Building a Skilled and Adaptable Workforce in Australia

Australia's workforce is on the cusp of a significant transformation, with rapid technological change and longer working lives requiring workers to adapt to new occupations and skills. The Productivity Commission's interim report examines the necessary steps to build a skilled and adaptable workforce, including investments in online lesson planning materials, AI-driven education tools, and simplified occupational entry regulations.

Key Takeaways:

  • The average Australian worker is likely to change occupations over the next two decades, with new jobs emerging and older ones shrinking or vanishing.
  • Basic skills such as reading, maths, and digital literacy are essential for adaptability, but many Australian students lack these skills, with around 10% needing additional support and 20% "developing" towards expectations.
  • Students from disadvantaged backgrounds face significant challenges, with those from parents who did not finish high school being two years behind in reading by Year 3 and five years behind by Year 9.
  • The Productivity Commission proposes investment in a comprehensive online bank of high-quality lesson planning materials to support teachers and students.
  • Generative artificial intelligence (AI) has potential to support students who are falling behind and challenge those who are ahead, but implementation must be done correctly.
  • The Commission recommends trialling financial incentives for training in small businesses and simplifying occupational entry regulations to make it easier for workers to enter new fields.
  • Alternative models for apprenticeships, qualifications, and coursework completion are being considered to address the high costs and lengthy requirements of traditional models.

Statistics:

  • 53% of schools have the highest possible range of achievement levels when it comes to NAPLAN scores.
  • 65.9% of Australian jobs are provided by sole traders and small and medium enterprises, which tend to receive less training for their workers.
  • Between 15% and 31% of Australian workers are subject to registration or licensing, a higher proportion than in 23 European Union countries.
  • Trade apprentice numbers have been declining, with students completing their training within four years of starting.

Sources:

  • Productivity Commission interim report
  • Productivity Commissioner Catherine de Fontenay
  • Alex Robson, deputy chair of the Productivity Commission