Dynamics in the Australian Agricultural Labour Force - Case Study Example

DYNAMICS IN THE AUSTRALIAN AGRICULTURAL LABOUR FORCE Student’s Name Course Tutor Date Introduction Although some of the Australian landscapes may give a false impression of a beehive of agricultural productivity that may signify a dominant economic activity. The fundamental role of agriculture in rural areas are mainly characterised by new settlers who may be having other forms of employment elsewhere. The population of a place is the key indicator of human capital and thus the direction and rate of population change is a clear indication of the ability of a place to attract and retain residents. According to Pratley (2008, pp 27-42), there is substantial variation in regional populations of Australia, and due to that a good understanding of population dynamics is significant in understanding agricultural achievements in rural areas. The main predisposing factors of regions with high potentiality of losing labour have been found to be remoteness from the main metropolitan centers, low densities of population as well as low levels of amenities. Labour trends in Australian agricultural sector A very important segment of population that can actively engage their energies in farm work is the young population. However, the migration of youth to rural areas is apparently nil, indicative of lack of employment opportunities and better social amenity services. Due to lack of motivation by the young Australian population to take active engagement in the primary industry, mainly farming, the population of Australia measured in terms of its productivity and income. The changing structure of demographics in regard to Australia’s agricultural employment has shown that the entry to farming activities has not widely changed for the past decade. After a long period of sharp decline in young people taking active employment in the agricultural sector during 1970s and 1980s, entry seems to have stagnated at new low levels. The main form of entry into agricultural employment is the mid-career as opposed to informal family workforce. The rates of leaving agriculture as an occupation have been on a decline between the years of 1996 and 2001, mostly for older persons and women. The trends in Australian agriculture labour patterns illustrates that most people still prefer to farm on fallow pieces of land as there is perpetual lack of commitment for the young generation to take over farming business. It is argued that most vulnerable people to the continued trends of shunning agricultural production will not be the farmers and the rural population, but the effect will be experienced in the whole economy as food importation is perceived to be costly. Agriculture has not been able to attract many investors in Australia in order to make it more attractive for employment because of vulnerability of agricultural farms to weather adversities; low liquidity as well as lack of proper mechanisms for diversification of income. It has been shown that the labour force of Australia grew by about 2% per year between the period of 1980 and 2000. This rapid increase in population growth was as a result of full entry to the labour market by the generation widely referred to as baby boom, overseas migration as well as increase in the rate of participation of women. Rapid growth therefore occurred despite a counter trend that witnessed the fall in participation rates of male labour force in agriculture, especially at advanced ages. It is projected that in the near future, the baby boom generation will gradually start fading away from labour force and the increase in the participation of women will also be limited. In addition, over the past ten years, the participation rates of age-specific labour force have sharply risen especially at older ages hence reducing the potential for future increases in participation so as to adequately accommodate the rising demand of labour in agriculture. Currently, the labour force of Australia is approximated to be growing at a rate of 1.2 percent per year and to make matters worse the rate is also on a down spiraling. Preliminary surveys have indicated that current supply of labour would be definitely come close to absolute stagnation without international labour migration into the country. Challenges to Australian Agricultural employment According to Barr (2004, pp 1-4), there are so many factors that severely inhibit the industry in meeting demand for labour force. These encompasses stiff completion for labour from other industries, poor aspects of promoting agriculture, which includes numerous negative messages and images concerning the working conditions in agriculture, population declination in rural areas and an aging population. Barriers to meeting the shortage of skills in the industry include minimal levels of industry participation in training and education, paltry numbers of students taking agriculture related courses in institutions of higher learning, poor agricultural career opportunities awareness as well as limited capacity of training and education system to offer innovative approach to training. Other hurdles in addressing shortages of labour and skills in the Australian agriculture industry include scarcity of detailed skills and labour data for the sector, which is critical in evaluation of contemporary labour needs, no effective engagement of Indigenous Australians, women, youth as well as migrants to take up agricultural employment. There is also perpetual lack of proper planning and capabilities of human resource management in most of the agricultural enterprises (ABC Rural 2007, pp 1-5). The current federal government approaches to solve shortage of labour in agriculture are generally not well coordinated and inefficient. It is argued that adoption of more integrated labour approaches within the government and industry agencies so as to target for achievement of long-term and better targeted solutions to issues of labour and skills. Greater cooperation and coordination across agriculture sectors, state and federal jurisdictions, and educators should allow easier access and engagement with agricultural stakeholders to put order in the processes. Building labour planning and skills of human resource management in the agriculture industry is significant for the improvement of business performance, equipping the industry for better response and adaptation to changes, and also increasing the capacity of the industry to sustain growth in productivity. There is a general need for agricultural employers to adequately develop and consequently implement appropriate strategies of workforce planning. The strategies come in handy in helping employers to establish workplace environments that can attract and retain employees. Such strategies should also be in a position to better manage issues that are associated with gaps in skills and shortages, evolving demands in service, the ageing workforce, changing climate and market conditions. Agriculture makes a significant contribution to the economy of Australia. At the farm-gate, it has been shown that it is responsible for contributing 3 percent of Australian GDP. When activities of value-addition are factored, the industry contributes a whooping $100 billion to the economy on a yearly basis. Data also shows that since November 2008, the Australian agriculture industry has employed about 373 800 people, which constitutes about 4 percent of the total workforce of Australia (ABS 2007). Labour changes in Australian Agriculture Over the past ten years, agriculture employment data indicate that it has fallen by about 63 000 jobs, which has been mostly blamed on effects of the drought. However, prior to November 2008, there were some remarkable improvements with a job growth of about 20 000, or 6 percent increase. Rise in prices of commodities and improved weather conditions have greatly contributed to the industry’s job growth. Some interesting but unconfirmed reports also suggest that the current economic crisis crippling the world has positively affected labour supply in agriculture. Specifically, the dwindling earning from mining has resulted in laying off of employees. Displaced workers having some good skills have been absorbed within the agriculture industry. It is projected that more people would consider agricultural employment for the next half a decade, which is expected to record a growth of about 1 percent per year or about 20000 jobs. Despite the remarkable improvements in terms of the number of people interested and available to work in the industry, significant labour and skill shortages are expected to hit all sectors and regions of the Australian agriculture industry. The challenges that face agriculture, most notably global food security and climate change will increasingly demand more skills and labour. The shortage of labour and skills therefore impede sustainable increases in Australian agricultural productivity. The ability of the country to develop as well as adopt fresh ideas and technology to scale up productivity and still remain responsive and competitive to future challenges largely depends on capacity and capability of the workforce dynamics (Gelade & Fox 2005, pp 23-31). A competitive labour market Government figures have shown that the general demand for agricultural workforce is approximately 20 000 jobs per year. As suggested by AgriFood Skills Australia, formerly known as Agrifood Industry Skills Council, there will be a general labour demand of about 10 000 people per year for the next couple of years. On the other hand, the National Farmers’ Federation (NFF) have also estimated that the employment in the sector will be more higher if the drought conditions eases and agricultural productivity gains the levels of 2002. Australian agriculture industries encompass production horticulture, dairy cattle farming, poultry farming, grain, beef cattle and sheep farming, cotton and sugar cane industries. In order to achieve a competitive labour market, it is important for thr government and other stakeholders to build awareness and clearly define their roles in training, skills and workforce development in agricultural sector. This will be instrumental in helping stakeholders in the industry to appropriately understand the current sector initiatives and their mode of delivery. It is also important in improving industry linkages between interest groups by sharing vital information so as to develop a mode of effective delivery and long-term strategies to improve collaboration and coordination on issues of labour. This is also critical in the identification of processes or models that operates within regions, which can be replicated nationally. Conclusion Labour competition poses a significant challenge for the agricultural industry in finding the number and quality of workers needed. For example, most people consider employment in agricultural sector as a last resort after futile search for employment elsewhere. Revamping agricultural sector to look appealing to job seekers is dependent on strong initiatives of the industry leadership. Bibliography ABC Rural: ‘Too many jobs, too few graduates, in agriculture’. Retrieved on 21October 2011. Read More