Industry must align to address the skills gap

Australia’s long-term prosperity depends on how we tackle the ever-widening skills gap.??

We know the demand for skills in the workforce is constantly evolving, driven by the relentless pace of technological change and evolving industries. We know the gap is only going to widen without change.??

90 percent of Australian CEOs expect to be impacted by staffing shortages in 2023, with 36 percent predicting that skills shortages will affect their business growth, according to Ai Group’s Australian CEO Survey.?

This skills gap, which threatens our nation's long-term economic resilience, requires a strategic response.???

Alignment is key?

“No amount of increased funding will fully rectify the issues we face without a considered and coordinated approach,” emphasised by Business Council of Australia’s Seize the Moment report.?

Alignment on our priorities encourages collaboration to solve the problem, ensuring that addressing skill shortages meets industry needs. This snowballs into improved employment outcomes, productivity and responsiveness to labour market shifts.?

We are stronger, louder and more efficient together.?

A national priority?

The good news is that many voices are pointing us in a similar direction.??

Digital capability is undeniably at the forefront of this discourse. We know that there will be a projected 370,000 digital worker shortfall for Australia by 2026, according to our Growing Australia’s Digital Workforce report.??

We also know that we need 1.2 million tech workers in Australia by 2030, as per Tech Council of Australia’s Getting to 1.2 million report.?

This isn’t just the case for tech workers, but for all sectors.??

The Small Business Perspective Report 2023 by COSBOA states that nearly two-thirds of industry leaders concur that AI will be beneficial for their sector. However, small business owners have varying levels of digital capability, underscoring the need for increased government support to navigate the digital transformation of small businesses.?

These challenges were reflected in the finance sector, with the 2023 Australian Payroll Survey revealing that 38.7% of participants identified payroll processes and technology as their main work challenges. Furthermore, the Safe and Responsible AI in Australia discussion paper emphasised the broad range of opportunities that AI presents, however it highlighted the importance of cultivating public confidence in emerging technologies by enhancing understanding and awareness.?

This assertion aligns with a broader consensus that the Australian workforce must uplift its digital capability to meet the forthcoming challenges, and champion lifelong learning to stay ahead.?

And it’s not just digital skills in demand. According to Ai Group’s 2022 Skills Survey, Australian businesses are seeking generic business skills, especially among managers. The survey emphasised the need for enhancing leadership and management skills, as well as providing better access to micro-credentials to develop new skills and adapt to changing roles and responsibilities.?

These themes, among many others, resonate with the findings from our workforce plan, helping to shape our shared journey towards a more resilient and adaptable workforce.?

Collective action?

It's encouraging to see a convergence of perspectives in the discourse surrounding upskilling the workforce for improved productivity and economic outcomes.?

So, how do we harness these commonalities to drive real change? How do we amplify our message and work collaboratively towards a more resilient workforce???

The key lies in identifying a starting point, agreeing on priorities, and crafting a comprehensive vision of success.?

As the Future Skills Organisation, we play a central role in tackling the skilling challenge and are actively engaged in shaping the path forward to meet industry needs.

It's time to translate these priorities into aligned action, and it starts with all stakeholders getting on the same page and pulling together to reach a future where our workforce is agile, responsive, and prepared for the challenges of tomorrow.??

To drive the transformation, we need you to become a collaborator.?

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