The severity of the skills shortage facing the Illawarra is rated high or extreme by a majority of businesses, a new survey has found.
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Regional Development Australia (RDA) Illawarra has embarked on a two-year research project to understand the demand for skills across the region.
The results from the first wave of the project, a survey of 185 businesses, revealed 76 per cent of businesses believed the shortfall negatively affected their business growth and planning, while 60 per cent saw an acute shortage of skilled labour for the foreseeable future.
It showed Shellharbour employers in particular are feeling the impact of the shortages.
Occupations highest in demand now include trades, administration and accounting, youth services and early childhood, and butchers and food processing, while in future skilled workers are needed for auto bodywork and mechanics, data and IT, and practical trades.
The top reasons blamed for the shortfall included individuals choosing jobs with better pay and conditions, wages not meeting cost-of-living increases, housing affordability and workers switching to different industries entirely.
"We're feeling the shortage in engineers because there's a draw from Wollongong into infrastructure projects in Sydney," Soto Consulting Engineers chief operating officer Jim Allan said.
He said this was because larger projects were more attractive to young engineers looking to build their resume, and some were interested in the types of projects not available here.
There was also a lack of graduates looking to enter industrial design engineering, Mr Allan said, with students looking to other more "futuristic" disciplines.
Meanwhile, he said there was also a shortage of international workers - many newer arrivals were taking other jobs, such as driving taxis, because of their lack of Australian experience.
For Soto, Mr Allan said, the shortfall meant a slower growth rate than desired and affected the delivery of current projects.
He suggested a boost to on-the-job training for engineering students, and changes to the way engineers from overseas ratified their qualifications (such as undertaking training before arriving in Australia) could help address the issues.
RDA Illawarra chief executive officer Debra Murphy said skills shortages were a long-held issue but what had changed was the context in which businesses operated, including not only the impact of the COVID-19 pandemic but low unemployment and cost of living pressures.
The first findings from the research were released at a forum on Friday, where potential solutions were discussed.
Ms Murphy said these included businesses working on becoming 'employers of choice', and flexible training delivery options.
"It is only by understanding the needs of employers and the desires of workers locally that we can effectively fill the skills gap through appropriate training, cross-skilling and targeted skilled worker migration," Ms Murphy said.
She said it was also important for businesses to understand the skills shortage was not a problem affecting them individually.
Ms Murphy encouraged Illawarra businesses to take part when the next survey kicks off in October.
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Natalie Croxon
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
