National

Workforce
Strategy
2022—27
National
Workforce
Strategy
2022—27

ISBN 978-1-76114-862-0

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The document must be attributed as the (National Workforce

Strategy 2022-27).
Contents

Minister’s Foreword 4 Setting the scene

Executive Summary 6 National Workforce Strategy 19

The National Workforce Strategy will
Setting the scene ensure a consistent, coordinated approach
to addressing workforce issues 20
Why do we need a National Principle 1: Use data to create transparency
Workforce Strategy? 8 of the current and future workforce 21
Australia faces near and long-term Principle 2: Equip Australians with
workforce challenges 8 in-demand skills and focus employment
services on outcomes 22
The Vision for Australia’s Workforce 10
Principle 3: Remove barriers
Defining Australia’s workforce 10 and disincentives to work 24
Broader drivers and impediments Principle 4: Activate industry to design
of workforce demand and supply 12 and drive change 25

Where are we now? 13 Principle 5: Target migration to fill skills

and labour gaps 26
Where do we need to be in 2027? 15
Australia will need to fill around one A Plan for Action 27
million jobs over the next five years 16
Sector-specific strategies and the
Nine out of every ten new jobs will National Workforce Strategy 27
need post-school qualifications 16
Delivering the future state of the workforce 29
The Workforce Policy Environment 17 Setting out the Workforce Foundations 33
Key areas of Government focus 17 Future directions for workforce policy 34
The current policy environment needs Strategic Milestones 35
coordination 18
Building a picture of training and workforce Attachments 36
initiatives across human services 18
A. Measurement 36

National Workforce Strategy 2022—27 3

 Minister’s Foreword

A world-leading country such as Australia The Strategy has five guiding principles:

needs a world-leading workforce, and 1. Use data to create transparency of the current
and future workforce.
world-leading skills need world-leading
2. Equip Australians with in-demand skills and
training and development systems. focus employment services on outcomes.

It is clear Australia’s continued prosperity depends 3. Remove barriers and disincentives to work.
on a workforce that has the right skills to meet the 4. Activate industry to design and drive change.
demands of both our economy and our community as 5. Target migration to fill skills and labour gaps.
well as the agility to rise to the opportunities
presented by emerging industries. The Strategy is built on and delivered using an
evidence base. We will use and share data to identify
Australia holds an enviable position with a strong, and address workforce shortages and growth
resilient economy and high quality of life. Despite opportunities and work with industry to ensure our
the pandemic, the Australian labour market has interventions are genuine solutions.
rebounded with employment and participation at
record highs and the unemployment rate falling to The Government is using data to drive decisions—
a low of 4.0 per cent in February 2022. This is a and we’ll be open and transparent about it—however,
remarkable achievement given the difficult we also expect states, territories, and industry to do
environment and is a clear sign our workforce has the same.
adapted responsively and with creative ingenuity.
Information sharing will contribute to development
Of course, new challenges likely await us in an
and growth whilst informing individual work and
ever-changing labour market.
career choices. It will help to ensure we can provide
High levels of recruitment activity continue, with the our workforce with the right skills, training, and
National Skills Commission’s Internet Vacancy Index education for career pathways—to fill the right roles,
— a key forward indicator of employment growth — in the right places.
now 60.4 per cent above its pre-COVID level.
It is imperative that Australian businesses and
The Reserve Bank of Australia has noted the Australian workers can gain access to the right skills
resilience of our economy and jobs market and and training at the right time. Industry will be a key
anticipates that the unemployment rate will fall partner in designing and driving change for their
below 4 per cent in 2022. The rest of the world is employees and in their workplaces.
also moving fast toward recovery. This is why the
The Government’s ambitious skills reform, higher
Government is committed to readying Australia’s
education reform, commitment to child care and
workforce for the future.
record funding to schools all help pave the way to
This National Workforce Strategy will guide the create a pipeline of skilled workers now and into the
national effort to secure the workforce we need future.
today and tomorrow—to ensure we are equipping
Australians with the skills they need to get a job
and keep a job.

4 National Workforce Strategy 2022—27

 Foreward

We know the importance of investing in skilling our Now is the time to build our workforce of the future
workforce, but there continue to be barriers across and ensure that all Australians can play a part in it.
our society—visible and invisible—that stand in the Now is the time to hold ourselves accountable for
way of Australians achieving their aspirations and building the best workforce of the future. Now is the
building our workforce. The Government is investing time to address the barriers to skilling and work for
in a major reform of employment services and has an some members of our community. Now is the time to
ambition to achieve better outcomes for women, work together to ensure our skills pathways and
Aboriginal and Torres Strait Islander people and workforce strategies operate in concert.
people with disability.
That’s why this Strategy is so critical to our success.
The Strategy focuses on reducing barriers to This is a uniting Strategy, designed to galvanise all
workforce participation and boosting productivity Australians to meet the challenges ahead and thrive.
through innovation and design to drive change. It is
deliberate in that Government is not contemplating Let’s get to work, because Australia’s best days
changes to industrial relations policy and lie ahead.
workplace law.

We are working with a new, complex workforce

policy landscape. Increased technology use, a shift
to higher skilled jobs and automation all present
challenges in ensuring Australia’s workforce can
match demand in years to come.

Australia will need to fill more than one million new

jobs by November 2026. Developing skills is the
Government’s highest priority, however we are still
going to see a shortfall of skilled workers in higher
skilled and services jobs. Hon Stuart Robert MP
Minister for Employment, Workforce,
The Strategy is designed to drive the creation of Skills, Small and Family Business
industry-specific workforce strategies. It will
encourage the use of sector-specific expertise, while
ensuring the country moves in concert with global
skills developments. Australia needs an effective and
targeted skilled migration program, and the Strategy
will drive policy settings for our country’s needs.

All of us need to work towards the same goal,

equipping Australians with the skills and
resources they need to obtain sustainable and
satisfying employment.

National Workforce Strategy 2022—27 5

 Executive Summary

Prior to the onset of the COVID-19 Over the medium to long-term, a strategic approach
is required to ensure the labour force is better
pandemic, Australia enjoyed nearly 30 equipped and more responsive to industry needs
years of sustained economic growth, with and future economic opportunities. The objective of
workforce participation at record highs the National Workforce Strategy is to guide
targeted action on workforce development across
and the Government in a strong fiscal
the economy and realise a new vision for Australia’s
position.1 As a result of this, the Australian workforce through to 2027.
economy and labour market were well
It is intended to be used by Australian Government
placed to recover from the impacts of the
agencies when developing sectoral or cross-
COVID-19 pandemic and demonstrated sectoral workforce strategies, or other workforce
resilience in the face of a major disruption. measures. The National Workforce Strategy will
ensure these strategies are built on a strong
As the economy continues to strengthen and moves evidence base and are coordinated across agencies
from the recovery phase into expansion, it is in line with broader Government priorities and
important that workforce challenges are quickly actions. To support these objectives, the National
identified and addressed. Challenges such as skills Workforce Strategy articulates five principles to
and labour shortages, regional mismatch and new guide a coordinated and consistent approach
ways of working were already emerging due to across government:
increasing globalisation, demographic changes, 1. Use data to create transparency of the current
technological advances, and digitalisation. and future workforce
Many of these have been exacerbated by the
2. Equip Australians with in-demand skills and
COVID-19 disruption to business operations, trade,
focus employment services on outcomes
and labour mobility.
3. Remove barriers and disincentives to work
4. Activate industry to design and drive change;
and
5. Target migration to fill skills and labour gaps.

1 Treasury, Budget 2021-22, Economic and Fiscal Outlook

6 National Workforce Strategy 2022—27

 Executive Summary

The National Workforce Strategy also sets out the

Government’s workforce policy priorities through
The objective of the
three key areas of focus: National Workforce
ƒ Increasing the workforce participation and
economic security of women, Indigenous Strategy is to guide
Australians, and people with disability; targeted action on
ƒ Ensuring a skilled workforce is available to
support critical sovereign capability; and workforce development
ƒ Growing and supporting the care workforce to across the economy and
meet the needs of the ageing population and
people with disability. realise a new vision for
Industry continues to play a primary role in Australia’s workforce
designing and driving the workforce changes they
need, in promoting available jobs, and incentivising
through to 2027.
people to take them up. However, there is also a role
for Government to help address critical or systemic
issues with labour supply, or to provide support
where there are opportunities to meet the broader
objectives as expressed through the Strategy.

