TASMANIA’s shortage of skilled labour is still a major constraint on business which is preventing employment growth.

Tasmania’s peak employer body, the Tasmanian Chamber of Commerce and Industry (TCCI), says the latest unemployment figures and the most recent Tasmanian Survey of Business Expectations confirmed that the lack of skilled workers was inhibiting growth.TCCI Chief Executive Robert Wallace said it was incumbent on the State Government, as well as the Opposition, to outline strategies to increase skills and encourage private sector growth.

Mr Wallace said Tasmania now had the unenviable distinction of having the highest unemployment rate in the nation with the Australian Bureau of Statistics (ABS) job figures for June 2010 showing the trend rate at 6.3 percent.

“This is a real concern coming at a time when national trend unemployment remains steady at 5.2 percent,” Mr Wallace said.

“While the Government likes to gloss over the reality and talk only about a small increase in jobs and ignores the fact that even more people are looking for work, and the Opposition simply criticises the Government for a lack of action, nobody appears to be examining the cause or coming up with solutions.

“Tasmanians need to know what plans the Government has to lift our skills base and also what the Opposition would do if it was in government.”

Mr Wallace said while the number of net jobs in Tasmanian had risen by 100 in June, much of this was only part-time and unemployment had risen because the economic circumstances had caused more people to enter the workforce to look for work.

” Tasmania’s unemployment rate was now at its highest level since August 2006 with 16,000 people now unemployed, an increase of 3800 on the same time last year.

“Business wants to see effective strategies to increase skills that can boost productivity and confidence.”

Mr Wallace said as well as the lack of skills, the TCCI’s latest Tasmanian Survey of Business Expectations also listed compliance with occupational health and safety provisions and the Fairwork Act, as well as state and local government taxes as key constraints on business.

“Business remains concerned at the high cost of government with public sector salaries now comprising almost 50 percent of the State Budget and rising year on year. As well, the unfunded public sector superannuation liability amounts to 104 percent of the Budget and is predicted to increase by 1.6 percent annually over the next five years.

“The TCCI is still concerned about the recent lifting of the State Government’s memorandum on creating new jobs within the public sector.  This is doing nothing to improve the State’s skill base, nor boost business confidence.

“The State Government must do all it can to reduce the cost of government to ensure Tasmania can return to a fiscal surplus before 2012-13 and all available resources must be directed towards the productive sector of the economy.

“The Government to ‘remain on track’ to maintain its increase in employment expenses over the next 12-months at its promised 2.5 percent.”

Mr Wallace said the TCCI is about to launch a major initiative aimed at reducing compliance costs for business and boosting performance.