Government must tackle skills shortage to deliver childcare promise

More affordable childcare made accessible to more families was a key election promise from the new Labor government but it faces a major impediment when it comes to delivering it:a shortage of childcare workers.

Families already struggle to find childcare for their children,placing their names on waiting lists well before they have shared the news of their pregnancies with their relatives. In regional Australia and some Sydney suburbs,childcare vacancy rates are so low that about three children are competing for every available spot.

The childcare sector is struggling to find workers.

The childcare sector is struggling to find workers.Oscar Colman

The latest employment statistics suggest this struggle for care is about to get worse. The need for childcare workers is at crisis point. More than 3000 are needed in Sydney alone,and 16,000 are needed across the country. On top of this shortage,37 per cent of workers also plan to leave the industry,many because they are unhappy with the pay and conditions,a sentiment exacerbated by the pandemic.

On average,a childcare worker earns about $55,000 a year and in 2018the Fair Work Commission rejected submissions from unions to increase minimum pay for childcare workers by 30 per cent,to make up for historic,gender-based inequality.

Childcare was Labor’s biggest single spending measure during the election campaign.It pledged $5.4 billion to increase subsidies for 96 per cent of families and declared that getting more women into work would not only improve the welfare of this group of voters but improve the economy.

This makes sense. Australian women are among the most educated within the Organisation for Economic Co-operation and Development,yet their participation rates are well below average and they are far more likely to work part-time. Prime Minister Anthony Albanese is right to identify them as an untapped economic resource. High-quality early childhood education is also associated with a range of positive outcomes for children and the nation,from economic,health and welfare perspectives.

Australian women are among the most educated in the world.

Australian women are among the most educated in the world.Supplied

But it is clear that if the federal government wants to deliver on its promise to make childcare more affordable and accessible,it is going to first have to encourage workers to stay in the industry,and it will have to tackle the growing skills shortage – a crisis that is affecting a range of industries but especially health and care services. Healthcare and social assistance is expected to account for one in seven jobs by 2025,according to the National Skills Commission.

These critical workers deserve better pay and conditions. The government needs to advocate for childcare workers and consider how to best structure the industry to ensure their wellbeing. Happier teachers also lead to better educational outcomes for children.Labor’s policy to seek a review of the sector by the Productivity Commission and the Australian Competition and Consumer Commission,and to seek greater transparency from providers on revenue and profit,will go some way to ensuring the system is set up to serve childcare workers as well as families.

The government must also improve access to education and training to bolster the number of educators in the pipeline. It must entice more skilled workers to Australia to fill the gaps that exist now and make it easier for those workers to get here. Reports this week thatskilled immigrants are waiting up to 18 months for their visas are a concern. This is not good enough when employers are struggling to find workers to provide critical services to the public.

Childcare is increasingly being recognised for its relevance,not just to women but to the economy,and is set to be a key focus of the upcoming state budget too. However,to get the most out of childcare for all families and the economy,the federal government must move quickly to bolster the workforce and ensure childcare workers are adequately looked after and compensated for the critical work they do.

Since the Herald was first published in 1831,the editorial team has believed it important to express a considered view on the issues of the day for readers,always putting the public interest first.

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