The National Workforce Strategy will be achieved

through agency-led policy initiatives and sectoral
workforce strategies consistent with the three
areas of Government focus and the five principles.
A National Workforce Taskforce will coordinate
government effort and maintain a strong focus on
measurement to track progress and drive
accountability.

The Government will also continue to work with

States and Territories, Industry, and business so
that Australia can fill the estimated more than one
million jobs needed in the next five years with a
skilled, diverse, and productive workforce.

National Workforce Strategy 2022—27 7

 Why do we need a National
Workforce Strategy?

How we work and the composition of our The COVID-19 pandemic has accelerated the pace
of change as businesses and workers adapt, with
workforce continues to evolve. Having increased use of digital technology and more
the right policy settings to adapt quickly flexible ways of working being adopted.
to these changes is key to Australia’s
These changes will affect different groups,
future prosperity. industries, and regions to varying degrees. Some
sectors and jobs will grow rapidly, while others will

Australia faces near and decline or need new skills.

Moving forward, increased technology use will

long-term workforce benefit many, creating new jobs, increasing job
mobility, and freeing up people to focus on more
challenges complex, non-routine, higher value tasks.

But it also risks leaving those with less education

Increased globalisation, technological advances,
and fewer skills behind.
and the digitalisation of workplaces, together with
changing social norms, are driving changes in how Like other comparable countries, Australia has
government, businesses and individuals operate seen a structural shift towards higher skilled jobs.
and work. Changes in technology have reduced the need for
routine job functions and increased the need for
In the near-term, workforce shortages in some
skills not easily replicated by machines, such as
sectors are a key concern, particularly with
communication skills, creativity, and advanced
continued challenges posed by the impact of
reasoning. It will be important that our workforce’s
COVID-19 on the labour market. Despite disruptions
skills keep pace with these changes as they occur.
and setbacks, the labour market has recovered
well. Job vacancies reached a record high of This is exemplified by manufacturing – new
396,100 in November 2021 while the unemployment technologies will enable us to work smarter and
rate fell to 4.0% in February 2022.2 However, safer. Australian manufacturing capability is likely
businesses in some sectors and regions across to grow as industry increasingly transforms and
Australia were reporting increasing difficulty competes on value. This will see the creation of new
finding suitable workers. high-quality, high-skill and well-paid jobs across
the manufacturing value chain. These range from
The positive labour market conditions will likely see
pre-production (including research and
these workforce pressures continue. The Reserve
development, design, and demonstration), right
Bank of Australia's central forecast is for the
through to post-production (including distribution,
unemployment rate to fall to below 4% later in the
sales, and services), underpinning growth across
year (i.e. in 2022) and to remain below 4 per cent next
the economy.
year (i.e. in 2023).3 The safe and phased re-opening
of Australia’s international border will enable the
gradual return of temporary migrants and recent
measures to boost workforce participation and
maximise opportunity will help to alleviate some
workforce shortages.

2 ABS, Job Vacancies, Australia, November 2021; ABS, Labour Force, Australia, February 2022
3 RBA, Monetary Policy Decision, March 2022

8 National Workforce Strategy 2022—27

 Setting the scene

Jobs are progressively requiring higher skills

Proportion of employment

35
30 32.4
25
25.6 24.4
20 24.1
(%)

15 19.7
17.9
14.9 15.8
10 12.6 12.5
5
0
Bachelor degree or Advanced Diploma or Certificate IV or III Certificate II or III Certificate I or
higher qualification Diploma secondary education

Source: ABS, Labour Force, Detailed, Aug-21, seasonally

February 2000 February 2020
adjusted by the National Skills Commission

At the same time, Australia’s ageing population will been assessed as in shortage nationally.4 This
see growth in our domestic workforce slow, making issue will be more acute in Australia’s regions, and
it more challenging to sustain improvement in living reflects the impact of female underrepresentation
standards, and increasing the risk of workforce in the growth of the infrastructure workforce.
shortages over the long-term. This will also see
growing demand for the care and support workforce. How we meet these challenges will be key to our
future prosperity and international competitiveness
Other sectors also face challenging outlooks. There and resilience.
are estimated shortfalls in the infrastructure
workforce of 93,000 workers in 2023, and 42% of
Technicians and Trades Worker occupations have

4 Infrastructure Australia, Infrastructure workforce and skills supply, October 2021; NSC, Skills Priority List, June 2021

National Workforce Strategy 2022—27 9

 The Vision for
Australia’s Workforce

Australia has a dynamic, responsive, and capable workforce that meets the needs of
employers now and into the future, to drive employment, economic growth, productivity,
and prosperity.

In February 2021, there were 2.2 million people

Defining Australia’s who wanted to work, but did not have a job.5
Understanding impediments to people
workforce participating in the labour market and finding a job
is critical to inform policies that will boost
Australia’s current domestic workforce (or labour participation and employment.
force) is comprised of people engaged in work
Migrants are also an integral part of Australia’s
(people working), those who are not working but
workforce, providing valuable skills and
are seeking work (unemployed), and those wanting
undertaking work where domestic workers may not
to work more (underemployed).
be available.
The potential domestic workforce also includes
This includes temporary migrants (such as
many people who, for a range of reasons, are not
backpackers) who are concentrated in industries
actively seeking work.
such as Accommodation and Food Services,
Agriculture, Forestry and Fishing, and
Administrative and Support Services, where they
are estimated to fill more than one in ten jobs.6

5 ABS, Potential Workers, February 2021, data are in original terms.

6 Treasury, analysis of Single Touch Payroll and visa data

10 National Workforce Strategy 2022—27

 Setting the scene

Labour supply in Australia

25,000 25,000
More attached Less attached

20,971.6
661.5 206.9
In the labour force Not in the labour force 2,762.6
20,000 20,000
3,128.2
Peolpe ('000)

15,000 607.9 88.7 78.2 15,000

902.0
12,535.7

At the time of In Feb-21, the main reasons

10,000 the last Census for not actively looking for 10,000
(in 2016), around work (despite wanting work
434,000 temporary and being available) included:
visa holders were • Attending education (26%)
employed • Caring for children (16%)
5,000 5,000
representing about • Being a discouraged job
4% of total seeker (13%)
employment

0 0
d

ok
d

le

+
sc ed/
g ( ot
to but

15
ye

ye
ye

ke

+)

ol
rk

ab
t lo

din y n

ing alis
ho
65
wo
plo

plo
plo

loo

ed
un
d

en ntl
no
ab oke

ag
rem

em
em

ard tion
ly

tly
int ne
Did
ive
av y lo

tal
le
Un

en
y

u
a
de
ntl

rm

tit
ss

To
an
un ivel
Un

ail

Pa

Ins
cie

Pe

rm

bo
t
Ac
ffi

Pe
Su

Source: ABS, Labour Force and Labour Force, Detailed, Feb-22; ABS, Insights from the Australian Census and Temporary
Entrants Integrated Dataset, 2018; ABS, Census, 2016; ABS, Potential Workers, Feb-21.
Note: data are in original terms. The chart shows the labour force status, including reasons for not being in the labour force,
of Australia’s 15+ civilian population.

National Workforce Strategy 2022—27 11

 Broader drivers and impediments of workforce
demand and supply
The economy is dynamic and always changing. Meeting Australia’s workforce needs involves a complex
interaction of factors that influence the demand for labour and the supply of workers in the labour market.

While the National Workforce Strategy is targeted at specific principles and levers to inform Australian
Government action in the development of sectoral workforce strategies, there are a range of other important
policy drivers that influence supply and demand in the Australian workforce, including:

Demand side Supply side

ƒ Globalisation ƒ Demographic change (ageing population)
ƒ Technological advancements ƒ Educational attainment
ƒ Macroeconomic policy settings ƒ Incentives to work (such as tax and
ƒ Industrial relations policy transfer settings, wages, workplace
flexibility and economic conditions)
ƒ Structural changes in the economy
ƒ Barriers to work (such as, skills mismatch,
ƒ Higher skills needs
non‑vocational barriers, poor health,
ƒ Growth in services sector long-term unemployment, access to
childcare & transport)
ƒ Regional mismatches
ƒ Migration settings

12 National Workforce Strategy 2022—27

 Setting the scene

Where are we now?

The Australian labour market has weathered the impacts of COVID-19 reasonably well

106.0 8.0
Feb-2022
103. 6
104.0 7.0

Unemployment rate (%)

Mar-2020
5.7
6.0
(Mar-20 = 100)

102.0
Employment

Feb-2022
Mar-2020
100.0 Mar-2020
4.4 5.0
100.0 Feb-2022 5.3
102.6 4.0
98.0 Feb-2022
4.1 3.0
96.0
2.0
94.0 1.0
92.0 0.0
Feb-20 Feb-21 Feb-22 Feb-20 Feb-21 Feb-22

Regional areas Capital cities

Source: ABS, Labour Force, Detailed, Australia, February 2022.

