Australia’s job creation has been explosive, beating estimates by 200% yesterday. Unemployment is plummeting, already sitting at a level where most economists consider an economy ‘fully employed’.
Yet Australian job creation could soon hit the brakes, not for lack of jobs, but for lack of workers.
A new joint report from the Australian Industry Group and Deloitte explains that one of Australian CEOs largest concerns is that a shortage of available workers will crimp their companies’ growth prospects.
As shown below, there’s been no shortage of demand for labour. Almost every large company has been hiring over the last six months. The majority of all companies, large and small, are looking for more people. This says a lot about the state of Australia’s economy:
In fact, 34.6% of Australian companies surveyed believe that they face a ‘high or extreme’ risk from labour shortages. 85% believe that there is a moderate risk or higher. When asked about the long-term future, out to 2015, CEOs level of concern only grows.
Business owners are already struggling to cope, as many much-needed positions remain vacant. CEOs blame a skills shortage, but as shown below the types of positions vacant are pretty standard skill sets for people living in a developed nation:
Obviously, a major China/commodities slump could put a large short-term dent in the Australian growth story, but the report makes clear that Australia faces a long-term labour shortage problem. Expect a lot of Americans and Europeans to arbitrage the difference, and Australia’s star to keep rising for a very, very long time.
And don’t miss Australia in Meet the MAVINS: Six Surging Countries You Must Pay Attention To This Decade >>
You can find the full labour report here.