Skills shortage may hit Australia's post-COVID growth
Tuesday, November 16, 2021
Significance
The closing of internal and external borders in response to COVID-19 has heightened a longstanding skills deficit in key industries, with implications for wage levels, prices and broader economic growth. However, a general increase in immigrant numbers may not provide the skills that are needed.
Impacts
- Labour shortfalls may delay government infrastructure projects that were designed to lead the post-pandemic economic recovery.
- Foreign investment may be affected by skills shortages in key areas such as mining and metallurgy.
- Debate on immigration levels could influence voting in the general election that is now likely to be held in April.