Jobs and Skills Australia (JSA) have released its Jobs and Skills Report 2025 – Connecting for Impact: Aligning Productivity, Participation and Skills,
This annual report is a cornerstone of JSA’s work, providing government and stakeholders with a comprehensive view of current, emerging and future skills and training priorities. It explores how productivity and participation are shaped by shifting skill demands, technological change, and structural barriers - and identifies opportunities for better alignment between education, migration and workforce planning.
Key Findings
JSA’s analysis highlights several important trends shaping Australia’s workforce:
- Inclusive participation drives productivity. Occupations with less diverse workforces are more likely to face skills shortages. Unlocking participation for underrepresented groups is essential for growth and social cohesion.
- VET delivers strong outcomes. Individuals who complete vocational education and training (either partially or fully) see improved employment and income prospects.
- Generative AI is augmenting, not replacing, work. Rather than eliminating jobs, AI is reshaping roles and lifting demand for digital literacy and human-centric skills such as problem-solving, communication and adaptability.
These findings point to a future where technology and human capability must work hand-in-hand, and where education and training systems need to respond quickly to evolving skill requirements.
Recommendations for Action
The Jobs and Skills Report 2025 sets out five key recommendations to strengthen Australia’s workforce:
- Align tertiary education targets with labour market demand.
- Commit to a national digital and AI capability uplift.
- Embed contemporary digital and AI skills in qualifications.
- Develop a national credit transfer system.
- Accelerate the National Skills Taxonomy.
The JSA report notes its critical collaboration with the 10 industry-led Jobs and Skills Councils (JSCs). JSA supports JSCs by sharing data and providing technical guidance, while JSCs contribute on-the-ground intelligence that strengthens the national evidence base.
Discussion Paper to advance Australia’s shift to ‘skills-first’ economy
Jobs and Skills Australia (JSA) has also released a new discussion paper, Building a system that puts people and skills first, outlining the next major step in developing the National Skills Taxonomy (NST), a core reform designed to modernise how Australia understands, develops and recognises skills.
The paper positions the NST as essential to transitioning Australia from a qualification-led system to a skills-first workforce ecosystem, where skills are the fundamental currency of learning, hiring and career mobility. JSA notes that in an era of rapid technological change, AI adoption and evolving job design, traditional qualifications alone no longer capture the full breadth and speed of skills required in modern workplaces.
The NST will create a common skills language, enabling clearer communication between industry, VET, higher education, and non-formal training providers. This will give employers better visibility of workers’ capabilities, support more targeted training investment, and improve alignment between education pathways and labour market needs.
The discussion paper emphasises that adopting a skills-first approach will help Australia build a more agile, inclusive and productive workforce, and strengthen national capacity to respond to emerging skills demands.
JSA is now seeking industry input to shape the next phase of the National Skills Taxonomy. This represents an important opportunity for employers, industry bodies and training partners to help define the skills architecture that will underpin future workforce planning, job design and training delivery across the country.