The Evolving Skills Landscape

The Evolving Skills Landscape

Anticipating current and future requirements

The evolving skills landscape in Australia presents both challenges and opportunities
for employers. As organisations adapt to technological advancements and shifting
market demands, the need for ongoing investment to upskill and reskill the workforce has never been more critical. This report explores the current state of skills in the Australian labour market, offering an analysis of skills gaps/shortages and the strategies employers are adopting to address them. It aims to serve as a resource for understanding skills requirements and provides actionable insights for building a future-ready workforce.

Employer perspectives on current and future skills needs

1. Identifying Current Skills Gap

When employers were asked about internal skills challenges, nearly one in five (19%) employees were perceived as not proficient in their roles. This issue is more pronounced in the public sector, where 24% of employees are not fully proficient, compared to 18% in the private sector. The impact of these skills gaps is considerable, with 57% of employers reporting moderate or significant negative effects on their organisation’s productivity. A Chief People Officer from an education organisation underscores the impact of skills shortages on their ability to accept new enrolments, leading to increased workloads for existing employees and, in some cases, capping centre occupancy

2. Investment in Skill Development

Employers were surveyed about their intention to train their current workforce over the next 12 months. Overall, 37% of organisations planned to increase their training investment, compared with 6% that reported plans to cut their training budget. Around half (51%) of employers report that training and development expenditure will remain the same in the year ahead.

3. Building a Robust Talent Pipeline

Encouragingly, the survey data shows that upskilling is at the forefront of organisations’ approaches to developing their talent pipeline. More than three-quarters (77%) of organisations report taking measures to upskill their workforce (See Figure 6 below). The most common initiatives include mentoring schemes (38%), work placements for adults (31%), internships (30%), graduate programs (28%), and apprenticeships (28%). Public sector organisations are particularly proactive, adopting mentoring schemes, work placements for adults, and internships at higher rates than the overall average.

4. Leveraging Migration for Skill Acquisition

More than four in ten (41%) Australian employers report employing overseas nationals. This practice is particularly prevalent in the public sector, with 60% of public sector employers hiring overseas workers, compared to 37% in the private sector.

For media enquiries, please contact:

Julie McNamara
Media Specialist, Mahlab
[email protected]
0419 595 688