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Don't Leave ICT to Market Forces

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Tuesday 9 March 2004

EDWARD MANDLA

The release last month of new research showing unemployment amongst ICT professionals fell by 1.6 per cent over the past year is certainly heartening after the chronic problems of the past two years.

However, the fact that the unemployment rate, at 10.6 per cent, remains nearly twice the national jobless average, highlights the need for specific measures to drive growth and maximise opportunities for this key industry sector. The ACS will be setting up a working party to look at ways of reducing the unemployment rate.

The study, conducted by industry analyst Peter Hind under commission from the ACS, canvassed the Society's Australian members about their employment status and history, and their experiences in the job market.

On the positive side, it found that full-time employment rates grew from 60.8 per cent to 64.7 per cent since the previous survey - a rise of nearly four percentage points.

It also recorded a significant increase in demand for business analysts, with unemployment levels among those working in these roles dropping nearly 8 per cent to 5.4 per cent. Since the business analyst function is often a leading indicator of new ICT projects, this might suggest that coming months will also see better employment opportunities for software programmers and project managers, who registered extremely high unemployment rates of 18 per cent and 19.6 per cent respectively.

Despite the improved prospects for these professionals, unemployment levels remain unacceptably high.

The ACS is very concerned about the findings of 12.1 per cent unemployment amongst respondents aged 25 and under, which indicates that new graduates are struggling to obtain that all-important first job that provides the practical experience needed to start building a career in ICT.

This also explains why first preferences for ICT degree courses have dropped by around 50 per cent over the past two years as students become discouraged from pursuing ICT careers by the high unemployment.

If this downward trend continues unabated, we will see fewer graduates coming into this sector over the next few years, at a time when other countries are boosting their student numbers and pushing more resources into ICT initiatives.

The impending retirement of the baby-boomer generation, many of whom hold mainstay positions across the ICT sector, demands that we have new graduates coming through just to maintain current workforce levels over the next few years.

One somewhat surprising finding that came out of the survey was the level of dissatisfaction with existing recruitment agencies, with over 80 per cent of respondents reporting an average, poor or abysmal experience.

They found the Internet followed by "word of mouth" were the most effective vehicles for job referral opportunities.

However, anecdotal evidence tells us that professionals are frustrated at the number of "trawling adds" on the Internet where no job exists but recruiters advertise a "job" to build their databases. In addition, most websites are structured so that a single job might be listed under several categories to ensure "everyone looking sees the ad". This gives the appearance that there are multiple jobs when there is only one. This is great for web site operators, web job statistics and recruiters, but disheartening for the job seeker.

Members also dislike the lack of ICT understanding displayed by many recruiters, and the way they tend to insist on an exact match for listed skills with little regard for a professional's ability to adapt their skills and knowledge to new technologies which in many cases could occur very quickly

The ACS is looking more closely at the ICT recruitment industry and will consider what steps we might take to enhance the level of services available. This could mean some form of accreditation or certification system for recruiters, or the ACS might consider branding, investing in, setting-up or acquiring a recruitment company of its own as a way of driving higher standards amongst recruiters and better looking after its members.

Certainly, ICT professionals are doing their bit to improve their situation, with over two-thirds of respondents undertaking additional training to extend their technical and product skills and knowledge. Nearly half (47%) were also doing training in business skills and almost 60 per cent have undertaken personal development training, demonstrating their recognition that employers today need ICT professionals who are good communicators and who understand how ICT fits within the business and supports corporate goals.

The ACS has already supplied copies of this report to both of the major political parties and will meet with key decision-makers to discuss its implications.

We believe the strong messages in this report, its objective assessment and validation by independent body, Access Economics, and the critical nature of the ICT sector itself will ensure the report receives a good hearing.

Considering the fact that the ICT industry accounts for around 10 per cent of GDP and underpins innovation and productivity improvements in industries ranging from entertainment and tourism to government, business and manufacturing, we cannot afford to take a laissez-faire approach and allow market forces to determine its future.

We must do whatever we can to stimulate the local industry and drive employment growth.

In the past, ICT professionals have sought little recognition for the critical role they play and the valuable contribution they make to business and the economy. But this is changing as ICT professionals increasingly move out of the back rooms and into the board rooms.

As the creators of ICT infrastructure and the various applications that drive our work and our play, ICT professionals have a dramatic influence on how our future society and culture will look and function.

In this federal election year, ICT issues will also influence the choices of thousands of voters who increasingly recognise the importance and value of this sector to their own quality of life. Edward Mandla is national president of the Australian Computer Society.

To contact the ACS, call (02) 9299 3666, email: info@acs.org.au or visit the ACS Web site