Low Unemployment

Why is unemployment so low at 3.4%, the lowest since 1974?

We have more people entering the workforce than leaving it with high demand for engaging new workers and a focus on retaining workers. We currently have 1 unemployed person per job vacancy compared to 3 prior to the pandemic.

No one can really explain in detail what has caused this phenomenon. The best my research tells me is that the ‘economists can hopefully answer some questions in the coming months’. If you research, the data is all a bit vague. The arguments quickly change the subject to ‘wage growth or post Covid’. It seems that no one has any concrete answers as to why it’s dropping.

My industry peers and I believe from what we are seeing on the ground the major issues are:

• Accommodation crisis – no housing for workers to relocate
• International Skilled Workers still not arriving in numbers required
• The pool of available unemployed workers is unskilled and hence unable to meet the existing employment vacancies

How do we fix the problem?

Housing needs to be a priority. There is a lot of ‘talk’ around this national crisis, but we need action. Queensland, and in particular regional Queensland has the highest interstate migration and fastest population growth in Australia. Infrastructure investment needs to be a priority in regional Queensland to cope with the growth and demand on services.

A “National Priority Funding’ initiative is soon to open with the opportunity for Councils to apply for matching funds from $200K to $1 million. This could provide access to funds to build accommodation or other vital infrastructure. The funds will go quickly so Councils need to be ready with submissions. If you would like to speak to someone about the program let me know and I can connect you.

We need to attract and open our borders quickly to skilled visa applicants to help meet the demand of skilled workers and professionals. Employers need to seriously consider sponsoring skilled workers. Let me know if you require a referral to discuss this option.

There are some great training initiatives and programs for the unemployed workforce. We need to upskill our pool of unemployed with suitable training to meet demands. To attract and retain workers, wages need to reflect the service provided in many sectors including Aged Care and Child Care.

The issues with staff shortages were evident in my recent travels of over 30 regions in Queensland. We have a beautiful and diverse state with lots of great lifestyle and career options to consider. Please click here to watch video in our Facebook page with a snapshot of my travels and photos of our special State.

If you need to source skilled workers or find a great new job, Precruitment has a strong network that has been built over 25 years specialising in Regional Queensland. Our team can provide the critical assistance and advice to help you find qualified staff or make your next career move.