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Business associations are hoping the Jobs and Skills Summit announced on Monday (11 July) will help the find solutions to the critical labour shortages affecting nearly every sector of the Australian economy.
On Monday (11 July), the latest Flutracking data, which keeps tabs on respiratory illnesses such as influenza and COVID, showed 2.5 per cent of people are off work compared with the five-year average of 1.5 per cent and absences are sitting at 50 per cent above the average level due to staff illness.
And rumours of new mask mandates or lockdowns as well as suggestions that working from home become the norm again were met with outrage from businesses that said stay-at-home orders could undo the progress made since lockdowns.
The Australian Retailers Association (ARA) said the Jobs and Skills Summit, which will be held on 1-2 September, needs to look at long-term economic reform in the areas of women’s workforce participation, including childcare, as well as skilled migration and training and education to accelerate Australia’s economic recovery.
ARA chief executive Paul Zahra said existing labour and skill shortages are crippling the economy and the summit is a golden opportunity for government and industry to address the challenges together.
“There’s rising inflation, increased fuel and energy costs, interest rate hikes, and ongoing supply chain issues, but what’s top of mind for retailers right now are labour and skill shortages. Businesses just simply can’t find enough staff, be they customer facing roles or more specialist positions in data and digital. From our smallest cafes to our largest multi-nationals, the issue is widespread,” Mr Zahra said.
“There are nearly half a million job vacancies across the country, including over 40,000 in retail trade alone, which is an increase of nearly 40 per cent in just three months. The staffing challenge is a handbrake for business, and many are not trading at their full potential.
“The Jobs and Skills Summit will be an important gathering where we can review existing policy settings and embark on reforms that will accelerate our economic recovery.
“There are some practical measures we’d like to see discussed at the Summit. They include a review of employment income as part of the age pension income test so we can enable more mature age workers and pensioners to fill existing gaps in the workforce.
“We also need to see reduced red tape around immigration to streamline the process for foreign workers into the country. Unfortunately, Australia’s brand has been damaged due to the Covid lockdowns from the past two years, and we’re struggling to [compete] globally for foreign workers, who no longer see us as an attractive option to live and work.
“Women are another key focus area – they are the backbone of the retail industry, making up more than half of our workforce, however they’re significantly impacted by the limited options for childcare support. We need to see an increased focus in this area to increase women’s workforce participation.
“Having a baby opens up a 55 per cent pay gap for Australian female workers compared to their male colleagues in the first five years after childbirth. This disparity is much higher when compared to the US and UK, highlighting the long road ahead for gender equality in this country.
“It’s important the Jobs and Skills Summit isn’t just another government talkfest. We need to see measures that will deliver improved social and economic outcomes, to not only address the short-term challenges, but the long-term ones as well to deliver economic prosperity.”
Australian Chamber of Commerce and Industry CEO Andrew McKellar said the ACCI welcomes the opportunity to attend the federal government’s upcoming Jobs and Skills Summit.
“We are keen to work collaboratively with policymakers, unions and other employer groups to resolve chronic skill shortages and lift productivity growth,” he said.
“Addressing Australia’s crisis-level workforce shortages, which are the second most severe in the developed world, must be the top priority for the summit. It’s vital that the summit recognises the important role that upskilling of the existing workforce can play in lifting productivity, economic growth and real incomes.
“Raising the target for permanent skilled migration intake up to 200,000 for at least the next two years will be critical to address the worker shortages that cannot be filled by Australians in the short term.
“Breaking the deadlock on industrial relations reform must also be a key consideration. In reforming our ailing enterprise bargaining system, we can bolster productivity and drive higher wages growth.”
The summit will bring together Australians, including unions, employers, civil society and governments to address our shared economic challenges.
It will be led by the Prime Minister and Treasurer who will work with all ministers, with key contributions from Finance Minister and Minister for Women, Katy Gallagher, who will have a particular focus on the labour market experiences of women, along with Employment Minister Tony Burke, Social Services Minister Amanda Rishworth, Skills and Training Minister Brendan O'Connor, Home Affairs Minister Clare O'Neil and Industry Minister Ed Husic.
The themes and outcomes of the summit will inform the Employment White Paper, which will help shape the future of Australia’s labour market. It will be led by Treasury, which will invite submissions and engage the wider community over the next 12 months.
The summit will cover a range of topics with a focus on: