Skill Shortages – Myth or Reality Richard G Hogg State Board Victoria Australian Computer Society

Skill Shortages – Myth or Reality Richard G Hogg State Board Victoria Australian Computer Society 1

Today’s Discussion • Skill Shortages – Myth or Reality • ICT Industry in Australia • Where ICT is heading • Skills Shortages? 2

ICT Industry in Australia • Companies supplying products and services • Telecommunications • SW and HW product distribution • Hardware and device manufacturers • Consulting • Software services and products • Who are ICT professionals? • ICT Managers • Electronic engineers • Support technicians • Communications technicians 3

Where ICT is heading • Trends • Sustainability • Green ICT • Outsourcing • Offshoring • Use of ICT to weather the economic crisis • Global influence • Mergers, rationalisation 4

Skills Shortages • There is evidence to suggest that as the Global Financial Crisis (GFC) bites in Australia there will be NO job shortages in the ICT sector. 5

Skill Shortages – Myth or Reality • Fact 1 Companies both large and small are putting off staff including ICT personnel. • Fact 2 Outsourcing of ICT roles has not slowed; the GFC will help maintain the rate. • Fact 3 As companies go into receivership, liquidation, mergers and takeovers more ICT jobs will be lost 6

Skill Shortages – Myth or Reality • Fact 4 Even though Universities are producing fewer graduates from ICT courses due to the decline over the past 4 years in enrolments, there may not be enough suitable jobs for them. 7

Skill Shortages – Myth or Reality • This situation suggests that there is no shortage of people in the marketplace. • And there are no job shortages • BUT • This does not necessarily indicate a • Skills shortage 8

Skill Shortages – Myth or Reality • The Federal Government has placed ICT roles at (or near) the head of the MODL thereby exacerbating the potential over supply of ICT personnel. 9

Skill Shortages – Myth or Reality • Do we have enough data to clearly identify those skills that are perceived to be in short supply? 10

Skill Shortages – Myth or Reality • If we have enough data to clearly identify those skills is the education system able to react quickly enough to equip our students with these skills? 11

Skill Shortages – Myth or Reality • If there is not enough reliable data to clearly identify those skills in short supply why is the Government pushing for higher immigration numbers in ICT? 12

Skill Shortages – Myth or Reality • The good news is that jobs in some sectors may be insulated from the worst of the Crisis. • These include:- cabling, hardware support for SME’s and those in the retail arena. 13

Skill Shortages – Myth or Reality • If we have no clear picture of the ICT workforce for the next decade then careers advisors will be suggesting other paths for students to follow. 14

Skill Shortages – Myth or Reality • Do school Career Advisors have sufficient data to enable students to assess whether the ICT industry is where they want to be? 15

Skill Shortages – Myth or Reality • Where will help come from? • Industry • Government 16

Skill Shortages – Myth or Reality • ICT EmploymentIn 2007, the average number of people employed in ICT across all industries in Victoria was 103,300 (ABS Quarterly Labour Force Survey, 2006). From 2001/2002 to 2005/2006, ICT employment grew by 10.35%. The majority of this growth occurred between 2004/2005 and 2005/2006, with employment growing by 9.02%. 17

ICT Job Vacancies • While some businesses continue to report difficulties in filling positions, the number of suitable applicants per ICT vacancy in Victoria increased in 2008 to 5.6 (ITCRA National SkillsMatch database, 2008) compared to 1.9 per vacancy in 2007, 18

Skill Shortages – Myth or Reality Richard G Hogg State Board Victoria Australian Computer Society