No ICT skills shortage - AIIA

Current fears over a perceived shortage in skilled ICT labour are unfounded according to the Australian Information Industry Association (AIIA).

In a recent survey into local ICT salaries and remuneration packaging, the industry group found that salaries only increased 5.2 percent to the year to March 2006.

This suggested a stable, balanced ICT jobs market, the AIIA chief executive, Rob Durie, said in a statement.

“Average salary increases have been close to this level now for three cycles, indicating a measured and stable approach to remuneration management by ICT organisations,” he said.

Compared to the CPI for the same period, the average real salary increase was 2.1 per cent, up from 1.2 per cent for the August 2004-2005 period, Durie said.

“While there is persistent talk of skills shortages in Australia, a tightening labour market and record low unemployment rates, the survey results suggest the ICT labour market is in balance.”

Durie said salary forecasts for the year ahead were also positive. The AIIA is expecting a 4.0 percent increase in ICT sector pay packets in the year ahead.

AIIA board director Ian Birks said ICT skills were now back in demand with SAP or Siebel expertise and experience in e-commerce and network security proving popular.

“While there is consistent talk of potentially serious skills shortages resulting from a reduction in ICT graduates, we’re not yet seeing any clear evidence that this is having an impact on salaries,” he said.

The six monthly AIIA survey findings were based on the salaries and benefits information of 33,722 individual employees.

In related news the AIIA has also called on both major parties in the run up to the South Australian elections to improve the business climate for the local ICT industry.

The body has called for a number of initiatives for the new government including: appointing a single ICT Minister to champion the ICT industry, adjusting existing procurement practices, allowing capping of liability and default supplier ownership of intellectual property in government ICT contracts and recognising the importance of small-to-medium enterprises to the ICT sector.