Note: data are in original terms. Pronounced seasonality is always evident in the Australian labour market in December,
January and February each year, due to factors such as increases in labour market activity that always occurs before
Christmas and a combination of public holidays, school holidays and lower business activity in many industries after Christmas

National Workforce Strategy 2022—27 13

 There is significant underutilised domestic labour, with some cohorts over-represented...
Feb-20 Sep-20 Feb-22
300 300
jobactive caseload
(Jan 2020 = 100)

250 250
200 200
150 150
100 100
50 50
0 0
ad le us ilit
y LD 5) +)
elo ma no ab CA (<2 e(
50
cas Fe ige is uth g
tal Ind hd Yo eA
To wit tur
o ple Ma
Pe

Source: DESE, jobactive data, February 2022

Note: CALD refers to culturally and linguistically diverse persons

…with skills mismatches between the jobactive caseload and available jobs

60 56 60
Proportion of total (%)

jobactive caseload Online job ads

50 50
41
40 35 40

30 25 30

20 20
12 10 13
10 7 10

0 0
Bachelor degree Advanced VET Cert 1 / secondary
or higher Diploma / Diploma Qualification education or below

Source: Source: NSC, Internet Vacancy Index, February 2022; DESE, jobactive data, February 2022

The fall in temporary migrants has tightened labour supply in some industries and
occupations where they are heavily relied upon
700 700
Temporary visa holders

Pre-COVID (20 Mar 20) Current (28 Feb 22)

600 588 600
in-country (’000)

500 500

400 379 400

319
300 252 300

200 142 200

137
96 97 97
100 100
19 0 22
0 0
Student Bridging Temporary Working Holiday Temporary COVID-19
Skilled Maker Graduate Pandemic event

Source: Department of Home Affairs, BP0066

Note: Approximately 128,000 of these temporary visa holders transitioned to permanent residence during this period

14 National Workforce Strategy 2022—27

 Setting the scene

Where do we need
to be in 2027?

Australia will need to fill more than one If we are to capitalise on this opportunity, we must
ensure our labour market is operating as efficiently
million new jobs by November 2026.7 as possible through:
In 2021, the National Skills Commission ƒ Provision of reliable workforce data and
forecast employment growth in regional forecasting to inform decisions by governments,
Australia would account for around businesses, and individuals.
one-quarter of new jobs over the five years ƒ Reducing skills mismatches by ensuring
individuals can access quick, high quality
to November 2025.8 Nine out of ten jobs
education, and reskilling and upskilling
are projected to require post-secondary opportunities.
school qualifications.9 Given the expected ƒ Focusing employment assistance on those who
strong demand for workers, and resilience need it most to get the skills and capabilities
they need.
of the Australian labour market, full
ƒ Addressing barriers preventing Australians from
employment is within reach.
participating to their full potential and limiting
For people wanting work, this presents a great labour force flexibility, including regional and
opportunity if they have the right skills. However, it occupational mobility.
could also result in workforce shortages for some ƒ Ensuring our migration program operates
employers looking to grow their business and effectively and complements the domestic
constrain economic growth if sufficient workers workforce.
are not available or do not have the required skills
The Australian Government cannot do this alone,
to meet employers’ needs.
with jurisdictions having an important role to play
Australia is relatively well placed to respond to this in improving the effectiveness of our skills and
challenge due to our highly educated population education systems.
and relatively flexible labour market, but there is
Businesses must also commit to investing in their
still room to improve our workforce utilisation and
most important asset - their people - and help boost
skills, reduce labour market frictions, and help
productivity, and individuals must embrace
more people into work, to grow the economy and
opportunities for education, upskilling and
improve our competitiveness.
reskilling, to meet the changing needs of employers.

7 National Skills Commission, Employment Projections to November 2026

8 National Skills Commission, Employment Projections to November 2025
9 National Skills Commission, Employment Projections to November 2026

National Workforce Strategy 2022—27 15

 Australia will need to fill more than one million
new jobs over the next five years
Projected employment change by industry, five years to Nov-26

0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0

Health Care and Social Assistance 301.0
Professional, Scientific and Technical Services 206.6
Education and Training 149.6
Accommodation and Food Services 112.4
Construction 66.4
Public Administration and Safety 59.2
Retail Trade 55.1
Transport, Postal and Warehousing 39.9
Financial and Insurance Services 33.2
Administrative and Support Services 28.8
Arts and Recreation Services 23.7
Manufacturing 23.1
Other Services 20.3
Agriculture, Forestry and Fishing 16.2
Mining 15.9
Rental, Hiring and Real Estate Services 14.9
Wholesale Trade 6.6
Electricity, Gas, Water and Waste Services 2.6
Information Media and Telecommunications 0.7
0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0
Projected employment growth ('000)

Nine out of 97.7k

(8.3%)
every ten new Bachelor degree or
higher qualification

jobs will need Advanced Diploma or

post-school 252.6k
Diploma

qualifications (21.5%)
618.4k
Certificate IV or III

(52.6%)
Projected employment Certificate II or III
change by skill level,
73.2k
five years to Nov-26
(6.2%)
Certificate I or
secondary education
Source: National Skills Commission, 134.3k
employment projections to (11.4%)
November 2026

16 National Workforce Strategy 2022—27

 Setting the scene

The Workforce Policy

Environment

Key areas of Government focus

While there are many factors which will influence Second, to ensure those industries central to
policy development in supporting people to take up boosting Australia’s sovereign capability and
and keep a job, the Government has signalled three economic future — including defence, advanced
key areas of policy focus to be considered when manufacturing, cyber security, critical minerals,
designing polices and strategies. clean energies, technologies, and space sectors —
have the skilled workers they need to grow,
First, the Government is committed to improving particularly in education in science, technology,
employment outcomes and economic security for education, and mathematics (STEM) fields.
those people who historically have faced workforce
barriers, including: And finally, to ensure Australia’s care and support
ƒ Increasing women’s participation as an workforce has the capacity and capability to meet
economic and social priority the needs of our ageing population and people with
disability. The ratio of working-age people to those
ƒ Reducing inequality in Aboriginal and Torres
over 65 is expected to fall from 4.0 to 2.7 over the
Strait Islander people’s employment outcomes
next 40 years.10 And over the next five years, one in
under the National Agreement on Closing the Gap
four new jobs will be in Health Care and Social
ƒ Reducing barriers to the employment of people Assistance, reflecting population change as more
with disability under Australia’s Disability Strategy of the baby boomer generation reaches age 65.11
and the Disability Employment Strategy.

Key areas of Government focus

1. Increase the workforce participation and economic security of:
a. Women
b. Indigenous Australians
c. People with disability
2. Ensure a skilled workforce is available to support critical sovereign capability and Australia's
economic future, including in the defence, cyber security, modern manufacturing, critical minerals,
technology, and space sectors
3. Grow the care and support workforce to meet the needs of the ageing population and people
with disability

10 The Treasury, 2021 Intergenerational Report

11 The Treasury, 2021 Intergenerational Report; National Skills Commission, Employment Projections to November 2026

National Workforce Strategy 2022—27 17

 The current policy environment needs coordination
A broad range of workforce policies, programs and In addition to initiatives that address economy-wide
initiatives have already been implemented by issues, sector-specific workforce strategies have also
Australian and state and territory governments, been introduced, or are under development across
together with other stakeholders, to address Government, targeting workforce issues specific to
workforce issues. This includes the significant certain sectors. These have been developed without
policy and programs introduced in response to the the benefit of an overarching framework and not
COVID-19 pandemic. always adjusted as circumstances change, such as
with the COVID-19 pandemic.
Due to the number of initiatives though, the
landscape is complex and can be difficult to navigate.

Building a picture of training and workforce

initiatives across human services
Within the human services sector, there are a range of workforce and training initiatives, aimed at different
audiences, delivered by different organisations. This suggests there is complexity for employers as they try to
navigate and get best value from Australia’s training system, which presents barriers to taking a leadership
position in training and workforce development.

Multiple workforce initiatives are already in place

541 workforce and training initiatives identified across human services.

