Employment & Skills

Australia needs cohesive, forward-looking employment and skills systems that address evolving labour market challenges and bolster economic resilience. Policies must prioritise workforce adaptability, robust industry engagement, and lifelong learning pathways to ensure individuals and businesses thrive in a competitive global economy. 

Collaboration between government, industry, and education providers is essential to align training and employment systems with real-world demands. Integrated and adequately resourced vocational and higher education systems, complemented by a streamlined skilled migration framework, can address skills shortages and ensure sustained workforce growth. 

By embedding industry leadership across policy frameworks, reducing regulatory burdens, and enhancing data-driven workforce planning, Australia can create a dynamic and responsive employment and skills ecosystem that benefits all stakeholders. 

Jodie Trembath

Director | Skills, Employment and Small Business

Contact

Vocational Education and Apprenticeships

Ensure the Vocational Education and Training (VET) and apprenticeships system is underpinned by an industry-led and competency-based system built around responding to workforce needs
To respond to evolving workforce needs, it’s critical that the Government implements an industry-led approach to apprenticeships and traineeships, with funding through the Skilling Australians Fund to maximise the benefits of a proven model that combines training with work experience. Additionally, providing more wage subsidies and support will help incentivise apprenticeship and trainee commencements and completions. To ensure the VET sector effectively addresses workforce demands, we advocate for increased and transparent funding through a new national agreement by Governments at all levels, and a strong industry voice to provide strategic advice and improve outcomes in skills development.

Promote the uptake of apprenticeships and improve the quality of vocational training to meet industry standards
To strengthen the VET sector and boost apprenticeship uptake, a national apprenticeship advisory body is needed. This would advocate for training programs that are responsive to industry needs so that the VET system remains agile and flexible. We advocate for better collaboration between industry and Government, and financial incentives that will augment apprenticeship uptake and experiences. Similarly, reviewing funding for VET student loans, aligning VET and higher education funding, and developing pathways to transition into higher education will improve access to the system, addressing workforce shortages. We also need to see more diversity in VET enrollment, including women, which can be encouraged through extra support like more flexible learning options and more guidance and mentoring.  

Higher Education

Support higher education funding reforms designed to focus on graduate outcomes and employability in line with workforce demands
Universities and their students need to be equipped with resources to be better-informed about career options and future labour market gaps that they can fill. We advocate for policy that optimises the quality and quantity of graduates, with a focus on employability skills that will improve outcomes for students and their transition to the workforce. We also support a review into the extent to which the tertiary education system is responding to the needs of the labour market, including recommendations on how this can be improved.

Strengthen industry involvement in setting standards and promote collaboration between universities and businesses
Businesses and industry need to be empowered with a stronger voice in determining teaching and learning standards across the higher education system to best meet future workforce needs. We advocate for stronger and more connected industry representation on the Higher Education Standards Panel and other leadership groups to ensure there is an industry voice when these standards are set. To augment this, we support industry collaboration with higher education stakeholders to develop a national strategy on work-integrated learning, including developing new opportunities for placements and internships with businesses. Additionally, the National Microcredential Framework should be applied and promoted across higher education and industry, not just VET, to allow for clear and consistent application across the board.

Employment Services

Align employment services and conditions to the needs of both job seekers and employers
To better align employment services with the needs of both employers and job seekers, we need to see a system that promotes collaboration across Governments at all levels. More specifically, new technologies to improve job-matching and streamlining government employment services into a single, efficient system can enhance outcomes, especially for long-term unemployed Australians and diverse job seekers. Additionally, supportinmg mutual obligation requirements and emphasising the benefit of work will promote further participation. 

Create meaningful transitions from education to work through better career development programs aligned with workforce needs
The transition from education to the workforce can be daunting. Smoother transitions can be achieved through implementing robust career development programs that are aligned to workforce needs, and ensuring young people are job-ready. Additionally, continued emphasis on career skills development before joining the workforce can help overcome these issues. This can be achieved through equipping the National Careers Institute to offer long-term access to information and support, forging a pathway for people joining the workforce.

Skilled Migration

Reform migration policies to meet Australia’s skill gaps and labour requirements
Skilled migration plays a crucial role in enabling a strong workforce, and in turn, a stronger, more productive economy. We advocate for skilled migration policy that responds to labour market needs and workforce gaps, including revising the permanent migration cap to 190,000 people for 2024-25, with a focus on employer sponsored skilled migrants that fill market gaps, and the reinstatement of skilled occupations for employer nominated migration. Policies should also include extension of the Working Holiday Maker visa program with a second optional year to be undertaken in regional Australia to fill geographical market gaps, and the creation of a formal function within Jobs and Skills Australia to identify skills gaps and workforce shortages.

Improve visa processes and pathways to permanent residency for those that can apply their skills in in-demand areas
Visa application and retention processes can be complex, hindering international workers from participating in the workforce. There is a need to streamline the skills and assessment process to ensure timely and effective assessments, and allocate resources to address inefficiencies in processing visa applications, including minimum service guarantees for some visa types. Alongside this, visa application fees should be internationally competitive to encourage more uptake, particularly from our neighbours in Asia, and clearer pathways to permanent residency should be developed for Skill in Demand and temporary visa holders. This will create a more accessible working visa system, which will be beneficial as our workforce expands.