Shortage of Skilled Labor in Australian Industries

Running Head: ECONOMICS FOR BUSINESS
Economics for Business
Name of the Student
Name of the University
Author note

1ECONOMICS FOR BUSINESS
Table of Contents
Introduction................................................................................................................................2
Summary of the article...............................................................................................................2
Economic Analysis.....................................................................................................................3
Recommendation........................................................................................................................5
Conclusion..................................................................................................................................6
Reference list..............................................................................................................................7

2ECONOMICS FOR BUSINESS
Introduction
In the production process four necessary inputs are land, labor, capital and
organization. With changing production technology, the demand for skilled labor has
increased rapidly (Cascio 2018). Lack of human resources has become a major problem in
some industries of Australia. The construction sector of Australia is suffering from a shortage
of skilled labor. It has become harder for sector to find trained workers. The shortage of labor
lead a high wage growth. Persistent lack of human resources pull back the growth of the
concerned sector. The report evaluates demand and supply of skilled labor force based on a
recently published article.
Summary of the article
The chief executive officer of Mead Con, Tim Mead has claimed for not getting
sufficiently qualified workers to do the work. The sector is currently facing massive struggle
for having workers with necessary skills. The construction industry is lagging behind other
industries. The sector no longer needs good old fashioned workers rather is now needs a more
skilled workforce. The skill shortage report of 2017 has revealed that there is a nationwide
shortage of skilled workforce in the building industry (theadvocate.com.au 2018). Lack of
skills have also been realized in automotive, telecommunication and hospitality industry.
In the article, the vocational education and training sector is blamed for the skill
mismatch. Instead of going in line with industry needs, the sector is moving off at a tangent.
There is a lack of incentive to join TAFE after completion of high school. Rather than
becoming a plasterer or carpenter students are more interested to pursue a university degree.
Being frustrated from a substantial skill shortage of workers, the organization has set up an
independent training school. This is a long standing problem that cannot be resolved by one
off industry training program. The latest vacancy report reveals that there is a 17.1 percent