Target Sector Target Audience

200
179 400
180 170 367
350
160
136 300
140 125 264
115
120 250
100 191
80 83 200
80
150
60 48 98
100 85
40 52
40 31
20 50 27

0 0
Aged care Disability Veterans Youth ECEC Health C&FS Other New Existing Parallel Employers Training Learners Universities Other CALDB
workers workers Industry Providers

Funded by Delivered by
450 250 233
394
400

350 200
171
300
150
250

200
100 80
150 129

100 43 47
50 37
22
50 25 14 8
5 1
0 0
Government Peak Bodies Research Org Employers Industry Other Government Peak Research Employers Unions Training Industry Other
Stakeholders Bodies Org Providers Stakeholders

Source: Human Services Skills Organisation analysis

18 National Workforce Strategy 2022—27

 National Workforce
Strategy Framework

National Workforce Strategy

Vision: Australia has a dynamic, responsive and capable workforce that meets the needs of employers
now and into the future, to drive employment, economic growth, productivity and prosperity.

Principles

Use Skill Remove Activate Target

Data Australians Barriers Industry Migration

Use data to create Equip workers with Remove barriers Activate industry Target migration
transparency and drive in-demand skills and focus and disincentives to design and to fill skills and
Government action employment services on to work drive change labour gaps
employment outcomes

Decisions and actions are Australians can access All Australians, including Industry has a lead role in A migration system
informed by data, with high quality education and those under-represented, workforce development, that complements the
Outcomes

sectoral workforce training to gain in-demand can participate and work to identifying their needs and changing needs of the
Outcomes
Outcomes

Outcomes

Outcomes
strategies including detailed and transferable skills and their full capacity in line addressing them through Australian labour
data analysis of workforce benefit from lifelong with their abilities and training, upskilling and market to fill skills and
needs along with digital and learning. Employment aspirations. reskilling staff, establishing labour gaps.
data-driven solutions services are outcomes- attractive career pathways,
focused and informed by and incentivising them to
high quality data on local take up jobs.
employer needs.

Draw on data to understand Utilise skills and Encourage workforce Engage industry in the Target migrant workers
APS Actions

APS Actions

APS Actions

workforce needs and issues, employment services reform participation and prevent design and delivery of policy APS Actions to meet labour market
APS Actions

and measure and report to identify occupations in drop-out by removing and support them needs through skilled
outcomes from training and demand, help people train barriers to participation, to play a key role in migration occupation lists
employment services to for the jobs of today and the enabling geographic training and reskilling. and criteria for temporary
drive performance and future, and strengthen mobility, and providing Support employers to visa holders.
transparency. employment services job employment incentives. drive workplace
placements. flexibility, diversity and
cultural change.

Framework
The National Workforce Strategy will provide a framework for Government to ensure sector-specific workforce
plans activate industry to drive change, enable and equip Australians to take up available work, remove barriers to participation,
use migration to complement the domestic workforce, and are data-driven.

Critical Enablers
National Skills Commission: Provides expert advice and national leadership on Australia’s labour market, current, emerging and future workforce needs and plays an
important role in simplifying and strengthening Australia’s training system.

National Careers Institute: Provides Australians with accurate and authoritative information about career pathways and employment prospects.

Employment Services Reform: Improves job matching through better digital technology, focuses resources on those who need more help to find and keep employment,
while engaging more closely with businesses to help secure the workers they need.

Skills Reform: Strengthens Australia’s VET system and improves the quality, relevance, and accessibility of training so Australians develop the skills needed
by Australian businesses.

Australian Skills Quality Authority: Provides the skills sector’s quality is maintained through effective regulation, and ensure employers, the community, students and
governments have confidence in national qualifications.

National Workforce Taskforce: Provides a clear picture of Australia’s workforce, and works with agencies to develop individual data-driven workforce strategies which
address labor market and industry needs.

National Workforce Strategy 2022—27 19

 The National Workforce Strategy will ensure a
consistent, coordinated approach to addressing
workforce issues
Looking forward, we need to do better. A more Given the ever-changing environment, the
holistic consideration of workforce policy settings, National Workforce Strategy does not take a
and the linkages between them, will better position prescriptive route – rather it identifies five key
the nation to address the workforce challenges it principles to guide Government action. Pursuing
faces now and into the future. these principles will benefit Australia’s economy
and workforce, irrespective of changes in the
The National Workforce Strategy will sit at the broader economic environment.
centre of the new workforce policy environment.
It will ensure a more coordinated and consistent
approach to addressing workforce issues
through providing a consistent overarching
framework to guide the development of
workforce policy going forward.

National Workforce Strategy Principles

To ensure a coordinated and consistent focus when addressing workforce issues critical to Australia’s
prosperity, five principles will guide Australian Government actions.

Principle 1 Use data to create transparency of the current and future workforce — to inform
decisions by individuals and business and underpin Government action.

Principle 2 Equip Australians with in-demand skills and focus employment services on
outcomes — to reduce skills mismatches, increase productivity and boost domestic
employment.

Principle 3 Remove barriers and disincentives to work — to increase workforce participation and
opportunities.

Principle 4 Activate industry to design and drive change — to take ownership of and actively
engage in meeting their workforce needs.

Principle 5 Target migration to fill skills and labour gaps — to ensure workforce shortages do not
constrain economic growth.

20 National Workforce Strategy 2022—27

 National Workforce
Strategy Framework

Principle 1: Use data to create

transparency of the current and future workforce
Access to, and use of, data on current and future New and emerging datasets, such as Single Touch
workforce demand and supply is a critical building Payroll data, will help provide a deeper
block of an efficient labour market and is a key understanding of the current workforce.
enabler for the development of sectoral strategies.
Employment services caseload data also offers rich
Employers and workers need to know what insights into potential workforce supply. Workforce
employment opportunities are available and how to Australia will harness these data using smart
access quality, relevant training, to increase skill technology to greatly enhance the quality and
levels and productivity. Education providers and speed of matching job seekers with employment
trainers need to know what skills will be required, and skilling opportunities.
workers need to know how to access the right
training to increase their skills and productivity, Other important sources of workforce-related
and Government needs robust data on which to data include:
base its decisions. ƒ DESE
ƒ Australian Bureau of Statistics
Timely and granular data, including data focusing
on gender, Indigenous Australians, and people with ƒ National Centre for Vocational Education
disability, will create transparency and facilitate a Research
broader consideration of workforce needs across ƒ Centre for Population.
the Australian economy, both now and into the
future. Data should also be disaggregated by
location, to quantify the needs of regional Australia. data.gov.au is the central source of
Australian open government data, with over
This also reflects commitments under the Closing 30,000 publicly available datasets.
the Gap Priority Reform 4 to share access to data.

This will enable a key aspect of the National Sector-specific strategies must be soundly based
Workforce Strategy – orchestrating workforce on data to inform actions and, where required,
needs at the national level, while sectoral supplemented with additional analysis of current
strategies align with its principles and bring a and projected workforce demand.
targeted focus to the needs of specific sectors.

A wide range of workforce-related data is available

from across Government to support the
development of sector-specific strategies and
 Global insights
inform workforce action. It is important that Creating transparent real-time views of
datasets keep pace to reflect changes to the labour labour demand and supply at a micro-
market, including new or emerging occupations. segment level will allow us to better inform
policy, training, and skills matching. A robust
The National Skills Commission plays a vital role in
forward view of demand should inform the
this process. The annual State of Australia’s Skills
overall workforce and skills strategy
report provides detailed analysis of Australia’s
priorities.
current, emerging, and future workforce skills needs.
Germany uses machine learning to better
match job seekers with suitable employers,
The National Skills Commission released the with a digital self-exploration tool to assess
Nowcast of Employment by Region and strengths and match with possible career
Occupation (NERO) in July 2021 to provide options. Regular quantitative forecasting
timely information on employment in 355 provides regional insights to industry, policy
occupations across 88 regions in Australia. makers and local employment agencies.

National Workforce Strategy 2022—27 21

 Principle 2: Equip Australians with in-demand
skills and focus employment services on outcomes
If Australia is to maximise employment and Continued education and skills development
minimise the risk of future workforce shortages, we through tertiary and vocational pathways will be
need to ensure Australians have the skills critical as the structural shift towards higher
employers need. skilled jobs continues at an increased pace.

To achieve this, our skills and education system Understanding barriers to education or fields of
must be flexible and able to quickly adapt to the study for key cohorts is also important, such as the
changing jobs market. While the National Workforce low uptake of STEM education by women in both
Strategy focuses on post-school qualifications, VET and higher education settings.12 This issue is
education policy is a continuum, with each level closely related to Principle 3 – reflecting the
from early childhood education to post-master's complexity of addressing these barriers, and that
doctorates shaping Australia’s workforce. no sector can do this alone.

