A skills shortage rather than a dearth of candidates is the main economic problem facing Australia, it has been claimed.

According to the Chamber of Minerals and Energy of Western Australia (CME), a flexible skilled migration programme must be implemented to address this issue and meet the needs of the resource sector.

Reg Howard-Smith, chief executive of the body, said that while firms will always look to hire local people to fill such roles, there is an immediate need for skilled and highly-trained individuals.

Plans to encourage young people into careers in mining will address the problem in the long term, however, many businesses are struggling now.

"Where there is a demonstrated immediate need, a flexible and targeted skilled migration programme is part of the solution," Mr Howard-Smith added.

The latest Clarius Skills Index showed that Australia will also have to address skills shortages in the education, engineering and healthcare industries over the next 15 years.