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Huge skill shortages due to high deman in Minning and construction industry

Huge skill shortages are experienced in relating to mining, and construction industries . This shortages are encouraging these industries to hike the minimum salary paid to the workers. The skilled workers from other industries are trying to enter into these industries due to high salaries . This phenomena is having a pronounced effect on other areas of the economy.

A survey was conducted by the major players in the industry in regards to finding a employee for the vacancy and how long it is taking the employer to get a right employee. It has indicated that long waiting periods are estimated by different industries in gaining right employees.

The results of the study showed that approximately 40 per cent of the firms covered by researchers were facing difficulties in recruitment.

On top of this, the hardships were felt despite a measurable drop in national job vacancies from
237,000 in 2010 to 219,000 in 2011, according to the Department of Education, Employment and Workplace Relations Vacancy Report.

Australian businesses are clearly feeling the pinch of the skills shortage, with 42 per cent reporting that it takes more than three months longer to recruit staff than it did a year ago.

Businesses are seeing this as a significant issue and are therefore doing what they can to attract skilled performers, whether it’s improving benefits packages or recruiting workers from interstate and overseas.

However, a large number of firms were shown to be bumping up salaries in order to attract talent – particularly in the mining sector – but if the labour pool does not have the numbers available to meet demand, then businesses begin to suffer.

Businesses are in the difficult position of having to turn new work away – a tough decision to make given the uncertain economic environment.

The industry is trying other ways to hire people from overseas to fill their long standing positions. The immigration department is also planning in tune with the mining companies to formulate a new system , where in it will facilitate huge mining companies to get workers from overseas with limited migration requirements.

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