Future Skills Organisation National Forum Canberra

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Acknowledgements omitted

Good morning. It's a real pleasure to be here with you at the Future Skills Organisation’s National Forum.

Today’s theme, “Innovate, Integrate, Engage: VET in Partnership with Industry,” couldn’t be more timely.

As technology reshapes the way we live and work, the need for strong, forward-thinking partnerships between vocational education and industry has never been greater.

The Albanese Government recognises that lasting workforce solutions come from collaboration – when employers, unions, and governments come together with a shared purpose.

This forum is a chance to build those connections, spark new ideas, and strengthen the networks that will help us prepare Australians for the jobs of tomorrow – in IT, AI, science, and beyond.

When we came to Government in 2022, we faced the worst skills shortage in 50 years and the second worst in all advanced economies.

It was clear that we needed a new approach, to close the skills gaps that were holding Australians and the economy back.

That is why we established our 10 Jobs and Skills Councils – to bring together employers, unions, governments, training providers and other stakeholders, working alongside Jobs and Skills Australia.

I want to recognise and acknowledge the development of FSO from establishment to now, and the significant work you have done to become a respected voice from and for the finance, technology and business sectors.

This work is underpinned by your comprehensive Workforce Plans, of which there are now three.

These plans drive a huge body of work to tackle workforce and skills challenges, making a real difference for learners and their career paths.

Importantly, you’re collaborating across states, territories, and with other Jobs and Skills Councils to push forward key initiatives to build a more connected skills system.

As Minister for Skills and Training, my job is to ensure that your understandings and your work is matched by a clear vision for the role skills and training play in supporting a labour market that is productive, responsive and inclusive.

In short, that vision is to ensure that that our Government delivers a fit-for-purpose skills and training system, in partnership with states, territories and workplace partners.

A system that ensures Australians are able to get the skills they need to work in the areas where they are needed most.

A system that ensures that no Australian is held back and no Australian is left behind.

But also, a system that ensures that every Australian has an opportunity for tertiary education – whether it is delivered through the VET or the higher education system.

The urgency of this was demonstrated with the Jobs and Skills Summit being our first major initiative in the Albanese Government’s first term.

And in our Government’s second term, skills will be feature on the agenda at next week’s Economic Reform Roundtable.

Last week, Minister Clare and I brought together voices from industry, academia, unions, schools and government to talk about how we can better connect Australians with higher education – and how those pathways can lead to secure, rewarding jobs.

It’s all about making the journey clearer and more accessible for everyone.

Your Workforce Plan points out that efforts to close skills gaps often miss the mark – they’re scattered, sometimes duplicated, and not always aligned with what employers actually need.

That’s why the National Skills Agreement, which came into effect early last year, is so important.

My predecessor, Brendan O’Connor, worked closely with states and territories to rebuild and strengthen our vocational education and training system.

The agreement is designed to make VET more responsive, accessible, and high quality – so it can better support productivity and meet the needs of today’s economy. One of its key priorities is boosting Australia’s digital and tech capabilities.

Your plan also makes it clear that we need a joined-up approach – one that brings together education, migration, and industry – to close the finance workforce gap.

Through our Tertiary Harmonisation reforms, we’re working to connect VET and higher education providers with industry and government to help students move more easily through the system, whether they’re starting out, reskilling, or upskilling.

The FSO’s Workforce Plan for 2025 also highlights a big challenge we’re facing.

Australia is going to need up to 350,000 more skilled professionals in finance, tech, and business by the end of the decade.

And the ground beneath our workforce is shifting.

We’re seeing the effects of an ageing population, rapid digital change, and the rise of AI.

All of this puts pressure on employers, learners, educators, and the broader training system to keep up.

You’ll learn more about this later, but I’m really looking forward to seeing how the new FSO Skills Accelerator – AI will share and scale best practices in AI Skills Development as we move forward.

Research by the Tech Council shows us AI has the potential to contribute more than $100 billion a year to the Australian economy by 2030.

We can’t realise that opportunity without giving Australians the skills to leverage it, so this new strategic partnership brining employers, industry and training providers to the table will help close Australia’s AI skills gap.

As with the FSO, our Government is maintaining its focus on the transformative effects of generative AI.

Along with innovation, it will also be on the agenda at next week’s Economic Roundtable.

Jobs and Skills Australia will shortly publish its capacity study on generative AI and its implications across the labour market and education and training system.

This study will provide critical insights to advise our Government on how we can best respond to the generative AI opportunity.

JSA’s study looks at labour market impacts, including potential implications across occupations and industries in the medium term.

I would like to commend FSO for the leadership role it has taken in its research on the impact of generative AI on workplace skills and training needs, and how this work has informed JSA’s capacity study on generative AI.

Before we wrap up, I want to return to a core commitment the Albanese Government has made since 2022: no one left behind.

The FSO’s Workforce Plan makes it clear – there is more work to do.

Diversity gaps persist across finance, technology, and business, and they’re holding back both individuals and industry potential.

Women make up less than a third of the tech workforce, and that number is slipping.

First Nations people and people with disability remain significantly underrepresented – each accounting for less than 1% of the workforce.

Young people, especially in regional areas, continue to face barriers to accessing high-skill opportunities.

This isn’t just about fairness – it’s about future-proofing the sector.

A more diverse workforce brings fresh perspectives, drives innovation, and better reflects the communities and customers we serve.

It also opens up new talent pipelines at a time when demand is growing fast.

Bridging these gaps can’t only be shouldered only by government: we have put building blocks in place, but without buy-in from business and industry, we won’t see results.

To wrap up, I want to sincerely acknowledge the Future Skills Organisation for the leadership shown in your Workforce Plan 2025.

Your work – and that of the other Jobs and Skills Councils – is helping Australia take real, practical steps to address one of the most pressing skills challenges we've faced in decades.

Thank you for being here today and for your continued support of FSO’s mission.

I hope today’s conversations spark new ideas, strengthen partnerships, and help us all move closer to a future where our workforce is ready for the opportunities ahead.

Thank you.