{"id":60078,"date":"2021-10-31T14:27:00","date_gmt":"2021-10-31T18:27:00","guid":{"rendered":"https:\/\/world.edu\/?p=60078"},"modified":"2021-10-31T14:27:00","modified_gmt":"2021-10-31T18:27:00","slug":"local-training-is-the-best-long-term-solution-to-australias-skills-shortages-not-increased-migration","status":"publish","type":"post","link":"https:\/\/world.edu\/local-training-is-the-best-long-term-solution-to-australias-skills-shortages-not-increased-migration\/","title":{"rendered":"Local training is the best long-term solution to Australia\u2019s skills shortages \u2013 not increased migration"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/world.edu\/wp-content\/uploads\/2021\/10\/Skills-shortage-clear.png\" alt=\"\" width=\"680\" height=\"631\" class=\"aligncenter size-full wp-image-60079\" srcset=\"https:\/\/world.edu\/wp-content\/uploads\/2021\/10\/Skills-shortage-clear.png 680w, https:\/\/world.edu\/wp-content\/uploads\/2021\/10\/Skills-shortage-clear-250x232.png 250w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><br \/>\nIn mid October, the New South Wales government\u2019s\u00a0<a href=\"https:\/\/www.afr.com\/politics\/australia-needs-explosive-surge-of-2-million-migrants-20211011-p58z0n\">top bureaucrats urged<\/a>\u00a0new Premier Dominic Perrottet to push for \u201can aggressive resumption of immigration levels\u201d to spur post-pandemic economic recovery.<\/p>\n<p>Industry seized on this as the answer to skills shortages that have resulted from Australia\u2019s border closures. The Australian Chamber of Commerce and Industry\u00a0<a href=\"https:\/\/www.australianchamber.com.au\/news\/population-numbers-reveal-plan-desperately-needed-for-labour-and-skills-shortages\">called<\/a>\u00a0for a near doubling of the skilled migration program, to around 200,000 annually over the next five years.<br \/>\n<center><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Australia needs \u2018explosive\u2019 surge of 2 million migrants <a href=\"https:\/\/t.co\/HsRNrJXp0a\">https:\/\/t.co\/HsRNrJXp0a<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/auspol?src=hash&amp;ref_src=twsrc%5Etfw\">#auspol<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/ausbiz?src=hash&amp;ref_src=twsrc%5Etfw\">#ausbiz<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/ausecon?src=hash&amp;ref_src=twsrc%5Etfw\">#ausecon<\/a><\/p>\n<p>&mdash; James Glynn (@JamesGlynnWSJ) <a href=\"https:\/\/twitter.com\/JamesGlynnWSJ\/status\/1447678762900852737?ref_src=twsrc%5Etfw\">October 11, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<p>In the same week, the National Centre for Vocational Education Research (NCVER)\u00a0<a href=\"https:\/\/www.ncver.edu.au\/news-and-events\/media-releases\/apprentice-and-trainee-numbers-grow\">released a report<\/a>\u00a0that showed a 35% increase in the number of Australians enrolled in courses linked to apprenticeships and traineeships, compared to the start of the pandemic. But the news seemed to fly under the radar.<\/p>\n<p>This significant rise in training may not satisfy those who want a quick solution to the skills shortages. But growth in Australia\u2019s vocational education and training sector is a more sustainable way of filling the gaps.<\/p>\n<h4><strong>Where are the skills shortages?<\/strong><\/h4>\n<p>Earlier this year, a\u00a0<a href=\"https:\/\/www.treasury.nsw.gov.au\/sites\/default\/files\/2021-06\/2021-22_nsw_intergenerational_report.pdf\">NSW<\/a>\u00a0and\u00a0<a href=\"https:\/\/treasury.gov.au\/publication\/2021-intergenerational-report\">federal<\/a>\u00a0government report suggested increased skilled migration would be a big part of Australia\u2019s future success after a pandemic-induced fall in migration and population growth.<\/p>\n<p>More recently, Infrastructure Australia\u00a0<a href=\"https:\/\/www.infrastructureaustralia.gov.au\/sites\/default\/files\/2021-10\/Infrastructure%20Workforce%20and%20Skills%20Supply%20report%20211013.pdf\">anticipated<\/a>\u00a0skilled job shortages could rise to around 100,000 by 2023. It argued Australians needed an urgent skilled migration program but that some skills shortages were likely to persist in the significant post-COVID infrastructure boost.<\/p>\n<p>A June 2021\u00a0<a href=\"https:\/\/www.abs.gov.au\/statistics\/economy\/business-indicators\/business-conditions-and-sentiments\/latest-release\">ABS survey<\/a>\u00a0showed more than a quarter (27%) of Australian businesses were having difficulty finding qualified staff. Among the skilled trades, these were mainly in hospitality, sales, transportation, construction and mining.