Migration the solution to labour shortages, say bank chiefs Peter King and Ross McEwan

The resumption of skilled migration is part of the solution to the nation’s current labour shortages, according to two of the major bank chief executives.

Westpac CEO Peter King: ‘We can’t immediately solve all the skill gaps but it’s a global issue and we are competing for talent so we’ve got to encourage people to come here.’ Picture: Jane Dempster

The resumption of skilled migration is part of the solution to the nation’s current labour shortages, according to two of the major bank chief executives.

Westpac boss Peter King and National Australia Bank chief Ross McEwan congratulated new Prime Minister Anthony Albanese on his election victory, saying that Australia was an attractive destination in the global battle for talent triggered by the reopening of international borders.

With the unemployment rate dipping below four per cent, Mr King said more people had to be encouraged into the workforce.

“Policies around women in the workforce, policies around encouraging people to stay in the workforce longer – these are the things that are important in terms of managing where we are at the moment,” he said.

“Skilled migration also has a role to play.

“We can’t immediately solve all the skill gaps but it’s a global issue and we are competing for talent so we’ve got to encourage people to come here and make it easy for them to come here.”

Mr McEwan said NAB looked forward to working constructively with the incoming government to progress policies that support the bank’s customers, particularly households and small businesses, and grow the economy.

NAB chief executive Ross McEwan. Picture: Aaron Francis

The NAB boss has previously spoken of the importance of migration, noting that borders had effectively been closed for two years and temporary student labour had mostly left the country.

“They did form part of the labour market as well on a part-time basis, which is important for areas like cafes, restaurants, bars, and even in some of the other areas of employment,” he said.

“So I think that is number one, let’s re-establish Australia as an amazing place to come and work and that will help with continuing to see the economy grow.

“There are many, many infrastructure projects, both at a state and federal level, that are going to need skilled labour as well.

“That also means bringing people into this country and making sure that the right skills are brought in and they’re looked after so they stay.”

With the Reserve Bank predicting that headline inflation will peak at six per cent around the end of the year, Mr King said wages needed to go up.

The Fair Work Commission, however, was the appropriate forum to determine the minimum wage, because it made a balanced decision after hearing all the arguments.

“From a Westpac perspective, we’ve been paying 3.25 per cent increases for the last couple of years in the lower tier in our enterprise agreement, and we covered the increase in the superannuation guarantee on top so our people didn’t get a pay cut,” he said.

The Business Council of Cooperatives and Mutuals, on behalf of the $35bn co-ops and mutuals sector, urged greater co-operation with the sector to find effective and equitable solutions for the challenges facing local communities.

“The recent experience of bushfires, flooding and the pandemic, as well as the supply disruptions caused by the war in Ukraine, highlight the importance of building greater resilience into the Australian economy,” BCCM chief executive Melinda Morrison said.

“Co-ops and mutuals are a willing and proven private sector partner to help address issues of housing affordability, energy and food inflation, food insecurity, childcare, healthcare, employment casualisation and other cost of living pressures.”