NECA concurs with government position on skills shortages in recovering economy

The National Electrical and Communications Association (NECA) has welcomed the recent release of the Australian government’s Keep Australia Working report, stating that it supports NECA’s position that it is essential to maintain apprentice numbers during difficult economic times to address emerging skills shortages in a recovering economy.

The Keep Australia Working report focuses on an important lesson learned in the early 1990s - that apprenticeship numbers fall during economic slowdowns with longlasting effects that can amplify skill shortages when the economy recovers. The report recommends that in tighter economic conditions, industry continues to take on apprentices at a sustainable rate to avoid potential labour and skill shortage lags.

Keep Australia Working cites National Centre for Vocational Education Research (NCVER) reports that trade apprenticeship commencements (seasonally adjusted) have declined during the last four consecutive quarters, with a decrease of 21.2% between the March quarter 2008 and the March quarter 2009. NSW Department of Education and Training figures also reflect this significant drop with a 19.8% decrease in utilities and electrotechnology apprenticeships in the last financial year.

The government’s findings support those of NECA in its National Skills Shortage Strategy Workforce Projections Project. NECA’s project was carried out during 2007-2008 with around 5500 industry representatives, employers, employees, registered training organisations, group training organisations and other key stakeholders. It identified significant skill shortages in the electrotechnology industry and that the global economic crisis was impacting on the current and projected labour market and sources of business.

NECA's national Chief Executive Officer, James Tinslay, said: “The significant drop in apprentice numbers in the electrotechnology industry during the past 18 months and the skills shortages identified through our research are extremely concerning, as apprentices represent the skilled workers of the future. We need to make sure that our skills base is maintained - even in tighter economic conditions - so that our industry is able to take advantage of the opportunities that come with economic recovery.

“The government’s understanding of this situation and targeted additional support to employers in taking on apprentices is imperative to ensuring intakes continue at a sustainable rate. This is essential to avoid the labour and skill shortage lags experienced in the early 1990s and to guarantee the future success of the industry.”