<br \/>\n<center><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Many pubs, cafes and restaurants are struggling to find staff, with some desperate bosses even offering huge cash payments to would-be workers. <a href=\"https:\/\/t.co\/52G65H834L\">pic.twitter.com\/52G65H834L<\/a><\/p>\n<p>&mdash; Sunrise (@sunriseon7) <a href=\"https:\/\/twitter.com\/sunriseon7\/status\/1452408036128002049?ref_src=twsrc%5Etfw\">October 24, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<p>But there are many issues with relying on migration to fix these, beyond a decrease in international travel due to COVID.<\/p>\n<h4><strong>Migration not the magic bullet<\/strong><\/h4>\n<p>Demographer\u00a0<a href=\"https:\/\/www.smh.com.au\/national\/so-australia-wants-to-welcome-migrants-again-good-luck-with-that-20211021-p591te.html\">Liz Allen has argued<\/a>\u00a0the migration effort may be problematic due to more aggressive international competition to attract needed workers, such as in health care, and Australia\u2019s reduced attractiveness as a destination.<\/p>\n<p>Also, the upcoming\u00a0<a href=\"https:\/\/www.dss.gov.au\/living-in-australia-and-overseas\/recent-and-upcoming-policy-changes\">longer waiting periods<\/a>\u00a0for new Australian migrants to access welfare payments can make similar destinations like Canada and New Zealand more attractive.<\/p>\n<p>Meanwhile, an aggressive migration strategy may not be politically palatable.\u00a0<a href=\"https:\/\/tapri.org.au\/wp-content\/uploads\/2021\/10\/TAPRI-survey-Oct-2021-final-V3.pdf\">Research shows<\/a>\u00a0only 19% of voters agreed with the government\u2019s long-term migration target. The rest supported lower levels, including 28% who wanted nil net migration.<br \/>\n<cener><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\u2018As well as shifting public perceptions about migration, the latest survey suggests Australians are more supportive than they were almost a decade ago about a positive role for government in supporting local manufacturing.\u2019 <a href=\"https:\/\/t.co\/u7dDBJjzRC\">https:\/\/t.co\/u7dDBJjzRC<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/auspol?src=hash&amp;ref_src=twsrc%5Etfw\">#auspol<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/immigration?src=hash&amp;ref_src=twsrc%5Etfw\">#immigration<\/a><\/p>\n<p>&mdash; Dr Liz Allen (@DrDemography) <a href=\"https:\/\/twitter.com\/DrDemography\/status\/1453136236776869889?ref_src=twsrc%5Etfw\">October 26, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<p><a href=\"https:\/\/population.org.au\/media-releases\/igr2021\/\">Another argument<\/a>\u00a0made by the likes of Reserve Bank governor\u00a0<a href=\"https:\/\/www.smh.com.au\/politics\/federal\/immigration-levels-a-factor-in-sluggish-wages-growth-rba-governor-20210708-p587z2.html\">Philip Lowe<\/a>\u00a0is that a lower population leads to tightening of labour markets, fewer unemployed and employers improving wages and conditions causing employment participation rates to rise.<\/p>\n<p>So, what\u2019s a better way to fill the skills gap?<\/p>\n<h4><strong>Apprenticeships and traineeships on the rise<\/strong><\/h4>\n<p><a href=\"https:\/\/www.jobsandskills.wa.gov.au\/training\/apprenticeships-and-traineeships\">Apprenticeships and traineeships<\/a>\u00a0enable individuals to work and learn on the job while they complete a nationally recognised qualification.<\/p>\n<p>The\u00a0<a href=\"https:\/\/www.ncver.edu.au\/research-and-statistics\/publications\/all-publications\/apprentices-and-trainees-2021-march-quarter-australia\">NCVER report<\/a>\u00a0(quarterly, to March 2021) shows 329,585 apprentices and trainees were in training, an annual growth rate of 20.7%.<br \/>\n<center><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/FridayFact?src=hash&amp;ref_src=twsrc%5Etfw\">#FridayFact<\/a>: The number of apprentices and trainees in-training as at the 31 March 2021 increased to 20.7% since the same time last year<\/p>\n<p>Read more: <a href=\"https:\/\/t.co\/gOn4xz4TVn\">https:\/\/t.co\/gOn4xz4TVn<\/a><a href=\"https:\/\/twitter.com\/hashtag\/auspol?src=hash&amp;ref_src=twsrc%5Etfw\">#auspol<\/a> <a href=\"https:\/\/t.co\/989OYmPQC9\">pic.twitter.com\/989OYmPQC9<\/a><\/p>\n<p>&mdash; NCVER (@NCVER) <a href=\"https:\/\/twitter.com\/NCVER\/status\/1451345066338004996?ref_src=twsrc%5Etfw\">October 22, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<p>Commencements in traineeships and apprenticeships increased by 28.5% to 186,745. Of significance are increases such as 45.1% in the 25-44 years group and 58.2% in the over 45 years group. This raises the possibility they are re-training or upskilling, perhaps precipitated by the pandemic.