As Australia faces continued severe challenges in meeting its IT skills and capabilities needs, the Australian Computing Society recently released its Digital Pulse 2024 report in collaboration with Deloitte. This report is a major research project that will analyze the full scope of the technological environment across the country.
Australia needs 312,000 additional tech workers by 2030 to meet demand, or more than 60,000 additional people entering the tech workforce annually. This is a problem because only 10% of school-age students are interested in technology careers, and only 52% of parents outside of technology consider technology to be a viable career for their children.
Addressing the tech skills shortage in Australia requires action from both government and the private sector.
An important opportunity for the growth of technology talent
The ACS report also found a significant incentive to build a strong technology sector and ensure skills are available. Technology is already a substantial part of Australia's economy, but the potential for growth is significant.
In FY23 alone, technology contributed $124 billion to economic activity. Technology exports have also grown by 400% in the last decade. Meanwhile, a 40% increase in ICT and R&D spending shows Australia has a desire to be more sophisticated in the way it uses technology despite limitations caused by skills shortages.
Overall, the country is in a good position to close the skills gap by developing appropriate pipelines that convert technological literacy into careers. Annual ICT literacy testing of students showed that Australia has a stable literacy level of over 50% of students.
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12 steps to prevent skills shortages in Australia
The ACS report identified 12 key recommendations to help Australia develop pathways to meet skills demand in the technology sector. These actions focus on four pillars: retraining, promoting diversity, youth participation and advancing AI capabilities.
Retraining
- Earn while you learn: To support technological transitions, the ACS recommends that the country introduce a wage subsidy of $24,000 for technological reskilling. This would reduce financial barriers to IT training and help the 1.1 million “near-tech” workers in adjacent fields like math and marketing enter the tech sector.
- Paid work placements for students: With more paid internships, IT students have additional opportunities to develop practical experience and earn academic credit. This makes technology careers more attractive and prepares graduates to meet workforce needs.
- Immigrant Skills Certification: Better recognition schemes to certify existing skills would help reduce barriers and connect employers to talent.
Encourage diversity
- Support for new technology companies led by women: A grant program that specifically supports women-led startups would encourage gender diversity in technology. Through targeted funding and mentorship, such investment could empower more women to lead technological innovation. This is particularly important because tests of students' ICT literacy show that girls outperform boys in IT literacy.
- Increase digital inclusion in regional areas: To expand technology opportunities beyond urban centres, the ACS recommends investing in digital infrastructure and skills programs for regional areas, primarily to support Aboriginal and Torres Strait Islander communities and foster a national digital ecosystem.
- Eliminate unconscious bias in hiring and promotion: To improve diversity, the ACS recommends that technology companies adopt best practices to eliminate unconscious bias in hiring and promotion, including reviewing job descriptions and hiring protocols, and offering anti-bias training.
Engage young people
- Information campaign for parents: The ACS recommends a national campaign to educate parents about technology careers and digital skills, helping them guide their children toward technology opportunities.
- Guidance on using devices for safe learning: Providing clear, evidence-based guidelines for students would improve learning and encourage healthy technology habits.
- Tutoring schemes in schools: A mentoring initiative to attract technology professionals to schools would help spark student interest in technology, especially among underrepresented groups such as women and First Nations students.
Advancing AI capabilities
- Industry-Specific AI Training Programs: Offering specialized AI courses tailored to fields such as healthcare and finance will help professionals apply AI relevantly in their industries.
- AI skills in tertiary curricula: Universities and vocational institutions should integrate AI into their curricula, allowing students to familiarize themselves with the technology from the beginning and ensuring that graduates learn to develop and manage AI solutions.
- Responsible use of AI through business advisory networks: Business advisory services should offer guidance on AI ethics and governance to help companies use AI responsibly and comply with standards.
According to the report, meeting the skills challenge requires a comprehensive approach that brings together government policy and the private sector to address everything from students to professionals looking to continue building their career opportunities: “All paths to the technology workforce must be revitalized and made more accessible. From students studying technology and workers making mid-career changes to positioning Australia as a leading destination for global technology talent,” the report states.
The skills shortage is a well-known challenge facing the IT industry and all sectors seeking to leverage technology in sophisticated ways. Finding a long-term solution means building strong and inclusive pathways with a medium- and long-term perspective to create a stable flow of IT professionals into the future.
