FYA’s New Work Order

report series

THE NEW WORK SMARTS

Thriving in the New Work Order
The Foundation for Young Australians (FYA) is committed
to young people, their futures and the contribution they
can make to Australia. At FYA, we believe young people are
ambitious, creative and capable of rethinking the world
and solving tomorrow’s problems today. FYA is a national
for-purpose organisation that is all about backing the next
generation of young people who are going to rethink the
world and create a better future. At FYA we connect and
inspire young changemakers - the innovators, the makers,
the dreamers, the thinkers, the doers and the creators.
Find out more at fya.org.au

This report is part of FYA’s series the ‘New Work Order’.

This report was prepared by the Foundation for Young

Australians in partnership with AlphaBeta.

AlphaBeta is a strategy and economic advisory business

serving clients across Australia and Asia from offices in
Singapore and Sydney. For further information contact
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FOREWORD

THE NEW WORK SMARTS

BY 2030, AUTOMATION, GLOBALISATION AND FLEXIBILITY WILL CHANGE WHAT WE DO IN
EVERY JOB. WE URGENTLY NEED TO PREPARE YOUNG PEOPLE WITH THE WORK SMART SKILLS
THEY WILL NEED MOST.

Since 2015, The Foundation for Young Australians’ (FYA) New will need to not only acquire foundation and technical skills,
Work Order research series has explored the ways in which but be able to use these in increasingly enterprising and
automation, globalisation and flexibility are changing the creative ways and apply them in diverse environments.
way we work, and the implications of these shifts for young Traditional education and training institutions will be required
Australians. to transform their approaches well before 2030 to become the
smart learning partners of these lifelong learners.
Through four key reports, the research has revealed that
traditional, linear career trajectories are rapidly becoming an Through identifying the skills that will be in most demand
antiquated notion. It's more likely that a 15-year-old today will across the economy in 2030, this report seeks to increase the
experience a portfolio career, potentially having 17 different match between the skills workers possess and the skills they
jobs over 5 careers in their lifetime. They might be self- will need. The OECD has recently estimated that improving
employed, working for other people or doing both - whilst also the skills match to best practice can drive a 2% to 7% increase
collaborating with people on the other side of the world. in productivity in countries like Australia. Skills that the OECD
measured include written communication, maths, problem
FYA’s research has also shown that our young people aren’t
solving and digital literacy.*
being properly prepared for these shifts - in fact many are
already being left behind. Nearly one in three young people By 2030, Australia’s current primary school students will be
are currently unemployed or underemployed and on average close to finishing their school education and our high schoolers
it takes 4.7 years to transition from full-time education to will be entering the workforce. To prepare them we must
full-time work. urgently invest in immersive, enterprise education and careers
management strategies where the new ‘work smart’ skills are
The future of work, especially its inherent risks, need not be
core to teaching, learning and assessment across all school and
cast in stone for young Australians. Accurate information
higher education systems.
about and preparation for the different work of the future is
essential to building the portfolio of the right portable skills To ensure young Australians are prepared and equipped for
and capabilities required to succeed in an automated and their futures, FYA is calling for a renewed, comprehensive and
globalised workplace. inter-generational investment in Australia’s young people.
Analysing more than 2.7 million job advertisements our Such an investment would encompass:
research revealed 7 job clusters in the Australian economy.
• A nation building education strategy to redesign the
This research showed that jobs are more closely related than
learning system and curriculum from preschool through
we thought and suggested we need a new mindset towards
higher education (and beyond);
how we approach our working lives where the focus is on
skills and capabilities, not just jobs. • A new commitment to skills, training, careers education
and real jobs for young Australians; and
Our fifth installment in this series, The New Work Smarts
has analysed over 20 billion hours of work completed by 12 • A promise and plan for the equitable intergenerational
million Australian workers each year to predict the skills and transfer of knowledge, resources and power in the new
capabilities that will matter most in 2030. The report shows economy.
that as technology reduces the need for workers to complete
routine, manual tasks they will spend more time focusing on At FYA we engage with hundreds of thousands of young
people, solving more strategic problems and thinking creatively. people each year. We know that young Australians want to
grasp opportunities in the future of work, to drive our nation’s
In particular, by 2030 it is predicted that we will, on average, economic, social and sustainable development and contribute
spend 30 per cent more time per week learning skills on the to solving complex global challenges. Our collective role is to
job; spend double the time at work solving problems, spend 41 back our young people; harnessing their passions and abilities,
per cent more time on critical thinking and judgment, and 77 and growing their skills and capabilities as lifelong learners to
per cent more time using science and mathematics skills; utilise be new work smart.
verbal communication and interpersonal skills for 7 hours a
week each (up 17 per cent); and develop an entrepreneurial
mindset due to having less management (down 26 per cent),
less organisational coordination (down 16 per cent) and less
teaching (down 10 per cent).
To navigate this changing world of work our understanding of
what it means to be ‘smart’ needs to shift. Young Australians Jan Owen AM
CEO, Foundation for Young Australians

*
OECD, (2015), “Labour Market Mismatch and Labour Productivity: Evidence from PIAAC Data”. Available from: https://www.oecd.org/eco/growth/Labour-Market-Mismatch-
and-Labour-Productivity-Evidence-from-PIAAC-Data.pdf

fya.org.au 3
OVERVIEW

By 2030 what we do in every job will change

There will be A reduction in

the need for workers to complete
routine, manual tasks

An increase in
the time workers spend focusing on
people, solving strategic problems
and thinking creatively

The change in work means young people will need to be

equipped with the New Work Smarts
In 2030 the New
'Work Smarts' will be:

Smart Learning

Smart Thinking

Smart Doing
The education system needs to
prepare today’s young people for the
New Work Smarts in 2030:

Workers will spend… Workers will spend... Workers will use...

Almost 100% Workers will need to

more time at work develop an entrepreneurial
solving problems
mindset due to

41% more time

26% less
on critical thinking
management
and judgment

30% 77% more time

using science and
14% less
organisational
more time mathematics skills coordination
learning on the job
17% more time per
week using verbal 10% less
communication and teaching
interpersonal skills

fya.org.au 4
CONTENTS

Executive Summary ....................................................................................................................................................................... 6

1. By 2030, automation and globalisation will change what we do in every job............................................................. 9

1.1 Future workers will spend less time on routine tasks and more time with people
and getting value from technology .................................................................................................................................. 9

1.2 The challenge of forecasting which skills matter most.................................................................................................. 12

2. In 2030, what it means to be 'work smart' will change .................................................................................................... 13

2.1 Today's young people will need to be Smart Learners .................................................................................................. 14

2.2 Today’s young people will need to be Smart Thinkers ................................................................................................... 15

2.3 Today's young people will need to be Smart Doers ....................................................................................................... 18

3. Preparing young people for the future of work ................................................................................................................. 20

3.1 Effectively preparing young Australians for the New Work Order ................................................................................. 23

3.2 We need a new work mindset............................................................................................................................................ 26

Appendix - Detailed Methodology .............................................................................................................................................. 27

fya.org.au 5
EXECUTIVE SUMMARY

• Future pharmacy assistant: New technology

Work is Changing will likely cut the time spent on store admin (like
In the past, building a successful career required young stocktaking and ordering) from 22 hours a week in
people to learn core technical skills for an occupation, 2006 to 6 hours in 2030, allowing assistants to spend
and gradually broaden their skills and experience over substantially more time on digital tasks, such as
time. This is what it meant to be ‘work smart’. Today, updating the business website, developing an online
automation and globalisation have led to a loud and shopping app and analysing monthly sales data4.
compelling narrative about the future of work, and career
• Future electronics technician: The local computer
paths appear more complicated. Media reports warn,
store worker in 2030 will trade time spent inspecting
almost daily, that “robots are coming to take your jobs”1.
equipment (down from 9 hours a week in 2006 to 3
Parents, carers and young people read these reports with
hours a week in 2030) and scheduling work (down
rising concern: what occupations will be around in 2030
from 11 hours to 1 hour) for time spent interacting
that a student today can train for?
with customers or colleagues (from less than 1 hour
Today’s 15-year-olds will likely navigate 17 changes in to 4 hours) and analysing product data (from 0 hours
employer across 5 different careers2. They will sometimes to 2 hours).
be self-employed, at other times working with and for
• Future teacher: The growing use of automation
others. We need a new understanding of what it means to
and digital learning tools will notably change how
be ‘work smart’.
teachers do their jobs, giving teachers more time to
Our New Work Order research series shows that while interact with students (up from 29 hours in 2006 to
some occupations will no doubt decline or emerge as 33 hours in 2030). By 2030, teachers will routinely
technology and globalisation advance, too much of the use digital technology to make classroom education
focus has been on which jobs will disappear and which a more interactive, student-centred experience. They
will remain3.The truth is, automation is going to impact will likely spend less time grading (down from 5 hours
what we do in every job, in every occupation. It is wrong in 2006 to 1 hour in 2030) and more time facilitating
to assume that only some occupations will be affected self-directed learning (up from 4 hours in 2006
while others may be “safe”. increasing to 14 in 2030).

