With wages growth still far below the levels the Reserve Bank wants to see, the Morrison government has opened the way to businesses to use temporary foreign labour to push slowly building wage pressures back down, in the hope 200,000 temporary visa holders enter the country between December 1 and July 2022.
The government has nominated politically influential or sensitive sectors like mining, hospitality, construction and professional services as areas in which the demand for skilled workers is heavy.
Private sector wages growth in the September quarter was just 0.6%, and 2.4% for the year — the level it reached before the pandemic. Of the sectors Morrison nominated, professional services is the only sector that enjoyed what is by recent standards healthy growth — 1.3% in the quarter for the private sector, though it enjoyed similar growth at the end of 2020 before it slumped again earlier this year.
Hospitality (accommodation and food services) and construction wages grew at 1% in the quarter, which would have been par a decade ago under Labor; mining grew at just 0.4%, pretty much the same level it’s been stuck at for the last five years. Indeed, according to workforce data for the August quarter also published last week, mining shrank in size during that quarter.
That means that only the most successful sector, professional services, enjoyed annual wages growth higher than CPI — by 0.4%. Transport, another sector said to be facing skill shortages, also saw 1% wages growth, though the huge retail sector only saw growth of 0.5%, reflecting the impact of lockdowns.
So while the evidence is mixed, it does bear out that employer complaints of skill shortages in specific sectors are beginning to translate into wages growth, but mostly not enough to keep pace with inflation, and mostly not back to the strong levels of growth workers enjoyed prior to the wage stagnation that set in around 2013. And not enough to affect overall wage levels, which remain at stagnation levels.
But in the government’s view, and certainly that of employers, it’s time to add 200,000 temporary workers to areas like hospitality, construction and professional services.
There remain other workforce issues, however, that shouldn’t be overlooked. As a proportion of the workforce, health and caring reached a new record in the August quarter, hitting 14.4%. At current rates of growth, over 2 million Australians will work in the sector in 2023.
Within that category, childcare employment reached a new record high, and residential care reversed the pandemic-induced decline it has been experiencing for two years now — though residential care, which is the aged care and residential disability care sector, is now only back to where it was in 2017.
That’s despite the urgent need for more staff and higher pay in the sector identified by the aged care royal commission and notionally backed by the government, and the existence of an Aged Care Workforce Industry Council established by this government in 2019 to address decades-long workforce issues.
The government committed in its response to the royal commission to implement one of the recommended staffing standards by October 2023, with funding to start next year. Where the additional staff to achieve the required minimum 200 minutes of care a day will come from has never been explained; the Abbott government’s response to workforce issues in the sector was to abolish plans to increase pay and urge employers to import temporary labour.
The Fair Work Commission has dragged its heels on a case to increase sector pay by 25%, and that won’t be resolved until the second half of 2022. The issue seems to have fallen entirely off the political radar despite a lack of clear progress from the government.
What’s also noticeable is that manufacturing appears to be turning around as a source of employment. After regularly falling below 900,000 workers in recent years, on a seasonally adjusted basis, employment went back over 1 million in the August quarter — the highest seasonally adjusted figure since the Labor years, and the fourth quarter of growth in the last five. Most of the growth is in heavy manufacturing — metal fabrication and transport equipment, where employment is at its highest levels in years.
For a country that flagellates itself regularly because it “doesn’t make anything any more”, it’s an interesting turnaround, though whether it is sustained as global supply chains begin to work normally again remains to be seen.
Of all the many many sins of this incompetent government, is the glib assumption that everything should just go back to where is was before February 2020. But given the complete lack of policy imagination and a national vision, that is regrettably predictable.
Well…you should know how to fix that. Put the LNP LAST on your ballot paper!!!
I do not think that recruiting workers from non-English speaking backgrounds to work as carers in aged care is a good idea, unless their English is good. Many older people have hearing difficulties and trying to understand what a person with a heavy accent is saying can be next to impossible. There is an extremely urgent need to train and employ carers which would not be difficult if a decent wage was offered, plus good conditions (e.g. permanent positions with sick pay and holiday pay). And not having the expectation that staff can do the impossible.
Think you are referring to the federal government regulated, but not well managed, private aged care sector; where Covid outbreaks occurred in Victoria, not the state system.
Further, there are requirements for those working in health care to have minimum English level and be paid award conditions; our local compliance by Australian employers on employee conditions is another issue…..
It’s no good priding ourselves on award conditions while employers set impossible work routines demanding unpaid overtime. During my time in aged care we were told the overtime wasn’t “approved” therefore didn’t have to be paid… and yet they’re the ones setting work routines that not one employee could get done in the paid time allocated.
I worked in aged care for 20 years and I can tell you that language is never a problem with a caring aged care professionals. Overseas carers are no more or less competent than Australian ones. As always the real problems are: Poor pay and conditions and forced unpaid overtime. Why unpaid overtime isn’t called slavery is beyond me.
You could start by paying them what they are worth.
AU$26 per hour, or casual $32. I arrived here aged 17, no family, and nearly starved working full time. So I joined the army for the adult wage and went to Vietnam. Poverty sux.
How would you know?
It is a nonsense argument that prices will have to undergo a very high rise to pay employees what, may I remind you, they are ENTITLED to earn. For instance, say you serve 50 people an hour in your restaurant which is open eight hours a day seven days a week. If you put each meal up by one dollar that is $2,800 a week more that you are taking in. You’re one of the few employers in the industry not paying under the table. You are paying the average wage for a waiter of about $26. You have four staff. You agree to pay them $30 per hour so you can retain them. That’s $896 extra per week, plus any increase in on costs such as super. You are taking in $2,800 a week extra. Are you seriously telling me that you can’t afford the raise? Of course, this doesn’t take into account penalty rates on the weekend, but you can charge a surcharge for those, which people used to expect to pay, and which we should pay.
People like you never go to the landlord and say ‘hey, I’m on a wafer thin profit margin. I’m only going to pay half rent from now on’. Why not?
A lot of the problem with hospitality and retail jobs is not even necessarily the wage. It’s the uncertain hours, and the low number of hours that staff are given. So even on minimum wage or over, many people don’t earn enough to live.
If you can’t run your business without exploiting people, you shouldn’t be running a business. Personally I think our inner cities and cbds can only be improved if there are fewer cookie cutter cafes and restaurants and more of the sorts of businesses we actually need, like greengrocers and butchers.
“If you can’t run your business without exploiting people, you shouldn’t be running a business.” Damn straight!!
“Personally I think our inner cities and cbds can only be improved if there are fewer cookie cutter cafes and restaurants and more of the sorts of businesses we actually need, like greengrocers and butchers.” Ain’t that the truth?!
Naughty, remember very recently you stated that you don’t like people using data to support their positions….
There are minimum wages in each award. The issue is that a) many, many employers have not been paying this minimum wage b) that wage hasn’t gone up for a long time and c) smarts*** hospitality and retail employers got changes to the weekend penalty rates, therefore making weekends less attractive for workers.
Maybe learn a bit more about our industrial relations and award systems before you post comments.
Yes, yes, we know. Anyone you consider unskilled should be paid as little as possible, and lick the boots of their employers.
That’s it. Keep making things up.