Forecast High Skills Shortages Place Pressure On Wages For 2010

Embargoed until 12.01am Thursday 14th January 2010

Forecast High Skills Shortages Place Pressure on Wages for 2010
Thursday 14th January 2010


With today's employment statistics expected to provide further good news on the economy, Matthew Tukaki, CEO of Drake Australia, warned the news for employers is not all good.

"Latest research from Drake shows that 72% of employers expect to face skills shortages in 2010" said Matthew Tukaki.

"Falling unemployment and increased staff turnover are likely to exacerbate skills shortages that are already re-emerging as a serious constraint for business growth, and in turn this will lead to wage pressures in some critical roles during 2010", said Matthew Tukaki.

Matthew Tukaki was speaking ahead of the release of Drake's report, "Gearing for Growth", which examines the critical issues for employers in 2010 as they readjust to a growth economy.

"The Global Financial Crisis hit employees hard despite the modest increase in unemployment", he said. The Drake research found that:
- 45% of employers had downsized during the GFC
- 60% had frozen or reduced recruitment
- 40% of employers had either frozen pay or reduced pay or working hours.

The result of employer downsizing, recruitment reduction and pay freezes and reductions has lead to lower levels of staff motivation and engagement with almost 25% of employees now expecting to change employers in 2010.

Matthew Tukaki said. "The combination of frozen or reduced pay, and lower levels of employee motivation after the GFC, had created conditions that were driving up staff turnover".

"If employers do not address this problem as a priority, they will need to recruit staff replacements in a tightening market, and will need to deal with skills shortages and increased wage demands", he said.

"Drake's Gearing for Growth research reinforces the positive trends that are continuing to emerge in the employment market", Matthew Tukaki said, "but there is also a resounding `call to action' for employers to act now on re-engaging their workforce or face the consequences."

Drake's "Gearing for Growth' report identifies priorities identified by employers to manage growth in 2010, and reveals their readiness to manage the challenges.


Media enquiries:

Drake International
Matthew Tukaki
Regional Manager - Australia
Mb : 0409 707 572
[email protected]


SOURCE: DRAKE INTERNATIONAL