This report makes a unique contribution to the discussion These trends will determine the skills young people
on automation and the future of work by predicting how need to succeed in our future workplaces. Rather than
the everyday activities that Australians do in more than 20 responding to automation by choosing the ‘right’ job,
billion hours of work each year will change by 2030. Some young people need to acquire the ‘right’ skills that
of this shift is already underway. allow them to succeed in an automated and globalised
workplace.
For example, the skills required for early-career jobs have
already changed. Think of classic early-career jobs like a This report uncovers the ‘new work smarts'. It explores
pharmacy assistant, electronics technician (think of your which critical skills today’s young people need to thrive in
Apple store technician) or a teacher. Thanks to advances the future world of work. By matching the work-related
in technology, these jobs have traded some of their more skills required in more than 400 occupations with the
tedious, manual tasks with tasks that people enjoy doing actual activities performed in those jobs, this report
most, such as working with others and thinking creatively. offers unprecedented insights into how many hours we
currently use our skills at work and which skills will likely
matter most in 2030. Its key conclusion is that the ‘new
work smarts’ in 2030 will involve smart thinking, smart
doing and smart learning.

1
For example see Bloomberg (March 2017), “The robots are coming for a third of UK jobs”. Available at: https://www.bloomberg.com/news/articles/2017-03-24/the-robots-
are-coming-for-a-third-of-u-k-jobs-pwc-says. SMH (April 2017) “Rise of the machines: robots are coming for middle class jobs”. Available at: http://www.smh.com.au/federal-
politics/political-news/rise-of-the-machines-robots-are-coming-for-middleclass-jobs-next-20170413-gvkj3j.html. CNN (April 2017) “The robot scabs are coming to take your
jobs”. Available at: http://edition.cnn.com/2017/04/15/opinions/the-robot-scabs-are-coming-to-take-your-jobs-howard-opinion/index.html
2
See Foundation for Young Australians (2016), “The New Work Mindset”. Available at: http://www.fya.org.au/wp-content/uploads/2016/11/The-New-Work-Mindset.pdf
3
See Foundation for Young Australians (2015), “The New Work Order”. Available at: http://www.fya.org.au/wp-content/uploads/2015/08/fya-future-of-work-report-final-lr.pdf
4
Based on an average 40-hour work week.

fya.org.au 6
 • at drawing on science, maths and technology
Smart learning knowledge. Workers will use the foundational skills
Work, in 2030, will be continually changing. of mathematics and science for 9 hours a week (up 80
Today’s young people will need to spend per cent from today) and advanced technology skills
more hours learning on the job than ever for 7 hours a week (also up 75 per cent from today).
before. In fact, Australian workers will
For example, the foundational skill of maths will remain
spend one-third of their hours at work learning, a 30 per
critical to an accountant’s role, but accountants also
cent increase from today. Continuous learning will be
need strong enterprise skills in problem solving and
part of our everyday engagement in work. Learning on
communication. As more repetitive and administrative
the job will require us all to constantly respond to new
tasks become automated, future accountants will need to
information and new technology when making decisions.
know how to solve a problem and communicate options
For example, a pharmacy assistant may need to more to persuade others to take action.
clearly interpret insights from customer data or learn how
to use new diagnostic tools. School principals may need Smart doing
to update their teaching methods to capitalise on and
Today’s young people will also need to work
integrate new technologies in classrooms.
differently to thrive in the future of work,
developing their entrepreneurial mindset.
Smart thinking
As people work more flexibly and
Thriving in the new work order will involve a
independently, including through digital work platforms,
new way of smart thinking. It means today’s
they will need to rely less on being managed or told what
young people need to become better:
to do. On average, they will work without a manager for 3
• problem solvers and communicators. They will hours more a week, receive 1 hour less instruction and rely
use the enterprise skills of problem solving for 12 2 hours less on organisational coordination with colleagues
hours each week (up 90 per cent) and critical thinking and superiors. This is a significant shift in how work will be
for 15 hours each week (up 40 per cent). Workers will managed, coordinated and delegated.
also use the enterprise skills of verbal communication
For example, carers – people working in jobs that promote
for 7 hours per week and interpersonal skills (like
health and wellbeing – will spend 5 hours less per week
listening, empathy, and persuasion) for 7 hours per
being instructed. Workers will be directly engaging with
week, both up 17 per cent from today.
patients or clients, through online hiring platforms, rather
than through large health providers.

fya.org.au 7
Preparing young people for the future For example, we now know that problem solving will
be used for 12 hours a week at work in 2030, but do
To prepare for these changes the Australian education our schools, vocational and training institutions and
system will need to equip young people with the skills and universities spend enough time teaching and assessing
capabilities required in the era of the ‘new work smart’. this skill?
It needs to ensure that young people not only acquire
foundational and technical skills, but that they are able Around the world, the most progressive education
to deploy those skills in an increasingly enterprising systems are focusing on developing the ‘new work smart’
way – as active problem solvers and communicators of workforce of the future5. They offer immersive, project-
ideas, equipped with a more entrepreneurial mindset and based and real-world learning experiences that go
appetite for ongoing learning. Young people today will beyond the classroom environment, such as working with
need to develop their cognitive and emotional skills to a local businesses or facilitating art and film projects in local
much higher level. communities. These learning experiences are best suited
to developing the future-proof enterprising and career
We must grapple with the potential shortcomings of our management skills that will be most in demand and most
education system – a system which continues to formally highly portable in the future of work, and instil in young
assess based on an old understanding of ‘smart’. The people the enthusiasm for ongoing learning that will be
looming changes to work will affect all jobs, regardless of critical for their future success.
the qualifications they require, and we must ask whether
our current education systems equip young people with
the skills most needed to thrive in the new work order.

Glossary

Hours of work: Total hours worked in the economy. In the past year, for example, 12 million people in
Australia worked more than 20 billion hours.

Occupation/job: The specific role a person performs, such as hairdresser, teacher or factory manager.

Work activity: An activity is what someone does to perform an occupations/job, such as collecting
information, moving objects, inspecting equipment or analysing data. Workers may use several skills
simultaneously to perform a work task, which is why hours don’t always add up to a 40-hour work week.
For example, problem solving and management skills could be used at the same time.

Skill: The capacity required to perform an activity. For example, a plant manager requires skills in time
management, communication, and troubleshooting.

Foundational skills: Foundational skills include literacy, language and numeracy.

Technical skills: Technical skills are often specific to a particular task, role or industry and can
include qualifications such as licenses or certificates.

Enterprise skills: Enterprise skills are transferable skills such as problem solving,
communication, teamwork, and creativity.

5
OECD, (2012), “PISA 2012 Results: Creative Problem Solving”, Students’ skills in Tackling Real-Life Problems, pp. 124. Available from: http://www.oecd.org/pisa/keyfindings/
pisa-2012-results-volume-v.htm

fya.org.au 8
 BY 2030, AUTOMATION AND GLOBALISATION
1. WILL CHANGE WHAT WE DO IN EVERY JOB

Almost daily, we hear and read about the potential cognitive tasks. By 2030 and across all jobs, the average
impact of automation and globalisation on our Australian will likely spend 3 hours less per week carrying
working lives. out manual tasks such as operating an assembly line,
retrieving or stacking items from or for storage or building
We hear about the occupations that are most likely to be and cleaning. Likewise, Australians will spend 30 minutes
hit - the lawyer whose documents can be searched more less per week on routine and administrative tasks, such
quickly by a machine, or the warehouse worker who might as data entry, filing a financial statement, or recording
be replaced with a robotic shelf-stacker or the rise of the changes in weather patterns compared to a decade ago6.
online platforms and individuals working virtually across
This decline will free us up to spend more time working
borders and timezones. But rather than causing individual
with people and solving problems. In fact, across all jobs,
occupations to boom and bust, this report shows that
it is estimated that the average employee will spend an
automation and globalisation will affect every job.
extra 2 hours per week maintaining relationships with
The economic and technological forces at play will change clients and co-workers and having close interactions with
not only what jobs people do, but how people do all their other people, and 1.5 extra hours on complex reasoning,
jobs in the future. decision making, and creative tasks.

