Australia’s Digital Pulse 2024: Bridging the Tech Skills Gap
At the launch of the Digital Pulse 2024 report, key figures in Australia’s technology landscape gathered to address a pressing issue: the growing skills shortage in the tech sector. The event featured prominent leaders, including Cindy Chung, chair of the ACS NSW branch; Deputy Prime Minister Richard Marles; ACS President Helen McHugh; and ACS CEO Josh Griggs. Their discussions highlighted the urgent need for a workforce equipped with cyber security and artificial intelligence skills, as Australia grapples with an evolving digital landscape.
The Growing Demand for Tech Skills
The 10th annual Australia’s Digital Pulse report, published by the ACS and prepared by Deloitte Access Economics, reveals a staggering 80% increase in demand for cyber security skills since 2020. This surge correlates with a rise in cyber crime, emphasizing the critical need for skilled professionals in this domain. Marles noted, “Like many other sectors right now, IT and tech is needing an uplift in the workforce to support the demands required of it.”
Currently, Australia’s technology workforce exceeds 1 million workers, but projections indicate that an additional 300,000 workers will be necessary by 2030 to meet business demands. This translates to approximately 52,000 new workers needed annually. The report also highlights that if current trends persist, Australia will require 26,000 workers to reskill into technology occupations each year for the remainder of the decade.
Reskilling Opportunities in “Near Tech” Roles
One of the report’s most promising findings is the identification of 1.1 million “near tech” workers who possess transferable skills that could be harnessed to support the tech workforce. These individuals come from diverse backgrounds, including mathematicians, advertising and marketing professionals, and account clerks. By reskilling these workers, Australia could effectively bolster its tech talent pool.
However, the report warns that traditional sources of new talent are under threat due to government policies, including a reduced permanent migration intake and cuts to international student numbers. Josh Griggs emphasized the urgency of addressing the skills shortage, stating, “We need to be ensuring the nation has the skills needed by industry and the community.”
The Economic Impact of the Tech Sector
The technology sector plays a vital role in Australia’s economy, contributing over $124 billion in the 2023-24 financial year. Additionally, the nation recorded $8 billion in technology exports, marking a remarkable 400% growth over the past decade. This economic significance underscores the importance of cultivating a robust tech workforce to maintain Australia’s competitive edge in the global market.
Despite a surge in domestic students pursuing IT studies during the pandemic, enrolments have recently declined by 10% in 2022. Interestingly, while 70% of parents encourage their children to consider careers in technology, only 50% of parents outside of tech roles would recommend it as a viable career path. This disconnect highlights the need for increased awareness and advocacy for tech careers.
Challenges in Reskilling
While the potential for reskilling is significant, the report identifies several challenges that could hinder progress. A notable 38% of workers considering a transition to the tech sector cited a lack of time and financial support as barriers to improving their digital skills. Additionally, many workers expressed uncertainty about how to navigate a career change.
To address these challenges, the report advocates for greater recognition of alternative pathways into the tech industry, such as short courses, certificates, and microcredentials. Employers are encouraged to be more accepting of these non-traditional routes to acquiring digital skills.
A Call to Action
Helen McHugh, ACS President, remarked that the Digital Pulse 2024 report serves as both a reflection of past achievements and a roadmap for the future. She stated, “For Australia to remain competitive in the global digital economy, we need to ensure our workforce is equipped to handle the rapid advancements in AI and cybersecurity.”
The report outlines 12 key actions to support the growth of Australia’s tech workforce, including:
- Providing financial support for workers while they learn tech skills.
- Increasing the number of paid work placements for IT students.
- Enhancing certification schemes to recognize migrants’ existing capabilities.
- Launching campaigns to inform parents and students about careers in tech.
- Implementing initiatives to train workers and students on leveraging AI.
- Establishing federal government grant programs to support women-led tech startups.
Conclusion
As Australia navigates the complexities of a rapidly evolving digital landscape, the Digital Pulse 2024 report serves as a crucial tool for understanding the challenges and opportunities within the tech sector. By focusing on reskilling and harnessing the potential of near tech workers, Australia can build a diverse and future-ready tech workforce. The time for action is now, as the nation strives to secure its position in the global digital economy.
For those interested in exploring the full report, it can be downloaded from the ACS website.