The Australian Institute of Management (AIM) has found that Western Australia’s booming commodity sector and the spate of natural disasters across the Eastern seaboard have resulted in unprecedented skilled labour shortages.

 

The AIM has published its 2011 National Salary Survey, finding that skills shortages is placing pressures on wages, causing an increase beyond inflation levels in response to labour market demands.

 

The main finding of the survey was that labour demand is beginning to outstrip local labour supply and that companies are considering offshore recruitment to solve the issue.

 

AIM noted that as a result, 49.7% of large companies in the survey have found it difficult to recruit some staff.

 

More than 92% of large companies paid salary increases in 2010/11 for at least some employees, well up from the 73.6% that paid higher salaries in 2010. The AIM survey shows the average pay increase was 4.0%, higher than the 3.7% increase recorded in 2010.

 

AIM NSW/ACT chief executive Dr David Wakeley notes “A tightening labour market, skills shortages and the likelihood of a rate rise all point to a wages blow out if employers can't find ways to keep good people without big wage hikes”.

 

The survey found that Western Australia had recorded the highest salary increase over the 2010/11 period at 4.7%, while the lowest was South Australia at 3.1%.

 

The construction and engineering industry recorded the highest salary increases, at an average of 4.27%, while the lowest was Manufacturing – Food/Beverage/Tobacco industry at 3.24%.

 

The report can be purchased from the AIM here