor announced on the 13th October 2010, in London, a new Worldwide Promotion to encourage young people to come and visit Australia’s shores and more particularly, Queensland.
One lucky holidaymaker and up to nine friends will win Tourism Queensland’s biggest ever holiday prize – an ultimate Queensland holiday worth up to $100,000.
In the first 6 days, the Campaign has touched every Continent in the World. There have been entries from 107 Countries.
“Passport to Shine” is a campaign designed to celebrate Tourism Queensland’s new global brand, “Queensland, Where Australia Shines”, and gives Facebook users around the world an opportunity to create their own Queensland passport and go in the draw to win a $100,000 AUD Queensland Experience.
The campaign has so far delivered Tourism Queensland impressive results including; being shared over 200,000 times (via email, Facebook and Twitter) and has more than tripled the number Facebook ‘Likes’ from 34,000 to over 117,000, in the first week.
Tourism Queensland, because the Campaign was launched in London, hopes it will highlight adventures for British tourists in the sunny state, from snorkelling the Great Barrier Reef to sailing around Queensland’s islands or mustering cattle in the outback. All tourists to Australia, unless they have Australian or New Zealand passports, must have an Australian Tourist Visa.
The most popular of these visas for short tourism visits to Australia is the ETA Visa, as it can be applied for quickly and easily online, removing the need to send in passports or paperwork.
Initially, entrants in “Passport to Shine”, will initially be able to choose a favourite Queensland experience from eight available to place in their passports.
As the campaign progresses, additional Queensland experiences will be released and each time an entrant adds a new experience, the value of their prize doubles – from $25,000, then to $50,000 and, finally, up to the maximum of $100,000.
By choosing a total of three experiences by the end of the campaign, users will be eligible for the ultimate $100,000 Queensland holiday experience. Up to 10 people can share this holiday and they will be able to experience incredible “shining” moments in Queensland though an itinerary designed by Tourism Queensland.
You can enter the competition via www.facebook.com/visitqueensland.
The competition will close on 22 November, and the winner will be drawn and contacted by the end of that month, Mr Lawlor said.
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Migration cuts may prompt skills crisis
There have been articles written recently by various newspapers, regarding this topic. One such article states:-
“Large cuts to migrant numbers could exacerbate a looming skills shortage and lead to wage blowouts as the resources sector gears up for another boom, industry analysts warn.
The housing construction industry has been complaining about a structural undersupply of labour and the lack of a dedicated migration program for the residential sector.
But it also says migration targets may not be enough to maintain a working age population.
“There’s no doubt there is a shortage of labour there,” Housing Industry Association (HIA) chief economist Harley Dale was quoted as saying.
“It’s not as acute as it has been at some periods in the past simply because industries were recovering from what was a very weak 2008/2009, but we have pretty clear evidence that there are widespread labour shortages.”
A recent HIA survey found eight of 13 housing trades were under-supplied in the June quarter.
“I think we will get a situation where we’re going to continue having a challenge providing sufficient skilled labour,” he said.
He went on to say that as demand picked up, there would be a repeat of the labour shortages and wages blow outs of 2006, 2007 and early 2008, particularly in resource-rich states of Western Australia and Queensland.
Australian Bureau of Statistics (ABS) figures released on Thursday show new capital investment fell unexpectedly in the June quarter, but investment plans for 2011 still look strong.
Mining investment is expected to increase by between 40 and 50 per cent over the year.
Another economist was quoted as saying ”Wage pressures were expected to increase in resource rich areas as the job market tightened after the sharpest migration downturn in more than a decade and a half”.
“There has been a sharp reduction of net inflow of people, net migration, over the last couple of months”.
“It’s one of the sharpest downturns that we’ve seen in long-term migration in around about 16 years”.”
Since this article was published, another article, even more recent, has the Headline:-
AUSTRALIA is heading towards recording its biggest drop in immigration numbers in 90 years.
“Although official data will not be published until next month by the Australian Bureau of Statistics, analysis of long-term entrant figures – an advance indicator of official migration levels – show a 32 per cent fall in the past year.
Demographic experts Macroplan Australia said the number of long-term and permanent entrants – including permanent settlers, students and temporary workers – fell by 111,000 people, from 341,000 to 230,000 in the 12 months to July 31, 2010.
“The fall is the greatest since just after the First World War, when arrivals were boosted to record numbers of returning soldiers,” said Robert Hall of Macroplan.
