The Australian Retailers Association (ARA) has welcomed the Federal Government’s planned overhaul of Australia's migration system to offer long-term pathways towards residency for skilled workers.
It comes in response to the independent Review of the Migration System led by Dr Martin Parkinson, which found that Australia’s migration system is broken.
ARA CEO Paul Zahra said a simplification of Australia's migration system would reposition the country as a destination of choice for skilled workers.
“It’s been extremely difficult for retailers to compete in the global war for talent while Australia’s migration system has been hamstrung by so many restrictions, excessive costs and protracted waiting times,” he said.
“Attracting skilled and suitable workers will be essential for both survival and success as the industry navigates persistent economic headwinds. ”
The ARA has called for the establishment of pathways to permanent residency for temporary skilled visa holders in its last two pre-budget submissions, Zahra said. “It is very pleasing to see the Government taking this feedback on board.”
“Having a clear permanent pathway to residency will make Australia a go-to destination for talented workers across the globe.”
The ARA said it also welcomes reports that the government will scrap the Skilled Migration List, in favour of a higher income threshold to determine a “skilled” role.
“As retail gears up for growth in important areas such as eCommerce – attracting talent will be vital to stay ahead of global competitors,” Zahra said.
“Coupled with acute labour shortages, we have a higher than ever need to supplement our workforce.”
Zahra said the recent major policy shift allowing New Zealanders to access Australian citizenship, and its associated benefits, will also incentivise global talent to choose Australia over other countries competing for labour.
The Federal Government said it will invest $4.1 billion into skills and training, which the ARA also welcomes.
"We’re pleased to see continued financial support toward the Vocational Education and Training sector, as a viable upskilling pathway alternative to higher education – specifically for entry level and frontline management types of positions,” Zahra said.
“The ARA looks forward to consulting with the government as the split of funds is negotiated and accepted between each state and territory government.”
Background
With the unemployment rate refusing to budge from its 3.5% low, the retail industry continues to face high vacancies. This is despite a 12,000 drop in overall vacancies in the retail sector in the last quarter to 36,400, according to data released by the Australian Bureau of Statistics - likely driven by the end of the Christmas rush.
Since pre-pandemic (February 2020), retail trade has seen a 92.4% change in job vacancies.
Earlier this year, Zahra welcomed government initiatives in combating retail trade vacancies, including fast-tracking working holiday visa applications, but said more urgent action is required.
“Retail businesses are at the coalface of Australia’s economy and our daily lives, yet they can’t secure enough staff,” Zahra said.
Zahra added that labour shortages are affecting many retailers, saying that some stores are forced to reduce trading hours in response to worsening staff availability.
“It can be the difference between success and insolvency for small businesses,” he said.
“These shortages were exacerbated during the frenetic Christmas trading period - the most critical time of the year for retail. And the strain of labour shortages is far-reaching.
“You end up with staff who can find themselves overworked and burnt out, and shoppers languishing in longer queues. With longer waiting times, shoppers become impatient and the risk of antisocial behaviour increases.”
As well as in retail, skills shortages are also being reported in retail reliant industries such as suppliers and manufacturers.
Earlier this year, Cotton Australia CEO Adam Kay said cotton farmers are seeking to lift their employment targets.
“We are working with the federal government to solve the shortage of agricultural workers and we look forward to filling vacancies as soon as possible,” he said.
In another example, Emu Australia factory manager Kristie Marsh told Ragtrader in August last year that her search for artisan boot makers has been fruitless.
According to Marsh, the artisan ugg boot maker is a dying trade, with a lot of her employees being part of the older generation.
This means that, as well as aiming to fill current vacancies, Marsh will also see some of her older workforce retire in the next few years, compounding the stress of filling roles.
“At the moment, I'm actually branching out and looking at recruitment agencies and just trying to find the right fit,” Marsh said.
“I'm happy to put the time and the training and the money into the right candidates. Last week, I had two girls with no sewing experience start.
“It's just branching out and seeing who actually wants a job; who can be loyal to the company and who wants to learn how to sew?
“We hope to double what we're already doing, hence why we need more machinists and more factory workers.”