Basic language, literacy, numeracy, and digital Workers need to be able to reskill and adapt
skills are important building blocks for the as technology, tasks, jobs, and workplaces
workforce and are critical in people’s ability to continually change.
engage in work and social life.
Australia’s employment services system must also
The workforce is also progressively requiring focus on better job matching and helping
higher skilled workers. The National Skills disadvantaged job seekers gain appropriate skills
Commission projects 52.6% of employment growth and access other support needed to find and keep
over the five years to November 2026 will be in jobs. Reform of employment services currently
occupations requiring a university degree or higher. underway will be essential in achieving this.

However, all jobs are important in the workforce

and there will continue to be opportunities for
The National Skills Commission projects that
those without vocational or tertiary qualifications
STEM occupations will grow around twice as
in a number of industries, such as tourism
fast as non-STEM occupations – by 14.2% over
and hospitality.
the five years to November 2026, compared
with 7.4% for non-STEM occupations.13

13

 Global insights
Training programs should be targeted at rapid reskilling for roles in high demand sectors, and
likewise, employment support should be targeted to areas of highest demand, particularly for target
cohorts. Embedding a lifelong training model enables reskilling throughout an individual’s career to
match changing demand.

Sweden has an especially high re-employment rate after unemployment of 80%-90% within eight
months. The Occupational Compass program provides career guidance for 200 professions, with the
Employment Agency reducing skills mismatch. The Job Security Councils (partnerships between
trade unions and employers) help employees who lose their job due to collective redundancy to reskill
and find new employment. Long-term unemployed and newly arrived people can receive a tailored
offer of VET occupations

12 Australian Academy of Science, Women in STEM Decadal Plan, 2020

13 National Skills Commission, Employment Projections to November 2026

22 National Workforce Strategy 2022—27

 National Workforce
Strategy Framework

The Government is leading key reform to build

our Workforce Foundations
Skills Reform agreements expire. The new model will be aligned
with Workforce Australia, and disability supports
An ambitious reform program is seeking to such as the National Disability Insurance Scheme.
implement a funding model that provides national The new model will be tailored to better meet the
consistency for students and that is linked to needs of people with disability and employers.
employers’ skills needs; improvements to the
quality of delivery and qualifications; a broader, Indigenous employment services
more strategic role for industry; and strengthened
arrangements for apprenticeships. Design of a new remote engagement program is
underway, scheduled to replace the existing
These efforts will also be underpinned by Community Development Program in 2024. The
fundamental improvements to the collection, new program will be developed in partnership with
timeliness, and transparency of data across the remote communities, service providers and all
VET system. levels of government to ensure job seekers in
remote Australia, including Aboriginal and Torres
Higher education Strait Islander peoples and communities, have the
best possible chance to share in Australia’s
The Job-ready Graduates Reform package will economy through improved pathways to
grow the number of university places for domestic employment.
students and encourage students to consider
job-ready education pathways. The reforms reduce The new Indigenous Skills and Employment
student fees in areas of expected employment Program (ISEP) opened to Stage One applications
growth and demand, particularly in science, from 22 March to 26 April 2022. ISEP will replace
technology, engineering, and mathematics (STEM), the existing Indigenous Employment Programs
health care and teaching fields. -Vocational Training and Employment Centres,
Tailored Assistance Employment Grants and
This reform complements the increased funding for Employment Parity Initiative.
vocational education and training and additional
opportunities to reskill and upskill through The program will increase economic opportunities
enhanced micro-credential offerings. for Indigenous Australians and drive actions
that connect Indigenous Australians to jobs,
Employment Services targeted skills acquisition, and career
advancement opportunities. The ISEP will be
The Government’s suite of programs under co-designed with Indigenous Australians, in
Workforce Australia is reforming how employment consultation with key stakeholders.
services will be delivered. From July 2022, the new
service will improve job matching through better Light touch employment support is currently
digital technology, focus more investment on those available for Indigenous Australians through the
who need most help to get a job, and engage more Indigenous Business and Employment Hubs
closely with businesses to get them the workers located in Western Sydney and Perth. Similar
they need. services will also be available through a third Hub
opening in Darwin in early 2023. The Hubs
Workforce Australia Providers will also work with facilitate connections between employment
employers and training organisations to support job service providers, Indigenous job seekers and
seekers to develop in demand skills where they are employers. Indigenous job seekers are supported
needed to take up a job. with access to Hub facilities to prepare job
applications, contact employers and participate in
Disability employment services job interviews. The Hubs also support Indigenous
Australians to enter the workforce and connect
A new disability employment support model will
with employers that are delivering contracts to
replace the current Disability Employment Services
which Indigenous workforce and supply chain
Program on 1 July 2023, when the current
targets apply.

National Workforce Strategy 2022—27 23

 Principle 3:
Remove barriers and disincentives to work
While Australia’s economic rebound and the How Australians work is changing and has
associated rapid fall in unemployment experienced been accelerated by the COVID-19 pandemic.
following periods of localised lock down was The Productivity Commission found that up to
positive, it also exposed both short-term 40% of employed people were working from home
challenges resulting from the pandemic, as well as in early 2021, supported by critical enablers such
long-term structural issues within the labour as the rollout of the NBN.14 Workplace flexibility
market that need to be addressed. can provide opportunities for people who face
barriers to work, such as people with disability
The strong demand for both skilled and unskilled or caring responsibilities.
labour saw more Australians than ever entering the
workforce. But it also resulted in labour constraints, Industry needs to play a central role in promoting
with workforce shortages emerging in certain the attractiveness of their job opportunities and
sectors, and regional areas being particularly increasing the retention of workers. Employers also
hard hit. need to support workplace flexibility, culturally
safe workplaces, a pathway for career progression
If we are to boost participation and employment, we and support for staff to upskill and reskill.
need to understand and address existing barriers
and disincentives to work where possible. Removing Over the long-term, there is also opportunity for
these frictions will also assist in enhancing labour industry to consider the need for systemic reforms
market efficiency. Barriers can take many forms, to make their jobs more attractive and fulfilling to
ranging from skills mismatches; the type of work prospective workers, and to be agile in considering
and its associated wages and conditions; perceived how these workers may fit their requirements - for
or real regional disadvantages; cultural mindsets example, those transitioning from careers in the
regarding the employment of certain groups Australian Defence Force.
including people with disability, and Indigenous
Australians, accessible and affordable childcare;
broader socio-economic disadvantage and
impediments to labour mobility such as housing  Global insights
affordability and availability, access to amenities
One means of boosting workforce
and occupational regulations.
participation is through incentivising key
cohorts. Workforce drop outs for some
Key figures cohorts can be prevented by targeted action
towards specific barriers, such as childcare
ƒ Feb-22 -Female (aged 15-64)
support for working parents. Likewise,
participation rate is 76.7% compared to
geographic mobility can be encouraged by
the male participation rate of 83.7%
addressing financial or regulatory barriers,
ƒ Feb-22 -Youth (aged 15-24) unemployment including subsidies for relocation, and
rate is 9.3% -compared to the overall rate automatic skills recognition.
of 4.0%
ƒ 2021 -The proportion of people over 65 Singapore’s ‘Work-Life Grant’ aims to
years is forecast to increase from 16% (in incentivise companies to maintain the use of
2019-20) to 23% (in 2060-61) flexible work arrangements for employees to
create work-life harmony. The Flexible Work
ƒ 2017-19 -The employment rate for
Arrangement Incentive encourages
Indigenous Australians is 49.1%,
companies to implement flexible working
compared to 75.9% for non-Indigenous
arrangements for employees, and the Job
Australians
Sharing Incentive encourages employers to
ƒ 2019 -The unemployment rate for people implement job sharing.
with disability is 10.3% -more than double
the 4.6% for those without disability-with
a participation rate of only 53.4%

14 Productivity Commission, Working from home Research Paper, September 2021

24 National Workforce Strategy 2022—27

 National Workforce
Strategy Framework
Principle 4:
Activate industry to design and drive change
Achieving the Strategy’s vision is a shared
responsibility. It will need clear coordination across The Australian Government is investing an
all levels of government and industry, as well as the additional $149.2 million, taking total
education and training sectors. funding to $292.5 million over four years to
establish a new network of industry clusters
The Australian Government, in partnership with the to enhance the role of industry in VET,
States and Territories, has an important role in including to identify, forecast and respond to
ensuring barriers to participation are removed, workforce challenges.
disadvantaged job seekers get the assistance they
need, and the policy environment enables
Australians to quickly upskill and reskill to meet The benefits to business of having a more diverse
changing business needs. workforce are well understood, but some groups
including women, people with disability, Indigenous
But it is industry and businesses that best understand Australians, the long-term unemployed, migrants
their workforce needs and determine how their with low English skills, youth, and mature age
workplaces will adapt to the changing environment. people, continue to face barriers.
To meet workforce needs, industry must take the Greater engagement between employers,
lead in promoting opportunities, industry-led employment providers and governments to better
innovations, establishing attractive career pathways target policies will help improve outcomes.
and incentivising people to take up jobs, and Success will ultimately rely on employers, with
understanding its own data and evidence. Government supporting the cultural and workplace
More business collaboration and coordination across changes needed.
industries to support and develop a larger and more
diverse pool of talent will help avoid skills and labour Participation in work-related training
shortages into the future. declined by 12.5 percentage points from
2005 (35.9%) to 2020-21 (23.4%).12
Stronger partnerships with industry are also needed
if we are to minimise skills mismatches and increase
opportunities for disadvantaged job seekers.

