What skills shortage?



OPINION: There are skilled workers and employers looking for them--but how do we match the two up?

Finally, the federal government is coming to terms with the myth of an ICT skills shortage in Australia. In a recent press release, the Minister for Employment and Workplace Relations Tony Abbott announced that the number of ICT specialisations listed as scarce has been halved. As a result, the Government's Migration Occupations in Demand List (MODL) has reduced from 26 to 12 the skills that would give intending migrants preferential treatment.

That so many migrants with varying proficiency in ICT were given preference at the head of the migration queue over the last couple of years while the ranks of unemployed ICT professionals here swelled reflects a very short-sighted view of current market conditions. Minister Abbott's recognition that we should stem the flow of "imports" is welcome, but the revolving door the Government created in a rush of expediency to meet an assumed need, continues to swing.

Little has been said, for example, about the 457 temporary business visa which, from July 1, 2002, allowed employers to import staff without having to prove no suitable candidate existed locally. Estimates of the number of these visas allocated is as high as 10,000.

In his release, the Minister claims that there were 9500 ICT vacancies listed in the previous fortnight on the five largest Australian online recruitment sites, and uses this to support his claim that while unemployment among ICT professionals "has picked up somewhat", it's still below the national unemployment rate.

But how many of these online jobs represent double or treble dipping by recruiters, a number of whom all list the same job trying the secure the placement fee for it? If there are so many jobs out there, how come we see so many recruitment agencies going to the wall because their list of available candidates far outweighs real opportunities?

The fact is there are opportunities, and while the number of available jobs has slowed, qualified graduates and mature-age specialists particularly are finding it near impossible to get positions.

So the dichotomy continues: there are plenty of professionals available with the required skills and organisations looking for them, but the problem of matching supply with demand persists. This is not peculiar to Australia; the US, Germany, and other countries reacted to the dot-com hysteria before Y2K to throw open visa requirements to encourage a flood of skilled itinerant ICT workers, mainly from the sub-continent.

Many debated then, and still do, that this was an exercise not so much in labour supply as labour re-engineering, serving corporate self-interest at board level by driving down salaries and conditions by creating a cheap labour surplus of people who would work anywhere, for less.

The reality in these countries, and in Australia, is that we can fill any job with people already available--there's no need to go shopping for them overseas.

At about the same time as Tony Abbott was releasing his views, Michael Rawding, Asia-Pacific and Japan president of Microsoft, was here encouraging its Australian customers to send their software development offshore--to India. Microsoft, he said, has a strong relationship with software companies operating out of India and would be happy to help get development work on Microsoft platforms from here to its technical partners there.

The door keeps swinging.

So how to help match demand and supply here? Increasingly businesses that seek ICT people are demanding an exact fit to a job description based on specific technical and industry experience.

Whether the job template is framed by an HR person without ICT knowledge can be put aside for the moment: the fact remains that everybody concerned about the long-term development of technical skills must work to reshape the skills profile of those looking for jobs. It is not unreasonable to suggest that the upgrading of skills is the far more satisfactory solution for both the individual and the potential employer.

Unless a bigger investment is made in the continuing development of a hugely valuable professional resource, Australia's chances of staying even within sight of international competitors will wither by the day.

ACSRichard Hogg is National president of the Australian Computer Society (ACS). The ACS is the recognised association for Information Technology (IT) professionals, attracting a membership (over 16,000) from all levels of the IT industry and providing a wide range of services. A member of the Australian Council of Professions, the ACS is the guardian of professional ethics and standards in the IT industry, with a commitment to the wider community to ensure the beneficial use of IT.

Visit this page for other ACS articles published by ZDNet Australia.

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Talkback 5 comments

    The definition of “skill short ...Anonymous -- 13/08/02

    The definition of “skill shortage” as an average Australian employer perceives it is not the same as the one used by the Government.

    Indeed, there is a significant shortage of really skilled professionals in about every high tech area, not only in IT, and the higher the “tech” the greater the shortage.

    But what is really sought by the employers is a (white) skilled AUSSIE and “someone (whose family) we know”, not simply a “skilled” someone from overseas. It is an unspoken but clearly defined goal of every Australian manager, even when he/she learnt to hide it under pretence of necessity of having a “local experience”. The migrants skilled or not, are thought of in about the same fashion as Americans thought of African blacks not so long ago: here are your cotton fields and 5 cents a day (in modern currency), but everything we regard as “intellectual” and fairly paid work is not for you “.

