Australia - NBN is creating a skills shortage driving up wages in ICT sector

[the australian] THE National Broadband Network could affect IT salaries in the next three to six months with a skills shortage looming in the industry.

The September Clarius Skills Index, released yesterday, revealed a skills shortage of more than 2800 computing professionals across Australia.

Candle executive general manager Linda Trevor said there was an emerging skills shortage, particularly for project managers and business analysts. "It depends on what happens with the NBN because that is going to drive the salaries up further," she said.

"It is going to push up contract rates higher, which will mean more churn in the permanent market, because when people see a lot of money to be made in contract they leave their permanent roles.

"I think we will start seeing things in the next quarter."

Ms Trevor said, while many of the skilled staff working on the NBN would come from overseas, they also would be sourced from local telcos and vendors.

She said the biggest concern for employers in the next three to six months would be retention.

"When people were setting their budgets last year, they didn't realise that the salaries were going to be pushed up so high -- so budgets are not very realistic for what it is now," Ms Trevor said.

She said there had been wage increases of between 5 and 10 per cent across the industry, with evidence of 20 per cent hikes in Western Australia.

Ms Trevor said the combination of the shortage of some skills and budgetary restraints saw many organisations recruit less experienced IT professionals and develop their skills into the vacant roles.

The index, which measures demand and supply, found there was a turnaround from an oversupply in the March quarter of 1525 to just 319 in the June quarter.

The Clarius Skills Index figures are based on Australian Bureau of Statistics and Department of Education, Employment and Workplace Relations data.

The latest Hudson Report, Employment Expectations survey, involving more than 4000 employers, also found confidence in the IT industry continued to increase, with 44 per cent now indicating an intention to lift their permanent staff levels in the October-December quarter.

The recent October-December Hays Information Technology Quarterly Report described the labour market as tight, with a growing list of IT skills now in short supply. It found employers had started to increase salaries and contract rates.

National Broadband Network set to lift pay as skills crisis bites