Brendan O'Connor (Gorton, Australian Labor Party, Minister for Skills and Training) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Today I'm honoured to be introducing the government's first bill, by introducing the Jobs and Skills Australia Bill 2022. This bill delivers on the government's commitment to establish Jobs and Skills Australia as an independent body to provide advice on the skills and training needs of workers and employers now and in the future. This bill is a priority because skills and labour shortages have become increasingly critical in many sectors of the economy. The advice of Jobs and Skills Australia will help ensure that the economy is not held back by these shortages.

It will help guide a skills and training sector that will provide workers with choices and opportunities for secure employment because they have the right skills.

Jobs and Skills Australia will have an important role in strengthening Australia's economy by providing crucial workforce planning functions. It will undertake the workforce forecasting and prepare capacity studies for new and emerging industries and contribute to the planning for a pipeline of skilled workers.

One of the biggest challenges facing Australian employers across many sectors right now is that they are struggling to find workers with the skills needed to ensure that their enterprises are fully operational.

Skill shortages have been made worse by the pandemic, especially with the reduced skilled migration and the lack of support for temporary migrant workers during the COVID lockdowns.

The number of businesses unable to fill job vacancies is growing and is expected to dampen economic growth. In February 2022 the recruitment difficulty rate for higher skilled occupations was sitting at 67 per cent.

Australian communities are all too familiar with skills and workforce shortages in critical areas such as aged care, disability care and the childcare sectors.

The absence of planning and lack of coordinated national response to skills and labour shortages in the past 10 years have contributed to the crisis facing some sectors.

The government intends to restore tripartite cooperation and is determined that the trend over the past decade towards more insecure and low-paid and unskilled work is addressed.

Innovative sectors of our economy have also been held back by the lack of policy leadership and planning. To succeed, our emerging industries in advanced manufacturing, technology and clean energy—all critical to tackling climate change—require an increase in the supply of highly specialised skills.

These challenges for emerging industries are being experienced against a backdrop of an already-tight labour market and supply chain and related economic challenges.

The bill provides the first stage of establishing Jobs and Skills Australia and identifies the initial functions and structure of the organisation. The bill establishes an interim Jobs and Skills Australia director to commence the important work needed now and who will lead Jobs and Skills Australia through its initial establishment and the performance of its initial set of functions. To support its formation, the agency will be situated within the Department of Employment and Workplace Relations.

From inception, Jobs and Skills Australia will give effect to the government's commitment to a tripartite approach. In exercising its functions, Jobs and Skills Australia will be required to be inclusive and to genuinely consult and to work with state and territory governments and other key stakeholders.

Jobs and Skills Australia will be able to provide research, data and analysis to inform policies that boost workforce participation. Its advice will help improve workforce participation outcomes for women, Indigenous workers, older workers, workers with disabilities and other vulnerable groups.

The vocational education and training sector is a key pillar of our tertiary system and trains nearly four million Australians annually. Many of our vital industries facing critical skills shortages are reliant on our VET sector to provide a skilled workforce.

Jobs and Skills Australia will have a remit to advise on the adequacy of the VET sector and to consider the adequacies of outcomes for students engaged in training.

In the coming months, informed by the outcomes of the Jobs and Skills Summit in September this year, the government will consult industry and employer bodies, unions, education and training providers, state and territory governments and others to determine the next stage of implementing Jobs and Skills Australia, its scope, its structure and its governance.

This consultative approach will ensure that all stakeholders with an interest in skills and training benefit from the creation of Jobs and Skills Australia. Taking into consideration what we have heard, the government will introduce further legislation that sets out the full range of functions, structure and governance arrangements to establish the permanent model.

Conclusion

The advice of Jobs and Skills Australia will help build a bigger, better-trained workforce and a more productive economy.

This government supports the aspirations of all workers for secure and meaningful work, and a better future for themselves and their families.

We understand work isn't just about your pay packet. With work comes purpose and identity.

Australians who have the right skills have more job security and more job choices.

A skilled workforce is also a more productive workforce.

Learning new skills, acquiring knowledge and cultivating innovation is key to opportunity, wage growth and job security for workers, and to increasing productivity and revenue for industries.

The government understands immediate action is needed to address critical skill shortages.

Core business of this government is to create opportunities for Australians to prosper. That is why an expeditious creation of Jobs and Skills Australia is a priority for the government.

I commend this bill to the chamber.

Debate adjourned.