Automation, analytics and artificial intelligence (AI) have permanently and dramatically altered the blueprint for traditional work environments worldwide.
This rapid transformation in technology and ways of working has sparked an urgent re-evaluation of the way in which governments and employers identify and define critical skills to allow current and future workers to adapt and thrive.
For Australia, this moment calls for something more than simply keeping pace with technological change; it requires bold leadership and proactive solutions. Without urgent and coordinated action, the nation risks widening inequality and leaving millions of workers behind.
Reimagining workforce potential
According to the World Economic Forum’s 2025 Future of Jobs Report, more than one in five jobs will be fundamentally transformed by technology and the green transition in the next five years. This highlights the pressing need to reimagine workforce capabilities and build a robust skills pipeline to meet future challenges head-on.
Based on input from 1,000 employers representing over 14 million workers across 55 countries, the WE Forum’s report underscores a stark reality: 22 per cent of jobs globally will be fundamentally transformed by 2030.
Five interconnected forces drive this shift:
1. Technological change
2. The green transition
3. Geo-economic fragmentation
4. Economic uncertainty
5. Demographic shifts
Australia is not immune to these global trends. In fact, the nation faces unique pressures due to its reliance on resource-based industries and advanced services sectors.
As automation and AI become embedded in everyday business processes, new and evolving skill demands are emerging rapidly. Technology-related fields are expected to see the fastest growth in job opportunities, with strong demand for data analytics, cybersecurity, AI development and machine learning skills. Likewise, the green transition is reshaping traditional industries, creating an urgent need for new capabilities in renewable energy, sustainable business practices and climate risk management.
Despite this urgency, a 2024 study by Boston Consulting Group revealed that while 89% of global business leaders acknowledge the need for improved AI skills within their workforces, only 6% have begun upskilling initiatives in a meaningful way. This skills gap presents both a significant risk and a profound opportunity for Australian businesses.
The role of businesses in shaping the future workforce
Businesses have a critical role in addressing Australia’s future skills needs. Given the scale and complexity of the challenges ahead, relying solely on government-led initiatives is insufficient. Companies must take a proactive stance by investing in upskilling and reskilling programs that prepare their workforce for future demands.
Key actions businesses can take include the following:
Strategic workforce planning: Businesses can adopt a strategic approach to workforce planning by identifying today’s technical skills while anticipating future competencies for long-term success. For example, as AI-driven decision-making becomes the norm, businesses will need employees who can interpret complex data outputs, apply ethical frameworks to AI use and manage human-machine collaboration effectively.
Fostering a culture of continuous learning: Embed lifelong learning as a core organisational value through micro-credentialing and flexible learning programs. This involves moving beyond one-off training sessions to embrace lifelong learning as a core organisational value. Micro-credentialing programs, which offer employees the opportunity to earn industry-recognised qualifications in specific skill areas, provide a flexible and scalable solution for ongoing professional development.
Industry-education collaboration: Partner with universities, TAFEs and training providers to align educational programs with real-world industry needs. By forming partnerships with universities, TAFEs and private training providers, businesses can help shape curricula aligned with real-world needs. This ensures a pipeline of job-ready graduates and provides opportunities for current employees to engage in work-integrated learning.
The Vocational Degree
A new qualification, the Vocational Degree, has introduced a significant change to Australia’s tertiary education framework and allows the VET sector to design and deliver its own degree-level qualifications that can be declared as apprenticeships.
The Vocational Degree has been endorsed by all skills and education ministers and is now part of the Australian Qualifications Framework (AQF). This is a nationally recognised qualification that focuses on advanced skill attainment and the application of specialised knowledge and technical skills. It is available for TAFEs and Jobs and Skills Councils to incorporate into their qualification toolkit to help address education and training gaps for industry.
It means that industry and the VET sector are more empowered to help meet workforce challenges where jobs are increasingly requiring advanced levels of technical knowledge and skills, particularly in key areas such as the net zero transformation, the care and support sector and advanced digitalisation.
A shared responsibility for the future
By working with educational institutions and governments, businesses can shape a future where all Australians can succeed and thrive. The choice is clear for companies: act now to build the skills of tomorrow or risk being left behind in an increasingly competitive global landscape. Those who lead the way in fostering a culture of continuous learning and innovation will not only future-proof their workforces but also contribute to a more equitable and prosperous society.
The path forward requires bold vision and collective action. Australia’s future skills needs cannot be met by any sector alone; it is a shared responsibility that demands collaboration, investment and an unwavering commitment to building a future where everyone can thrive.
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