It is in everyone’s interest for businesses to embrace

a culture of continuous learning. Active workforce  Global insights
development through training, reskilling, upskilling Industry should be engaged throughout the
and retention, will allow businesses to meet their policymaking cycle, including taking a
needs while building a more resilient, productive leading role in design and delivery. Industry
national workforce, and allow more Australians to should also be activated to play a central role
secure higher skilled, better paying jobs. in training and reskilling, both leading
Small and medium sized enterprises, with between programs and partnering with other
0 and 199 staff, employed nearly two-thirds of the institutions and Government.
business workforce in 2019-20.15 Supporting the Norway’s strong industry partnerships and
capability of these businesses and the workers they inclusive approach helps to maintain a high
employ is important, and sectoral workforce functioning labour market. Employers play an
strategies should ensure all business sizes and types active role in policy development, with the
are considered. National Skills Strategy developed in
Closer engagement between Government, industry cooperation with employers’ organisations.
and education training providers will help build this Institutionalised tri-partite cooperation in
culture by ensuring skills pathways can quickly and VET, employers’ organisations and trade
flexibly deliver the right skills employers need. unions have a strong influence on VET, and
specifically on apprenticeships.

15 ABS, Australian Industry, 2019-20

16 ABS, Work-Related Training and Adult Learning, Australia, 2020-21

National Workforce Strategy 2022—27 25

 Principle 5: Target migration to fill skills
and labour gaps
Immigration is pivotal to Australia’s national story Temporary migration settings need to be
and identity, with Australia growing to a nation of considered holistically with, and informed by,
more than 25.7 million people in 2021. Since 2006, Australia’s broader domestic workforce objectives
Australia’s population growth has largely been to ensure they complement each other. It is
driven by immigration, and the Australian Bureau of important these objectives appropriately
Statistics estimates that more than 30% of our incentivise business to actively develop Australian
resident population was born overseas. talent where possible.

Targeted and well-managed migration, informed by In addition, many employers rely on Working
evidence, is central to Australia’s economic Holiday Makers, international students, and
prosperity. Migration supports growth and fills workers in the Pacific labour mobility programs to
labour market gaps, increases participation rates fill lower skilled positions, including those in
and productivity, boosts the transfer of knowledge agriculture, hospitality, and care and support
and lifts productivity, and can help offset population sector roles.
challenges including Australia’s ageing population.
While domestic programs are in place to support
As we recover from the pandemic, Australia will Australian job seekers to take up these
continue to need migration to access highly skilled opportunities (such as Harvest Trail Services for
professionals and bespoke skill sets to support regional and rural areas), temporary migrants are
emerging sectors, drive innovation, and create local still needed to fill gaps in the workforce, transfer
jobs for all Australians. knowledge and grow the economy.

Many jobs in demand require years of study and

experience—such as STEM, information
communication technology and health care—these The Government is developing an Australian
skill gaps may not be able to be filled quickly from Agriculture Visa to address workforce
the local population. Migration can also assist with shortages, which will be available to skilled,
transferring knowledge to, and developing the skill semi-skilled and low skilled workers across
sets of, Australians. a range of industries including meat
processing, fisheries, and forestry sectors.

 Global insights
Rethink the approach to recognition of prior learning and qualifications to remove barriers and
increase the speed of migrant participation in the workforce.

Canada supports their offshore education markets by providing stronger links between education
and post-study employment options for international students studying abroad.

26 National Workforce Strategy 2022—27

 Plan for Action

A Plan for Action

The National Workforce Strategy will be achieved through implementing Australian

Government agency-led policy initiatives and sectoral workforce strategies consistent
with the five principles, and reflect the Government’s three key areas of focus to shape
policy priorities.

The workforce environment diagram provides a visualisation of the current state of Australia’s workforce
environment and the future state, which will support the realisation of the National Workforce Strategy’s vision
for Australia’s workforce.

But it is also important individual workforce

Sector-specific strategies are cognisant of workforce policies
already in place across Government to ensure a
strategies and the consistent and coordinated approach.

National Workforce In developing the National Workforce Strategy,

analysis of existing workforce strategies was
Strategy undertaken to identify cross-cutting themes, key
insights, and alignment with the National
Sectoral workforce strategies will continue to play Workforce Strategy principles.
a critical role in developing Australia’s workforce. Themes prominent across existing sector-specific
They will remain the primary mechanism through strategies include:
which a deeper understanding of the opportunities ƒ Workforce attraction, retention, engagement
and challenges facing specific sectors’ workforces by industry.
can be achieved. Sectoral strategies inform better ƒ Supporting business and industry effectiveness
policy responses and help position job seekers and and efficiency.
working Australians to meet the needs of industry ƒ Building the skills, capability, flexibility, and
moving forward. work readiness of the sector workforce.
ƒ The need for data, information, and evidence.

National Workforce Strategy 2022—27 27

 Activate Industry

Target Migration
Skill Australians

Remove Barriers
Use Data
Sectoral Workforce Strategies - alignment with the
National Workforce Strategy’s Principles

Care and Support Workforce Strategy (March 2022)

THRIVE 2030
(long-term strategy for the visitor economy) (March 2022)

National Medical Workforce Strategy (December 2021)

National Children’s Education and Care Workforce

Strategy (September 2021)

NDIS National Workforce Plan 2021-25 (June 2021)

Australia’s Services Exports Action Plan (April 2021)

APS Workforce Strategy 2025 (March 2021)

National Agricultural Workforce Strategy and Roadmap

(December 2020 and March 2021)

Australia’s National Resources Workforce Strategy

(February 2021)

Australia’s Cyber Security Strategy 2020 & Cyber Security

National Workforce Program (August 2020)

National Freight and Supply Chain Strategy (August 2019)

Defence Industry Skilling and STEM Strategy (March 2019)

A Matter of Care: Australia's Aged Care Workforce

Strategy (June 2018)

Naval Shipbuilding Plan (May 2017)

National Aboriginal and Torres Strait Islander Health

Workforce Strategic Framework 2016–2023 (February 2017)

Denotes strong alignment with the National Workforce Strategy’s Principles

Moderate alignment with the Principles

Some alignment with the Principles

28 National Workforce Strategy 2022—27

 Plan for Action

While the themes are consistent with the National Commonwealth departments and agencies should
Workforce Strategy Principles, the extent to which also consider opportunities to improve outcomes
they are explored varies. for the key cohorts identified in the national
framework – Indigenous Australians, women, and
Analysis suggests there is an opportunity for some people with disability – when determining the focus
sectoral strategies to focus more strongly on for their strategies, including how best to support
transparent data, addressing workforce barriers, disadvantaged and vulnerable groups of people
and activating industry. Further, targeted migration move into work.
enables temporary and permanent migrants to fill
workforce gaps and as such, some sectoral While these cohorts are a key focus of the National
strategies could benefit from considering and Workforce Strategy, Australian Government
leveraging existing migration programs to fill departments and agencies should seek to increase
these gaps. participation and opportunities for other vulnerable
cohorts within the labour market, including the
With the COVID-19 pandemic impacting the way we long-term unemployed, youth, mature-aged people,
work and accelerating changes that were already and people from culturally and linguistically diverse
underway, now is the opportune time to review and backgrounds.
reconsider the workforce opportunities and
challenges facing individual sectors.17 The National Other Government priorities should be reflected
Workforce Strategy provides the framework for how in sector-specific strategies where possible,
this should be done for any new workforce strategies such as regionalisation and supporting small and
being developed or where existing workforce family businesses.
strategies are being updated, and how the impacts
can be monitored and reported. Regional Australia faces a unique set of workforce
challenges, caused by demographic changes,
structural shifts in the economy, and technological
Delivering the future advancements in key regional industries such as
mining, manufacturing and agriculture, forestry,
state of the workforce and fishing.

