Construction and health sectors continue to suffer skills shortages

The construction and health care industries will continue to suffer skills shortages, one expert argues, with new government data revealing trades involved in the building sector recorded some of the highest increases in vacancies during September.

But figures over the past four years show the aged care industry is also suffering a severe shortage, meaning both the building and medical care sectors will be stretched for talent for some time as unemployment drops below 5% by the end of the year.

New figures from the Department of Education, Employment and Workplace Relations found skilled vacancies increased by 0.1% to 46.2 points, and are now 16% higher than the same level in September 2009.

The largest monthly increases were found among hairdressers, up 9.6%, followed by automotive workers, up 6.8% and medical officers, up by 6.7%.

However, CommSec economist Savanth Sebastian notes many of the monthly increases were found among those trades within the building industry, such as metal workers and electrical engineers. He says this is a clear confirmation the construction and mining industries are suffering, and will play a part in exacerbating the issue of a two-speed economy.

“These trades are heavily linked with the construction and mining services, and they are going to be affected by these vacancies. In particular, dwelling commencements were at a six-year high during the June quarter, so clearly there is strong demand, but not enough supply.”

In particular, although skilled vacancies for construction workers remained flat during September, they are up by over 94% for the year. Vacancies for electrical workers are up by over 38% for the year.

“This is something the Reserve Bank is well aware of, and they know the concerns of skilled workers in some areas are going to continue to cause a two-speed economy. This will continue to be an issue. Unemployment is continuing to fall and could end up under 5% by the end of the year, increasing the problem.”

Sebastian’s comments come shortly after the Housing Industry Association has pointed out a severe lack of skilled workers in the industry. Sebastian says the issue will continue to play a part as home building continues to fall, putting pressure on prices.

The survey also reveals that over the past four years, vacancies for science professionals, health diagnostic workers and medical practitioners have all increased by at least 50%. Sebastian says the aging population has caused a stretch in the medical industries, ensuring it will remain a major point of debate for years to come.

“The aging population will continue to play a part in the overall economy, as medical professions and associated workers have actually overtaken employment in the retail industry. It’ll be a major part of the economy for a long time to come.”

Top 10 Monthly Increases In Skilled Vacancies:

• Hairdressers – 9.6%
• Automotive Workers – 6.8%
• Medical Officers – 6.7%
• Metal Workers – 3.1%
• Electrical Workers – 1.8%
• Food Workers – 0.7%
• Organisation and Information Officers – 0.7%
• Social Workers – 0.6%

Top 10 Increases 2006-10:

• Science Professionals – 99.4%
• Health Diagnostic Officials – 62.4%
• Medical Practitioners and Nurses – 52.7%
• Information Professionals – 39.1%
• Construction Trades – 27.1%
• Engineering and ICT Technicians – 20.7%
• Engineers – 20.4%
• Sales, Marketing and PR – 9.5%
• Transport and Design – 8.8%
• Education – 6.1%

Increases by State:

• Northern Territory – 6.7%
• Queensland – 2.4%
• Tasmania – 0.6%
• Victoria – 0.4%
• Western Australia – 0.2%
• New South Wales – 0.1%
• South Australia – -2.2%