Are Skills the Answer to Australia's Competitiveness - Case Study Example

Are skills the answer to Australia’s competitiveness? Name Professor Course Institution Date Introduction There has been a lot of progress in some important areas concerning workforce in Australia after the publication of ‘Australian workforce futures’ in 2010. However, there is still a lot to be done and this is brought in by the shortage of skills in some industries. This shortage threatens to bring risk growth constraining monetary tightening and wage inflation (Australian Workforce and Productivity Agency 2012, p.1). High unemployment is a major concern across Australia’s region and most common in the young generation. The only way to deal with this phenomenon is by improving leadership and management skills to improve the regions innovative capacity. According to the final report on Review of Skills (Leitch 2006, p.9) achieving social justice and economic success in the new global economy requires the achievement of excellent skills. Some of the key debates facing Australia are improving productivity to the advantage of workers, enterprises and the community. In most research findings, one way of addressing this challenge is by optimizing skill level of all Australians in a workplace context. Encouraging people to develop and apply skills in the workplace through proper participation can do this effectively (Skills Australia, 2012, p. 5). A dedication to skill acquisition and innovation is one of the most proficient ways that Australia can moderate itself against the outcomes of the worldwide recession and haste up recovery. This will contemporarily generate jobs for the future and give the public security in work. Another key research finding is that Australia is able to emerge out of a low growth economy. This is possible through adequate supply and use of skills in harnessing the power of technology and its associated improvements (Australian Workforce and Productivity Agency, 2012, p.4). Key policy thrust in Australia regarding skills Australia’s recent originality and skill performance has been irregular, and the country has failed to keep up with the rest of the earth (Fieldler, 2007, p. 113). In the past eight years, the country has fallen from fifth position to eighteenth position in the World financial Forum worldwide Competitiveness directory (Van, 2007, p.79). The multi-factor efficiency grew 1.4 per cent per annum on average between 1982 and 1995. Growth has middling only 0.9 per cent annually from then, which is no better than in the 1960’s. The grounds for this are not difficult to find. Commonwealth expenditure on science, skill, and originality has fallen 22 per cent as a split of GDP since 1993. Business expenditure on study and progress malformed in the late 90’s, and whilst it has developed since then, we still lag behind in many of the countries we participate with. The percentage of Australian companies bringing in new skill has been fixed at a third for years. A decade of policy disregard has hurt the countries skill performance, making it less prolific and aggressive, and undermining its ability to meet the requirements and ambitions of Australian people and society. In the meantime, the slab keeps rising. China’s R&D expenditure has grown by 22 per cent annually ever since 1996, contrasted to 8 per cent yearly in Australia. Australia spends 2 per cent of GDP on study and growth. Other countries like the USA spend over 2.5 percent; other countries like Finland spend 3 percent while Israel uses more than 4 per cent. While Commonwealth expenses on science and originality fell to 0.58 per cent of GDP in 2007, Denmark is gradually raising administration spending on R&D as of 0.89 percent of GDP in 2008, to 0.94 percent in 2009, with a goal of 1 percent in 2010. Key Research Findings on Skill and Skill Policy There are a number of reports from research findings in Australia regarding the importance and level of skills in Australia. Some of the findings are as follows. The situation with shortage in skills puts pressure on wages for the working population especially the older people. On the other hand, a significant number of lower-skilled and large employer business sectors still face challenges from international competition. These businesses however rely on technology, economy, and productivity gains to embrace competitiveness alongside effective strategies to retain workers. Nevertheless, there is much more to skill than laboratory R&D. Advancements to the way a country organizes, manages, operates, and markets things are of equal importance. However, venture in science and machinery is vital to the development of knowledge-based markets, and a significant pointer of skill capacity and performance. There is frequent use of measures like R&D to compare nations, and in current times, these assessments have not favored Australia. Australia’s skill system has labored well enough, frequently enough, to illustrate to us what achievement looks like. Fruits of the scheme receiving returns for Australia globally comprise Google Maps, CSIRO’s polymer depository notes and wireless net skill and Cross Market Surveillance Service’s stock market scam uncovering scheme. Even with this development in skilled workforce, organizational capability and capacity are still major factors in in competing for the existing skills. The best companies take advantage and compete for best employees with the proper training, social responsibility and fitness as well as maximal utilization of existing skills of their workers (Australian Workforce and Productivity Agency, 2012, p.3). These instances therefore suggest to the country that revolutionary innovation and skill necessitates constant commitment, at times for decades. Transforming new thoughts into money creation products and services requires staying authority. It entails an advanced scheme that presents an endless trail from visualization to