It’s no surprise that in Australia we are facing an extreme labour shortage in our workforce. Now, believe it or not, the shortage is not caused by our youngest generation's lack of willingness or laziness to work. I know…I know we all love to blame the youngest generation coming through, but the fact is we have some of the lowest unemployment rates we’ve ever seen and can technically classify our workforce as ‘full employment’.
So, here’s the real question most Australian businesses are currently asking, ‘Why is there such a shortage, and where have all the workers gone’? Truth be told, there isn’t just one contributing factor but an array of factors that have contributed to the severe workforce shortage.
Lack of immigration
Now one of the most obvious factors, and we hate to bring up the dreaded ‘C’ word…Covid. When Australia shut down its borders for the last couple of years for health concerns, little did we know that overnight was about to halt 2-3 years’ worth of immigration. Immigration is heavily relied upon in Australia, especially in the aged care, hospitability, and health sectors, and the ramifications of closing our borders for those years and stunting our population growth are starting to impact Australian businesses and the job market.
During the pandemic, we did have some relief for visa holders as the Australian Government lifted the working restrictions on visa holders to enable them to work full-time to combat the labour shortage and lack of immigration. However, the visa restrictions have just come back into effect (as of 1st July 2023), meaning student visa holders can only work up to 24 hours per week. So, a new challenge has now arisen as we have now lost a significant proportion of workers who have been working full-time in Australia for the last couple of years, putting more stress on the already short market. It should be noted that some industry sectors, such as aged care and health, are exempt from the working hours restrictions.
Creation of New Jobs and Industries
Here’s some food for thought; think back to the early 2000s when we were at the very beginning of social media in the era of Myspace, Vine and the very first stages of Facebook and YouTube. If someone told you 20 years ago that people would be known as influences and dance on TikTok as their job, you probably would have rolled your eyes and laughed at them. Nowadays, it’s not a crazy job to aspire to become. Fast forward to 2023, social media is a $231 billion industry, and over the last 15 to 20 years, it has created new jobs that no one expected.
Likewise, other industries have continued to push barriers and evolved to create new technology and jobs to keep up with the demands of society. The growth of these new industries and newly created jobs have added more pressure and variety to Australians when they are deciding on their career pathways and is another reason we are experiencing a decline in more traditional careers, e.g., accounting, nursing, teaching, and trades.
Birth Rates
As a society, Australia’s priorities have significantly shifted over time, particularly when it comes to having children. The age at which women have their first child has drastically risen over time, with 52% of new mothers aged thirty or above, compared to the 1960s when 78% of first-time mothers were below 30 years old. The average sizes of families has also changed, with families opting to have an average of 2 children, and Australians these days are more likely to have 1 or no children than they are to have 3 or more children.
You’re probably thinking, why do birth rates have anything to do with the labour shortage? Well, actually birth rates have a lot to do with the shortage. With people delaying having children in their 30s and 40s, they are also indirectly delaying their children to being able to join the workforce. On top of this, they also have fewer children, thus affecting the number of future workers in that generation. Overall this is causing Australia to become an aging population and another reason why immigration is so vital to the workforce in this country.
Summary
So, what does this mean for your business and how do you find good staff? Although there is a lack of immigration, visa restrictions are back in full swing, a high level of competition with newly created jobs and industries, and a shift in life priorities does sound grim, there are still ways in which your business can find and hire the ‘right’ employees to join your team … you might need to step away from your ‘traditional’ hiring process and think outside of the box. These are our tips to find great candidates in this tight market:
Widened your search and looked for transferable skills in a candidate.
Research visa classifications and what working restrictions are for each type of visa, then decide which visa holders are suitable for your organisation.
Ask your network if they know of anyone who might be looking for a new opportunity and who might suit your organisation and position vacancy.
Don’t be afraid to promote internal employees - This is also a great way to retain staff longer.
If your organisation is being hard hit by the labour shortage and needs further recruitment assistance, call us today - we’re always here to discuss your personal scenario and assist in any way we can! Contact us on 0435 481 556 or email hello@blackmanrecruitment.com.au
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