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Media Release
Dire ICT Skills Forecast – now’s the time for 2020 vision
Skills gap to rise to 25,000 in 2020 without immediate policy changes Monday, 11 August 2008 - New figures released today forecast that ICT skills shortages will grow by 29% by the year 2010 to just over 14,000 jobs unless we make changes to policy 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 following measures are needed: - Maintain 2007-2008 inward and outward migration levels
- Increase local graduate numbers by 12.5 per cent per annum from 2007 figures
- Reduce the “brain drain” of ICT professional migrating for overseas employment.
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. “Now is the time for 2020 Vision for our sector. We are calling on Prime Minister Rudd acknowledged the need to address this as a National issue if Australia is to continue to prosper,” said ACS President Kumar Parakala. According to 2006 Australian Bureau of Statistics data on industry sector contributions to the Australian Economy, the ICT industry contributes 4.9 per cent to Gross Value Add, and has a larger contribution to the national economy than the following industries:- Mining
- Education
- Defence
- Agriculture and
- Individual Manufacturing sectors.
 The graph below represents three scenarios in which the future of ICT skills can follow. Although the report recommends, capping migration, increasing graduate levels significantly and minimising the loss of qualified ICT professionals overseas, this is an unlikely outcome. Without changes to education, skills and migration policies on ICT, the skill shortage will continue to grow significantly. ACS CEO, Ms Denham explained that there have been various reports which suggest that ICT contributes 30-60% to first world productivity growth, and a decline in ICT human capital will have significant implications on future prosperity. Ms Denham also explained the ICT Skills Forecast Project is the first phase in a two-part approach to helping the industry resolve its skills challenges. She said the next phase of this report will shed light on the specific skills needed to ease ICT skills shortages in the next five to ten years to help inform appropriate policies for the industry. “We’ve known about the challenge for some time – what’s been lacking has been in-depth analysis and data to enable the development of appropriate solutions. The ICT Skills shortage needs to be better understood, as it will have a long-term effect on Australia’s economic performance. Unfortunately, the most likely outcome on current settings shows continued and rapidly growing ICT skills shortages, which would inevitably translate into reduced economic performance for all Australian industry sectors. CIIER Chairman, Mr Ian Dennis said, “The important next step in this process is to answer the question: What kinds of ICT jobs will be in demand over the next 5,10 and15 years? With the support of the ACS, CIIER researchers are currently conducting a national ICT skills needs survey for the next report - The Shape of Future ICT Employment.” -ends- The Quantifying Current and Forecast ICT Employment Report can be found at the following link: http://www.acs.org.au/attachments/ICTSkillsForecastingReportExecSummaryAug08.pdf Media information: Fleur Brown (02) 9270 0241 or mobile: 0419 270 863 About the ACS: The ACS (Australian Computer Society) is the recognised professional association for those working in Information and Communications Technology, seeking to raise the standing of ICT professionals and represent their views to government, industry and the community. A member of the Australian Council of Professions, the ACS is the guardian of professional ethics and standards in the ICT sector, committed to ensuring the beneficial use of ICT for all Australians. It provides both members and non-members with opportunities for professional education, networking and certification, as well as enabling them to contribute to the development of their profession. Visit www.acs.org.au for more. About the Centre for Innovative Industry Economic Research: CIIER is an Asia-Pacific Centre, formed to create a facility, repository, and think-tank for consistent, competently researched, up-to-date, and analysed data on employment, markets, revenue streams, R&D, processes and management methods, specifically focussed on high technology, innovative, and emerging industries. CIIER produces the ‘Top 250’ ICT Industry Research Report, widely recognised as the leading creditable indicator of trends in the Australian ICT industry, and conducts detailed analysis and reporting on Information Technology, and Reports on other high technology industries. Whitehorse Strategic Group Ltd provided the analysis for this publication. Whitehorse. is an Australian owned management consulting practice specialising in ICT Market Research and analysis, ICT policy and strategy, especially in the Government sector, Business Process Management, and Economic Development.
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