"As a national priority, we need to better connect education and training with the workplace to unlock productivity into the future," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"A skilled workforce aligned to employer needs is critical for Australia's productivity uplift – but skills development in and of itself is not a magic solution for lifting productivity.
"Productivity gains are achieved when there is deep connection between education and training and its practical application in the workplace context.
"Over the last decade, the focus on workplace training in Australia's education and training policy settings has diminished.
"In the context of productivity as a national priority, we need to shift the balance in skills and workforce policy in Australia towards a more economic focus that strengthens the connection between education and training and application in the workplace.
"We have identified six key actions that can drive this agenda forward, ahead of the Treasurer's Economic Reform Roundtable:
- Convert the principle of tertiary harmonisation into widespread practice
- A new initiative to drive productivity uplift at the firm level through skills
- Review policy settings and system complexity that constrains employer investment in productivity enhancing skills development
- Encourage a culture of lifelong learning
- Better connections between employers, industry and tertiary education, including work integrated learning
- Strengthen the role of apprenticeships to deliver current and future skills needs.
"A focus on productivity needs to be underpinned by cultivating a stronger culture of lifelong learning in Australia, recognising that governments, industry and individuals themselves all have a role in sharing in the costs and benefits.
"A solid foundation is already in place. Recent reforms have made important strides towards a connected and coherent tertiary education system that meets industry skills needs. We must continue on this path, with a sharp focus on productivity as a national priority.
"With more than one in five jobs expected to fundamentally change by 2030, we need to train a future workforce that is quite different to the one we have today.
"We cannot afford to ignore our current and future skills needs challenge, because it is the key to lifting productivity and delivering higher wages and prosperity at a national and individual level," Mr Willox said.
