Lack of skilled workers holding back business

And unless there is more emphasis on education and training, there will be an even greater shortage in the coming years, said Innes Willox chief executive of the national employer association Ai Group.

The survey of around 350 business leaders found that many cannot implement new business models or adopt new technology to meet increased customer demand because of a lack of skilled workers.

“Skills Ministers are meeting in Adelaide on Friday (18 November) prior to the Australian Training Awards. This survey amplifies the importance of Ministers making key decisions and acting upon the reforms required,” Mr Willox said.

“When it comes to the answers, all roads lead to education and training — skilling, re-skilling and upskilling — at scale. It’s complex, but it can be done.”

Mr Willox said the government needs to focus on rebuilding the Australian workforce as a matter of urgency.

“It is a huge national challenge. No sector of our population should be left out. Age, gender, geography, current educational attainment, disability or disadvantage should not matter. If we are serious about building an economy for the future, we need to use all the resources at our disposal,” he said.

The report found a widespread increase in businesses’ requirements for skilled labour across all occupational groups — in particular technicians and trades workers, professionals, and managers.

It revealed that 69 per cent of businesses said their skill needs had increased in relation to technicians and trades workers, 45 per cent in relation to professionals, 43 per cent for managers, 38 per cent for machinery operators and drivers and 37 per cent for labourers.

Additionally, 71 per cent of businesses reported difficulty meeting their requirements for technicians and trades workers, showing a deep and entrenched shortage of workers in these occupations.

Around 68 per cent of businesses believed growth in demand was the key driver of their skills challenges, 35 per cent attributed it to supply chain challenges/disruption — both factors are likely related to the uncertain and dynamic market.

Around a quarter (24 per cent) of businesses reported either emerging or increased skill needs as a result of the transition to a clean economy.

There was strong support for training and development, with 82 per cent of businesses intending to either maintain or increase the amount they spend on staff training and development in the next 12 months.

Mr Willox said Australia needs to create a culture of lifelong learning by building an education and training system that is capable of rapidly and flexibly upskilling existing workers.

“There needs to be an increase in delivery and integration of short, stackable training options, including micro-credentials,” he said.

“As well, there needs to be a focus on developing leadership and management capabilities. Employers need improved access to relevant micro-credentials to regularly develop managers in new roles, tasks and capabilities.”

Mr Willox added there needs to be an improvement in digital skills across the board.

“This means formalising digital literacy as part of post-school education and training, upskilling older workers, and a focus on digital inclusion for those in danger of being left behind,” he said.

Other measures include ensuring apprentice/trainee incentives support consistent training pipelines over time by incentivising employers and those in training and encouraging completions.

Further, there should be a push to implement the recommendations of the Noonan Review of the Australian Qualifications Framework (AQF) to unlock the rigid constraints the current framework places around skills and knowledge.

“We need to work towards a more coherent and connected tertiary education system by removing the current barriers for students wanting to move between the VET and higher education sectors,” Mr Willox said.

“And ensure tertiary education funding is equitable across sectors, sufficient to deliver access and equity principles and supports both public and private providers. The survey results should be a call to arms for us all.”