"The latest OECD results provide a stark reminder that Australia cannot afford complacency when it comes to the literacy, numeracy and problem-solving skills that underpin future workforce capability and national productivity," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"The Programme for International Student Assessment (PISA) result shows long-term declines, particularly in mathematics and reading – a significant challenge for policymakers, educators, employers and the broader community.
"Australian Industry Group just weeks ago warned that the NAPLAN results demanded an urgent attention on foundation skills. The new PISA results tell a similar story for Australia in an international context.
"Australia remains above the OECD average on all measures and performance in science, but this should not distract us from the fact that key skill areas have gone backwards over the long term.
"While our global rankings are in part driven by the fact that other countries have declined more than us, this is not cause for celebration.
"These are not simply education statistics. They are leading indicators of Australia's future economic performance.
"Australia is a high skill and high wage economy and our global competitiveness is underpinned by the skills of our workforce.
"The results also highlight the persistent disparities for students from differing socio-economic backgrounds and in different parts of the education system. This represents a challenge not only for education policy, but for workforce participation, productivity and social mobility.
"These foundational measures directly contribute to Australia's productivity story. Research by Australian Industry Group's Centre for Education and Training shows that almost nine in ten employers are affected by low levels of literacy and numeracy in their workforce that directly translates into productivity impacts at the firm level.
"As technology, automation and artificial intelligence reshape jobs and industries, workers need strong foundation skills to learn new tasks, exercise judgement, solve problems, interpret information and work effectively with emerging technologies.
"Businesses increasingly identify literacy, numeracy, communication, critical thinking and problem-solving as essential capabilities for technology adoption, AI implementation and lifelong learning.
"The increasing focus on AI does not reduce the importance of literacy and numeracy. It elevates their importance.
"The message from both NAPLAN and PISA is clear. If we want to realise the opportunities presented by AI, advanced technologies and a rapidly changing economy, every young Australian, regardless of postcode, background or school sector, must leave school with strong literacy, numeracy and problem-solving skills.
"Our future competitiveness relies on being a global leader in this area, not middle of the pack," Mr Willox said.
