There is now a skills shortage of more than 2800 Computing Professionals across Australia, according to the September Clarius Skills Index. The turnaround has gone from an oversupply in the March quarter of 1525, to just 319 in the June quarter, to the current acute shortage of professionals across the industry.This follows some caution in the market caused by the lead-up to, and delays involved in, the federal election outcome.
“The recent federal election had a sobering impact on the ICT sector, causing hiring activity to drop off a little and slowing the hiring process. But that is now picking up in all states,” Candle Executive General Manager Linda Trevor said.
“As a result of the emerging shortage, companies are putting in place retention strategies as competition among employers to staff project work is also starting to put pressure on wage demands.
“There have already been wage increases of between 5 and 10% across the industry with evidence of 20% hikes in Western Australia.”
The rollout of the National Broadband Network, improving business confidence and constant advancements in technology such as cloud computing are among the key drivers increasing demand.
“The pressure is already mounting on companies to compete for good IT professionals in both contract and permanent sectors driving those wage numbers,” Trevor said.
The Clarius Skills Index figures, based on Australian Bureau of Statistics and DEEWR data, also confirm details of a report by the Australian Computer Society earlier this year which reported that ageism had emerged as a significant factor - employers reluctant to hire, and in some cases retain, older IT professionals.
“There is evidence of age discrimination in the information communications and technology sector, with bias towards younger workers being more favourable in the eyes of some employers,” Trevor added.
“This could largely be driven by the perception that younger workers have more current and advanced technical skills with the older workforce skill set becoming dated.
“It seems evident that with the right approach, up-skilling and better planning, it’s possible to reverse the attitude towards mature-aged workers in the IT sector and fill many of the gaps in the sector.”
Trevor said state-by-state snapshots reveal a varying range of demands and pressures.
“A tendency of employers converting contractors to permanent staff is consistent across all regions, particularly the larger cities as companies move to shore up talent long term and diminish the prospect of losing short-term contractors,” she said.
“This trend towards organisations seeking to employ permanent staff in areas historically dominated by contract roles is strong.
“The combination of the shortage of some skills and budgetary restraints is seeing many organisations taking the opportunity to recruit less experienced IT professionals and developing their skills into the vacant roles.”
Western Australia is seeing significant salary and wages pressure as the mining companies push rates up, with other sectors struggling to compete with the higher salary expectations of skilled candidates. The federal election definitely affected the Mining industry - with a reluctance to hire until a more definite result was forthcoming.
The commercial sector in the ACT appeared to use this quarter to consolidate, backfill roles and look at resource planning for the future. Candidates were reluctant to leave positions if there was a possibility of getting a renewal in their existing role. Increased demand for project managers, business analysts and slowly an increased demand for developers is also emerging.
The federal government is continuing with business as usual in terms of the size of the public sector. The Gershon review has meant there is more caution from hiring managers in decision making. A smaller pool of resources and an ageing population has resulted in a tighter labour market. Again, clients are willing to hold out to find the right person.
In NSW there is cautiousness about hiring - while critical projects are being staffed and critical hires to replace are being done, companies appear to be in 'watch and wait' mode due to the recent election and the threat of a double dip recession in the US. There is also a sense of consolidation after the rampant hiring earlier in the year.
In Queensland, there is an increased need for SharePoint expertise - clients are starting to use SharePoint for more advanced reporting after the GFC.