Over the next two decades, the average Australian worker is expected to change occupations at least twice, according to a new report by the Productivity Commission. This shift is driven by rapid technological advancements and longer working lives, marking the end of the era where individuals held “one job for life.” As new occupations emerge and some older ones diminish, the ability for Australians to adapt will be crucial for both personal well-being and national productivity.
The interim report, released today, outlines strategies to build a skilled and adaptable workforce in Australia. Key recommendations focus on education, mid-career learning, and easing the transition into new occupations. These strategies aim to equip Australians with the necessary skills to thrive in an evolving job market.
Building Foundational Skills in Schools
The foundation of adaptability in the workforce begins with basic skills acquired during school years. These include reading, mathematics, and digital literacy. However, current data shows that many Australian students lack these essential skills. The most recent NAPLAN results indicate that about 10% of students require additional support, while approximately 20% are still “developing” towards expected standards.
Disparities in educational outcomes are evident early on and tend to widen over time. For instance, by Year 3, students whose parents did not complete high school are, on average, two years behind in reading compared to their peers with parents holding a bachelor’s degree. By Year 9, this gap increases to five years.
To address these challenges, the report proposes investing in a comprehensive online repository of high-quality lesson planning materials. This resource would be accessible to all teachers, regardless of the school type, and cover all aspects of the Australian Curriculum from the first year of school to Year 10. The aim is to support teachers in catering to students of varying abilities within the same classroom.
“53% of schools reported the highest possible range of achievement levels in NAPLAN scores.”
Additionally, the report highlights the potential of generative artificial intelligence (AI) to support students who are falling behind and to challenge those who are ahead. A national approach to educational technology (edtech) is recommended, which includes a review of current tools and leveraging the purchasing power of states to provide approved AI resources at reduced costs.
Facilitating Mid-Career Training and Education
Lifelong learning is essential for workforce adaptability. Workers who continue to enhance their skills or acquire new ones throughout their careers are better positioned to adapt to technological changes and occupational shifts. The report notes that sole traders and small to medium enterprises (SMEs) account for 65.9% of Australian jobs, yet their employees often receive less training compared to those in larger firms.
To address this, the Productivity Commission suggests trialing financial incentives, such as tax credits, to encourage training within these organizations. Furthermore, the report acknowledges the complexity of gaining new qualifications, particularly when workers seek credit for prior experience to expedite their studies.
The current system can be cumbersome, as educational providers may be reluctant to grant credit for prior learning due to potential revenue loss. To streamline this process, the report proposes an independent assessment of “recognition of prior learning” and a public register of credit transfer decisions to guide students in their educational pathways.
Simplifying Entry into New Occupations
Regulations governing occupational entry, such as licensing requirements, may also hinder workers’ adaptability. Excessive regulations can deter individuals from pursuing occupations they are suited for if the financial or time costs are prohibitive, potentially leading to higher 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 found significant variation in licensing rules across Australian states, with no evidence that stricter regulations result in better consumer or worker safety outcomes. Industries identified as over-regulated include hairdressing, motor vehicle repair, painting and decorating, and air conditioning mechanics.
In trades, apprenticeship numbers have stagnated, with only 54% of apprentices completing their training within four years. The report recommends exploring alternative models, such as shorter apprenticeships for mature students, more focused qualifications, and completing coursework before beginning a shorter apprenticeship.
Adapting to new job markets presents challenges, but supporting workers through these transitions is essential for maintaining a resilient workforce. By implementing these recommendations, Australia can better equip its workforce to navigate the changing landscape and ensure continued economic growth.
