AI Group calls for immigration boost

Australia needs to increase its immigration intake by 30,000 to 220,000 for the 2014-15 financial year in order to meet current and future skills shortages, suggests the Australian Industry Group.

The residential and commercial construction cycles will pick up significantly from 2014-15, which will in turn lead to further skilled trade shortages, said AI Group Chief Executive Innes Willox.

“This will be exacerbated by the flow of construction workers into the mining sector and reduced trades apprenticeship numbers in recent years.

“In particular, the flow of skilled workers into the mining industry from construction and industrial sectors will continue as mining moves from its current investment and expansion phase into a very strong period of growth in output and exports.

“These skills shortages and labour hire difficulties were seen clearly in recent AI Group construction sector surveys. During the six months to September 2013, 67.7% of respondents reported either major or moderate difficulty in the recruitment of skilled labour (up from 65.7% six months ago). The sourcing of subcontractors was also a dominant supply constraint with 47.1% citing major or moderate difficulty (up from 43.8%).

“The skill shortages situation is even more serious in relation to occupations requiring science, technology, engineering and mathematics (STEM) skills. The occupations where there are shortages due to low STEM levels, as illustrated by a recent AI Group report: technicians and trade workers (41%), professional (26.6%) and managers (26.3%). This is deeply concerning considering the Office of the Chief Scientist recently reported that 75% of the fastest growing occupations require STEM skills and knowledge.

“While upskilling our current workforce remains a priority, a larger skilled migration program will be necessary to manage the current situation and to assist in smoothing the path to future growth across the economy,” Willox said.

Click here to view AIG’s full submission to the federal government on the size of the immigration program to be set in the May Budget.