SA Business Journal

Skill up for today and tomorrow

Andrew Kay
Tuesday, August 23rd 2022

Local supporters of our two AFL teams may see some irony in the launch of National Skills Week coinciding with the Power and the Crows exiting the fixture without contesting the finals. However, for the business community, shining the spotlight on skilling, re-skilling and upskilling our workforce has never been more timely.

The Jobs and Skills Summit is being held in Canberra in a fortnight, and the issues paper that informs the summit draws clear links between the shortage of skilled workers in this country and productivity underperformance.

The issues paper notes that Australia’s skills and training system has not adapted to meet the economy’s needs. This includes performance benchmarks and indicators in the key skills agreement between governments either not met or not on track to be met. The VET scheme exemplifies this. Of the government-funded VET students who completed their qualification in 2020, only 60 per cent had improved their employment status after their training. 

Having trouble getting a tradie lately? 42 per cent of technician and trade occupations are currently facing a skills shortage compared to 19 per cent for all assessed occupations. Completion rates for trade apprentices declined to 54 per cent for those who commenced in 2017, five points lower than completion rates for those commencing in 2013. Skills shortages are projected to continue in technician and trade occupations, so the problem will be with us for a while yet.

In the June Quarter the South Australian Business Chamber William Buck Survey of Business Expectations, businesses told us that they are finding it increasingly hard to source workers due to the tightening labour market. With our unemployment rate now sitting at four per cent, we are effectively in a full employment scenario. It is even tougher for our regional members. They find it difficult to attract skilled and unskilled workers in this environment despite many innovative incentive schemes geared to make the transition from city to country more attractive.

Business has a role to play in working with the government to stress the importance of vocational training and the rewarding career opportunities it can provide. Getting out to schools as part of National Skills Week and, more generally, talking to students about pathways and work experience is a small and necessary investment in time to help build interest in apprenticeships as a viable alternative to university. 

As important as investing in skills for the future is, this does not provide the immediate fix many businesses seek. At the South Australian Business Chamber, we work with many businesses that are engaging in programmes to upskill or re-skill their employees to help address the issue. Such training can alleviate the pressure and help staff retention as the work becomes more diverse and enjoyable. It is not always possible for staff to progress upwards in a business. Still, studies show that the ability to move sideways and learn new skills is highly regarded and often preferable to the status quo.

Author

Andrew Kay

Chief Executive Officer
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