Over the past 10 years, jobs have already undergone

1.1 Future workers will spend less significant change. From jobs such as a pharmacy
time on routine tasks and more assistant, electronics technician to jobs that require
higher levels of qualification, like a teacher or civil
time with people and getting engineer, jobs have already and will continue to change.
value from technology Advances in technology have allowed these jobs to trade
some of their more tedious, manual tasks with tasks that
People will spend less time on routine, manual activities require a higher level of engagement, like working with
and more time working with others and performing others and thinking creatively.

6
To estimate the time spent on activities in the economy, historical frequency of tasks performed at work data for every job in the Australian economy was converted to
timeshares using a regularised least squares solution. Aggregated data was used to determine economy wide share of each activity. See Appendix for further details.

fya.org.au 9
Future pharmacy assistant (Exhibit 1): New technology will likely cut the time spent on store administration (like
stocktaking and ordering) from 22 hours a week in 2006 to 6 hours in 2030. This will allow pharmacy assistants to spend
over four times more on digital tasks, such as updating the business website, developing an online shopping app and
analysing monthly sales data7.

Exhibit 1: In 2030, pharmacy assistants will spend less time on administration and
more time digitally engaged
These work activities will have the most significant shifts.
ADMIN TASKS 16h
2006 2030 • Fill orders
• Compile pay slips
22h • Compile receipts
• Stocktake

15h DIGITAL TASKS 11h

• Develop store app
• Weekly store systems update
6h • Update business website
4h
3h 3h • Update online order form

ASSISTING CLIENTS 0h
• Assist customers
Key:

Admin tasks Digital tasks Assisting clients OTHER TASKS MAY INCLUDE:
• Supervise trainees (3 hours)
• Weekly team feedback (2 hours)
* Note: Comparison of time spent on key activities performed by a pharmacy assistant in 2030 versus 2006.
Source: ONET, ABS, AlphaBeta analysis

Future electronics technician (Exhibit 2): The average computer store worker will likely trade time spent inspecting
equipment (down from 9 hours a week in 2006 to 3 hours a week in 2030) and scheduling work (down from 11 hours to
1 hour) for time spent interacting with customers or colleagues (increase from less than 1 hour to 4 hours) and analysing
product data (increase from 0 hours to 2 hours).

Exhibit 2: In 2030, electronics technicians will spend more face time with customers
and thinking analytically
These work activities will have the most significant shifts. INVENTORY AND SCHEDULING 16h
• Inspect incoming orders
2006 2030 • Set weekly roster

ANALYTICAL THINKING 2h
20h • Analyse performance of new products

INTERACTING WITH CUSTOMERS 2h

• Meet potential customers

4h 3h
1h 2h OTHER TASKS MAY INCLUDE:
0h
• Repair computers
• Sort pay slips
Key:
• Send completed repairs back to
Inventory and Interacting with Analytical clients
scheduling customers thinking

* Note: Comparison of time spent on key activities performed by an electronics trades worker in 2030 versus 2006. ONET, ABS, AlphaBeta analysis

7
O*NET occupational survey data on frequency of activities performed at work was used to estimate the time spent on over 2,000 activities for over 950 US
occupations. The results were then converted from American occupations to equivalent Australian occupations using concordance tables mapping US SOC codes to
ANZSCO codes. See Appendix for detailed methodology.

fya.org.au 10
Future teacher (Exhibit 3): The growing use of automation and digital learning tools will notably change how teachers
do their jobs. New software will take over an increasing volume of routine tasks, such as grading work. This will give
teachers more time to interact with students. By 2030, teachers will routinely use digital technology to make classroom
education a more interactive, student-centred experience. This means they will likely spend less time lecturing and more
time facilitating self-directed learning.

Exhibit 3: In 2030, teachers will increasingly facilitate learning, and spend less time
‘lecturing’, as digital technologies enable more self-directed learning
These work activities will have the most significant shifts.

2006 2030 FACILITATE STUDENT LEARNING* 10h

• Facilitate digital exchange
29h 33h
• Facilitate ‘digital excursions’
• Plan lessons for the week

REPETITIVE INFORMATION
14h
ANALYSIS 4h
• Grading
4h 5h
1h

INTERACTING WITH STUDENTS 4h

Key: • English
• History
Facilitate student Interacting with Repetitive information • Maths
learning students analysis
• Science
• Geography
* Facilitation tasks will incorporate interaction with students, such that tasks are not mutually
exclusive • Private tutoring
Note: Comparison of time spent on key activities performed by a primary school teacher in • P.E
2030 versus 2006. ONET, ABS, AlphaBeta analysis • Special needs tutoring

Future civil engineer (Exhibit 4): Civil engineers will be able to use design software to automate a large part of their
routine technical tasks in coming years, such as drafting blueprints and specifying dimensions. This means they can
spend more time interacting with clients, developers and architects. By 2030, civil engineers will also likely spend a greater
share of their work week on tasks that require strategic thinking.

Exhibit 4: In 2030, the activities performed by civil engineers will require more face
time with clients and making decisions, and less time spent on technical tasks
These work activities will have the most significant shifts.

2006 2030 ROUTINE TECHNICAL WORK 5h

• Specify blueprints
• Set weekly roster
21h
20h MANAGING OTHERS 2h
• On-site survey
• Supervise workers on site
• Progress report due
9h • Sort pay slips
8h 7h
4h
3h 2h
INTERACTING WITH OTHERS 2h
• Discuss project with architect
• Review project with property owners
• Revise building plan with developers
Key:

STRATEGY AND
Routine technical work Managing others
DECISION-MAKING 1h
Interacting with others Strategy and decision-making • Client outreach
• Develop new firm portfolio
• Find new solutions to comply with
* Note: Comparison of time spent on key activities performed by a civil engineering draftsperson and
technicians in 2030 versus 2006. ONET, ABS, AlphaBeta analysis
architect specification

fya.org.au 11
1.2 The challenge of forecasting which skills matter most
To understand which skills will be most important in skills are we currently using to perform these jobs, and
the changing world of work, the analysis needs to go which skills will we likely need most in 2030? The new
deeper than job level to explore how automation and analysis in this report has made it possible to forecast
globalisation will change the work activities we do future trends, based on the skills shift that has already
everyday. Together, Australia’s 12 million workers spend occurred over the past decade (see detailed Methodology
more than 20 billion hours in our jobs each year. Which and Appendix).

Methodology-in-brief: Analysing over 20 billion hours of work to predict the skills that
will matter in 2030
Measuring how often people use certain skills at work remarkable window into the future and allow us to forecast
is challenging. Existing occupational data provides which skills will likely matter most in 2030.
information on how much time workers spend on various
Data for this report was primarily sourced from O*NET.
job-related tasks (see Appendix for further detail). This data
All shifts in skills use by hour are based on a 40-hour
forms the starting point for our analysis. However, it does
working week. This framework was chosen to simplify
not reveal which skills were used to perform these tasks.
the presentation of findings, even as it does not strictly
This report has overcome the challenge by combining match the reality of working life in Australia, which has
data from various occupational surveys that indicate how been influenced by a growing trend to part-time work8.
workers themselves rate the importance of certain skills for Workers may use several skills simultaneously to perform
their job performance. Further analysis of the correlations a work task, which is why hours don’t always add up to
between tasks and the stated relevance of skills revealed a 40-hour work week. For example, problem solving and
which skills are required to perform specific work tasks. management skills could be used at the same time.

Repeating the analysis for various points in time over For further information on methodology, please contact
the past decade, helps unearth a trend: how the skills [email protected].
Australians use at work are changing. The results open a

Technical challenges in this study were to answer three questions

1 2 3
How much time do workers How much time do workers How will skill importance
spend performing each activity? spend using each skill? change to 2030?

