Home > Our Publications > Australian Outlook> 2003 > December

THERE are excellent job prospects for today's young people, while older people will be needed in Australia's workforce in coming years, according to a new report by the Boston Consulting Group.
The report says that by the time teenagers and 20-year-olds are 37, Australia, the US, most of Europe and even China will have dramatic shortages of labour.
Well-educated teenagers and 20-year-olds can look forward to an era where they can pick and choose their jobs, in Australia or in countless other countries desperate for their services.
The report was commissioned by the All Indian Management Association and indicates that Australia will require a large educated migrant intake.
But it will be in competition with the rest of the world for these people.
In such an era, the current threat of deflation will be a distant memory because shortages of labour will inevitably push up wage, rates and rekindle inflation.
Boston Consulting says that while computerisation will help reduce the shortages, it will not eliminate them.
It's also good news for Australian baby boomers who have not saved enough money to retire and will need to work well into their 70s and there should be enough jobs for them.
The Federal Government has been running campaigns for some time now trying to encourage employers to take on older workers and trying to encourage older workers to keep working.
And economists say that Australia will not have to wait until 2020 to see labour shortages.
Already labour shortages are emerging in areas like accountancy, credit control and financial planning.
The report says that by 2020 the US will need 17 million people to fill jobs, China (thanks to its one child policy) 10 million, Japan nine million, Russia six million and Germany, France, Spain, the UK and Italy between 2 million and three million each.
Apart from India, countries with 2020 labour surpluses will include Pakistan (19 million), Bangladesh (17 million), and Indonesia, Mexico, Vietnam and the Philippines, each with four million to five million.