How the Government and Unions Help Maintain Australia's Skills Shortage

Australia is in the first phase of a demographically induced labour crunch. Labour shortages are not in the distance but are already upon us and will become worse. These shortages are magnified because of the sustained economic boom being experienced particularly in the mining sector. The author argues that despite the manifest need for more workers, the Australian government has instituted a red tape laden system of temporary work visas (known as 457 visas) which increases costs and restricts the ability to address the labour shortage. Political campaigning by unions has caused the government to increase 457 visa requirements and led to significant cost and time increases.