“The following year, numbers obviously subsided back to normal levels.” That aside, the decline in the 12 months is the largest since 1901.
“If there is only a small change in overseas arrivals then you should not take much notice, but if there is a big difference drop then you would expect that to filter through to our official migration figures,” said Neil Scott, assistant director at the ABS.
Immigration was a hot issue in the federal election, with the Coalition promising to cut net migration to 170,000 each year, a figure Labor said would be achieved anyway through a natural decline from the high numbers recorded before the GFC.
The Intergenerational Report, produced by the Treasury, has assumed average annual migration of 180,000 from 2012 onwards, but Labor has been careful not to enshrine this figure as a target.
Macroplan said for net migration to fall below 200,000, the government would have to introduce a variety of new restrictions on migration quotas and visa restrictions.
It says the fall in arrivals in the past year was due to a combination of factors including the GFC, government policy reducing the number of visas available, and reports of racist violence against Indian students.
Robert Hall said a drastic cut in immigration would be disastrous.
“Over the past 20 years our economic growth has been 3.4 per cent a year, but if migration falls to the Government’s target of 180,000 a year, it would fall to 2.7 per cent – meaning a big drop in our standard of living,” he said.
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Health Matters
| The following item has been advised to all Registered Migration Agents by our Association – the Migration Institute of Australia.
The Chief Medical Officer, otherwise known as “MOC” – Medical Officer of the Commonwealth, is ultimately responsible for decisions regarding the health of all visa applicant’s. The majority do not have to be referred to him, but where specific cases require further examination, the ultimate decision is made by him and the Department of Immigration and Citizenship (DIAC) must comply with his decision, which can lead to an applicant’s visa being refused on Medical grounds only.
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Dr Paul Douglas, DIAC Chief Medical Officer and Global Manager of Health reported on:
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UK to slash Aussie work visas
This was an article written in the Australian Newspaper dated August 28 2010 by Mr Peter Wilson, their European Correspondent.
BRITAIN’S looming clampdown on the number of Australians it allows to work there is likely to be even tougher.
This follows the release yesterday of new figures showing an upsurge in net immigration.
The Conservative Party promised before its election victory in May that it would cut the level of net immigration to below 100,000 a year, largely by reducing the number of economic migrants from Australia and other countries that are not members of the European Union.
But yesterday’s figures showed British net immigration rose last year from 163,000 to 196,000, meaning the cutback will have to be even steeper than anticipated.
David Cameron’s government has already imposed an interim cut of 5 per cent on the number of skilled migrant workers allowed into the country from outside the EU while it consults employers on how it should impose its longer-term cuts from next April.
Immigration Minister Damian Green said the rising number of arrivals showed “why we must tighten our immigration system in order to reduce net migration to manageable levels”.
Australian companies operating in London plan to join their British counterparts in using the consultation process over the next three weeks to argue that the government should not make it harder for them to move foreign employees to Britain, or to hire foreigners who find their own way there.
That lobbying campaign has been made harder by the rise in net immigration, even though yesterday’s statistics shows non-EU workers are not behind the rising level of immigration.
The main causes were a sharp increase in the number of foreigners entering Britain to study, and a fall in the number of Britons leaving. The net flow of Britons shifting overseas dropped from 90,000 in 2008 to 36,000 last year, lifting net immigration by 54,000.
The only way the government can be sure of keeping its promise to lower net immigration is by imposing particularly heavy cuts on new entrants.
And Britain’s membership of the EU means it is legally bound to allow free access to citizens of the 26 other EU members, leaving Australians, Americans and Asians as the main victims of the threatened cutbacks.
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Employers lament GFC staff cuts: survey
A survey has just been undertaken by Sweeney Research on behalf of HUDSON, a recruitment group in Australia, New Zealand as well as throughout Europe, USA, China, Dubai, Hong Kong and Singapore.
It has been suggested that businesses in Australia and New Zealand may have cut into the muscle when they tried to trim the fat with staff redundancies during the economic downturn, a survey has found.
Sweeney Research surveyed 605 employers and 1690 employees across Australia and New Zealand.
The survey found 84 per cent of employers surveyed in both countries believed they had made too many redundancies during the global financial crisis and many now lacked people power.
Hudson chief executive Mark Steyn warned that the talent exodus predicted last year had gained momentum.
