Some people speak about shortages as though they represent some absolute, readily identifiable lack of desirable services. Price is rarely accorded its proper importance in their discussion.

If you start raising wages and improving working conditions, and continue doing so, you’ll solve your shortage and will have people lining up around the block to work for you even if you need to have huge piles of steaming manure hand-scooped on a blazing summer afternoon.

And if you think there’s going to be a shortage caused by employees retiring out of the workforce: Guess again: With the majority of retirement accounts down about 50% or more, most people entering retirement age are working well into their sunset years. So, you won’t be getting a worker shortage anytime soon due to retirees exiting the workforce.

Some specialized jobs require training and/or certification, again, the solution is higher wages and improved benefits. People will self-fund their re-education so that they can enter the industry in a work-ready state. The attractive wages, working conditions and career prospects of technology during the 1980’s and 1990’s was a prime example of people’s willingness to self-fund their own career re-education.

There is never enough of any good or service to satisfy all wants or desires. A buyer, or employer, must give up something to get something. They must pay the market price and forego whatever else he could have for the same price. The forces of supply and demand determine these prices — and the price of a skilled workman is no exception. The buyer can take it or leave it. However, those who choose to leave it (because of lack of funds or personal preference) must not cry shortage. The good is available at the market price. All goods and services are scarce, but scarcity and shortages are by no means synonymous. Scarcity is a regrettable and unavoidable fact.

Shortages are purely a function of price. The only way in which a shortage has existed, or ever will exist, is in cases where the “going price” has been held below the market-clearing price.

Can you please explain your point “I think that sooner or later DIAC will have to wake up and develop a skilled migration strategy that REALLY addresses state and employer needs.” in detail.

Thank you for an excellent article.

Regardless of DIAC’s bleatings to the contrary, the CSL does NOT reflect skills shortages.

I recently wrote to the Min, raising concerns about the discrepancy between the two (with examples to support my claims). The standard Minsterial response I received back “assured” me that the CSL did reflect the workforce situation around Australia.

What a load of cobblers!

I threw the letter out.

Re Cat 5 applicants, my thuoghts are that Australia’s recovery from the the global financial downturn will be the main driver of DIAC’s future direction re general skilled migration.

Skills shortages have become evident around Australia already, in many industries, professions and trades; and there are strong indications this trend will grow.

This has already led to many powerful groups, industries and businesses leaders lobbying the Rudd Govt heavily to address current and future skills shortages, predominantly in WA at the moment.

However, as workers move from the Eastern states to take advantage of the higher salaries and better conditions WA employers will have to offer to entice them to relocate, employers and industry groups in other states will also actively work towards changing Govt workforce policy.

As one obvious contributing factor to addrses a skills shortage is to increase skilled migration, I think that sooner or later DIAC will have to wake up and develop a skilled migration strategy that REALLY addresses state and employer needs.

Best regards
Susan

Best