Globalisation and Shortages of Skilled Labour in Pacific Island Countries: A Case Study of Australia

During the past two decades, the Australian economy has experienced fundamental changes influenced by the increasing propagation of globalisation. Globalising forces have reduced barriers to labour mobility across countries and economies. Concurrently there has been an increase in the importance of the ‘knowledge economy’ and thus the demand for highly skilled workers. The combination of these factors has increased the competition for highly skilled workers across national economies and in particular among Pacific Island countries (such as New Zealand and Fiji) in which the domestic demand for highly skilled labour outstrips the available domestic supply. The primary objective of this article is to analyse the impact of globalisation on the Australian labour market with a focus on shortages of skilled labour in Australia. The paper also examines the implications of shortages of skilled labour for other Pacific Island countries and suggests policy initiatives in this area.