The Australian Government-backed Future Skills Organisation, which focuses on finance, technology, and business (FTB) job opportunities, released its 2024 workforce plan, Building a Skilled Workforce. The comprehensive 130-page report highlights that digital skills are now more in demand across the nation than ever before.

The report delves into how Vocational Education and Training (VET) bodies and other educational providers are responding to the increasing need for digitally proficient workers in the FTB sectors. Currently, approximately three million Australians – about one in five workers – are employed in these fields.

Patrick Kidd, CEO of Future Skills Organisation, emphasised the importance of adapting to these changes: "In addition to desktop research about FTB skills needs and wants across Australia, we surveyed industry members to gather their thoughts about the current training framework and establish where they saw a need for future growth.

"Generative AI was identified as a major technological shift impacting the FTB sector where current capability needs improvement, but also as an opportunity for increased productivity and competitive advantage. Industry members also indicated they would like to see more work-based learning and short-form training options to enable workers to transition into and out of occupations. VET providers are hearing this message."

Kidd further stressed the critical need for cybersecurity professionals in light of emerging threats: "Complex information storage systems continue to fall victim to phishing, criminal, or other malicious actions, and firewalls, as we all know, are far from infallible. The 2023-2030 Australian Cyber Security Strategy recently released by the Department of Home Affairs will further stimulate demand for information technology staff, and cyber security specialists especially.

"The whole-of-nation approach designed to better protect our public and private organisations represents a paradigm shift. It’s apparent we will need all training avenues at our disposal to meet this growing demand for cybersecurity. VET courses and teachers themselves will also need to adapt to this shift in direction, so course offerings stay aligned with FTB student and sector needs."

The workforce plan also notes that technological occupations are embedded across the Australian economy, with skill requirements evolving at a rapid pace. Notably, 62 percent of technological occupations are employed outside the direct tech sector, illustrating the widespread need for digital proficiency across various industries.

Stakeholders in the FTB sectors have expressed a strong preference for a skills-driven approach to workforce planning, with an increasing emphasis on skills over traditional job titles. This shift is largely driven by the rising demand for digital capabilities, a more dynamic workforce, and the impact of Generative AI. The Future Skills Organisation anticipates that this focus will become even more central in its 2025 Workforce Plan.

Currently, six business occupations are facing shortages, as identified by the 2023 Skills Priority List from JSA. With 1.4 million workers in business occupations across every industry sector, particularly in professional, scientific, and technical services (16 percent) and healthcare and social assistance (14 percent), industry experts predict further shifts in the skills required for these roles.

Since 1986, technology and business occupations in Australia have grown at a rate at least 1.5 times faster than other occupations, a trend that shows no signs of slowing down.

Key challenges identified in the FTB Sector:

1. Changed occupational design: While occupational descriptions remain largely the same, there is an increasing demand for digital skills. Proficiency in these skills is becoming more crucial as new technologies continue to evolve and become commonplace.
2. Rapidly changing skills needs: The skills required for FTB occupations are expected to change swiftly, driven by new technologies, especially Generative AI. There is a strong demand from industry for more short-form training, work-based learning, and alignment with vendor certifications.
3. Tertiary pathways preferred: Surveyed industry members appear to favour university entry pathways into many FTB occupations, likely due to poor perceptions or a lack of understanding of the VET sector.
4. Skilled and diverse workforce shortages: Industry members reported that the supply of skilled workers is too slow, and the training system is not responsive enough to evolving skills needs. As a result, training can be outdated by the time it is completed. Additionally, the lack of diversity in the FTB sector exacerbates these shortages, with a particularly low proportion of First Nations people and women in tech roles.

Case study: Kai Bahartha-King, Joondalup, Western Australia

Award: Vocational Student of the Year 2023 (Finalist)

Current occupation: Cyber Security Analyst

Training completed: Certificate III in Information, Digital Media, Technology (Cyber Security), Certificate IV in Cyber Security, and Advanced Diploma of Cyber Security

Main career goals: "I am currently training for an international competition in cyber security, where I have the honour of representing my country. My goal is not just to compete but to win. Beyond that, I am focused on advancing my career in cyber security and enhancing my communication and media skills."

Impact of award on current pursuits: "My award has been instrumental in boosting my public speaking abilities and media presence. The experience has made me more confident in discussing my career path and has inspired me to encourage others—regardless of age—to explore cyber security or other vocational careers through TAFE."

How VET changed my life: "Through the VET/TAFE pathway, I was able to secure my dream job at just 16-years-old. Being home-educated by my parents, I discovered my passion for cyber security as early as 14. TAFE played a crucial role in honing my skills and expanding my capabilities as a cyber security professional. My lecturers provided every opportunity for me to pursue my passion, even recommending me for my current role. They also supported my journey as a National Competitor for WA, where my teammate and I won Gold."