Small and family businesses have a critical role in

The National Workforce Strategy framework
the economy, and their interests should be reflected
outlined must be used by Australian Government
in workforce policy, including consideration of the
departments and agencies to develop individual
wellbeing of owners and employees and their
sectoral strategies that align with the Strategy’s
digital capabilities.
five principles.
Policy development processes will be supported by
To ensure alignment with the National Workforce
Workforce Foundations within the Department of
Strategy, all new strategies should pursue the
Education, Skills and Employment, the Department
Strategy principles to optimise workforce supply.
of Home Affairs, National Careers Institute and the
Existing strategies under review should be updated
National Skills Commission.
using this framework.

17 National Skills Commission, The State of Australia’s Skills 2021: now and into the future

National Workforce Strategy 2022—27 29

 The National Workforce Taskforce has been
established to orchestrate these processes to
ensure they are not working at cross purposes  Checklist for Agencies
— providing a consolidated view of current and
future workforce requirements, drawing on O All sectoral workforce strategies
additional analysis and engagement with key must focus on optimising workforce
stakeholders. supply, through actions consistent
The Taskforce will maintain a strong focus on with the National Workforce
measurement to track progress and drive Strategy Principles.
accountability, with details on key indicators at
O Consider and incorporate actions to
Attachment A. This will ensure:
address Government priorities.
ƒ alignment and complementarity of sector- Existing strategies under review
strategies to the Principles. should be updated to reflect the
ƒ accountability, visibility, and transparency on National Workforce Strategy
progress towards Australia’s workforce vision. framework.
ƒ responsiveness to emerging risks, including
being able to quickly take corrective actions O Use enabling data and information
where needed. available from DESE, the National
Skills Commission, the Australian
Agencies will remain responsible for the Bureau of Statistics, and other
development of workforce initiatives and sectoral sources to analyse where the gaps
strategies consistent with their portfolio are and what policies to focus on.
responsibilities.
O Engage with the National Workforce
Taskforce to ensure the sectoral
strategy aligns with the national
framework and incorporates the
latest information on strategic
direction from government.

O Utilise available Workforce

Foundations to provide information
that guides what sectoral strategies
should focus on.

O Work with industry to ensure the

strategy has on-the-ground support.

30 National Workforce Strategy 2022—27

 Plan for Action

Guide for Australian Government agencies when

developing sectoral workforce strategies

1. Initiate 2. Coordinate and Consult

Each responsible The responsible agency engages with the National Workforce
agency undertakes Taskforce to ensure their sector-specific workforce strategy aligns
preliminary with the national workforce framework outlined in this document.
assessment, Early engagement with other agencies, such as the Department of
identifies needs, and Home Affairs on migration issues, or the Department of Foreign
develops/refines Affairs and Trade on export industries, is encouraged.
sectoral workforce
strategies. Existing Agencies must take into consideration key government workforce
strategies should be priorities, data available from the National Skills Commission, the
updated as part of Department of Education, Skills and Employment, the Australian
an established Bureau of Statistics and other relevant sources, and available levers
review processes. to develop the sector-specific strategy framework.

3. Develop
The responsible agency engages with industry, education and training providers and key employers
to develop a workforce strategy, in consultation with the National Workforce Taskforce to ensure
ongoing alignment. This will include:
a. Identifying sector-specific workforce needs, including the current state of the labour market,
priority issues or challenges and gaps in supply and demand.
b. Consulting across relevant industry, employer, and peak bodies with support from other
government agencies.
c. Engaging with education and training providers, DESE, and related agencies, to analyse workforce
challenges and potential solutions.

4. Release 5. Evaluate and Report

Each agency is Each agency undertakes a periodic review of their strategies to
responsible for determine if refinements need to be made. Agencies report on
seeking government achievement against milestones, outcomes, and measures of
approval and success, to the National Workforce Taskforce on a six-monthly basis
releasing their so it can collate and report to Government.
individual strategies.

National Workforce Strategy 2022—27 31

 Workforce Environment:
from current to future state

Current State

Workforce Policies Sectoral Workplace Strategies

        
A B .... A B C D E ....

Future State

Vision for Australia's workforce

National
Workforce National Workforce Strategy 2022—27
Taskforce

Key areas
of focus
Use Skill Remove Activate Target
Data Australians barriers industry migration

Workforce
Policies   
A B ....

Sectoral
Workplace    Enablers
Strategies A B C
ƒ National Careers Institute
ƒ National Skills Commission
  
D E ....

Workforce Foundations

Recent Targeted
Employment Temporary and
Government Skills and employment
Education services permanent
workforce training system and skills
reform migration
initiatives programs

32
32 National Workforce
National Workforce Strategy
Strategy 2022—27
2022—27
 Plan for Action

Setting out the Workforce Foundations

Recent Government workforce

Education Skills and training system
initiatives

ƒ Focus on mobilising and ƒ Support for the higher education ƒ Reforms to the VET system
skilling job seekers to boost sector to produce job-ready outlined in the Heads of
the domestic labour force graduates Agreement for Skills Reform
ƒ Supplement the domestic ƒ Pilot new models of learning in –notably includes a new
labour force with migrants, higher education, like the intergovernmental agreement
including better utilising Industry 4.0 advanced ƒ Strengthened industry
in-country migrants and apprenticeships and women in engagement through
doubling the scale of pacific STEM cadetships establishment of industry
labour schemes ƒ Focus on research clusters
ƒ Investment in the Child Care commercialisation in Australian ƒ Improvements to the quality
Subsidy to boost workforce universities of VET delivery and
participation qualifications
ƒ VET Data Streamlining –
integrated programs of IT,
data and legislative reform to
move the VET sector to near
real-time data collection

Targeted employment Temporary and permanent

Employment services reform
and skills programs migration

ƒ Support for employers and ƒ Local Jobs Program –focuses on ƒ Australia's migration policy
job seekers through reskilling, upskilling and settings are designed to
Workforce Australia, employment pathways in all maximise economic
including establishment of Employment Regions prosperity, national
Digital Employment ƒ Skills for Education and wellbeing and social
Services, Enhanced Services Employment -provides job seekers cohesion -including by
and Workforce Specialists, with language, literacy and helping businesses to source
and a new Transition to Work numeracy training they need skills that are difficult to
(TtW) service commencing in develop at short notice
ƒ Jobs Fairs –connect job seekers
July 2022 ƒ The Pacific Australia Labour
with employers
ƒ New disability employment Mobility scheme (PALM)
ƒ Expanded Launch into Work to
support model to replace enables recruitment of
fund projects that support
the Disability Employment workers from Pacific Island
primarily female job seekers
Services program in countries and Timor-Leste
secure entry level employment
July 2023 ƒ A Global Business and
ƒ Wage subsidies and Relocation
ƒ New Remote Engagement Talent Attraction Taskforce
Assistance to Take up a Job
Program and Indigenous was established to target
Skills and Employment ƒ Support for self-employment and and attract exceptionally
Program Entrepreneurship Facilitators to talented individuals and
promote and encourage international business
entrepreneurship entities with the potential to
make large-scale positive
impacts on the national
economy and to create
quality Australian jobs

National Workforce Strategy 2022—27 33

 Enablers
National Skills Commission
Provides expert advice and national leadership on Australia’s labour market and workforce skills
needs through:
ƒ Annual the State of Australia’s Skills Report
ƒ Five-year employment projections (by industry and occupation)
ƒ NSC Skills Priority List
ƒ Priority Migration Skilled Occupation List
ƒ NSC Vocational Education and Training (VET) Course Priority List

National Careers Institute

ƒ Provides simpler career information, promotion of VET pathways and stronger partnerships

