Anne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I rise to make my contribution to the debate on the Jobs and Skills Australia Amendment Bill 2023. Australia will experience difficult challenges in the long-term regarding our workforce, with net zero transition creating entirely new industries and the care economy booming as our population ages. Even in the short term, there are challenges. With Australia experiencing record-low unemployment, the labour market is becoming increasingly tight. As of February 2023, the unemployment rate is sitting at 3.5 per cent and it is something this government is proud of because it is not just a monthly statistic but it also means more Australians are getting into the workforce, which is, of course, a positive. But coupled with the COVID-19 pandemic and the opening up of the economy last year, there has been a skills shortage in sectors all across Australia.

Just recently, the new data from the Jobs and Skills Australia quarterly labour market update revealed the top 20 in-demand occupations. Critical occupations such as aged-care workers, nurses and childcare workers top the list. As of December 2022, we saw the number of occupations that were experiencing skills shortages double in 12 months—that is, 286 occupations that are currently finding it hard to recruit workers. The impact this will have in the short term is already being felt in both the economic data and in services that Australians rely on like those in the care economy. The Albanese government is committed to addressing these job shortages while preserving our record-low unemployment. It is a difficult task and an incredibly fine balancing act. Immigration will play a role as developed economies race to attract skilled workers, and our government is making it more attractive to immigrate to Australia for those skills that we need.

The Albanese government has seen a significant reduction in visa backlog and has updated the priorities skills list to reflect the needs of our economy. I commend the work of the Minister for Immigration, Citizenship and Multicultural Affairs and the Minister for Skills and Training in those areas. But this problem is complex, and immigration can only be one part of the solution. The other solution requires investment in training and upskilling, which the Albanese government has focused on over the past 10 months.

In the October budget 2022-23 budget, our government budgeted $6.3 billion for vocational education and training in this financial year, which is $450 million higher than estimated in the March 2022-23 budget. The Albanese government's commitment to provide 180,000 fee-free tape places in 2023 to start to address the skills shortages is part of the overall commitment to deliver 480,000 fee-free TAFE places. These places are for Australians from all backgrounds who are looking provide themselves with the skills to get jobs that interest them and that are desperately needed.

The quarterly labour market update also showed over 60 per cent of total employment growth was in occupations that require a VET qualification, highlighting the importance of continuing funding to our VET system and our government's fee-free TAFE places. The government will continue to work with the states and territories, with the Commonwealth providing $2.3 billion as part of our overall investment in funding transfers to support these skills systems. Collaboration and coordination are critical because it will take more than one layer of government to alleviate the short-term skills shortages while ensuring Australia has an increasingly skilled workforce for the future. That's why this year we will work on a new five-year national skills agreement. Australia must ensure we can support those in training and completing an apprenticeship so they can become the skilled workers we need. We established the new energy apprenticeship program to provide direct financial assistance to help with cost-of-living pressures for Australian apprentices in the clean energy sector. We have increased the number of occupations on the Australian Apprenticeships Priority List to 111, meaning more eligible Australia apprentices will receive direct financial assistance.

It's not just the VET sector; 36 per cent of total employment growth has been in university qualified jobs. The university sector had been hit hard over the last few years, and the Albanese government, through the Minister for Education, is committed to delivering on the ambitious Universities Accord by December, with an interim report expected in June. This will ensure the tertiary sector can provide the skills Australians need for the future and a range of other issues that will be worked through. It will be broad, and the Minister for Education will have an incredibly important task ahead of him.

The solution to the skills shortages is complex. This bill is the next step to address the issues impacting on the labour market. We cannot afford to react to these challenges as they happen; there must be structured responses, and that requires evidence to guide and inform policy. Last year the Albanese government established the interim Jobs and Skills Australia, which has already provided advice and data on the state of the workforce in the short time it's been running. The body initiated the Clean Energy Capacity Study, which will assess the workforce needs of Australia's transition to a clean energy economy. This is important work and will continue under the permanent body established in the legislation we are debating today.

The bill sets out the body's functions, operations and structure based on a broad consultation from industry, business, state and territory governments, unions and education providers, and there will be a high level of engagement, with over 130 submissions received, because stakeholders across economy recognise the importance of this body. The government is committed to tripartisanship in the design of this body—that is, collaboration between government, unions and employers—so the body can provide advice that is relevant in addressing the skills crisis we are facing.

The bill will also create a ministerial advisory board, which will consist of state and territory representatives, industry stakeholders, unions, education providers and other members of Jobs and Skills Australia—which will be required to consult the board in the development of its work plans. Additionally it will be fair and equitable. Unions and employer groups will be balanced, with three representatives each. Jobs and Skills Australia will be headed by a commissioner appointed on a permanent basis, with the support of two deputy commissioners who will be appointed long term, and all of these appointments will be through a merit-based selection process in line with the APS merit and transparency guidelines.

The functions of the body will be broad to ensure flexibility in its responses to changing economic conditions and complex situations. It will be able to identify labour market imbalances, analyse workforce skills and the need to assist in migration programs—especially in regional, remote or rural areas—and undertake studies to assess the outcomes of historically disadvantaged groups, such as over 55s, youth, people with a disability, women and First Nations people. Its functions will extend not just to the quantity of jobs but also their quality. Recently we've seen a rise of insecure work in Australia, with an estimated 20 to 25 per cent of the workforce lacking job security. Insecure work is increasingly having economic and social impact, with harm to both mental and physical health of the workforce. But more evidence needs to be gathered, and this body will do that, building an evidence base on these insecure work arrangements.

Evidence gathering is an important function of this body and will help inform all stakeholders on what needs to be done to support and secure the Australian workforce in the short, medium and long term. The permanent establishment of Jobs and Skills Australia will be a benefit for government, business and workers, providing independent and evidence-based advice on these challenges. There are big challenges facing our economy and our future workforce, but the Albanese government is working in collaboration with other levels of government to ensure we have the skilled workforce we need to adapt to net zero transition, create manufacturing jobs, fill increasing service roles and care for our ageing population. We will continue to build a better economy for all Australians, and Jobs and Skills Australia will play an important part in that process. I commend the bill to the House.

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