Meeting Skills Needs In A Dynamic Environment

A DYNAMIC LABOUR MARKET

Skills are central to building and sustaining a skilled economy. They support capacity building across a range of industries. Skills needs are becoming more sophisticated. Growth in advanced manufacturing, for example, has seen demand for tradespeople with a highly sophisticated and evolving skill set. Skills needs are also becoming more dynamic. Technical advances have led to changes in the type of labour required in certain industries. Widespread adoption of pre-fabricated components in the construction industry, for example, has seen reduced demand for fully qualified builders and an increase in demand for tradespeople with expertise in specific steps in the construction process. Our labour market is increasingly a dynamic one. Workforce needs continue to evolve, patterns of participation and engagement in education will continue to change, as will the capabilities available in the workforce. There is a dynamic relationship between training opportunities, technological developments and workforce needs.

THE SKILLS NEEDS OF EMPLOYERS

Employers across New South Wales are facing a diverse and evolving set of skills requirements. These range from professional qualifications, industry licensing and registration, written and verbal communication skills and digital capabilities. Employers across all industries are increasingly seeking workers who can navigate digital platforms, demonstrate cross-functional capabilities, work in teams and contribute to innovation. Understanding the evolving skills needs of employers across NSW is crucial in assuring growth and stability in the state’s economy.

SKILLS SHORTAGES

Skills shortages continue to pose a significant challenge for employers across NSW. The 2022 Workforce Skills Survey conducted by Business NSW found that 93% of NSW employers struggled to meet their skills needs, up from 51% in 2019. Ongoing shortages are also having a greater impact, with 51% of respondents telling us they were facing significant negative impacts to their business as a result of the challenges they faced in meeting skills needs, up from 20% in 2019. Of greater concern were the 10% of employers across NSW indicating their business may not survive if they could not meet their skills needs, up from only 2% in 2019.

Shortages are particularly acute in sectors such as healthcare, engineering, IT, and across the skilled trades. Skills shortages are a constraint on growth. The 2022 Workforce Skills Survey also highlighted the broader range of issues and challenges that employers face when unable to meet their skills needs. This includes working longer hours, challenges in meeting service objectives, increased operating costs and the risk of losing business to competitors.

CHANGING PATHWAYS TO EDUCATION AND WORK

Pathways to education and work continue to evolve in response to changing skills needs. Traditional educational models are being complemented by micro-credentials, online learning offerings and industry-specific training activities. Work-integrated learning opportunities, including apprenticeships, traineeships, internships and industry placements have become a central feature in pathways to meaningful work through education and training. The flexibility and responsiveness of these offerings, and innovation in the ways we recognise and communicate evidence of attainment, will be crucial if we are to support diverse pathways to education and work in the broadest possible sense.  These pathways also need to be responsive to industry needs. Employers play a crucial role in the development and, often, the delivery of learning opportunities instrumental in building and sustaining a skilled economy.