Five weeks on, Five outcomes
Seven Word Summary: Five weeks on, Five outcomes to consider.
The Federal Government convened a Jobs and Skills Summit five weeks ago. “What came of it?”
Good question. Here’s our take…
THE ECONOMY
It has been well documented that our nation is facing significant economic challenges, with rising inflation and interest rates, stagnant real wages, nearly a trillion dollars of government debt and a global shipping and supply chain crisis.
Businesses are facing an uphill battle in light of the difficult economic climate, with 50 per cent experiencing an increase in operating expenses according to the Australian Bureau of Statistics. In addition, almost one-third of businesses are having difficulty finding staff, due to a lack of applicants or an inadequate skillset of those who apply.
The recent change in government provides an opportunity for a shift in economic management, to hopefully tackle the economic crisis in the wake of the COVD-19 pandemic. The Albanese-Government has outlined a goal to build “a bigger, better‑trained and more productive workforce; boost incomes and living standards; and create more opportunities for more Australians to get ahead and to reach their aspirations”.
To start the wheels in motion, the Government convened a Jobs and Skills Summit.
THE SUMMIT
The Jobs and Skills Summit, held in the first two days of September at Parliament House, is the first insight into the Albanese-Government’s approach to economic management. The Summit brought together key stakeholders from across government, unions and employers, to discuss a range of topics, with a focus on:
Keeping unemployment low, boosting productivity and raising incomes.
Delivering secure, well‑paid jobs with strong, sustainable wages growth.
Ensuring women have equal opportunities and equal pay.
Expanding employment opportunities for all Australians including the most disadvantaged.
Addressing skills shortages and improving our skills mix over the long‑term.
Improving migration settings to support higher productivity and wages.
Maximising jobs and opportunities from renewable energy, tackling climate change, the digital economy, the care economy and a Future Made in Australia.
The Jobs and Skills Summit delivered five outcomes, intended to address the economic challenges and opportunities facing the economy and labour market. These outcomes are summarised below:
1. A Better Skilled, Better Trained Workforce
Australia currently has the second worst skills shortage behind Canada. To address this shortage, an additional 180,000 free TAFE places will be offered as a result of a $1.1 billion deal between the Federal Government and states and territories in 2023.
2. Addressing Skills Shortages and Strengthening the Migration System
Strict border controls for two years during the COVID-19 pandemic has left Australian businesses without access to holiday workers and foreign students to help keep their businesses operating. The blowout in visa processing times has worsened these shortages, with a million prospective workers left in limbo.
The Federal Government announced that the permanent Migration Program will increase by 20% in 2022-23, with 195,000 migrants entering Australia to fill the gaps in the record labour shortage. Importantly, 34,000 of these workers will go to regional areas, to support the high demand in our agriculture sector. The increase in migrants will be supported through a $3.1 million investment to accelerate visa processing and to clear the current visa backlog.
International students who are studying in industries identified as having a skills shortage will be allowed to stay two years longer for a bachelor’s degree, three years for a master’s degree, and four years for doctorates.
3. Boosting Job Security and Wages, and Creating Safe, Fair and Productive Workplaces
Multi-level bargaining legislation is set to be introduced in Parliament. This would allow unions to negotiate deals across multiple employers to strengthen tripartism and constructive social dialogue in Australian workplace relations.
And in a widely debated outcome from the Jobs and Skills Summit, there are now concerns that industry-wide industrial action would become possible under this legislation, such as strikes. The reforms will undertake consultation this month as part of the changes to the Fair Work Act.
4. Promoting Equal Opportunities and Reducing Barriers to Employment
The Federal Government will provide pensioners with a temporary $4,000 income bank credit to allow them to earn more before their pension is reduced. A survey conducted by National Seniors Australia found that 20% of pensions are willing to work more to reduce cost of living pressures. The investment will cost the Government approximately $55 million in an effort to ease labour shortages by removing some of the barriers to work.
To promote equal opportunities in the workplace, businesses with 500 or more employees will be required to commit to measurable targets to improve gender equality. Similarly, businesses with 100 employees or more will be required to publicly report their gender pay gap summary. The Government will also look to improve disability employment outcomes through a pilot program by connecting small businesses, employment service providers and jobseekers with place-based employment outcomes.
5. Maximising Jobs and Opportunities in our Industries and Communities
The Federal Government will implement a Digital and Tech Skills Compact to deliver ‘digital apprenticeships’ that will support workers while they study in entry level technology roles. In addition, 1,000 digital traineeships will be offered in the Australian Public Service, focusing on opportunities for women, First Nations people, and veterans.
So now we wait, with baited breath, for the Summit outcomes to become actions of the Government, in the hope of positive economic outcomes amidst the challenge.
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