Future directions for workforce policy

The Government has approved initiatives that assistance in workplaces.
support workforce participation and skilling ƒ Ensuring Australians have access to the
Australians to take up work in the near-term. foundational language, literacy, and digital skills
However, in realising the future state of the necessary to participate in the modern workforce.
workforce environment, consideration of
ƒ The role of the higher education sector in
medium- and long-term workforce policy is critical,
promoting skilled jobs growth, particularly in
particularly in the three key areas of focus outlined
STEM, health care and teaching-related fields.
in the National Workforce Strategy.
ƒ Building the skills to grow critical industries
Some further themes considered over the medium domestically (e.g. energy infrastructure and low
and long-term include: emissions technologies), targeting skilled
ƒ Supporting workforce transitions. migration where there are gaps and build global
competitiveness.
ƒ Options to boost women’s workforce participation.
ƒ Ensuring migration settings are consistent with
ƒ Supporting gender equality by encouraging
domestic labour market objectives.
women to enter traditionally male-dominated
industries and occupations and men to enter ƒ Expanding research into migration to inform
traditionally female-dominated industries and long-term reforms.
occupations. ƒ Activating industry to design and drive change
ƒ Contributing to Closing the Gap targets and across the end-to-end education-to-employment
increasing Indigenous employment outcomes journey.
through supporting Indigenous Australians into ƒ Supporting the needs of the growing care and
jobs, training, and career advancement pathways. support sector.
ƒ Encouraging greater participation of people with ƒ Undertaking research and development in labour
disability by making changes to the way intensive industries.
employment supports are delivered and ƒ Supporting the workforce of growth industries
increasing employer capability. such as biotechnology, space, cyber security,
ƒ Increasing STEM skills across the national modern manufacturing, critical minerals,
workforce, particularly for women. renewable energy, and artificial intelligence.
ƒ Supporting resilience and mental health

34 National Workforce Strategy 2022—27

 Plan for Action

Strategic Milestones
The National Workforce Strategy sets out the Government’s plan to ensure the
Australian workforce continues to be dynamic, responsive, and capable in
meeting the needs of employers now and into the future.

The immediate focus is Over the medium and long-term,

to establish a whole of the Strategy highlights the need
government approach to pursue improved labour market
to workforce issues efficiency through reforms,
which: programs, and policies which:

ƒ Aligns government leaders on ƒ Reduces mismatches between

the strategy, priorities, and employer needs and job seeker
actions so that sectoral skills by ensuring access to quick,
strategies align with the high-quality reskilling and
framework outlined in the upskilling opportunities through
National Workforce Strategy. reforms to skills funding, industry
engagement and quality.
ƒ Strengthens partnerships with
industry, employers and ƒ Leverages skills reforms to engage
education and training businesses to ensure the training
providers at a whole of system is responsive to the skills
government level. employers need and activate them
to take responsibility to upskill their
ƒ Implementing governance and workers to meet current and future
monitoring mechanisms to workforce needs.
track progress against the
National Workforce Strategy ƒ Facilitates greater labour mobility
and the National Plan to to increase employment
transition Australia’s National opportunity and support regional
COVID-19 Response. employers — including the use of
remote digital technology —and
ƒ Implementing approved barriers to relocation for workers.
workforce initiatives to address
issues in the short term. ƒ Focuses our help on those
Australians who need it most to get
the skills and capabilities needed to
participate in the labour market or
further training.

ƒ Builds critical sectors and skills to

maintain Australia’s advantage and
global competitiveness.

The National Workforce Strategy sets out how the Australian Government will achieve its vision over
both the short and long-term. It sets out five key principles we will measure our success against, the
enablers that will be critical to delivery, and the roadmap to achieve our vision.
Success is dependent on whole of government support in adopting the framework and principles of this
strategy when developing sector-based strategies.

National Workforce Strategy 2022—27 35

 Attachments

A. Measurement
The National Workforce Taskforce will maintain a strong focus on measurement to track
progress and drive accountability.

An annual report will be prepared, including an update on Australia’s workforce, an overview of active
sectoral strategies and those under-development, as well as provide an overarching view of workforce needs
from across sectoral strategies. Responsible agencies are expected to continue reporting on progress
towards actions and outcomes defined in sector-specific strategies.

Measurement overview

Measures of success and Key Actions to support Key Performance

Principle
Performance Indicators Indicators

National ƒ Target full employment over the ƒ Support realisation of measures of success
Workforce period until 2027.18 and key performance indicators against each
Strategy of the principles.

Use data to ƒ By 2027, all sector-specific ƒ Sectoral strategies are data-driven, with
create workforce strategies contain consideration of current and future workforce
transparency detailed consideration and requirements.
and drive analysis of data on the current ƒ Ensure workforce actions align with the
Government and future workforce, including Digital Government Strategy, where data is
action from the National Skills captured, analysed, and used to inform design
Commission. and policy and the APS develops data skills.
ƒ Data transparency is guided by the Closing
the Gap Priority Reform Four: Shared access
to data and information at a regional level.

18 Full employment is defined as the ‘non-accelerating inflation rate of unemployment’ (NAIRU). The NAIRU moves over
time and is influenced by a number of factors, so a numerical target is not provided. This measure will be assessed with
reference to the Reserve Bank of Australia and the Treasury.

36 National Workforce Strategy 2022—27

 Attachment

Measures of success and Key Actions to support Key Performance

Principle
Performance Indicators Indicators

Skill ƒ Increase the proportion of the ƒ Simplifying, streamlining and rationalising

Australians 20–34-year-old population with a VET qualifications to ensure training products
and focus tertiary qualification (76.2% in are more fit-for-purpose, leading to higher
employment 2020). quality training, improved learner outcomes,
services on ƒ Increase the proportion of VET and clearer employment pathways.
employment graduates with improved ƒ Revise the Standards for RTOs to ensure they
outcomes employment status after training are clear and outcome-focused. Develop a
(60.6% in 2021). framework for quality improvement and build
ƒ By 2027, the proportion of the capacity and capability of RTOs, trainers,
participants in work or study and assessors to shift from a compliance
three months after exiting focus towards excellence.
employment services will be: ƒ Reform VET funding arrangements to drive
ƒ 80% for Digital Services increased participation in training that is high
quality and meets current and emerging
ƒ 60% for Enhanced Services
needs of industry and learners.
ƒ 60% for Transition to Work
ƒ Support an increase of STEM skills,
particularly for women, across the national
workforce.
ƒ Reform employment services with Workforce
Australia, including better job matching and
drawing on data.
ƒ Promoting skilled jobs growth through
investment in higher education.

Remove ƒ By 2031, increase the proportion ƒ Identify and address geographical and
barriers and of Aboriginal and Torres Strait regulatory barriers to improve participation
disincentives Islander youth (15-24 years) who and labour force mobility.
to work are in employment, education, or ƒ Identify and action opportunities to increase
training to 67%. workforce participation of under-represented,
ƒ By 2031, the proportion of disadvantaged, and vulnerable groups of
Aboriginal and Torres Strait people, including women, people with
Islander people aged 25-64 disability, mature aged, youth indigenous
who are employed has Australians, migrants, and refugees,
increased to 62%. particularly those on the Workforce Australia
ƒ The workforce participation gap system caseload.
between men and women (aged
15-64) was 7.0 percentage points
in February 2022. By 2027, the
gap will continue to reduce below
this level towards equal
workforce participation.
ƒ By 2025, reduce the share of
young people, including both
young men and women, aged
15-29 who are not in
employment, education, or
training (NEET) to 10.75%
(compared to 12.65% in 2014).

National Workforce Strategy 2022—27 37

 Measures of success and Key Actions to support Key Performance
Principle
Performance Indicators Indicators

Activate ƒ From the commencement of ƒ Empower industry, through the

industry to Workforce Australia, increase establishment of Industry Clusters, to
design and the proportion of registered manage the end-to -end process from needs
drive change employers who lodge a vacancy identification to skills development and
on the employer portal over the oversight of delivery outcomes to ensure
four years to 2027. continuous quality improvement.
ƒ Fifty per cent of employers ƒ Engage industry in the design and delivery
report use of the VET system. of policy and support them to play a central
role in training and reskilling.

Target ƒ Temporary Skilled Visa policy ƒ Better targeting of migrant workers to

migration to settings address skill shortages meet labour market needs through skilled
fill skills and and reflect the labour market migration occupation lists and visa settings.
labour gaps information from the National
Skills Commission
ƒ Labour market outcomes of
surveyed skilled and family
migrants 18 months after arrival/
visa as reported in the
Continuous Survey of Australia’s
Migrants:
ƒ employed >70 per cent
ƒ unemployed <10 per cent
ƒ not in the labour force
<20 per cent.

38 National Workforce Strategy 2022—27

 Attachment

National Workforce Strategy 2022—27 39

National
Workforce
Strategy
2022—27