Our approach Our approach Our approach

• Frequency scores of 2000+ • For each occupation, • 350+ occupations: observe

detailed work activities importance of skills and workforce by detailed 4-digit
(Source: O*NET database) importance of activities are codes
ranked (Source: ANZSCO occupation codes)
• Statistical conversion of frequency
scores into time allocations to • Skills that show a strong • 15 years of quarterly labour
calculate first breakdown of how correlation with activities are force data
workers allocate time (Source: considered to be important to (Source: ABS Labour Force Survey data)
AlphaBeta analysis) performing those activities
• Project forward based on
• Aggregating the time spent • This provides us with an historical trend
on activities across the whole estimate of what per cent of (AlphaBeta analysis)
economy provides an indication work hours require a particular
of what proportion of work hours skill in the economy
involve performing a given activity

8
See ABS Detailed Labour Force: On average, Australian workers don’t work 40 hours. In 2016, 7.8 million workers worked an average of 43 hours per week and 4.1
million workers worked an average of 13 hours per week.

fya.org.au 12
 IN 2030, WHAT IT MEANS TO BE
2. 'WORK SMART' WILL CHANGE

Our rapidly changing world of work requires young The traditional employment relationship is also likely
people today to rethink the skills they need to build a to become more fluid with people holding portfolios
successful career and thrive in the future. of activities, including paid employment, unpaid
employment (internships or volunteering) and self-
Their parents’ generation may have used a simple recipe employment.
to succeed in their jobs: choose a profession, acquire
foundational knowledge and slowly become an expert Young people will need to be prepared for a journey of
throughout their working lives. But as career paths are lifelong learning and be confident to work autonomously.
becoming less predictable, future workers will need They need to be critical thinkers and problem solvers, but
to be more flexible. Instead of training for a particular even more importantly have strong communication skills
occupation and working in that area for life, studies to interact with people.
have estimated that Australians will make 17 changes in
This chapter shows what it means to be ‘work smart’ in
employers across 5 different careers.
the future. It presents three core attributes that today’s
young people will need to have in 2030: smart learning,
smart thinking and smart doing.

fya.org.au 13
 2.1 Today's young people will need to be Smart Learners

Work, in 2030, will be continually changing. Today’s Smart technology will process, store, and recall
young people will need to spend more hours learning information and produce alternatives increasingly faster
on the job than ever before (Exhibit 5). In fact, Australian and better than we can. That shift will enable us to focus
workers will spend one-third of their hours at work on taking our foundation, technical and enterprise skills
learning, a 30 per cent increase from today. Continuous to ever-higher levels. At work young people will need
learning will be part of our everyday engagement in to spend more time developing their critical thinking
work. Learning on the job will require us all to constantly and honing their communication skills; absorbing new
respond to new information and new technology when information and working with new technologies; learning
making decisions (Exhibit 5). to consistently update their thinking in response to new
data; and investing in the development of their portable
Up until now ‘smart’ people were those who made the enterprise skills.
fewest mistakes and had highest achievement in formal
learning. But technology has and will continue to change Young people's smart learning journey must begin
that. Automation and artificial intelligence will require a early in their formal education and progress through
greater focus on our thinking and interpersonal skills and their working lives. It will be essential to build both their
we will need to learn, and relearn these skills again and learning skills and capabilities and an understanding that
again on the job. they will need to be active smart learners through their
working lives.

Exhibit Exhibit
6: 5: By 2030, young people will need to be smart learners, as new data and
technology constantly change how we perform our jobs

We will need to be smart learners

Advances in technology and access to data will lead to a constantly changing work
landscape, resulting in workers needing to spend:
Percentage is the proportion of the working week

13h learning
per week

33%
3h = 80 Days per year

Workers will use learning to:

Update and use Analyse and

new knowledge 100% interpret information
150%

Carrying out tasks such as…

Carrying out tasks such as…
• Learning how to use new apps
• Developing insights from data
• Updating business strategy
• Interpreting consumer demand
• Developing new technical skills

Note: Discrepancies between hours and days due to rounding

Source: ONET, ABS, AlphaBeta analysis

fya.org.au 14
2.2 Today's young people will need to be Smart Thinkers
Thriving in the New Work Order will involve a new Likewise, the foundational skill of maths will remain
way of smart thinking. The importance of science, critical to an accountant’s role but as more repetitive and
maths, engineering and technology (STEM) skills is administrative tasks are being automated, the analytical
well documented9. However, young people can’t rely skills of accountants will become more important. Future
on these skills alone to thrive in the future of work. To accountants will need to know how to solve a problem and
activate and fully utilise STEM skills effectively, enterprise communicate options to persuade others to take action
skills including problem solving, critical thinking and (see Exhibit 9).
communication are of prime importance.
To lay the foundations for the future of work Australia’s
Even in occupations with a heavy reliance on science and training and education system must prioritise skills that
mathematics, communication and interpersonal skills will workers will likely need most in their future jobs with a
be more important. The example of a doctor’s working strong focus on enterprising skills and STEM skills. STEM
week demonstrates that, while science and maths skills alone will not be enough; well developed enterprise
have foundational importance, these skills are used in skills will be necessary to activate and communicate ideas
a surprisingly small number of hours (see case study: and solutions.
“Science + Communication Skills in a doctor’s week”).

Exhibit 6:
Case study: Science + Communication Skills in a doctor's week

The average week of a doctor provides a compelling example of the importance of science and mathematics within a
much broader skill set. By 2030, doctors could spend 9 hours a week using their maths and medical-science knowledge
on the job. They need maths and science to process and analyse information, to diagnose illness and to develop
treatment plans. But without crucial interpersonal skills, they cannot perform these tasks. Doctors will spend most of
their time interacting with patients to elicit the information they need to diagnose, and prescribe the most effective
individualised treatment plans. In 2030, doctors will likely spend almost half their work week (18 hours) using their verbal
communication and interpersonal skills when interacting with patients.

Foundational skills take up less work time than enterprise skills

More time on
In 2030 a doctor will spend...
Enterprise Skills

18h/week
Less time on
Foundational Skills

9h/week Using enterprise skills

and verbal communication

On interacting with patients

Using maths and science • Interpreting information for others
• Communicating with people outside of workplace
• Providing consultation or advice
On diagnosis/ and prognosis tasks
• Assisting and caring for others
• Processing information
• Analysing information
• Developing objectives and strategies

SOURCE: O*NET, ABB, AlphaBeta analysis

9
For example, see: CSIRO Blog (8 September 2016) “What is STEM and why is it important?”; Chief Scientist (2015) “Science, Technology, Engineering and Mathematics:
Australia’s Future”; Office of theUse
Chief
ofScientist (March
this skills 2015)average
in the “STEM Skills in the Workforce.
working week: What do employers want?”

Today 2030 fya.org.au 15

Use of this skills in the average year in 2030:

6h 12h
 Advances in technology and access to data will lead to a constantly changing work
landscape, forcing workers to spend:

In 2030, today’s young people will need to build a hour more per week using verbal communication
portfolio of skills to thrive in the new work order. They will 13h learning
and interpersonal skills (both up to 7 hours from 6
need to be: per week hours today). Shop assistants may spend, on average,
an hour more time per week talking to customers
• 33%
problem solvers and critical thinkers. The skills
6h =
and providing them a great service experience.
that will matter most in the workplace of the future 80 Days per
Accountants mayyear
spend an hour more time per week
are, by a wide margin, problem solving, judgment and negotiating, persuading and listening intently to client
critical thinking (Exhibit 7). The average Australian briefs (Exhibit 9).
worker will likely spend double the time at work
solving problems (12 hours each week, up from 6 • versed in science, maths and technology
hours today). The need for judgment and critical knowledge. The workplace of the future will require
Workers will use learning to:
thinking at work - such as coming up with innovative strong foundational skills in science and mathematics,
ways of doing things differently and experimenting and strong technical skills in advanced technology
Update and use
with new ideas and testing hypotheses - will likely (ExhibitAnalyse and
8). This includes better programming skills,
new knowledge interpret information
increase by 40 per cent, consuming an estimated 100%
15 as well as skills to design technology
150% and adapt it to

hours each week by 2030,

Carrying upsuch
out tasks fromas…
11 hours today. customer needs10. Past trends signal that the average
Carrying out tasks such as…
• Learning how to use new apps Australian will use 80 per cent more science and
• Developing insights from data
• communicators and business
• Updating engagers. Today’s young
strategy maths at work (from 5demand
hours per week today to 9
• Interpreting consumer
people will need to be good
• Developing at working
new technical skillswith people hours in 2030). In an average working week, the time
to succeed in their future jobs (Exhibit 7). The spent on tasks requiring advanced technology skills is
average Australian worker will likely spend two set to increase by 75 per cent from 4 hours today to 7
hours more per week on written communication hours in 2030.
(15 hours in 2030, up from 13 hours today) and one

Exhibit 7: In 2030, young people will need to be Smart Thinkers...

