We may see a re-emergence of a skills shortage in the next 12 months as the economy recovers, according to a new survey.
According to a joint Ai Group and Deloitte survey of 500 chief executives, employers are favouring shorter work hours, salary freezes and forced annual leave over laying off staff.
Ai Group and Deloitte warn that the skills shortage will re-emerge when trading conditions improve because of a drop in training and number of apprentices.
“When we come out of this downturn we are going to have a re-emergence of the skill shortages that we had in the lead up to the downturn,” Ai Group chief executive Heather Ridout told journalists.
The survey found that 45 percent of respondents said they were reducing non-labour costs, 40 percent were shortening work hours, 35 percent had introduced salary freezes, and 32 percent had brought forward leave as an alternative to cutting staff. In addition, employee numbers are expected to drop by an average of 3.8 percent across all industries.
Employers also indicated plans to reduce the number of trainees they take in, while the uptake of new apprentices is expected to drop by nearly 11 percent.
Ridout said going forward this is going to be a big issue.
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