Results of a new survey of 1200 Australian businesses across all industry sectors, conducted in January this year, suggest that the skilled labor shortage in Australia is a real and ongoing concern, and that the demand for overseas skilled workers under the Australian immigration program will continue to rise.

The survey indicates that one of the main issues Australian businesses will face, at least into the middle of 2011, is intense competition for desperately needed new staff. Australia’s labour supply will not meet the demand, and it seems that increased skilled migration may be the key to solving this expected labor shortage while avoiding the pressure such a shortage would exert on the Australian economy.

"Policy makers will need to ensure the supply of skilled labor can keep up with demand in order to avoid wages growth…" said D&B chief executive Christine Christian.

As concerns about the impact of the worsening skills shortages grow, the Business Council of Australia (BCA) has urged the Australian Government to overhaul the 457 visa program and to introduce a new system of fast-tracked labor agreement - enterprise migration agreements - for big projects being undertaken in Australia.

In its submission, the Business Council of Australia warned the government that many Australian companies are concerned about the cost and processing times associated with Australia’s 457 visa program.  It also highlighted the significant delays in skilled migration visa processing times.  According to the BCA report there are over 140,000 overseas skilled migrants experiencing a wait of up to 28 months to have their skilled migration visas processed.

While the Gillard Government has recently introduced new arrangements aimed at cutting 457 visa processing times in order to import skilled migrants on Australian working visas for Queensland’s reconstruction efforts, the Business Council of Australia would like to see this initiative extended to cover the wider Australian economy. 

"The ongoing demand for labor and skills cannot be underestimated and tight labor markets and emerging skills shortages will present major challenges for policymakers, it is important for the budget to include a clear commitment to policies that will support appropriate levels of skilled migration" the The Business Council of Australia submission stated.

In July 2010, the Gillard government’s Natural Resources Sector Employment Taskforce produced a report recommending an overhaul of Australia’s temporary migration program to make it easier for Australian companies to access overseas labor, especially for the purposes of big construction or resource projects.

The report suggested the use of ‘enterprise migration agreements,’ whereby skilled workers from overseas could enter Australia under an Australian working visa permit on an as-needed basis. The Business Council of Australia has urged Australian immigration authorities to formally implement the use of these agreements into Australian immigration policy.

Based on the results of the D&B survey, and the concerns and recommendations of the Business Council of Australia, it appears that skilled migrants will be crucial to Australia achieving its economic and business goals for 2011.  It is clear that Australian immigration processing policies need to be significantly improved to better support and respond to the needs of Australian businesses for skilled labour.