The rapid evolution of the global economy demands a dynamic approach to skills development. In response, Jobs and Skills Australia (JSA) is spearheading the development of a National Skills Taxonomy (NST) aimed at creating a cohesive system that bridges education and labour market needs. This initiative, endorsed by the Australian Universities Accord, seeks to replace the Australian Skills Classification (ASC) with a more comprehensive and adaptable framework. The NST aims to establish a common language for skills, enhancing occupational mobility, supporting lifelong learning, and ensuring a well-prepared workforce.
The Need for a National Skills Taxonomy
Skills at the Heart of Australia’s Economy
Skills development is crucial for individuals transitioning between jobs and industries, driving productivity, and filling skills gaps. A common skills taxonomy can unify employers, education institutions, government, and individuals, creating a coordinated response to workforce development. The Australian Skills Classification has laid the groundwork, but its limitations necessitate a more robust framework like the NST.
Challenges in the Current Skills Landscape
Australia’s labour market faces significant challenges despite high participation rates and low unemployment. Occupational shortages and stagnant productivity highlight the need for a responsive and agile system. Existing skills frameworks are fragmented, leading to inefficiencies and skills mismatches. This fragmentation underscores the necessity for a unified NST that can bridge various sectors and provide a consistent language for skills.
The Potential of a National Skills Taxonomy
A well-designed NST can support a range of use cases, from career planning and skills-based hiring to informing training product design and strategic business decisions. By integrating with other taxonomies such as ANZSCO and AQF, the NST can enhance insights and activities related to skills, occupations, and qualifications. This integration will facilitate better alignment between education and industry needs, supporting Australia’s economic growth and adaptability.
Designing the National Skills Taxonomy
Key Design Considerations
- Definition of Skills: Achieving a common definition of skills that encompasses core, technical, behavioural, and digital skills.
- Granularity: Balancing detailed skill descriptions with broader categories to suit various use cases.
- Information and Attributes: Incorporating Rich Skills Descriptors (RSD) for clearer understanding and identification of skills.
- Proficiency and Levelling: Establishing proficiency levels within skill categories to indicate competence progression.
- Organising Structure: Creating a hierarchical taxonomy that emphasises skill type, occupation, and industry.
- Alignment with Existing Taxonomies: Ensuring interoperability with frameworks like ANZSCO, AQF, and international taxonomies.
Governance and Maintenance
Effective governance is crucial for the NST’s success. Various models, including integration within JSA, bespoke governance, national governance through the Skills and Workforce Ministerial Council, or an open skills taxonomy, need consideration. Each model has strengths and limitations, and stakeholder input will be vital in identifying the most suitable approach.
Identifying and Validating Skills
The process of identifying and validating skills can follow data-driven or consultative approaches. Data-driven methods utilise job advertisement data, training packages including VET resources, and AI to identify emerging skills. Consultative approaches involve direct input from industry stakeholders, providing deep, contextual insights. A combination of both methods may offer the most comprehensive results.
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Stakeholder Engagement and Feedback
Broad stakeholder engagement is pivotal in shaping the NST. JSA is conducting consultations with individuals, unions, employers, tertiary education providers, and governments to gather insights and guide the taxonomy’s development. This collaborative approach ensures the NST reflects the diverse needs and aspirations of all stakeholders.
Potential Use Cases
The NST can significantly enhance career planning and development by providing individuals with detailed information on skill requirements and career transitions. Employers can benefit from skills-based hiring, identifying candidates with relevant skills from non-traditional pathways. Education providers can design more relevant and attractive programs aligned with industry needs, while governments can better plan for future skills demand.
Vision and Principles
The vision for the NST is to improve connections between education and employment pathways, enabling lifelong learning, enhanced occupational mobility, and career transitions. The NST should be comprehensive, interoperable, evolutionary, integrative, accessible, contextualised, and dynamic. Balancing these principles with the need for regular updates and stakeholder trust will be crucial.
Conclusion
The development of a National Skills Taxonomy represents a significant step towards a more cohesive and responsive skills system in Australia. By creating a common language for skills and integrating with existing frameworks, the NST can address the challenges of the current labour market and support economic growth. Stakeholder engagement and thoughtful design will be essential in realising this vision and ensuring the NST meets the diverse needs of Australia’s education and labour sectors.
Call to Action
JSA invites all stakeholders to participate in this transformative initiative. By contributing to the consultations and providing feedback, you can help shape the future of skills development in Australia. Visit Jobs and Skills Australia to submit your input and join the upcoming stakeholder workshops. Together, we can build a robust and dynamic National Skills Taxonomy that supports Australia’s evolving economic and community needs.
