Webinar: Jobs and Skills Australia Update - June 2023

What is Jobs and Skills Australia’s role in addressing inequity and inequality?

The Jobs and Skills Australia Act 2022 directs Jobs and Skills Australia to pay particular attention to disadvantaged cohorts, providing advice on issues to do with those really struggling in the labour market, including gender equality and income inequality. Jobs and Skills Australia will approach this through specific studies of particular cohorts as well as analysing the experiences of particular groups when doing broader studies. An example of specific studies is the recently released report First Nations People Workforce Analysis which is available on the Jobs and Skills Australia website.

How does Jobs and Skills Australia analyse skills shortages and what items are being looked at?

When Jobs and Skills Australia analyses skills shortages, it looks at where employers are unable to fill (or have considerable difficulty) filling vacancies for an occupation or cannot meet significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment, and in reasonably accessible locations.

Based on this definition, the primary measure of an occupational shortage is the ability of employers to fill vacancies, which is sometimes referred to as the vacancy fill rate.

There are 3 key forms of evidence that inform Jobs and Skills Australia’s current labour market rating for each occupation assessed in the Skills Priority List (SPL):

• Quantitative input from the SPL Indicator Model (which is a statistical model that predicts vacancy fill rates, based on range of labour market data).
• Quantitative input from the Survey of Employers who have Recently Advertised (which is a survey of around 9,000 employers each year who have recently advertised vacancies for selected occupations. The survey asks a range of questions, including about the proportion of vacancies that were filled).
• Quantitative and qualitative stakeholder input and feedback (from businesses, employer and peak/representative bodies, unions, Australia and state and territory governments). Formal consultation for the SPL involves a peak body stakeholder survey; engagement with commonwealth government agencies, state and territory governments and Jobs and Skills Councils for feedback; as well as face-to-face (or online) engagement stakeholders year-round.

How can we realign ‘demand’ in the jobs and skills system so the demands in the labour market and education system are aligned?

‘Demand’ in the jobs and skills system is often driven by community preferences about the goods and services they want to consume more (or less) of. For example, businesses that are facing significantly increased demand from their customers are more likely to hire additional workers, while businesses that are facing significant reductions in demand from their customers are more likely to reduce their workforce.

Therefore, achieving better alignment between the labour market and education system requires an understanding of current and likely future trends in demand, so that the ‘supply’ in the skills system can adjust to meet this demand.

Are there any plans to review the skills shortages within the skills and training sector and the implications of these on skilling the broader workforce in priority areas?

Jobs and Skills Australia will continue to undertake regular analysis of both current skills shortages (via the Skills Priority List) and analysis of the domestic skills system. Jobs and Skills Australia will also continue to work constructively with relevant policy agencies – in particular, the Department of Education and the Department of Employment and Workplace Relations – with respect to workforce challenges within the skills and training sector. Jobs and Skills Australia is providing support to the development of a national VET Workforce Blueprint through participation in the project Steering Group.

What is the relationship between Jobs and Skills Australia and Jobs and Skills Councils, particularly around workforce planning, data collection and synchronising equity and inclusion requirements?

Jobs and Skills Australia will work in partnership with Jobs and Skills Councils to help each other deliver on our respective roles. Jobs and Skills Australia will undertake national level analysis of current, emerging and future skills needs and the ability of the skills system to deliver those needs. A key element of how we will help the Jobs and Skills Councils will be to provide nationally consistent data, analysis and projections at the national and industry level. The Jobs and Skills Councils will then delve deeper into their sectors and bring intelligence from their employers and unions about the big issues which will then feedback into our analysis creating a two-way flow of information and analysis further enhancing our work.

Jobs and Skills Australia will support the councils as much as possible, collaborating with the councils on data capability and insights.

Jobs and Skills Australia has a national whole-of-economy perspective, while the Jobs and Skills Councils have a sector/industry perspective.

What is the role of Jobs and Skills Councils?

More information on the role of Jobs and Skills Councils, including governance arrangements can be found at Industry Engagement Reforms - Department of Employment and Workplace Relations, Australian Government (dewr.gov.au).

How is Jobs and Skills Australia working with other Australian, state and territory government agencies in the clean energy space?