<\/p>\n<p>The growth rate in commencements was approximately the same in trades and non-trades. In trades, technical staff in IT, engineering and science recorded the greatest growth rate. In non-trades, this was for managerial\/professional and administrative roles. These are some of the\u00a0<a href=\"https:\/\/www.nationalskillscommission.gov.au\/2021-skills-priority-list\">roles identified<\/a>\u00a0as being in current shortage or expected to be in strong future demand.<\/p>\n<h2><strong>More Australians training up since pandemic<\/strong><\/h2>\n<p>One reason for this increase is that during the pandemic, federal and state governments increased spending in re-skilling initiatives. Government programs included the Boosting Apprenticeships Commencements program (and its\u00a0<a href=\"https:\/\/ministers.dese.gov.au\/robert\/morrison-government-expands-support-apprentices-secure-australias-future-workforce\">expansion<\/a>) and\u00a0<a href=\"https:\/\/www.dese.gov.au\/skills-reform\/jobtrainer-fund\">JobTrainer<\/a>, which gave 17-24 years looking for work a way to study a course in high-demand sectors for free or by paying a low fee.<\/p>\n<p>Another reason may be that a\u00a0<a href=\"https:\/\/www.mckinsey.com\/business-functions\/people-and-organizational-performance\/our-insights\/great-attrition-or-great-attraction-the-choice-is-yours\">record number of people<\/a>\u00a0meeting the shock of the pandemic have either quit their job or are thinking about doing so in developed economies. More than 19 million US workers have quit their jobs since April 2021.<br \/>\n<cener><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A record number of employees are quitting or thinking about doing so. Organizations are struggling to address the problem, and many will continue to struggle for one simple reason: they don\u2019t understand why their employees are leaving in the first place \u27a1\ufe0f <a href=\"https:\/\/t.co\/1tdMqkfcvK\">https:\/\/t.co\/1tdMqkfcvK<\/a> <a href=\"https:\/\/t.co\/ke7fjZTuOn\">pic.twitter.com\/ke7fjZTuOn<\/a><\/p>\n<p>&mdash; McKinsey &amp; Company (@McKinsey) <a href=\"https:\/\/twitter.com\/McKinsey\/status\/1449419912817033216?ref_src=twsrc%5Etfw\">October 16, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<p>Recent\u00a0<a href=\"https:\/\/www.abs.gov.au\/statistics\/labour\/employment-and-unemployment\/labour-force-australia\/latest-release\">ABS unemployment data<\/a>\u00a0shows fewer Australians are applying for jobs or participating in the workforce. In September 2021, the participation rate fell by 333,000 people and hit a 15-month low, with just 64.5% of people aged 15 and over currently working or actively looking for work.<\/p>\n<p>These data suggest some Australians, whether voluntarily or not, are enrolling in VET courses to retrain themselves for new jobs.<\/p>\n<h4><strong>Can domestic training solve the skills shortage?<\/strong><\/h4>\n<p>There is growing evidence the increase in apprentices and trainees will help alleviate skills shortages in sectors of the economy flexible enough to take them on \u2014 and patient enough to see them trained through the system. Traditionally, these are sectors which have been more exposed to market volatility such as mining and construction.<\/p>\n<p>A recent\u00a0<a href=\"https:\/\/grattan.edu.au\/wp-content\/uploads\/2021\/05\/Rethinking-permanent-skilled-migration-Grattan-Report.pdf\">Grattan Institute report<\/a>\u00a0suggests most skills shortages in a market economy are likely to be temporary. It argues our flexible labour market and relatively demand-driven higher education and VET sectors should lead to increased supply of most in-demand skills over time.<br \/>\n<center><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Federal Government should reset the permanent skilled migration program to favour young, high-skilled workers that bring the biggest economic benefits to Australia.