Tasmania in transition - economic, demographic, workforce

Yesterday I spoke at the Tasmanian Skills Conference on "Tasmania in Transition" from an economic, demographic and workforce perspective.  Below I provide an overview of the opportunities associated with each.

• Tasmania is not Australia

Tasmania is not Australia and is not comparable from an economic, demographic or workforce perspective.  As a state we are experiencing different stages of the transitions and need to respond specifically to our needs.  The ageing nature of our state will result in an increase in demand for labour intensive industries (eg health and aged care) at the same time that the potential workforce in diminishing in size. 

•  Interstate migration opportunities 

While we experience net losses in  interstate migration, there are two distinct opportunities attached to the movements – brain gain and the large group of arrivals being aged 25 -29 and 30 to 34 who often bring their young families with them.

• Generation Thank God You're Here

While not of the same magnitude as the rest of Australia, the recent increase in the fertility rate will provide a reprieve to both the economy (in terms of increase consumption) but also future labour supply, which we have time to prepare for and shape accordingly – provided we can keep them in the state once they are educated!

• Untapped supply of labour

Tasmania’s Labour Force Participation Rates are comparatively lower than other states and territories, however recent evidence shows that in times of strong economic performance and demand for labour, these rates increase.  The same should apply to an ageing population increasing the demand for labour, and further still following an economic recovery. 

• Older workers

There have been many studies which have found that retirement is likely to be postponed where there is greater satisfaction, flexibility in the workplace and less than full time hours to accommodate external demands.  Current attempts at family friendly policies are equally important for older people, particularly given the multiple layers of caring responsibilities – with older workers often responsible for care of up to four different generations - parents, partners, children and grandchildren.  People stay in work to maintain their standard of living, accumulate superannuation savings, recoup their investment in human capital or because they have insufficient financial resources to retire with, or because they simply like to work.

• Increase the intrinsic value of work for all

We need to encapsulate the enjoyment of work and encourage people to want to work for longer.

What can Tasmania do to increase the labour productivity of labour intensive industry sectors?  I believe the answer lies in both skill utilisation and workforce development but also in reform of workplace practices and regulations.    Innovation is not just investment in capital and technology, it is investment in doing things better, more effectively and more efficiently. Innovation needs to occur in the workplace too.