“Almost two-thirds of employers and employees alike say their teams are under-resourced and 54 per cent of employees say the team they work in is now weaker,” he said in a statement.
“During the downturn, many organisations ‘cut the fat’ but these results suggest that many also ‘cut into the muscle’.
“Employers desperately need to bolster not only the size, but also the strength of their teams to bring their businesses back to a place where they can compete effectively in their markets and establish a solid foundation for sustainable, long-term growth.”
From a survey such as this and the results suggests that Australia and New Zealand have trimmed to such an extent that those coming from off-shore may have the ability to find employment with such Companies as they try and pick up the slack to build their businesses and remain competetive.
The writer has also read another article which has suggested that the short-fall in Skilled Workers is evident in the increased number of applications for Skilled Visas and will most likely have a flow-on affect to “457″ Business (Long Stay) Visas which are also on the increase.
The Department of Immigration and Citizenship (DIAC) have also just recently made an announcement to alter the way their Parramatta Office will process ENS & RSMS visa applications. Due the large increase in applications in 2010, they are now transferring approximately 1,700 application, at random, to either Perth or Melbourne DIAC offices to speed up the processing of these visas.
General Skilled Migration Visas – NEW Priority Processing
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Employer Sponsored Workers
Increase to the Temporary Skilled Migration Income Threshold (TSMIT)
From 1 July 2010, the Temporary Skilled Migration Income Threshold (TSMIT), was indexed by 5 per cent, in line with the Australia-wide increase in average weekly earnings. This will increase TSMIT from $45 220 to $47 480.
The increase to the TSMIT will apply to all nomination applications which are decided on or after 1 July 2010, regardless of lodgement date.
A “457″ Standard business sponsor is required to pay their overseas workers the market salary rate. The increase to TSMIT means that where the market rate for a position is less that $47 480, the position cannot be nominated under the “457″ program.
The TSMIT is set at this level to ensure that all Subclass “457″ visa holders have sufficient income to independently provide for themselves in Australia.
The TSMIT helps ensure that Subclass “457″ visa holders do not impose undue costs on the Australian community or find themselves in circumstances which may put pressure on them to breach their visa conditions. This is particularly important given these workers do not have access to a range of government support available to Australian citizens and permanent residents.
Increase to the high-income exemption to the English language requirement
In line with the increase to the Temporary Skilled Migration Income Threshold (TSMIT), the high income exemption to the English language requirement will also be indexed by 5 per cent. This means that from 1 July 2010, the exemption salary amount will increase from $81 040 to $85 090. This applies in relation to all nominations lodged on or after 1 July 2010.
The transition to ANZSCO will not affect which occupations are exempt from the English language requirement, except that from 1 July 2010 these occupations will be described in ANZSCO instead of ASCO. All occupations exempt when described by ASCO are still exempt when described by ANZSCO.
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Annual Adjustment of Fees and Charges – 1 July 2010
From 1 July 2010, the Migration Regulations are amended to effect the annual adjustment of most fees and visa application charges (VACs).
This year, certain fees and charges under the Migration Regulations are increased by 1.8 percent, in accordance with the Consumer Price Index (CPI). The 2nd instalments of the VACs for Contributory Parent and Contributory Aged parent visas increase in accordance with the Contributory Parent Visa Composite Index (CPVCI), calculated by the Australian Government Actuary, which is 10.6 percent for the 2010-11 financial year – from $34,330.00 to $37,965.00.
All increases are rounded to a multiple of $5.00.
The amount of the increase to these fees and charges does not exceed the applicable charge limits set out in the Migration (Visa Application) Charge Act 1997 and the Immigration (Education) Charge Act 1992 and the process is completed in accordance with government policy.
The Immigration (Education) Regulations 1992 (the Immigration Education Regulations) are also amended from 1 July 2010 to effect the annual adjustment of fees for prescribed English courses for migrants and other persons prescribed in section 4 of the Immigration (Education) Act 1971 (the Immigration Education Act). The prescribed fee for an English course provided in accordance with section 4 of the Immigration Education Act is increased from $400 to $410.
Adjustments to these fees and charges occur each year, effective 1 July. The last fee and visa application charge adjustment took effect from 1 July 2009.
Additional information
Forms
The July 2010 version of the Charges Form 990i reflects the changes in fees and visa application charges which result from the annual adjustment process.
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