Australia’s bid for recognition as an Asia-Pacific financial hub is losing ground as the financial sector finds itself in need of 40% more skilled staff, according to a report from the Financial Services Institute of Australasia (Finsia).

It found Australia’s shortage of rising talent threatens to stymie the financial services industry’s growth, innovation and global competitiveness.

Since 1997, the proportion of finance sector workers aged under 30 has declined six percentage points to 25%, while the over-60 bracket has climbed three percentage points to 7%.

Finsia CEO Martin Fahy says despite rising Australian employment and education levels, the financial sector is facing an ageing workforce and shortage of next generation talent.

“Now more than ever we must encourage greater workforce participation rates, especially among women and professional retirees,” he said.

The study found women comprise just 45% of financial sector ranks, with men dominating managerial positions and pay scales.

The research forms the first stage of Finsia’s 2008 policy initiative called Closing the talent gap – building a global financial centre

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