AUSTRALIA: Expert Warns On South Australia's Ageing

SOUTH AUSTRALIA faces a "demographic tsunami" unless new strategies are adopted to overcome the rapidly ageing workforce. ADELAIDE, South Australia (The Advertiser), November 20, 2007: Australian Institute for Social Research executive director John Spoehr - one of the state's leading economists - says one fifth of South Australia's workforce will be over the age of 55 in 2015-16 and that South Australia will be hit by an interstate poaching war for skilled workers. "Because SA's workforce is older, our demand for new people is going to be greater but other states are going to be competing ferociously for the same people . . . and lower wages makes us more vulnerable to poaching," he said. The SA workforce is older than the national average, with 109,020 people or almost 16 per cent of workers older than 55, according to the 2006 Census. On a national comparison, South Australia has a higher percentage of aged workers in 28 of 43 occupation groups. The top 10 future critical labour pressure areas include farmers, truck and bus drivers, teachers, clerks, carers and managers. Associate Professor Spoehr said this was "fantastic for employees". "(But) it is a potential demographic tsunami that will hit employers over the next five years," he said. "We're yet to see the impact of the ageing workforce really bite and what these numbers show us is that its going to bite in a very significant way in the next five to 10 years." Professor Spoehr believes Australia's ageing workforce is one of the most pressing challenges the nation faces. Over the next decade, more than one-third of the workforce is likely to retire, yet he says no strategy is in place to manage this change. While he scores both major political parties poorly on this policy, he is most scathing about WorkChoices and worries it will have an inflationary effect in a tight labour market. He also believes new superannuation incentives should be created to encourage baby boomers to work longer, more family friendly work places need to be created and he wants the Job Network replaced by an agency promoting a more nationally integrated approach to skills development. Copyright 2007 News Limited.