Over the next two decades, the average Australian worker is likely to change occupations at least twice. This prediction, highlighted in a new interim report by the Productivity Commission, underscores the profound impact of rapid technological advancements and extended working lives. The traditional notion of a “job for life” is fading, replaced by the need for adaptability in a dynamic job market.
The report, released today, emphasizes the importance of building a skilled and adaptable workforce to ensure both individual well-being and national productivity. As new occupations emerge and some older ones decline, the ability of Australians to transition smoothly between jobs becomes crucial.
Building Foundational Skills in Schools
Adaptability in the workforce begins with foundational skills acquired during school years. These skills, including reading, mathematics, and basic digital literacy, are essential for navigating various occupations. However, recent NAPLAN results indicate that approximately 10% of Australian students require additional support, while about 20% are still “developing” towards expectations.
Disparities in educational outcomes are particularly pronounced among students from disadvantaged backgrounds. For instance, by Year 3, students with parents who did not complete high school are typically two years behind in reading compared to peers whose parents hold a bachelor’s degree. By Year 9, this gap widens to five years.
To address these challenges, the Productivity Commission recommends investing in a comprehensive online repository of high-quality lesson planning materials. Such resources would support teachers in catering to diverse student abilities and cover the entire Australian Curriculum from the first year of school to Year 10.
“53% of schools reported having the highest possible range of achievement levels in NAPLAN scores.”
The report also highlights the potential of generative artificial intelligence (AI) to support students who are lagging behind and to challenge those who are ahead. A national approach to educational technology, including a stocktake of current tools, could leverage the collective purchasing power of states to provide cost-effective AI resources for schools.
Facilitating Mid-Career Learning
Lifelong learning is essential for workers to adapt to new technologies and occupational developments. Despite sole traders and small to medium enterprises (SMEs) providing 65.9% of Australian jobs, their employees often receive less training compared to those in larger firms. The report suggests trialing financial incentives, such as tax credits, to encourage training in these smaller organizations.
For workers seeking new qualifications to change occupations, the process of obtaining credit for prior experience can be complex. Educational providers may be reluctant to grant credit for prior learning due to potential revenue loss from shorter course durations. Additionally, determining the equivalency of overseas qualifications can be challenging.
To streamline this process, the report proposes an independent assessment system for “recognition of prior learning” and a public register of credit transfer decisions. This would provide clarity for students on potential educational pathways.
Simplifying Entry into New Fields
Occupational entry regulations, which require workers to meet minimum conditions, can sometimes hinder adaptability. Excessive regulations may deter workers from entering suitable occupations due to high financial or time costs, ultimately leading to increased consumer prices.
“Between 15% and 31% of Australian workers are subject to registration or licensing, a higher proportion than in up to 23 European Union countries.”
The report identifies industries with excessive regulations, such as hairdressing, motor vehicle repair, painting, and air conditioning mechanics. It notes that tighter licensing does not necessarily correlate with better consumer or worker safety outcomes.
In trades, apprenticeship numbers have stagnated, with only 54% of apprentices completing their training within four years. The report recommends exploring alternative models, including shorter apprenticeships for mature students and more focused qualifications.
Adapting to new job markets is inherently challenging. However, supporting workers through these transitions is vital for maintaining a resilient and adaptable workforce. By implementing these recommendations, Australia can better equip its workers to thrive amid change.
