Businesses in Australia are being urged to act now over a looming skills shortage.

While unemployment remains a problem for numerous countries, Australia has been warned it instead faces a severe lack of workers.

Deloitte's report on the matter said some organizations have already taken action by either developing a larger staff or using innovative methods to unlock underused labor capacity.

But companies must realize that very soon they will need to start thinking about where their next employees are coming from, explained Chris Richardson of Deloitte Access Economics.

"The next few years will see skills shortages proliferate. That will be felt right across the two-speed economy," he added.

Businesses and government have been offered a range of tips on how to solve this forthcoming gap and boost prospects for growth. They include tempting retirees back into the workforce and taking advantage of competitive talent pools.

The Australian Bureau of Statistics said last month that the nation's unemployment rate was 5.2 per cent or 634,200 in September, down by 3,800 people.

Employment went up due to an increase in full-time positions as well as part-time positions.

Posted by Sarah Dixon