New figures released recently forecast that ICT skills shortages will grow by 29 per cent by the year 2010 to just over 14,000 jobs unless changes to policy are made on ICT employment and skills.
The gap in ICT unemployment is also predicted to reach an estimated 25,000 jobs by 2020. The Quantifying Current and Forecast ICT Employment Report, is the first report released by the Centre for Innovative Industry Economic Research Incorporated, which the ACS has supported and funded as part of the two year ICT Skills Forecasting Project. The project aims to provide data on ICT Skills, and to quantify and qualify the supply and demand needs of ICT skills and employment in Australia.
The report suggests the current approach of addressing the skills shortfall with temporary migrant visas is insufficient and will not close the gap on future demands for skilled ICT workers. Since 2004, there has been consistent and strong growth in ICT employment with over 280,000 technical and professional ICT workers now employed across all Australian industries, making a vital contribution to Australian.
Results indicate that in order to ease the growing skills gap and maintain economic prosperity, the inward and outward migration levels for 2007-2008 should be maintained, local graduate numbers should increase by 12.5 per cent per annum from 2007 figures and the “brain drain” of ICT professional migrating for overseas employment must be reduced.
ACS president, Kumar Parakala said this report highlights the urgent need for ICT to be given the same focus as other vital Australian industry sectors and for governments and industry to collaborate on policies which will ease the skills shortages in this country.
“The industry has been sounding the alarm on skills for a number of years, and unfortunately we’re now close to tipping point on this issue. This is a situation that urgently requires a long-term partnership between governments and industry for the economic benefit of all Australians. The report shows the consistent growth of the ICT industry and its role in the success of the economy. Australia can no longer view ICT in isolation, and this requires a whole of government approach under the leadership of Prime Minister Rudd,” he said.
According to the 2006 Australian Bureau of Statistics data on industry sector contributions to the economy, the ICT industry contributes 4.9 per cent to Gross Value Add, and has a larger contribution to the national economy than mining, education, defence, agriculture and individual manufacturing sectors.
The ACS believes that without changes to education, skills and migration policies on ICT, the skill shortage will continue to grow significantly.
The next phase of this report will shed light on the specific skills needed to ease ICT skills shortages in the next five to 10 years to help inform appropriate policies for the industry.