A recent global index has given Australia a high score of 8.0 for wage pressure in high skilled industries, rising at a considerably faster pace than in low-skill industries. These findings suggest a new skills shortage is emerging and the country is now facing a more focused problem than those previously experienced.
This notorious outpace between low and high skilled industries presents a clear sign that employers in high-skilled industries are competing for talent. The high score also shows those in low-skilled industries don’t see a fast wage raise since their positions are in less demand.
The global skills index ranks Australia 17th on the list of 31 countries overall for efficiency of the skilled labour market, while the first place was taken by Belgium and New Zealand falls on the 10th place. Despite this result, digging deeper into the data shows Australian employers face a tight labour market for highly skilled professionals in highly skilled industries.
This report has taking into consideration seven main indicators and each received a score out of 10. Australia’s noticeable overall wage pressure score (6.5) suggests wages are increasing above historic levels due to employers increased competition for skilled professionals. Employers might have to start looking into more innovative strategies to attract and retain top talent as talent pools continue to tighten.
Australia’s overall score declined slightly from 5.5 in 2013 to 5.3 in 2014, which shows consistency while on a GDP slow down from 2012 – 2013. But GDP is expected to increase this year, and overall wage pressure may also face an overall score increase next year.
