There is no doubt that the current global pandemic has had a significant impact on Australian businesses. From small businesses to large corporations, the shortage of skilled workers is causing many companies to reassess their operations. While the long-term effects of the labour shortages are still relatively unknown, it is clear that businesses must adapt to survive.
As a result, many businesses have had to change their operations to meet the needs of their customers. Companies have to rethink their hiring strategies, prompting them to look overseas for talent.
According to Seek Managing Director Kendra Banks, the five sectors that have been hit hardest with staff shortages are:
- Trades
- Hospitality and tourism
- Healthcare
- Manufacturing
- Technology
However, there are some sectors where the labour shortage has had a more significant impact than others. In particular, the agriculture and construction industries have been hit particularly hard by the lack of workers. This has resulted in many challenges for businesses, including increased food prices, longer lead times, and higher production costs.
The reasons behind the labour shortage in Australia
The current Covid-19 pandemic has resulted in a significant increase in demand for workers in Australia. This increase in the demand for workers has resulted in equally substantial wage increases, which has helped boost the economy. In addition, the Federal Reserve Bank of Australia and other central banks worldwide have played a crucial role in fighting inflation by raising interest rates to keep prices in check.
How businesses are overcoming the labour shortages
Whilst Australia has experienced a rise in the number of companies and employment opportunities, this has come at a cost, with companies struggling to find the right workers to fill their vacancies.
One solution businesses are exploring is outsourcing some of their operations to countries with lower wages and fewer labour regulations. This can have benefits, as companies can take advantage of the lower costs and flexible labour laws. Still, it can also have drawbacks, such as compromising quality or safety standards.
Another way to address it is by looking at ways to increase productivity and reduce costs. For example, businesses can implement more automation to replace some of the tasks workers used to perform. Additionally, companies can investigate using technology such as remote working to help them achieve more with less.
A new report has found that one in five pensioners want to work, which could also help solve the current staff shortages in Australia. The Australian Council of Social Service (ACOSS) study revealed that more than one in ten Australians over 65 say they would like to return to the workforce if they could find the right job.
The long-term effects of the current labour shortages in Australia
Australia's current labour shortages have led to an increase in the use of temporary and contract workers and the use of technology such as remote working. Businesses have been quick to adopt these new working methods to meet the increased demand for labour. However, there are some concerns over the long-term effects of these changes. For example, it is possible that these working methods could lead to higher staff turnover rates, leading to more expensive replacement costs. There is also the possibility that businesses will lose skilled workers as they move to remote work. The current labour shortages in Australia could significantly impact the Australian economy in the long run.
If you're a business owner, now is the time to think about how you can adapt your business to the new reality. What changes do you need to make to ensure your business can continue to thrive?
If you want to know about how Industry Partners Australia can assist your business, feel free to contact us here.
