Australia’s tech sector is on a trajectory for explosive growth, with the government aiming to generate 1.2 million technology jobs by 2030. To meet this ambitious goal, the VET sector needs to confront critical challenges in ICT training and adapt to industry needs.
This article delves into the insights from the Future Skills Organisation’s (FSO) Initial Workforce Plan, offering strategies for Registered Training Organisations (RTOs) to play a pivotal role in shaping the future tech workforce.
A Snapshot of Australia’s Tech Workforce
Australia’s tech sector currently has a median age of 39, making it a relatively youthful workforce compared to other industries. This demographic highlights the sector’s appeal to young professionals, but it also underlines the importance of continuous upskilling to keep pace with rapidly evolving technology and specialised job roles.
Despite the industry’s growth, significant gaps in workforce diversity persist. Women make up only 21% of the workforce, and less than 1% identify as First Nations people. To build an inclusive and adaptable workforce, it’s vital to address systemic barriers to entry.
Challenges Facing the VET ICT Sector
Outdated Training Programs
The demand for tech skills in areas like cybersecurity, machine learning, and cloud computing continues to grow. However, completions of VET ICT qualifications have plummeted by 85% from 2016 to 2022, leaving a shrinking pool of skilled workers to meet this demand.
Current ICT training often fails to align with industry standards, which discourages both students and employers. Consequently, only 7% of VET ICT graduates secure roles directly related to their qualifications, underscoring a disconnect between ICT training programs and job market requirements.
Why It Matters
Graduates who lack relevant training face significant challenges in securing meaningful roles in the tech industry. Without the skills employers need, job opportunities become limited, and industry growth slows as organisations struggle to find capable talent.
How RTOs Can Respond
- Collaborate with tech companies to co-create industry-relevant ICT training programs.
- Offer modular and stackable credentials to address shifting skills demands.
- Modernise ICT training by including hands-on learning in high-demand areas such as artificial intelligence and cloud technologies.
Gaps in Digital Capabilities
Employers increasingly value a combination of technical expertise and soft skills like problem-solving, teamwork, and adaptability. Digital literacy is now a baseline requirement across industries as businesses integrate new technologies to enhance operations and customer experiences. Since 2016, the required skills mix for tech roles has shifted by 18%, with job postings showing a 97% surge in demand for digital literacy.
Why It Matters
Graduates lacking foundational digital skills or interpersonal abilities often struggle in modern workplaces. The lack of these critical capabilities not only limits their professional success but also affects the broader economy. Companies that cannot find digitally skilled workers risk losing their competitive edge in an increasingly technology-driven environment.
How RTOs Can Respond
- Integrate soft skills training into ICT training programs to produce well-rounded graduates.
- Offer work-integrated learning experiences such as internships and live projects to develop practical and collaborative skills.
- Expand micro-credentials to cater to foundational and specialised digital skill needs across sectors.
Unclear Career Pathways
Many students face challenges translating VET ICT training into tech careers due to unclear job pathways and employer biases favouring university graduates. Only 30% of VET ICT graduates report improved employment outcomes post-training, and fewer than one-third of unemployed graduates find work after completing their courses.
Despite this, data shows high mobility for individuals with ICT training. Over 60% of tech professionals work outside traditional tech industries like finance and healthcare. It’s also worth noting that 6% of tech workers transition to non-tech roles annually, emphasising the importance of transferable skills and cross-sector training.
Why It Matters
The absence of defined career pathways for VET graduates devalues their qualifications in the eyes of both students and employers. This discourages potential learners from pursuing these programs and leaves graduates struggling to see how their skills translate into in-demand roles. Meanwhile, industries miss out on a talent pool trained in practical, job-ready skills.
How RTOs Can Respond
- Forge partnerships with universities to establish clear progression pathways for further studies.
- Build strong relationships with employers to showcase the value of VET-trained graduates.
- Provide career counselling and mentorship to help students navigate job opportunities post-training.
Strategic Steps for RTOs
To address these challenges and prepare Australia’s future tech workforce, RTOs can adopt the following measures:
- Revamp Training Programs
- Update ICT training to focus on emerging fields like machine learning, AI, and cybersecurity.
- Implement flexible, modular training options to cater to diverse learning needs.
- Close the Digital Skills Gap
- Embed soft skills development into ICT training programs to produce versatile graduates.
- Increase access to digital literacy training for workers across all industries.
- Strengthen Career Pathways
- Partner with universities and employers to create seamless transition routes.
- Offer career guidance, mentorship, and practical learning opportunities.
- Promote Diversity and Inclusion
- Introduce scholarships and mentorship programs for women and First Nations learners.
- Foster inclusive learning environments to support diverse student cohorts.
Conclusion
The challenges facing Australia’s tech workforce also present opportunities for RTOs to lead transformative change. By modernising ICT training, addressing skill gaps, and providing clear career pathways, RTOs can play a critical role in preparing a workforce that is both diverse and equipped for the demands of the future.
With the right strategies, the VET sector can empower graduates and industries alike, ensuring Australia’s tech industry thrives in the years ahead.
