Health Climate and Technology - areas for Job skills and Growth to 2030

Information below is Based on The Australian Government the Treasury data. https://treasury.gov.au/publication/2022-302672

Treasury have identified 3 Industries where Australia needs to focus on to maximise  opportunities in the next decade 

Health  , Climate and Technology 

To take advantage  of the opportunities created by the structural transformations and creating the next generation of high value-adding jobs requires that we have the right skill mix for the long term. 

Heath Care 

The health care and social assistance sector has more than doubled in size over the past 20 years, rising from 10 to 15 per cent of the workforce and now employs more than 2 million people. Employment in the sector is projected to grow by 15.8 per cent over the next five years.

Labour shortages in the care workforce are already acute and expected to worsen with a projected shortfall of 286,000 care workers by 2050. Low pay and challenging conditions, partly as a result of high workloads and staff absences related to COVID-19 and influenza, have led to higher staff turnover. 

Climate and Renewable sector 

Over the next 30 years, the transition to a net-zero economy will reshape the Australian economy and have a big impact on regional economies. The adoption of new and emerging technologies will also lead to an increase in demand for new skills and business models. 

Growth in demand for critical minerals is expected to increase six-fold, with global battery sales set to surge by $200 billion by 2030. Australian lithium exports are estimated to more than double between 2021-22 and 2023-24.

Demand for ‘green’ products will change the economics of manufacturing in Australia, with onshore production of lower cost renewable energy becoming more attractive.

This transformation creates significant economic opportunities for regional Australia and workers in regional communities, including those working in the agriculture, manufacturing and resource sectors.

This transformation is taking place in the context of continuing advances in technology and digitalisation, accelerated by the COVID-19 pandemic, which will also increase demand for workers with high levels of digital literacy.

Technology Sector 

The Australian tech industry has experienced enormous growth in the past decade. 1 in 16 Australians are working in tech sector jobs, and the tech sector contributes 8.5 percent to national GDP. 

Digitalisation is also increasing demand for STEM (science, technology, engineering and mathematics) skills. STEM occupations are expected to experience employment growth of 14.2 per cent over the five years to November 2026, around twice as fast as non-STEM occupations.

However, today, 28 per cent of the population are digitally excluded and less than half of professional workers feel competent with handling digital information and problem-solving using data.

Women are less likely to benefit from the opportunities presented by growing STEM industries. In 2020, women’s participation in STEM-qualified occupations was 13 per cent and women working in STEM-qualified industries earn 19 per cent less than their male counterparts. 

Australia needs to Invest in Innovation 

As an advanced economy, there is a greater opportunity for Australia to invest in the high value-added pre- and post-production stages of manufacturing. 

We need to ensure we are taking steps to build a more agile, skilled, inclusive and resilient labour force for the future. 

Issues for discussion

• How can government and businesses maximise the opportunities presented by the structural trends impacting the economy, including the climate and energy transition, while ensuring the benefits are shared fairly?

• How do we navigate workforce shortages in the care economy while supporting our frontline workers?

• How can government, business and unions ensure our regions benefit from these growing industries?

• How can we ensure the labour force is more resilient and well-equipped to respond to future changes in the structure of economy? 

 • How can we ensure economies of the future are inclusive, so that all Australians are able to access and benefit from these opportunities? 

• What investments in education and skills are needed now to take advantage of these opportunities?