Friday, July 20, 2012

The skills crisis is very real. Although for most, the solutions remain imaginary.

Our blog has moved. You will find this blog post and fresh content on our new Europe Middle East Asia Pacific blog.

More needs to be done to meet the demand for highly-skilled workers and to prevent increases in youth unemployment, according to a statement released today by the Government's workforce and productivity agency.

Terrific. That’s that sorted then. Who’s for a beer?

This year-long study, which may just as well be subtitled ‘how I learned to stop worrying and state the obvious’ is only addressing a small proportion of the overall problem.

It’s all well and good to talk about the need for training, it is true that only proper teaching and apprenticeship programs can develop the skilled labor we need. But our real problems lie the other side of the line where training becomes education, where training involves spending years at university getting an engineering degree and then building a few years experience on projects. These are the people we need, and you can no more train people to achieve this status than you can train someone to be a doctor. Both things take a comparable amount of time.

There’s a lot of rubbish talked by analysts who point to the fact that we have 350,000 engineers and 325,000 engineering jobs, but this is entirely the wrong measure of the situation.

The relevant figures are all related to slow growth.  On average Australia produces 9,500 engineers each year and loses 4,500 to retirement, creating an average net increase of about 5,000.

That doesn’t sound so bad, until you consider that over the last decade, the additional demand for Australian engineers averages 13,000 each year and has reached over 20,000 on occasions.  The result is a major deficit that threatens the completion of key projects. It is these projects that have proofed Australia from the worst of the global recession. Our LNG infrastructure must continue to develop to capitalize on the business available from emergent markets. This means engineers, lots of them and a sensible plan for getting them in place.

We must develop a long-term, sustainable strategy, including intake and education. We must also banish our reluctance to hire expertise in from the rest of the world.

We have little to lose now in the long run from filling the critical Australian engineering jobs from the UK, USA or even the Philippines. We have a great deal to lose if our national project portfolio continues to buckle under the weight of our current problems.



Trevor Burne is Managing Director of Talascend. He blogs about Australian engineering jobs, and issues affecting Australian Engineers.