Underway at the same time as the Clean Energy Capacity Study has been work by the Net Zero Taskforce within the Department of Prime Minister and Cabinet. That’s now resulted in the announcement that the Government will create a Net Zero Authority to support workers in emissions intensive sectors to access clean energy opportunities. Jobs and Skills Australia’s report and ongoing analysis once the report’s concluded will be an important source of information for that authority as it goes about its work.

In addition to the Net Zero Taskforce, the Clean Energy Capacity Study will build on work including the delivery of the Australian Energy Employment Report, a national survey of businesses and organisations in the Australian energy sector by the Department of Climate Change, Energy, the Environment and Water. It will also build on a number of workforce and energy strategies undertaken at the national and state and territory level including:

• National Energy Transformation Partnership agreed to by Energy Ministers on 12 August 2022
• National Energy Performance Workforce Strategy (ongoing)
• Australian Energy Employment Report (survey closed 30 April 2023, report to follow)
• Tasmanian Renewable Energy Action Plan (published December 2020)
• NSW Electricity Infrastructure Roadmap (published November 2020)
• Employment, Skills and Supply Chains: Renewable Energy in NSW (published September 2022)
• The Queensland Energy and Jobs Plan: A Plan for Greener Growth (published September 2022).

Jobs and Skills Australia has also established a monthly state and territory study forum comprised of representatives from each jurisdiction.

How will the study consider opportunities to promote gender equity in emerging and transitioning clean energy workforces?

The final report will consider barriers and enablers to equitable participation in the clean energy sector for priority cohorts, including women, who have been historically underrepresented in the brown energy sector and emissions-intensive industries. This will include gender-sensitive analysis of employment arrangements, workplace cultures and education and training pathways. The study will also look at historical and contemporary examples of both successful and unsuccessful efforts to promote gender equity and increase women’s participation in the energy sector and heavy industry in Australia and internationally to inform advice and recommendations to government.

What has been the consultation process so far?

Jobs and Skills Australia has adopted a tripartite approach in the consultation process with stakeholders. A Project Steering Group with 19 members from across industry, unions, training providers, state governments, research organisations and the Commonwealth provides overall input into the study through monthly meetings. Several roundtables have been organised through the support of Jobs and Skills Australia’s Project Steering Group members. The established partnership with stakeholders and specialists will ensure the capacity study develops a comprehensive view of the current and emerging workforce needs within the sector.

The roundtables are an invaluable way for Jobs and Skills Australia to identify and engage people with lived experience in the sector on particular elements of the study. To date we have held:

• a roundtable with TAFEs on 3 May in partnership with TAFE Directors Australia
• a roundtable with unions on 24 May in partnership with the ACTU
• a roundtable with universities on the 7 June in partnership with Universities Australia
• a webinar with clean energy businesses on the 16 June in partnership with the Clean Energy Council.

Jobs and Skills Australia has also participated in the First Nations Clean Energy Strategy Northern Territory Roundtable Discussion in Alice Springs on 17 May. The Strategy is led by the Department of Climate Change, Energy, the Environment and Water, and is centred on ensuring that First Nations people, communities and organisations have a say in net-zero policies and programs.

How will the study consider the impacts of the net zero transition on regional communities and workers?

The final report will consider place-based barriers and enablers to equitable participation in the clean energy sector for regional communities and workers in both areas transitioning away from fossil fuels and those in which new energy generation industries are emerging. This will include regional analysis of employment arrangements, workplace cultures and education and training pathways. Employment modelling will allow Jobs and Skills Australia to identify the emerging employment opportunities for impacted regional communities and the study will then point to the required skills and training pathways (and other supports) needed to promote successful job transitions. The study will also look at historical and contemporary examples of both successful and unsuccessful regional transitions in Australia and internationally to inform advice and recommendations to government.

How will the study factor the education and training pathways required in the role of apprenticeships to include new and emerging industries in clean energy?

The final report will consider the current barriers that education and training providers face in the delivery of both on and off-the-job learning for apprentices undertaking an apprenticeship within the clean energy sector. Apprenticeships will play a vital role in providing the necessary pipeline of skilled labour to secure Australia’s future with the skills needs as the sector transitions from the reliance of fossil fuels to renewable energy for electricity generation.

Jobs and Skills Australia will be working closely with the Skills and Training portfolio within the Department of Employment and Workplace Relations, to ensure that the program setting under the recently established New Energy Apprenticeships program will factor in the emerging occupations and industries as the economy transition towards net zero.