As Australia prepares to reopen its borders to fully vaxxed international travellers, research from RMIT Online and Deloitte has revealed that the cost of border closures during the pandemic was a whopping $32 billion to the economy and a projected loss of $148 billion in Gross Domestic Product (GDP).

From fewer jobs created to a lack of skilled immigrants, the impact was felt across industries.

As immigration slowed to a standstill, the report estimates that the country has created 380,000 less jobs than it would have if the borders had stayed open.

Border closures cripple business and the economy

The Ready, Set, Upskill – Fast track growth with digital skills report suggests the impacts of closing Australia’s international borders aren’t a temporary setback. Without action, Australia’s economy will be permanently smaller than it otherwise would’ve been in the absence of COVID-19.

“This means that reverting to pre-pandemic trends isn’t enough. Instead, even stronger growth is needed to correct for losses incurred over this period,” the report states.

Workers on the move

2022 is an employee’s market and the study reveals that 56 per cent of Australian workers are looking for new job opportunities and taking actions such as looking for roles on jobs platforms, preparing new resumes, or reaching out to their networks to find better positions.

“It’s no secret that employers across Australia are struggling to find great people with the right skills,” said Helen Souness, RMIT Online’s CEO. “In some industries, such as technology, big companies are raising salaries to attract talent and making it even harder for smaller businesses and startups to hire. We need to increase upskilling and open the borders to change this situation.”

Flexible work and upskilling top employee’s demands

In an effort to meet worker’s expectations, the majority of businesses are now offering flexible work arrangements (72 per cent). On-the-job formal training initiatives (65 per cent), coaching (48 per cent) and paid leave (41 per cent) are also popular perks used to attract staff.

Workers value this investment in training, with 77 per cent saying it demonstrates employer interest in their career development. Most managers (82 per cent) believe upskilling staff will be critical for business performance this year.

“Upskilling will play a crucial role in closing the skills gaps,” said John O’Mahony, partner at Deloitte Access Economics. “Employers anticipate they will spend more on upskilling over the next year and employees value this investment, with many noting that it is a sign their employers want to invest in them, and they care about their development.”

Other report’s findings include:

• Workers with digital skills earn 9 per cent more in annual wages than peers without them – almost $8,000 on average.
• Employers reported that, on average, a quarter (26 per cent) of their employees’ digital literacy skills are out of date.
• One-third of companies surveyed anticipate that 6-10 per cent of their staff will leave, and a further 24 per cent of businesses expect 11-20 per cent to quit.
• Over half of employers surveyed (58 per cent) found it challenging to attract new staff, identifying border closures as the most common barrier (27 per cent).

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