Growing Pains: Looking for Workers in All the Wrong Places?

A critical shortage of labour may be posing a threat to Australia’s economic prosperity – but is immigration the best solution to skilling up for the ongoing resources boom? Woodside Petroleum, the nation’s second-largest oil and gas producer, has already reported a A$1.1 billion cost blowout in setting up its Pluto liquefied natural gas project due to unforeseen labour costs. And this may be just the beginning as bottlenecks look likely to delay future mining and energy projects. To meet demand, Australia must face up to the structural shift in its economy and encourage workers to move away from uncompetitive industries, suggests Australian School of Business economist Nigel Stapledon.