Australia’s tech industry is poised for rapid growth as the government works towards creating 1.2 million tech jobs by 2030. This underscores the need for the VET sector to address critical challenges in ICT training and align with evolving industry demands.
In this blog, we explore insights from the Future Skills Organisation’s Initial Workforce Plan and strategies for RTOs to contribute to this goal.
An Overview of Australia’s Tech Workforce
Australia’s tech workforce comprises 749,300 individuals with a median age of 39. Compared to other industries, the industry has a younger demographic, highlighting its appeal to younger talent. However, this youthful workforce will need continuous upskilling to ensure adaptability as technologies evolve and roles become increasingly specialised.
Despite the diversity of roles within the tech sector, representation gaps persist. Women account for only 21% of the workforce, and less than 1% identify as First Nations people. This figure reveals systemic inequities in access to opportunities. Addressing these disparities is critical for building an inclusive and adaptable workforce ready to meet future challenges.
Challenges in the VET ICT Sector
1. Training Suitability
The need for tech skills in cybersecurity, machine learning, and cloud computing is growing. However, VET ICT completions have fallen by 85% from 2016 to 2022, leading to a shrinking pool of individuals available to meet this demand.
Outdated ICT training programs fail to meet current industry standards, discouraging student and employer engagement. As a result, only 7% of VET ICT graduates secure jobs directly related to their qualifications, highlighting a significant gap between training content and workforce needs.
Why This Matters
- Without relevant ICT training, graduates find it harder to find meaningful tech roles.
- Employers struggle to find job-ready candidates, slowing industry growth.
How RTOs Can Respond:
- Partner with tech companies to co-design relevant training in high-demand fields.
- Offer modular and stackable credentials to accommodate evolving skills needs.
- Modernise ICT training to include hands-on learning in areas like AI, cybersecurity, and cloud computing.
2. Digital Capability Gaps
Employers increasingly seek workers who combine technical expertise with soft skills such as teamwork, problem-solving, and adaptability. As industries adopt new technologies to improve efficiency and customer experiences, baseline digital literacy is becoming essential.
Since 2016, the skills mix for tech roles has shifted by 18%, and job postings show a 97% increase in demand for digital literacy. This highlights the importance of foundational digital skills across industries. Without these skills, tech professionals and workers across other sectors risk falling behind in increasingly digital workplaces.
Why This Matters
- Tech graduates lacking foundational or soft skills may struggle in modern workplaces.
- Businesses across sectors need digitally literate workers to remain competitive in a technology-driven economy.
How RTOs Can Respond:
- Embed soft skills training into ICT training programs to create well-rounded graduates.
- Provide work-integrated learning opportunities, such as internships and real-world projects, to develop practical and collaborative abilities.
- Expand micro-credential programs to address both foundational and advanced digital skill needs across industries.
3. Career and Job Pathways
The transition from VET training to tech employment is often unclear, limiting graduates’ ability to enter high-demand roles. Many students fail to see how their qualifications connect to career opportunities, while employer bias frequently favours university graduates. As a result, only 30% of VET ICT graduates report improved employment status after training, and fewer than one-third of unemployed graduates find jobs post-training.
Meanwhile, the data shows that tech skills are highly transferable. Over 60% of tech workers are employed outside traditional tech industries like finance, healthcare, and public administration. Additionally, 6% of tech workers transition to non-tech roles every year. This emphasises the importance of transferable skills and cross-sectoral training.
Why This Matters
- Without clear pathways, VET qualifications are undervalued, discouraging potential students and employers from engaging with these programs.
- Graduates often struggle to connect their skills to in-demand roles, limiting their career progression and workforce potential.
How RTOs Can Respond:
- Develop partnerships with universities to create clear progression pathways for students seeking advanced studies.
- Build stronger relationships with employers to highlight the practical expertise of VET-trained graduates and establish direct hiring pipelines.
- Provide career counselling and mentorship to support students in navigating post-training opportunities.
Steps RTOs Can Take to Address These Challenges
- Modernise Training Programs:
- Align ICT training programs with emerging fields such as AI, cybersecurity, and machine learning.
- Integrate modular and flexible training options to meet diverse learner needs.
- Bridge the Digital Capability Gaps:
- Embed soft skills training into ICT training programs to produce well-rounded graduates.
- Expand access to digital literacy training for workers across all sectors.
- Strengthen Career Pathways:
- Build stronger ties with universities and employers to create clear progression routes.
- Provide career counselling, mentorship, and work-integrated learning opportunities.
- Promote Diversity and Inclusion:
- Offer scholarships and mentorship programs for underrepresented groups, including women and First Nations learners.
- Create inclusive training environments to support diverse learners.
Conclusion
Australia’s tech workforce faces significant challenges, which represent opportunities for RTOs to drive transformative change. By improving ICT training relevance, bridging digital skill gaps, and clarifying career pathways, RTOs can play a vital role in preparing the workforce for future demands.
