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Skills shortage worse

AUSTRALIA'S economy continues to boom and this is putting even greater strain on the workforce and, in some cases, forcing up wages.

The people who are really struggling are small businessmen, who cannot compete with the big companies when it comes to attracting workers.

One way to solve the problem is to attract older workers back into the workforce and the Federal Government has appointed a special Minister, Peter Dutton, in a new position, to encourage more people back into the workforce, especially those on benefits and older workers.

The latest national small business survey, by the CPA Australia accounting group, found that nearly one in two small businesses cannot compete with big business when it comes to finding skilled workers. Main reasons for this were given as better pay (27 per cent); job security (20 per cent); better perks and benefits (16 per cent) and better careers (14 per cent).

"There are skill shortages in most trades in the construction and health sectors," Judy Hartcher. business policy advisor of CPA Australia accounting group, said. "Accountants, civil engineers and childcare workers also are in demand."

Many surveys this year have highlighted the lack of skilled workers as one of the biggest problems for small business. A total of 61 per cent of them have had recruitment problems.

Of the accountants surveyed, 78 per cent said they wanted greater financial incentives for employers and recommended the retraining of older workers to help fill the skills shortage.

Australian Industry Group chief executive, Heather Ridout has warned that unless the shortage of skilled tradespeople was overcome it would have an impact on Australia's economy.

Falling apprenticeship numbers are failing to keep up with the natural loss of workers and the majority of tradespeople are now over 45. One reason given for this is that Australia's schools are now focusing on

encouraging their students to try and enter university, partially to boost the schools' standing in society and with education groupings. Students are also more interested in having a job in technology or computer based fields, rather than take up the less glamorous jobs.

This is in spite of the fact that many tradespeople now earn far more than qualified professional staff, such as younger lawyers and accountants.