Exhibit 8:
...who are problem solvers and communicators

We will need to be smart thinkers

In 2030, workers will use these skills on average:
Percentages are the proportion of the working week

Problem solving

73
Days
30%
12h per week 6h = per year

Judgement &
critical thinking
95
Days
37.5%
15h per week 4h = per year

Written communication

93
37.5% Days
15h per week 2h = per year

Interpersonal

40
Days
17.5%
7h per week 1h = per year

Verbal communication

40
17.5% Days
7h per week 1h = per year

* Note: Discrepancies between hours and days due to rounding

Source: O*NET, ABS, AlphaBeta analysis
10
O*NET skill glossary. See Appendix for further details.
Exhibit 10:
fya.org.au 16
 Exhibit 8: In 2030, young people will need to be Smart Thinkers...
Exhibit 10:
...who can draw on science, maths and technology knowledge

We will need to be smart thinkers

In 2030, workers will use these skills on average:
Percentages are the proportion of the working week

Maths and science

Days
58
22.5%
9h per week 4h = per year

Advanced technology
Days
17.5% 7h per week 3h = 40 per year

* Note: Discrepancies between hours and days due to rounding

Source: O*NET, ABS, AlphaBeta analysis

Exhibit 11:

Exhibit 9: We will need to be smart doers

Case study: problem solving and communicating in an accountant’s week
In 2030, workers will use these skills on average:
Percentages are the proportion of the working week

In 2030, accountants will spend more time

communicating, learning and problem
Teachingsolving 2014 2030

45
Days
17.5%
7h per week 1h = per year

10h
/week
9h 9h 17h
/week
Management /week
10h /week
1h Days
/week
20%
8h per week 3h = /week
50 per year

h
26 36 18 27 18 27 15 14 12 22 11 28
Coordination
20%
53
Days
8h per week 2h = per year

Written Learning Problem Maths Verbal Interpersonal

communications solving communication

Source: O*NET, ABS, AlphaBeta analysis

fya.org.au 17
 2.3 Today’s young people will need to be Smart Doers
Exhibit 10:
By 2030, today’s young people will need to work with a and drive themselves to succeed - a common quality
more entrepreneurial and independent mindset. In an among entrepreneurs.
average week, there will be less management (8 hours
per week, down fromWe will need
11 hours), to be smart thinkers
less organisational Already, the economy is shifting towards more part-time
coordination (8 hours per week, down from 10 hours) and and self-employment. Over the past 10 years, female part-
less teaching (7 hours per week, down from 8 hours). time employment has increased 28 per cent by 578,000
In 2030, workers will use these skills on average:
people and dramatically, male part-time employment has
The future workforce will need
Percentages toproportion
are the be moreofautonomous
the working week
increased 4 per cent by 371,000 workers. Likewise, self-
and self directed, working on tasks independently
employed males with no employees have increased 5 per
with less supervision and supportMaths from managers
and science or
supervisors. Many more people will work externally, from cent by 39,000 people and self-employed
Days females with no
58
22.5%
home or a remote office. Young people of 9h
pertodayweek
will need employees 4h =
has increased 3 per cent by
per year 113,000 workers11.
to manage their own time more, make more decisions These shifts reflect changes to the traditional employment
about priority and importance of tasks and be more relationship which will continue to become more fluid
personally motivated and driven. with people holding portfolios of activities, including
Advanced technology
paid employment, unpaid employment
Days (internships or
Management in the17.5%
watching over your shoulder to make sure you are
7h
future of work won’t be someone
per week 3h =
volunteering) and 40
self-employment. Individuals will need
per year
to employ an entrepreneurial mindset to manage their
working, or giving you tasks to complete, one at a time.
portfolio of work and other activities.
The employees of the future are going to have to motivate

Exhibit 10: In 2030, young people will need to be Smart Doers...

Exhibit...and
11: work with a more entrepreneurial mindset

We will need to be smart doers

In 2030, workers will use these skills on average:
Percentages are the proportion of the working week

Teaching

45
Days
17.5%
7h per week 1h = per year

Management
Days
20%
8h per week 3h = 50 per year

Coordination
20%
53
Days
8h per week 2h = per year

* Note: Discrepancies between hours and days due to rounding

Source: O*NET, ABS, AlphaBeta analysis

11
ABS Detailed Labour Force latest release.

fya.org.au 18
For example, in caring professions such as GPs, fitness instructors, and counsellors, tasks that require coordination
and management skills (to perform administrative tasks) are increasingly replaced by tasks requiring communication,
interpersonal and problem solving skills (to serve clients and patients better).

Exhibit 11: Case study

The Carers: By 2030 workers in health and wellbeing will be more autonomous
problem solvers
In our previous research we looked at the ways skills are closely related and are portable across jobs. We clustered those
jobs into seven groups based on their common skills12. The Carers is one of those clusters. Our research shows that caring
professionals - people working in roles to improve the health and wellbeing of others - have a high degree of transferable
skills. This means that training for one job in this professional field equips a worker with the skills for many other caring
jobs. Even though many caring professions are considered at low risk of being impacted by automation in the near future,
their skills profile will change by 2030. Automation is set to reduce the amount of time people in caring professions spend
on management and organisation. By 2030 they will likely spend less than 2 hours a week using their organisational skills
(down 5 hours a week compared to today) and 9 hours a week using their management skills (4 hours less than today).
Carers will instead use more interpersonal skills (up 2 hours a week to 13 hours), more critical thinking (up 12 hours per
week) and more problem solving (up 7 hours a week).

The Carers: By 2030 the jobs in health and well being will be more collaborative,
entrepreneurial and intellectual

The Carers are comprised of jobs that improve our

health and well being, examples include:

• GPs
• Fitness instructors
• Social workers
• Surgeons
• Childcare workers 2014 2030
• Counsellors

12
2 6 8 h/week 7 4
h/week
h/week h/week 4 h/week 5 h/week 5
h/week h/week h/week

h/week
11 13 10 16 11 19 3 7 14 26 7 14 7 2 13 9 7 2

Interper- Verbal Learning Advanced Critical Problem Organisa- Manage- Teaching

sonal Commu- technology thinking solving tional ment
nication

Become more Use more entrepreneurial Involve less management

collaborative and thinking skills and admin

Source: O*NET, ABS, AlphaBeta analysis

12
Foundation for Young Australians (2016) “The New Work Mindset: 7 new job clusters to help young people navigate the new work order”

fya.org.au 19
 PREPARING YOUNG PEOPLE FOR THE FUTURE
3. OF WORK

To be successful in the future world of work, young to think that only jobs requiring a certain qualification,
people need to start building their portfolio of skills like a bachelor’s degree, are affected. Rather, the looming
and capabilities today. changes should have implications for everyone in the
education system: school teachers and vocational
We need to support and inform young people so they can
education providers, tutors and university lecturers.
make choices to be ready for the new ‘work smart’ and
develop the skills that will likely matter most in coming For example, the skills that will matter most in 2030 for
years. This has implications for educators, schools, workers in university-qualified occupations will become
universities, vocational education providers and career more significant across the whole economy. Judgment
advisers who need to ensure they prepare young people and critical thinking could be used for 17 hours a week
for the future, starting today. in university-qualified jobs, but they are not just relevant
to those positions. Rather, past trends suggest that these
Past workplace trends suggest that by 2030 the average
skills will be used for 15 hours a week across all jobs in
Australian worker will likely spend 41 percent more time
the future.
per week on written communication compared with today
(a combined 8.9 billion work hours across the economy). Some differences remain. Research shows that
On average, workers will also spend more than twice as communication and interpersonal skills will become
much time on job tasks requiring science and maths (a comparably more important in university-level jobs and
combined 5.6 billion work hours), and critical thinking (a other jobs that value problem solving, technological
combined 7.0 billion work hours). knowledge and organisational skills. University-level
jobs will use interpersonal skills for 11 hours per week,
The outlook presented through this analysis reflects the
compared with 7 hours on average across all jobs.
change that is set to occur during an average working
Written communication will be used for 18 hours a week
week across all jobs in the Australian economy.
in university-level jobs compared with 16 across the
However, jobs and industries will no doubt change more economy. Verbal communication will matter in university-
rapidly than others, causing some workers to adapt faster level jobs for 10 hours per week compared with 7 hours
than others. Education providers would also be mistaken on average.

