This shortage of skilled workers could also go the other way. If a business fails to attract attract workers it requires, expansion plans may have to be put on hold or in extreme cases it has to close it's doors. If this was to happen on a national scale you would see large amounts of people lose their jobs and the remainder holding on to their cash. The economy slows and the domino affect starts. We won't need these extra pilots then would we?

cunningham

There is a thing in Australia called the “Skilled Migrant Visa Program”. Any company that is in the position you describe would be foolish not to utilise it as this is one of the reasons why the Federal Government set it up in the first place.

The scenario you mention therefore is highly unlikely. The most likely scenario as has happened many times in the past is an upward pressure on wages as employees jump jobs in search of higher remuneration and employers offering better packages in the hope of retaining those employees they have. This results in higher inflation which triggers higher interest rates from the Reserve Bank and before you know it the economy is slowing down. Economics 101.