<\/p>\n<p>Our new report by <a href=\"https:\/\/twitter.com\/BrendanCoates?ref_src=twsrc%5Etfw\">@BrendanCoates<\/a> <a href=\"https:\/\/twitter.com\/HenrySherrell?ref_src=twsrc%5Etfw\">@HenrySherrell<\/a> &amp; <a href=\"https:\/\/twitter.com\/wfmackey?ref_src=twsrc%5Etfw\">@wfmackey<\/a>. <a href=\"https:\/\/t.co\/qSXNfRWYL0\">https:\/\/t.co\/qSXNfRWYL0<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/auspol?src=hash&amp;ref_src=twsrc%5Etfw\">#auspol<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/ausecon?src=hash&amp;ref_src=twsrc%5Etfw\">#ausecon<\/a><\/p>\n<p>&mdash; Grattan Institute (@GrattanInst) <a href=\"https:\/\/twitter.com\/GrattanInst\/status\/1398958312108871680?ref_src=twsrc%5Etfw\">May 30, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<p>A\u00a0<a href=\"https:\/\/treasury.gov.au\/publication\/2021-intergenerational-report\">federal report<\/a>\u00a0estimates that to make up for skills shortages caused by an ageing population, there needs to be an annual migrant inflow of as much as 400,000. This is much higher than what employers are calling for. This means even with migration intakes, there is still a key role for domestic training to make up the projected skills gaps.<\/p>\n<p>But for this to happen, the momentum in skills system innovation recommended in the\u00a0<a href=\"https:\/\/www.pmc.gov.au\/resource-centre\/domestic-policy\/vet-review\/strengthening-skills-expert-review-australias-vocational-education-and-training-system\">Joyce Review<\/a>\u00a0\u2014 to ensure the VET sector can keep up with rapidly changing industry needs \u2014 should be accelerated.<\/p>\n<p>The federal government will need to continue working with states and territories, the training sector and industry on VET reform to ensure it is ready for the technological and demographic changes to work. For example, the fourth industrial revolution is disrupting traditional Australian jobs and workers are growing increasingly worried they will be displaced by technology.<\/p>\n<p>It is unlikely earlier efforts to meet the requirements of these skills (such as by\u00a0<a href=\"https:\/\/www.ncver.edu.au\/research-and-statistics\/publications\/all-publications\/the-fourth-industrial-revolution-the-implications-of-technological-disruption-for-australian-vet\">sending employees overseas<\/a>\u00a0to train at Industry 4.0 centres of excellence) will be as easy as before. Our\u00a0<a href=\"https:\/\/doi.org\/10.1080\/13602381.2018.1431250\">research<\/a>\u00a0has shown that besides human capital (knowledge that exists in individuals), innovation in Australia is also driven by social capital (knowledge that exists in groups and networks), which is harder to import.<\/p>\n<p>Hence the need for Australia to develop adequate self-reliance in skills that cannot be easily imported.<\/p>\n<p>If the trend of apprenticeship and traineeship commencements continues to rise to where they were about a decade ago, this may help address the skills shortages. This will still be in the medium to long term as it takes time for people to be trained and qualified.<\/p>\n<p><em><strong>Author Bios: <\/strong>Pi-Shen Seet is Professor of Entrepreneurship and Innovation at Edith Cowan University and Janice Jones is Associate Professor, College of Business, Government and Law at Flinders University<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In mid October, the New South Wales government\u2019s\u00a0top bureaucrats urged\u00a0new Premier Dominic Perrottet to push for \u201can aggressive resumption of immigration levels\u201d to spur post-pandemic economic recovery. Industry seized on this as the answer to skills shortages that have resulted from Australia\u2019s border closures. The Australian Chamber of Commerce and Industry\u00a0called\u00a0for a near doubling of [&hellip;]\n&hellip; <a href=\"https:\/\/world.edu\/local-training-is-the-best-long-term-solution-to-australias-skills-shortages-not-increased-migration\/\" class=\"more\">learn more&rarr;<\/a><\/p>","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[422056],"coauthors":[11733],"class_list":["post-60078","post","type-post","status-publish","format-standard","hentry","category-higher-education","tag-skills-shortages"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Local training is the best long-term solution to Australia\u2019s skills shortages \u2013 not increased migration - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/local-training-is-the-best-long-term-solution-to-australias-skills-shortages-not-increased-migration\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Local training is the best long-term solution to Australia\u2019s skills shortages \u2013 not increased migration - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"In mid October, the New South Wales government\u2019s\u00a0top bureaucrats urged\u00a0new Premier Dominic Perrottet to push for \u201can aggressive resumption of immigration levels\u201d to spur post-pandemic economic recovery. Industry seized on this as the answer to skills shortages that have resulted from Australia\u2019s border closures. 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