fya.org.au 20
 In 2030, accountants will spend more time
communicating, learning and problem solving 2014 2030

10h
/week
9h 9h 17h
/week /week
10h /week
1h /week
/week

h
26 36 18 27 18 27 15 14 12 22 11 28

Written Learning Problem Maths Verbal Interpersonal

communications solving communication

Exhibit 12: In 2030, some skills will need to be used in billions more hours of work
across the economy

2014 2030

3.8 2.6
bn bn
3.0
bn 4.0
bn
3.0 0.1 0.5
bn bn bn 0.3
bn
0.9 1.9 0.8
bn bn bn

h (bn)
5.3 9.1 6.3 8.9 4.6 7.6 3.0 7.0 2.6 5.6 5.1 5.0 5.2 4.7 4.5 4.2 3.0 3.9 1.9 3.8 3.0 3.8

Critical Written Learning Problem Science Organisa- Manage- Teaching Verbal Advanced Interper-
thinking commu- solving & maths tional ment Commu- technology sonal
nications nication

Source: O*NET, ABS, AlphaBeta analysis

Employers are already demanding many of the new smart skills. Analysis of millions of online job ads earlier in the
research series, showed us that already employers are both expecting and paying a premium for transferrable enterprise
skills in entry level roles. Demand for digital skills went up 212 per cent over three years, while critical thinking increased
158 per cent, creativity increased by 65 per cent and presentation skills by 25 per cent.

fya.org.au 21
 2h 5h

1 week 1 week
Equity Challenge

To set up young people to thrive in the future of work, we need to particularly address issues of equity: ensuring that all
young people have access to opportunities to develop their technical, foundational and enterprising skills.

Data shows that the challenges are even greater for students from low socio-economic backgrounds and Indigenous
students (Exhibit 13). There are significant gapsuse
Update and in problem solving, digital literacy, science, maths and written
Analyse and
communication. new knowledge interpret information
100%
150%

Carrying out tasks such as…

Carrying out tasks such as…
• Learning how to use new apps
• Developing insights from data
• Updating business strategy
• Interpreting consumer demand
• Developing new technical skills

Exhibit 13: Low socio-economic and Indigenous students perform more poorly on
problem solving, digital literacy, science and maths
Proportion of group in lower levels* of proficiency, %, latest data

Problem 35
solving 50
62

27
Digital
41
literacy
55

45
Maths 63
74

39
Science
56
66

38
Written
57
communications
67 Source: PISA 2015 for maths, science and
written communication results. PISA 2009 for
digital literacy. PISA 2012 for problem soving.
Key:
AlphaBeta analysis.

All young people Low socio-economic Indigenous * Lower proficiency defined as scoring Level 2
or below in most recent PISA testing

fya.org.au 22
3.1 Effectively preparing young Australians for the New Work Order

FYA’s New Work Order13 series has examined the key past 3 years14. Problem solving attracts an additional
forces that will shape the future of work and how we $7,745 in early-career jobs, compared with jobs that don’t
can best prepare for this uncertain future. The series request problem solving.
demonstrates through compelling evidence and new data
Through education, immersive learning and real world
analysis that the future of work will look very different.
experience we can support young people to lay the
Automation, globalisation and more flexible working
foundations today to be successful at work tomorrow.
arrangements are rapidly reshaping our economy and
work. Compounding the uncertainty is the reality that Early Career Experience
many jobs of the future don’t exist today.
Not every work experience and entry-level job will
Within this future, young people are likely to be prepare young people equally for the future. A look at
disproportionately affected. Many of Australia’s young the skills required in different roles shows that some
people are currently training for jobs that will significantly early-career jobs appear particularly suited to help young
changed by automation. For example, 60 per cent people become ready for the ‘new work smart’ because
of students in vocational education are training for they already rely on skills that will be most important
occupations that will be highly affected by automation. in the future15. These jobs are as broad as advertising
And 70 per cent of young people are entering the professionals, ICT sales assistants, pharmacy assistants,
workforce in jobs that will be highly affected by physiotherapists, statistical clerks, multimedia specialists,
automation. tourism advisers, office cashiers, ICT support technicians
Although much of the public narrative is a guessing game (Exhibit 14). What they have in common is the opportunity
about which occupations will stay or go before 2030, the to gain experience utilising technical and foundation skills
truth is that technological change is going to impact what in conjunction with enterprise skills. In other words, smart
we do in every job. learning, smart thinking and smart doing.
The average advertising professional, for example,
Portable Skills already uses 2 hours of maths and science per week,
Rather than focussing on jobs, if we want young people spends 7 hours per week on written communication,
to capitalise on these opportunities and navigate the 3 hours per week on verbal communication, 4 hours
challenges brought by these changes, they need a set of each on critical thinking and problem solving. They also
transferrable skills. We must equip young people with the spend an average of 2 hours per week using advanced
new work smart skills and capabilities: smart learning, technology skills. The average web developer spends
smart thinking and smart doing. Employers are already 7 hours per week using problem solving, 7 hours using
demanding many of the new work smart skills and advanced technology skills, and 3 hours using written
capabilities. communication. We can help students choose jobs and
find work experiences that develop relevant future skills.
Analysis of millions of online job ads showed us that,
The case study “Rita uses her early-career work choices to
already, employers are demanding enterprise skills and
help her become ‘work smart’” shows how valuable such
paying a premium for these skills. For example, demand
early-career experiences can be (Exhibit 15).
for critical thinking has increased by 158 per cent in the

13
FYA has published five reports within its “New Work Order” series. For more information see: http://www.fya.org.au/new-work-order-report-series/
14
Based on analysis of 4.2 million online job advertisements from 2012 to 2015.
15
Time spent on skills within each job was determined by taking correlation between skills and activities, and applying these to time spent on activities at the 4-digit
ANZSCO level, as opposed to the aggregate economy.

fya.org.au 23
Exhibit 14: Some early-career jobs can help to equip young people with the skills that
matter most
Jobs in which young people are highly represented and the share of future skills required
Intensity of skill use by job

Judgement
Maths and Written com- Verbal com- Problem Advanced
Early-career jobs Interpesonal and critical
science munication munication Solving technology
thinking

Advertising and marketing

professionals

ICT sales assistants

Call or contact centre

workers

Physiotherapists

Actuarial clerks

Survey interviewers

Receptionists

Multimedia specialists and

web developers

Sales assistants (general)

Pharmacists

ICT support technicians

Key:

Highest skill use High skill use Moderate skill use

Note: early-career jobs defined as the 25% of occupations with the highest proportion of workers under 29 years old
Source: O*NET, ABS, AlphaBeta analysis

fya.org.au 24
Exhibit 15: Case study

Rita uses her early-career work choices to become ‘work smart’

Rita recently started working for a small marketing company. This is Rita’s first job after completing her studies, and
already she has been given responsibility to develop a digital advertising strategy. Rita dedicates around half her work
week to the project: she designs content and creates a new website for the campaign. She also regularly meets up with
clients and colleagues to advance the project.

To develop a successful and tailored campaign, Rita needs to think critically, solve problems, and actively engage with the
client. Combined with Rita’s other responsibilities around the office, she needs to spend 3 to 6 hours a week interacting
directly with clients and colleagues, 4 to 9 hours a week using her problem-solving and critical-thinking skills. In the last
stage of the project, just before presenting the final campaign to the client, Rita will draw on her technical skills and digital
literacy for 2 to 4 hours per week.

