I’m sure many of you have seen in the news that the skills shortage in industries, such as mining and construction is becoming increasingly worse.
According to a study by Ernst and Young, the lack of skilled talent in the Australian workforce is the third highest constraint on the economy’s growth.
The Reserve Bank of Australia (RBA) explored the skills shortage in a speech on June 13th, where at one point RBA Governor Philip Lowe discussed results from a NAB business survey.
The survey results showed that the current availability of labour with suitable skill sets is low and this has placed constraints on many businesses growth.
Wages have increased in response to these shortages, but nowhere near as much as they have in the past.
So, where to from here?
When Australia was experiencing the resources boom, universities were turning out around 300 mining students a year, as opposed to nowadays where we are seeing less than 50 graduates enter the industry each year.
In order to attract more students to study mining courses many people think the government, industry and education sector need to work together to support students by offering incentives or something of the like.
The national economy depends on the mining and construction industries for growth so it’s important that we have people who are capable to help grow the future of Australia.
Until next time…