FSO reveals top 10 insights shaping Australia's 2024 skills

The Future Skills Organisation (FSO) has published its Top 10 Insights for 2024, focusing on the challenges and opportunities within Australia's finance, technology, and business sectors.

Over the past year, FSO engaged with over 1,000 stakeholders including employers, industry representatives, unions, training providers, and government entities to understand the evolving requirements in these sectors.

Chief Executive Officer Patrick Kidd OBE OAM emphasised that technological advancements are significantly impacting the skills needed in the workforce. "Our stakeholders are clear that fast-changing and emerging skills are having a range of impacts on the skills required for work," Mr Kidd said.

Mr Kidd stressed the need to align industry needs with training outcomes to optimise Australia's skill and talent potential. "We must listen to what industry is telling us as we turn these insights into action and progress our work to unlock Australia's skill and talent potential," he added.

The report highlights the importance of collaborative efforts between industry and training providers to develop effective entry-level employment opportunities and lifelong learning initiatives. "These collaborations are essential for creating effective entry-level employment pathways, delivering relevant training, and fostering opportunities for lifelong learning," stated Mr Kidd.

Industry leaders, according to Mr Kidd, are concerned that existing training programmes may not adequately equip learners with skills needed in critical sectors like financial services and information and communications technology (ICT). "This highlights the importance of strong partnerships between industry and training providers to ensure training stays relevant and equips learners with the skills the workforce needs," he explained.

A notable trend identified by the FSO is the shift in hiring practices, with employers increasingly prioritising skills over formal qualifications. Brendan Hopper, the Commonwealth Bank of Australia's Chief Information Officer for Technology and FSO's Independent Director, noted, "We haven't hired based on what certifications people have for many years - we hire based on a combination of current skills and potential."

Mr Hopper added: "We look for people who ask a lot of questions and immediately get curious and lean into the problem to understand it. We always bet on those people if we can."

An additional insight addresses the impact of generative artificial intelligence and the need to ensure digital inclusion. "Our stakeholders are telling us generative AI is impacting skills, training and jobs, and the finance sector is seeing the most substantial shifts," Mr Kidd observed.

He continued, "It's also driving a need for digital skills right across the population and making it even more essential for Australia to close the digital divide, with our collaborators telling us digital inclusion, accessibility and digital ability is more important than ever."

The FSO is actively working on initiatives to address these insights, including projects aimed at accelerating digital, AI, and cyber security skills development, and conducting further research into AI's impact.

The organisation plans to review ICT qualifications throughout Australia to ensure alignment with industry needs as outlined in the ICT Training Package.

FSO's Top 10 Insights for 2024 underscored the need for industry engagement, a skills-first approach to hiring, policy evolution, enhanced cyber security awareness, diverse and inclusive learning opportunities, simple and accessible employment pathways, and flexible training frameworks catering to lifelong learners.