KPMG Australia: Businesses Relying More On Migration to Mitigate Skill Shortages

The ongoing boom in Australia is creating low unemployment and skill shortages – in direct contrast to the gloomy situation in other developed nations.

KPMG’s Skilled Migration Survey 2010 (August and September 2010 of 268 listed and private companies) finds that the country’s acute skills shortage is making employers increase their skilled migration intake. And this trend is forecast to accelerate further in the future. Karen Waller, Head of KPMG’s Migration practice says the problem of skill shortages is top of mind since positive consumer sentiment is back and unemployment falls. Queensland and South Australia are suffering a skill shortage because they have been less inclined to engage in the Federal Government’s 457-visa scheme. And in contrast, companies in Western Australia also feel a squeeze on headcount but are using skilled migration much more aggressively.

85% have felt no impact from the GFC when it comes to skilled migration and 50% are suffering from a skills shortage, with Queensland and South Australia the hardest hit. 60 % have maintained their current levels of skilled migration over the past 12 months and only 14 % reduced their intake with Western Australia and Victoria experiencing the highest increase.


And with forecast demand for labor nearing all-time highs, employers are using the 457-visa program to recruit foreign workers in approved occupations for up to four years – 50% expect to hire additional workers under this scheme in the current financial year.

Waller indicates that the 457-visa offers flexibility to meet temporary skill shortages; and 50% of those entering under a 457-visa have subsequently been granted permanent residency. And so the 457-visas offer the advantages of a try before you buy system.

Department of Immigration and Citizenship (DIAC) indicates the number of 457 primary visa holders in Australia as at 30 June 2010 was 68,400 – Waller says applications are rising with primary visa applications in May 2010 were 20 % higher than April 2010., making it the second highest month for applications during the financial year-to-date. Ms. Waller points to improved business conditions and the fall in unemployment, but 55% felt that keeping up-to-date on changes to immigration law posed the greatest concern for their businesses, even though there is an increase in these visa applications.

“The regulations were substantially changed in September 2009 and this impacted areas such as market salary rates and training requirements. The changes meant foreign workers are receiving equivalent Australian salaries and employment conditions. In addition, the stricter training requirements mean that local Australian workers benefit from increased training requirements, “added Ms Waller.


KPMG finds only10 % are preparing for a review of their foreign recruitment programs by the Department of Immigration and Citizenship (DIAC) in the coming 12 months, which according to Ms. Waller indicates businesses aren’t concerned about being monitored by DIAC. However, she recommends they should ensure processes and 457-visa obligations are up to date.

The survey has two other key findings: 80% feel Australia's ageing workforce would impact their businesses within the next 5 years and 66% believe government could better leverage its skilled migration program to support population growth.


Source:http://www.big4.com/news/kpmg-australia-businesses-relying-more-on-migration-to-mitigate-skill-shortages-1880