Disruptive technologies and market volatility are challenging the long-term skills viability of our workforce. Experts have called for a reskilling revolution to address the growing skills shortage and prepare Australians for the jobs of tomorrow. 

The move towards the future of work will mean today’s current skills will soon be outdated. According to the World Economic Forum (WEF), one-third of today’s global skills will become obsolete by 2025. Workers, employers and education providers are now facing immense pressure to adjust to the changing skill requirements of our labour market.

Below, we unpack the skills of tomorrow and how our VET system can pivot to provide better training for emerging and existing workers.

The world is facing a reskilling emergency – skills shortages are at an all-time high.

The double disruption, caused by COVID-19 and the ongoing digitisation of work, has created a skills imbalance. Many tasks that once required humans are now automated.

Disruptive technologies are changing the core skills of many occupations. Technology-related skills, especially in digital marketing and information technology, will become increasingly necessary by 2025.

Experts predict that today’s average worker will need to gain an additional seven digital skills by 2025 to maintain employability. 

This future of work will require workers to have the specialised skill sets to perform their roles and the capabilities to adapt, innovate and succeed in adverse conditions. As we move towards a skills-based labour market, workers will also need to develop their social capabilities and soft skills. 

Specialised or technical skills are aligned to a specific vocation or task – they form the core skill competencies a worker needs to perform their duties. 

The nature of specialised skills and occupations will change as we continue to adopt more technology into our workplaces. The WEF has identified the top 15 emerging technical skills across the globe (figure 28).  

Among this list are three cross-cutting specialised skills (product marketing, digital marketing and human-computer interaction) that will be crucial to a variety of emerging and progressive professions.

Soft skills are the non-technical, transferable skills that relate to how one works. They are the interpersonal attributes that underpin workplace collaboration and communication, self-management and career development. 

Human-centric skills are becoming more critical with the rise of AI and automation in the workforce. New technologies will place higher demands on workers to manage abstract thinking and problem-solving.

The top 10 soft skills for 2025 are:

“Industry 4.0 will call for employers who possess strong interpersonal skills and a strong understanding of the complex relationship between people and advanced technologies,” says Janet Foutty, Executive Chair of the Board at Deloitte (US).

The pandemic has also heightened the urgency for self-management skills such as active learning, resilience, stress tolerance and flexibility. Employees will need to act more independently and possess better communication skills, particularly in remote workplaces.

Industries are looking to large-scale, systematic reskilling efforts to address our future skill requirements. However, there is a growing consensus that our vocational education and training (VET) system isn’t adapting fast enough to meet the skill needs of Industry 4.0. 

Employers are reporting difficulties in finding VET providers who can deliver the training in disruptive technologies and Industry 4.0. 

Experts are encouraging cross-collaboration from organisations, industries and educational institutions to develop training solutions that best fit the changing nature of our industries. These solutions must analyse and optimise the range of knowledge and skills of current job holders and future workers. 

Our innovative reskilling efforts must be also flexible – expanding to short courses and longer formal qualifications – to accommodate learners of all shapes and sizes.

Training providers will especially need to scale up courses that deliver technical skills training relevant to the emerging skills and jobs of tomorrow. Our current VET market is struggling to keep pace with emerging trends of Industry 4.0, and providers have an obligation to our labour market to fill these shortages. 

The dynamic nature of our education sector means we’ll continue to see advancements in course creation and delivery over the next decade. We’ve created a list of education strategies expected to bring opportunities for providers during Industry 4.0.

There is an urgent need to future-proof the skills and professions of our workforce in the face of mass job displacement. The pandemic has dramatically accelerated our transition into a technologically-driven labour market.

As we accelerate towards a technologically-driven labour market, workers, employers, industries and our VET system must collaborate on a national reskilling movement towards the jobs of tomorrow.