After a year on the job Rita has greatly improved her verbal communication, written communication and interpersonal
skills - thanks to the countless hours she spent meeting with retailers and managers, and even giving a few media
interviews. She has also picked up some basic programming skills while joining a team to develop new websites for the
launch of some campaigns. Even though Rita is no longer sure she wants to stay in advertising, her work experience has
allowed her to develop critical enterprise skills and technical skills that will help Rita and her next job, which she hopes will
be as a social media manager.

fya.org.au 25
3.2 We need a new work mindset Educators can help to:
Equipped with the skills to be new work smart, young
people can also navigate the future of work by thinking • Prioritise the right skills: Ensure enterprise
about how their skills are portable for other jobs. Our skills are elevated in the curriculum and developed
mindset needs to shift to reflect a more dynamic future through the most effective teaching methods. This
of work where linear careers will be far less common will require developing teachers and partnering with
and young people will need a portfolio of skills and employers.
capabilities, including career management skills to
navigate the more complex world of work. • Recognise portability: Consider designing
curriculum to support the core skills requested in
On average, when an individual trains or works in 1
job, they acquire skills for 13 other jobs. This is because clusters of work. Tertiary course information can
employers often demand very similar skills across better identify the many jobs that courses prepare
multiple jobs. By understanding the skills and capabilities young people for, rather than single occupations.
that will be most portable and in demand in the new
economy, young people can work to equip themselves for
the future. Careers advisers can help to:

It is helpful to think about jobs as part of a cluster of • Deal with continual change and portability: Work
work that demands similar skills. We have found that with schools and other educators to help equip young
there are 7 clusters of work in Australia: The Artisans, people with skills for managing multiple changes in
The Generators, The Coordinators, The Informers, The employers and movement between occupations.
Technologists, The Carers and The Designers. Present information differently to students to include
To support young people to navigate these changing the clusters of work and the many jobs available to a
labour markets Australia will need to invest to ensure young person if they add additional skills.
they are innovative, creative and enterprising. Amidst this
uncertainty, young people need to make choices that will • Prioritise the right skills: Help students to find
affect their future options and need to have information work experiences and make study choices that build
that simplifies the complex world of work, helping them the skills that will be in highest demand, and will grow
navigate work and learning throughout their lifetime. most in demand.
We can all take action to ensure young Australians grasp
opportunity in the future of work:
Employers can:
Policy makers can help to:
• Recognise portability: Consider breadth of
• Prioritise the right skills: Ensure policy design candidates with similar skills when recruiting for
and incentives for the education system support the positions, not just candidates within an occupation.
development of enterprise skills, science and maths,
and more independent and entrepreneurial working.
And, most importantly, young people can:
There is an urgent need for investment in a national
enterprise skills and careers education strategy in • Be comfortable with changing employers and
schools that begins in primary school, is delivered in occupations multiple times. Think about your
ways that young people want to learn, and provides career as selecting a cluster of jobs that you are
accurate information about the skills that will be interested in and build on your strengths. Try to
important in the future. make study and work choices that help you to build
enterprise skills that you can take to any job, and the
• Support portability: In recognition of portability
core technical skills within your cluster of interest.
of skills across occupations, consider designing VET
incentives and offerings to match the core skills in • Be prepared to work more independently and
key clusters of work rather than training for individual entrepreneurially.
occupations. Provide information on occupations
with a high overlap of skills and how individuals
can move most efficiently from one occupation to
another.

fya.org.au 26
APPENDIX A - DETAILED METHODOLOGY

A.1 Methodology overview However, it is possible to estimate the time spent on different
activities using these frequency scores if workers tend to take the
To answer the question of how important a skill is in the same number of tasks to perform different activities, and that in
economy, this study uses data from O*NET, a database general workers surveyed work full time. Below a simple example
sponsored by the US Department of Labor. The database illustrates how it is possible to infer time spent on activities using
contains one of the world’s richest sources of information on the only frequency scores and total weekly hours:
different skills and activities undertaken in different occupations.
Estimating how often a skill is used in the economy is the key Assume two full time occupations involve the same 10 activities at
challenge solved by the methodology of this study. work, and let t_i be the time spent on time task i. Assume the total
time spent is as detailed below:
It is inherently difficult to think about how much time a skill is
used on the job. As an example, surgeons are unlikely to think Occupation A: 2 × t1 + 2 × (x × t2 + ... + y × t10) = 40 hours
about how much time they spend solving problems, or how
much time they spend using physical coordination. As such there Occupation B: 1 × t1 + 6 × (x × t2 + ... + y × t10) = 40 hours
is no data available that directly measures the use of skills in an
In the above Occupation A performs task 1 twice a week, and
economy.
Occupation B performs task 1 once a week. Each of the remaining 9
This study uses an innovative approach to overcome these tasks are performed in the same relative proportions to the other 8
challenges. Whilst there is no data that attempts to measure in both occupations. Solving simultaneously shows:
how much time is spent using a particular skill, there is existing
data indirectly measuring how much time is spent on different 1 × t1 = 4 (x × t2 + ... + y × t10)
work activities, and how important skills and activities are to a
job. Thinking back to the surgeons’ example, whilst they may not
know how much time they spend using physical coordination, Therefore through substitution, we find that performing task 1 2.5
they do know how much time they spend diagnosing patients, times a week would take 40 hours, and therefore task 1 takes 16
performing routine surgery, performing complex surgery etc. At hours a week to perform. As more occupations are compared to
the same time, surgeons also know how important different skills each other, more simultaneous equations can be solved and the time
such as problem solving, physical coordination or mathematics spent on more tasks can be inferred.
are to their job. Likewise, they can also answer how important
The above example was constructed such that a simple solution
each activity such as operating surgical equipment, diagnosing
flows out, whilst in the true dataset there are two issues that
patients or calculating billings are to their job.
require a more robust method. Firstly, there are hundreds of
This study links these three pieces of available information to occupations but thousands of activities, meaning that there can
determine how important skills are in the economy, using the be infinite solutions. Secondly, if frequency scores do not align
following steps: well due to differences in time taken to perform tasks between
jobs, it may be impossible to find solutions for certain jobs.
1. Calculating how much time is spent on all activities in each Consider the below example:
occupation
Occupation A: 2 × t1 + 2 × (x × t2 + ... + y × t10) = 40 hours
2. Calculating how much time is spent on all activities in the
economy Occupation B: 2 × t1 + 3 × (x × t2 + ... + y × t10) = 40 hours

3. Calculating which activities a skill is important for Here the only solution that is feasible would require the two
occupations to take different amounts of time to perform the
4. Calculating how much time is spent using skills in the
same task, contradicting earlier assumptions. Both the infinite
economy
solution and impossibility scenarios are overcome by using a
A.2 How much time is spent on activities in regularised least squares solution, which allows a violation of
each occupation? prior assumptions regarding total work hours, but penalises
large deviations in time taken to perform tasks and deviations
The first step in this study requires estimating how much time is from the total weekly work hours in an occupation. This part of
spent on different activities in each occupation. O*NET provides the study is the most technically complex, and the methodology
data on the frequency at which workers perform over 2,000 is highlighted in in Exhibit A.1
different activities, but not the time spent on these activities.

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Exhibit A1: Estimating activity timeshares by occupation

How much time does each worker spend on each activity?

Inferring timeshares from frequency scores:

• For each occupation O*NET frequency scores are converted to weekly frequency of task performance1:

O*NET frequency scale O*NET description Assigned weekly frequency

1 Yearly or less 0.02

2 More than yearly 0.12
3 More than Monthly 0.5
4 More than weekly 2
5 Daily 5
6 Several times a day 20
7 Hourly or more 40

• The total amount of time spent on work by occupation j in a week is given by:

• Where f1,j is the weekly frequency of activity i performed by job j, ti is the time taken to perform task i, and hj is the total amount of
time spent working in a week is given by (assumed to = 40 hours per week)

• it assumed that US occupations within the same 1 digit SOC code all take the same amount of time to perform tasks

• Therefore to estimate the timeshares for J US occupations within a 1 digit code with N total activities, requires solving the linear

system, where t1, …, tN are unknown

• Given that there are more unknowns than equations (as the number of activities is lager than the number of occupations), the
system may have an infinite set of solutions

• A regularised least squares solution is used which satisfies the following constraints

• In the above µ is a small number that penalizes large deviations in time taken to do tasks

• An estimate of the timeshares spent on given activities can then be computed for each occupation

• Lastly US SOC occupation codes are converted to Australian 4 digit ANZSCO codes using a concordance table

• The next step requires converting the activity timeshares into task group timeshares

Source: O*NET, ABS, AlphaBeta analysis

1
O*NET scale converted to weekly frequency based on O*NET description e.g. a task which is performed yearly or less is assumed to be performed once a year which is
equivalent to 0.02 times a week

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A.3 How much time is spent on activities in the economy
The methodology in A2 provides an estimate of how much Exhibit A2 highlights the methodology for calculating how
time is spent on every activity in every occupation in Australia. much time is spent ‘moving objects’ using illustrative numbers
Estimating the total time spent on an activity in the economy (true timeshares and work hours differ from the example). For
is done by combining ABS data on weekly work hours with example, if police officers work 5 million hours a week in the
‘timeshare’ data as calculated in Exhibit A2, across all 350+ 4 economy and spent 10 per cent of their time moving objects,
digits ANZSCO codes in the Australian economy. First, the 2000 then police offices spend 500,000 hours a week moving objects.
different tasks are aggregated under 41 General Work Activities Repeating this process across for each occupation, provides the
(GWAs) as defined by O*NET’s classification system. For example, aggregate weekly hours spent moving objects in the economy,
moving cars, moving boxes, or moving other equipment can be which can then be expressed as a percentage of total work
bundled under the broader category of ‘moving objects’. hours.

