Cuts in Australian work visas to cause construction skill shortages

Australia, 30th August: The recent rules by Australian immigration department to issue fewer number of Australian work visas is likely to result in severe shortages of labor in construction industry.

It is being feared by the experts in the Australian construction industry that the construction sector, which is already having shortage of required workforce, is looking for overseas workers ready to move and work in Australia to solve their problem.

However, due to recent changes in Australian immigration rules, it seems quite likely that the situation in terms of required workers in Australia is only going to worsen in the coming times.

Echoing his concerns about the shortage of skilled workers in Australia following cuts in Australian work visas, Harley Dale, the chief economist of Housing Industry Association (HIA), said that the housing sector is facing a shortage of labor and the situation is not likely to see any improvements thus creating obstacles in finding sufficient skilled workforce.

Sharing his views with Dale, economist at CommSec, Craig James, said that huge cuts in Australian immigration levels over the last few months has been witnessed in the nation and this reduction in number of immigrants allowed to move to Australia is the biggest in the period of last 16 years.

And to add to the woes of Australia’s housing industry, the narrowing job market in Australia coupled with global economic slowdown has complicated problems for Australia labor market.

There is an increasing demand for workers in industries like mining and construction in Australia especially in regions like Queensland and WA (Western Australia). The resources sector is headed for a boom but due to poor migration program and undersupply of workforce, there is a huge skills shortage in Australia. 

As per the findings of the latest HIA survey, out of 13 housing trades in Australia, almost 8 are complaining of undersupply of required workforce in Australia. As the demand picks up, labor shortages accompanied by wages blow outs as seen in 2006, 2007 and 2008 will get repeated.

The number of permanent arrivals in Australia has gone down considerably in the recent times. As per ABS (Australian Bureau of Statistics), the number of net long-term and permanent arrivals for Australia went down by 31 percent in the year to June resulting in 100,000 lesser immigrants coming to Australia as compared to the last year.