recognition. Too many Australian creations and innovation end up finding worth overseas, where others use the worth they generate. This costs Australia work and riches, and denies the country the chance to build new industries. Key debates on Skills and Skill policies Australia has exposed that it can make world competitive innovations, but the country has by no means done it sufficiently, and it is becoming difficult all the time. Experienced players are advancing heavily to preserve their spot, while new ones throng onto the field. Nations like Russia have multiplied by two their R&D expenditure over the precedent decade. The split of worldwide study and growth carried out by non-OECD nations has risen from 11.7 percent in 1995 to 18.4 percent in 2004, and it keeps on rising. Australia’s originality scheme will need to labor better if the country desires to contend in this setting. It will need to labor better if the country wants to avoid further yield decline. It will require laboring better if the country wants to keep the way of living Australians value so much (Murphy, 2011, p. 122). In today’s economic environment, a country’s government plays the key role in building its economy and improving the creativity of its citizens. This is usually through policy-making and implementation process by the government. While public policy has its limits in boosting and facilitating organizational development, in accordance to the World Economic Forum. Australia’s developmentis among the countries that are in ‘the innovation-driven stage’. This is through seeding and improvement of its economy by putting up initiatives and investment in management skills (Management Matters Australian report University of Technology Sydney, 2009, p.8). Evaluation Generally, the reason for improving skills in Australia is to gain competitiveness globally and reach the top of the economy chart. The first step is to stabilize the country’s overall skill performance, which has been on a decline. In order to do this, skill-policies have to be put in place to facilitate this transition. Some of these policies will include: Develop an approach that will support a steady labor force that will address probable deficit in the supply of research capable people. Increase the income for the countries Postgraduate honor with a boost of more than 10 per cent declared in the 2009 Budget, elating the salary to $22,500 in 2010. Considerably increase the amount of scholars by implementation advanced degrees. This will be through research over the subsequent decade construction on the Government’s goal to lift the quantity of 25–34-year olds with a degree. In addition, its new enticement to get students studying mathematics and science (both will expand the collection of students competent to commence research degrees), as well doubling the amount of Australian advanced Awards in the 2009 Budget. Create workable career trails for Australian researcher’s construction on the Government’s procedures to sustain study trainees (more Australian advanced Awards with higher incomes), early- job researchers (great Science Fellowships), mid vocation researchers (prospect Fellowships), and elder researchers (Australian Laureate camaraderie). According to Deloitte Access Economic (2012, p.43) demand for more skills will be influenced by the ‘replacement demand’ situation. This is because of the interest of employers to replace workers with those with more skills. Eventually this will lead to generation of more skills as people will opt to look for additional post-school qualifications. Skills Australia concludes that making better use skills ensures job satisfaction to the employer, employee, and overall increase in productivity. In planning for a better future workforce, it is also necessary to take into account that it is necessary to share potential and se available opportunities to lift those with disadvantage (Australian Workforce and Productivity Agency, 2012, p.3). Conclusion From the literature review of skills and skill policy in Australia, it is evident that the key policy thrust in Australia regarding skills has drawn Australia into a single conclusion. This involves overall improvement and building the skills of its population. For the country to realize its goals, it is important that policies majorly concerning boosting the skills of its people be of higher priority. Major innovation and creativity comes out of a workforce that has put investment into developing the skills of its workforce. Although the major challenge surrounds the older working population, the flow of events is likely to push this population into acquiring the desired skills through post-school qualifications. It is therefore foreseeable that if Australia continues to push onto the urge for developing its workforce skills, eventually it will gain the competitive advantage to stay at the top among other strong nations around the globe. Bibliography Skills Australia (2012).Better use of skills, better outcomes: A research report on skills utilization in Australia. Retrieved from http://www.awpa.gov.au/publications/documents/Skills-utilisation-research-report-15- May-2012.pdf 23 Sept. 2012 Australian Workforce and Productivity Agency. 2012. Future focus: Australia’s skills and workforce development needs: A discussion paper for the 2012 National Workforce Development Strategy. Sydney. Pp. 116 retrieved from http://www.awpa.gov.au/publications/publications.html on 23 Sept. 2012 Leitch, S. (2006) Prosperity for all in the global economy – world class skills, London: HM Treasury. Murphy, R. 2011. Dynamic Assessment, Intelligence and Measurement. New York: John Wiley & Sons. Van W., Katherine S., Besthorn, H. & Keefe, T. 2007. Human Behavior and the Social Environment: Groups, Communities, and Organizations, NJ: Oxford University Press, pp. 278 Fiedler, E. 2007. A theory of leadership effectiveness, McGraw-Hill: Harper and Row Publishers, pp. 65 Read More