Exhibit A2: Estimating time spent per activity in the economy

How much time is spent moving objects in the economy

Construction
Police officers Managers Doctors All occupations
workers

Weekly hours worked 5,000,000 1,000,000 10,000,000 2,000,000 300,000,000

% of time spent moving

10% 2% 30% 5% 9%
objects

Weekly hours moving

500,000 20,000 3,000,000 100,000 27,000,000
objects

Note: Numbers in exhibit are purely illustrative.

fya.org.au 29
The process is than repeated for each one of 41 GWAs to provide important a skill that is scores as 8 on a 1-10 importance scale is
a complete picture of how much time is spent on each activity compared to a skill that is scores a 7, we can safely assume that
across the economy. The process was repeated using timeshare the skill scored as an 8 is more important than the skill scored as
and employment data from different years between 2000 and a 7.
2015 in order to estimate how time spent on different activities
Examining the ranking of skills and activities across occupations,
has changed.
can reveal which skills are important for performing which
A.4 How important are different skills to activities. To determine the relationship between skills and
different activities? activities, a non-parametric correlation between rankings of skills
and activities (Spearman’s rho) is calculated and a Spearman’s
O*NET provides data on importance scores for different skills rho value of 0.6 or greater is interpreted as a sign that a given
and activities across all occupations. Assigning direct significance skill is important for carrying out a given activity. Exhibit A.3
to importance scores is difficult, given the subjective nature of illustrates the principle of the procedure. (true ranking of skills
such scores, however the data can still be interpreted in terms and activities may differ).
of rank. For example, whilst we cannot say how much more

Exhibit A3: Estimating time spent per activity in the economy

What makes a skill important for an activity?

Skills Activities
Occupation (in order of importance) (in order of importance)

Physical coordination Moving objects

Calculating weights
Police Officer

Physical
Calculating weights coordination
Manager Physical coordination Moving objects
is important for
moving objects

is not important for

calculating weights

Physical coordination Moving objects

Calculating weights

Construction worker

Calculating weights

Physical coordination
Note: Skills and activities used are
Doctor Moving objects illustrative only.

The above shows that as physical coordination varies in calculating weights, reflected by a low value of correlation
importance across occupations, the activity of moving objects coefficient.
varies in an analogous manner, implying a high value of
Spearman’s rho. When physical coordination is an important skill, The above procedure is carried out for all 41 GWAs and all skills,
moving objects is an important activity. In contrast, the activity to determine which skills are important for which activities. With
of ‘calculating weights’ has no relation to the skill of physical some skills displaying importance for a wide range of activities,
coordination. Whether physical coordination is important or and some skills displaying importance of little or no activities
unimportant does not have a bearing on the importance of

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A.5 How much time is spent utilising a skill in The above methodology is repeated across different years
the economy? between 2000 and 2015. This procedure provides a quantifiable
estimate of how the relevance of different activities in the
The final piece of the study is determining how much time is economy has been changing over time, and what the implied
spent using a particular skill in the economy. To do this, the change in importance of skills has been. For example, we
results in section A.3 and A.4 are combined. Using the above can observe that physical activities have been declining in
examples, physical coordination is important for moving objects, importance, and therefore skills important to performing
and moving objects constitutes 9 per cent of work time in the physical activities are declining. At the same time activities which
economy, then physical coordination is important for 9 per require complex problem solving skills are increasingly taking up
cent of total work hours in the economy. The above example more work hours, suggesting that these skills are becoming more
assumes that physical coordination is only important for moving important in the economy.
objects. However, since the performance of activities is mutually
exclusive (a worker can only perform one activity at a time) it A.6 How much time is spent utilising a skill in
is not more complicated to estimate how much time is spent the economy?
using a skill that is important to many activities in the economy:
All time spent on skills analysis was carried out by group O*NET
If physical coordination was important for moving objects, as
skills under AlphaBeta’s classification. These classifications
well as another activity that takes up 11 per cent of work hours
were informed by prior work done by AlphaBeta, as well as
than, summing the two timeshares would indicate that physical
incorporating O*NET description of skills in order to ensure
coordination is important for 20 per cent of work hours in the
appropriate matching. The full glossary of skills discussed in this
economy.
report and corresponding O*NET skills are presented below:

Categorising skills using O*NET skill glossary (1/2)

AlphaBeta Category O*NET skill O*NET skill description

Technical

Determining the kind of tools and equipment needed to do a

Equipment Selection 
job.

Operations Analysis  Analyzing needs and product requirements to create a design.

Machine analysis Conducting tests and inspections of products, services, or
Quality Control Analysis 
processes to evaluate quality or performance.

Determining causes of operating errors and deciding what to

Troubleshooting
do about it.

Performing routine maintenance on equipment and

Equipment Maintenance 
determining when and what kind of maintenance is needed.

Installing equipment, machines, wiring, or programs to meet

Installation 
specifications.
Operations and
repair Operation and Control  Controlling operations of equipment or systems.

Watching gauges, dials, or other indicators to make sure a

Operation Monitoring 
machine is working properly.

Repairing  Repairing machines or systems using the needed tools.

Foundational
Understanding written sentences and paragraphs in work
Reading Comprehension 
related documents.
Written
communication Communicating effectively in writing as appropriate for the
Writing 
needs of the audience.

Verbal Speaking  Talking to others to convey information effectively.

communication
Mathematics  Using mathematics to solve problems.
Science and maths
Science  Using scientific rules and methods to solve problems.

Source: O*NET, ABS, AlphaBeta analysis

fya.org.au 31
Categorising skills using O*NET skill glossary (2/2)

AlphaBeta Category O*NET skill O*NET skill description

Understanding the implications of new information for both
Active Learning
current and future problem-solving and decision-making.
Learning Selecting and using training/instructional methods and
Learning Strategies procedures appropriate for the situation when learning or
teaching new things.

Giving full attention to what other people are saying, taking

Active Listening  time to understand the points being made, asking questions
as appropriate, and not interrupting at inappropriate times.

Negotiation  Bringing others together and trying to reconcile differences.

Interpersonal Persuasion  Persuading others to change their minds or behavior.

Service Orientation  Actively looking for ways to help people.

Being aware of others' reactions and understanding why they

Social Perceptiveness 
react as they do.

Coordination  Adjusting actions in relation to others' actions.

Time Management  Managing one's own time and the time of others.
Coordination
Management of Material Obtaining and seeing to the appropriate use of equipment,
Resources facilities, and materials needed to do certain work.

Teaching Instructing  Teaching others how to do something.

Determining how a system should work and how changes

Systems Analysis  in conditions, operations, and the environment will affect
outcomes.

Identifying measures or indicators of system performance

Systems Evaluation  and the actions needed to improve or correct performance,
Judgement and relative to the goals of the system.
critical thinking
Considering the relative costs and benefits of potential actions
Judgment and Decision Making 
to choose the most appropriate one.

Using logic and reasoning to identify the strengths and

Critical Thinking  weaknesses of alternative solutions, conclusions or
approaches to problems.

Identifying complex problems and reviewing related

Problem solving Complex Problem Solving  information to develop and evaluate options and implement
solutions.

Management of Financial Determining how money will be spent to get the work done,
Financial literacy Resources and accounting for these expenditures.

Programming  Writing computer programs for various purposes.

Advanced
technology Generating or adapting equipment and technology to serve
Technology Design 
user needs.

Monitoring/Assessing performance of yourself, other

Monitoring  individuals, or organizations to make improvements or take
corrective action.
Management
Management of Personnel Motivating, developing, and directing people as they work,
Resources  identifying the best people for the job.

Source: O*NET, ABS, AlphaBeta analysis

fya.org.au 32
Foundation for Young Australians
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T: 03 9670 5436 E: [email protected]
fya.org.au

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