    If the migrant (apparently by oversight or under pressure, as in Public Service) still gets his/her position, it is thought of as a temporary replacement for someone “right” and is never paid properly. This is a whole culture, where employers by unspoken & by default understood agreement, never pay migrants at the rate they pay to “real” Ausies – simply to keep the “wogs” where they should be – that is, at the bottom of social ladder.

    If this government wants immigration to really contribute to Australian economy, it should increase unskilled category migration. That is what is expected by the public from people speaking with a “non-strine” accent. True, it won’t help Australia to become a world leader in technological sense, but with the attitudes like that it will not happen anywa

    I write in reply to the articl ...Anonymous -- 15/08/02

    I write in reply to the article "What Skills Shortage" by Mr. Richard Hogg, displayed on ZDNet Web site.

    Mr. Hogg writes : "So how to help match demand and supply here? Increasingly businesses that seek ICT people are demanding an exact fit to a job description based on specific technical and industry experience".

    An EXACT fit. MUST HAVE 100% of the skills listed, which are usually all technical skills; no reference made to soft skills like design or analysis, no mention made of people or organisational skills, just a list of technical skills which we poor unlucky punters MUST HAVE, or the acronym matching job agent won't even give us the time of day.

    Australia the Knowledge Nation? Laughing stock of the developed world would be more like it. I'll bet Indian companies don't come out with this MUST HAVE rubbish, nor did the European agency I contacted after giving up in disgust at the narrow-minded attitude of Australian recruiters. Deadset, I thought those people earned money by placing people, but the arrogant so-and-so's seem to delight in either ignoring experienced people like myself, or find some feeble excuse to dismiss our applications.

    I read with a mixture of frustration and despair the recent advertisements for ETi and Vality expertise. Having read job adverts for several years, I find it ludicrous to the extreme for adverts to demand TWO years experience in something that has only just come on the market. It's just Cobol and DB2, and anybody with these skills would have picked up Vality skills in very short order, but no, the client continues to advertise his "MUST HAVE" two years experience. Mustn't train people either, that's un-Australian, right?

    Here in a sane part of the world, I get to use my expertise on some fifteen (yes 15!) different software products, that Australian agents said I didn't have the skills for. I'm training another country's programmers as well, a country that is the biggest I.T. exporter in the world (beat the U.S.A by $600,000 last year).

    Skills shortage? Pull the other one, it plays Jingle Bells. There is not, and never has been, a skills shortage, just a slavish and uninformed stampede for so-called "hot skills". A lot of Australian companies shot themselves in the foot by climbing on the dot.com bandwagon; unfortunately they destroyed the family life of a lot of experienced programmers at the same time (mine included).

    One day soon, Australia will cease to have an I.T. industry, because it'll all have been sent overseas (with the blessing of our politicians), and Australia will be the poorer for it.

    Steven Hughes has hit the nail ...Anonymous -- 15/08/02

    Steven Hughes has hit the nail on the head.

    I now work as an IT Manager mainly due to the ageist attitude of the IT recruting community and their lack of recognition of 20+ years of experience ranging from FORTRAN, through C, multiple database development environments and Web Development. There is no skills shortage just an unwillingness to train staff and no recognition of the value of experience.

    In the interests of obtaining ...Brenton.Thomas -- 26/08/02

    In the interests of obtaining a picture of exactly how many IT&T workers are out of work, in what sector, age group, I have built an IT&T Job Market survey on

    www.HardYards.info

    or directly to the australian site at

    au.HardYards.info

    You will find it on the Job Stats page from the top menu.

    You can also query this database to find for example the breakdown of unemployed IT&T respondents by Sector, or Location. Or perhaps you are not looking to knock down your local pollies door waving some unemployment figures and just want to know the age distribution of Project Managers.

    But at the moment it needs data....

    The site is not trying to sell anything, but I do want to get a picture of the IT&T employment crisis.

    For me it's been 10 months and counting...

    Here Here! Steven Hughes. Just ...Anonymous -- 26/08/02

    Here Here! Steven Hughes.

    Just a couple years ago I got my computing degree in information management. Did that get me a position? No, have been able to get some temp work - data entry, filing, drudge jobs - low low pay. Of course I couldn't possibly learn another task that I don't already have! ha! course I could. It is very very frustrating.

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