Smashed tourism declares skills shortages!

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Only a few months ago, the hospitality, tourism and accommodation industries were bleating about not being able to keep staff when Jobkeeper was terminated. Now the narrative has changed to not being able to find staff, thus necessitating opening the floodgates to cheap exploitable foreign workers.

Here’s the latest special pleading via The Australian:

  • Tourism, hospitality and accommodation industries claim ­labour shortages are worsening.
  • The fall in the unemployment to 5.5% has sent Aussies looking to other occupations for work.
  • Wes Lambert and Tourism and Transport Forum chief executive Margy Osmond want the ‘skilled’ migration program rebooted now.

The below quote encapsulates the industry’s argument:

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“The unemployment figures have come out and they look ­pretty damn good. That’s compounding the problem. Nobody is coming to work for us, there are no additional students coming in, no backpackers and no real capacity for a skilled migration process… We really, really have to have a skilled ­migration strategy, and inter­national students and backpacker strategy, and it needs to kick off sooner rather than later”…

Here’s a novel idea: offer higher wages and better conditions to entice local workers into hospitality and tourism. This sector (Accommodation & Food Services) pays by far the lowest wages in the nation by a large margin, according to the ABS:

Hospitality industry median earnings

The Accommodation & Food Services sector pays the lowest wages in Australia.

These industries are also notorious for wage theft and exploitation. Thus, there is little wonder they are struggling to attract staff.

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On this point, ACTU Secretary Sally McManus is 100% correct:

Sally McManus

Giving these industries easier access to foreign workers will only worsen the systemic exploitation already prevalent, holding down wages and denying local workers employment opportunities and a living wage.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.