House debates

Thursday, 14 September 2023

Ministerial Statements

Vocational Education and Training

10:52 am

Photo of Cassandra FernandoCassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

NANDO () (): As a former TAFE student, I am proud vocational education and training has been at the forefront of the Albanese government's priorities since day 1. Yesterday, the Minister for Skills and Training, the Hon. Brendan O'Connor MP, shed a light on two fundamental reforms within the skills and training portfolio. These reforms are pivotal to ensuring that our national planning for the skills our economy need remains timely, evidence based and informed by industry experts.

Creating Jobs and Skills Australia and establishing 10 Jobs and Skills councils is the bedrock of transformation within our skills and training portfolio. These two initiatives are strategically intertwined to provide structure and sector based planning specifically to nurture the skills essential for a modern economy. The design and scope for both JSA and JSCs have been shaped with extensive consultation and support from a broader spectrum of stakeholders across Australia. This includes employers, trade unions, peak bodies, state and territory governments, vocational educational providers and universities. The coordination between Jobs and Skills Australia and the new Jobs and Skills councils will be instrumental in planning and guiding training and education priorities. This coordination is the key to ensuring that our workforce possesses the right skills for securing employment and career advancement. It also ensures that our nation has the skilled workforce needed to meet the demands of current and emerging jobs.

Australia currently faces one of the most significant economic challenges in decades, driven by a serious shortage of skilled workers across various sectors of our economy. Since being elected, the government has been clear about the extent and urgency of these challenges for Australian industries. The OECD data has singled out Australia as having the second-highest labour shortage among the OECD countries. The Skills Priority List paints a concerning picture, showing that occupations in shortage nearly doubled from 2021 to 2022, rising from 153 to 286. Furthermore, predictions made in March 2022 by the former National Skills Commission suggest that, over the next five years, nine out of every 10 jobs will require postschool qualifications, with half of them having vocational training. The latest quarterly report from Jobs and Skills Australia, released earlier this week, underscores the gravity of the situation. It reveals that, over the year leading to May 2023, 91 per cent of total employment growth occurred in occupations requiring postschool qualifications. More than half of this growth is concentrated in vocations that demand vocational education and training pathways.

In response to these pressing challenges, I am pleased the Albanese Labor government is ushering in a new era of industry engagement within the Skills and Training portfolio. Australian industry must be equipped with the best possible skills planning framework to address the evolving skills landscape. The primary focus of the JSA and the 10 JSCs will be to work directly with industry sectors to plan and execute the necessary training to address immediate medium- and long-term skills needs. Central to this approach is the principle of tripartism, with employers, unions and governments collaborating closely to tackle our skills challenges. The government's commitment to consultation and inclusion stems from an understanding that diverse perspectives lead to better solutions. Whether it's with employers, unions, educators or state and territory governments, this government is intent on building relationships and creating the architecture for inclusive tripartite governance.

Jobs and Skills Australia has taken the place of the National Skills Commission, which provided important work but whose mandate and resources needed to be expanded for broader engagement. A crucial change central to the design of the JSA is the assurance that relevant industries and knowledgeable stakeholders have a seat at the table. The JSA is required under legislation to maintain a governance structure that is both tripartite and expert. In the coming months the minister will appoint a ministerial advisory board from across a range of stakeholders to guide JSA's work priorities, strategies and governance. JSA has already emerged as a significant driver of policy development, providing independent advice to the government on current and emerging workforce needs.

Informed by the signature tripartite and inclusive approach of this government, JSA is set to deliver a national clean energy capacity study next month. The study will outline the employment, upskilling and reskilling opportunities arising from our transformation to a net-zero economy. The government has made it a legislative requirement that JSA consult and publish an annual work plan. I am excited about the upcoming release of the 2023-2024 work plan, which will focus on core challenges, including the shift to a net-zero economy, growth in the care and support sector, and digital skills. Jobs and Skills Australia will expand its data based capabilities to provide deeper industrial engagement and qualitative analysis. This will enhance its independent evidence based analysis, which is crucial for national skills planning and support for skilled migration programs.

Another key priority for the Albanese Labor government and the JSA is to improve education and employment outcomes for historically marginalised individuals. This includes those affected by age, health, gender and disability and those who are of diverse cultural, linguistic and socioeconomic backgrounds. JSA's economywide perspective, informed by tripartism and data informed decision-making, is the approach needed to solve the challenges we face today. The 10 tripartite, industry led jobs and skills councils that have been established will work collaboratively with JSA. These councils will provide on-the-ground industry perspectives, complementing JSA's data and analysis with their real-world experiences. JSCs will lead workforce planning for their respective industries, identifying both immediate and future skills needs.

The first major task of each jobs and skills council will be to consult extensively across their industry sectors to develop workforce plans that address existing and emerging skills needs. They will leverage their industry based knowledge and understanding of trends to provide valuable insights. JSCs will also collaborate closely with educators and training providers to develop world-leading qualifications for workers and employers. By drawing upon industry knowledge and the expertise of educators, JSCs will play a crucial role in delivering the skills our workforce and economy require. The 10 councils will encompass various sectors, including energy, gas and renewables; agribusiness; early educators, health, and human services; arts, personal services, retail, tourism and hospitality; public safety and government; manufacturing; finance, technology and business, mining and automotive; building construction and property; and transport and logistics.

The roles of the JSCs and the JSA are complementary and interrelated. While JSA has macroeconomic focus, JSCs possess a deeper knowledge and connection to specific industries. JSA excels in data and analytic capabilities, while JSCs boost deeper connections to the real economy.

I am proud that the government is continuing to work extremely hard to make sure that Australia is ahead when it comes to jobs and skills.

Debate adjourned.

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