A skills shortage is an ever growing issue for the economic sustainability for the Australian government.

With key absences in trade and health related occupations. This has occurred as there is an increasing demand for labour though an insufficient supply which can be accredited to a number of factors such as the ageing population and economic boom. If there continues to be an absence of policy intervention, these skill shortages are only likely to intensify into the future. Hence, there should be policies put into place where the short and long term issues are answered. In the short term the shortage can be answered through foreign worker who have the skills and experience for the job. The long term shortage can be answered through the education and training of Australia s own resource, its people. Skills shortages arise when there is a demand for jobs though not enough supply of skills to answer the demand, recent shortages in skills is accredited to the ageing population and resources boom. The ageing population is a growing epidemic in Australia and it is predicted that over the next 40 years the population of over 65 year olds will have doubled. The exit of many workers from the workforce will lead to a decrease in the participation rate which is projected to decline from 64.5 per cent today to around 57 per cent by 2046. This will lead smaller labour force which will not be able to satisfy the growing economy. With the increased number of elder people there is a demand for health related occupations. With already low supply of skills in health and community services industry due to poor retention and low full time participation rates. The burden if this will increase with workers in his industry being aged over 45 years looking to retire whilst there is an increase in the number of older people in the population. The resources boom has placed pressure on the labour market to supply jobs. The resource boom has led to vast economic growth for mining states such as WA with western Australian companies growing by 123% in 2009. This economic growth has led to a greater demand in skilled labour in trade related jobs such as production managers and mining engineer etc. The lack of skilled labour is attributed to the fact that many of these jobs require a certain amount of experience which many do not nave such as in order to be engineering manager you must have 10-15 years experience which most candidates do not have and production managers, mining engineers and geologists who do not have the knowledge of hard-rock exploration and underground specialisations, while sheetmetal workers are critically scarce as apprenticeships are not rigorously instated. There is also the fact that due to advancements in technology within the industry sectors that require the retraining of current employee s, also account for the decline in skilled professionals. The issue again arises of the ageing population as many employees are baby boomers who are looking to retire and a lack of interest by job seekers at all levels about entering the mining industry, hence there are more people leaving the industry than entering. Skilling Australia for the future is a policy introduced by the labour government 2007 to train Australians in order for them to obtain skills to join or re-enter the labour market. The policy aims to address area s which are not currently addressed by the VET system. Re-entrants, those outside the workforce such as those who are on income support payments will be able to acquire skills in order to gain lasting employment. The aim is to create an additional 340,000 re-entrant training places over the next six years. Continuing training is aimed to improve the skill level in the economy, for those who have the experience but not the qualifications and will be able to receive a Diplomas, Advanced Diplomas, or Certificate IV qualifications. There will be an additional 120,000 apprenticeships available including traditional trade apprenticeships with an increased focus on

quality, relevant training plans and lifting completion rates. The policy will also put in to place skills Australia, a board of seven experts who will analyse the market and advice the government on how to allocate resources to the industry which will mean that Training is better matched to the needs of the economy hence they will be efficient use of funding.

The skilling Australia for the future policy is able to make use of the Australian population in order to meet the skills shortage not adding a strain on the Australian population. It is able to make efficient use of Australia own resources its people so that it can better accommodate the economic growth. Though there is the predicament that it is a slow solution to what needs a faster response. Reported in 2010 that no mining related project over the past decade came into production costing over $10 bill due to the lack of skilled workers. with six projects being planned for the next decade there needs to a faster solution to respond to the skill shortage. It also does not address the issue of experience relating to skills shortage. General skilled migration fits under skills stream migration and is a program which is designed to attract foreigners who have skills and attributes beneficial to the economy. GSM is a program for people who not sponsored by an employer, however may be sponsored by an eligible family member or nominated by a state or territory government. The basic requirements are that the person be under 50 years of age, have competent English language skills and have the skills and qualifications that are assessed as meeting the Australian standard for an occupation on the Skilled Occupation List (SOL). General skilled migration is the speedier solution to the response, with the ability to provide people with the required skill and experience for the job. This is a good response to the lack of interest in the areas of skill shortages in Australia. Also it is the desired policy by the mining industry demanding the federal government to increase quotas for skilled migration. However, complications do arise, if there is an abundant number of skilled migrants entering the country there will be strain on the population and an insufficient use of our human resources. The education revolution covers a vast range of area though in relating to skills shortages, it provides incentives students entering higher level education to study in an area experiencing skills shortages. Such as in 2009 HECS for students studying maths and/or science will be reduced by 50% if they pursue a career in the field. The National Priority Scholarship will be available for students enrolled in undergraduate degrees in identified priority areas such as nursing, teaching, science and engineering; and The National Accommodation Scholarship will be made available for students who have to relocate interstate to study specialist courses not available in their home state, etc. The education revolution is a key element is securing jobs in skill shortage areas for the long-term. Where it does not answer the short term issue of skill shortage at hand it provide for a brighter future for economic growth.

Skills shortages is a serious issue relating to economic sustainability of Australian as if there are no supply of labour for the demand it creates an unbalanced economy where wage rates can be markedly high and insufficient amount of people for the job. Therefore policies are used to counter the economic reality. It is important that both long term and short term issues are addressed when policies are put in to place. That is why it would be beneficial if the policies that have been discussed are put into place as they address different areas of the overall issue. General skilled migration addresses the need for skill in a short term period and the need for experienced worker where skilling Australia for the future and the education revolution addresses the need for long term skills and the use of Australia s own resources