Pearson report warns Australia’s skills gap could cost the country $104 billion as it says 1.5 million jobs will be disrupted by AI
Pearson has shared new Australian research that suggests inefficient career transitions are costing the country’s economy AU$104 billion each year.
In a report titled Lost in Transition: Fixing the Skills Gap, Pearson warns of a potential gap between employer needs and employee skills. The company is calling for an urgent shift in approaches to learning and development.
Pearson warns that 1.5 million Australian jobs could be transformed by AI by 2030, which it says makes the need for adaptive learning and pathways more urgent.
“Vocational training and pathways into employment are critical to Australia’s future prosperity, but there is more we can do to ensure skilled workers can contribute fully to the economy,” says Taha Haidermota, Australian Country Head and VP Legal, APAC at Pearson.
“Pearson has awarded seven million BTECs globally - rigorous, future-focused qualifications in fields like IT, construction, business, and science. These are widely recognised internationally, but not in Australia. At a time when the nation faces skills shortages in key industries, recognising reputable international qualifications could help skilled migrants step into the jobs they are trained for and play a meaningful role in lifting productivity.”
Pearson’s report says shortening reskilling transition times by 20 percent could contribute $15 billion to the Australian economy each year.
The report also warns these challenges are not unique to Australia and says economies across the world face similar challenges.
“The danger is that today’s skills gap becomes tomorrow’s skills chasm. The old model of education as a one-time launch into a career is no longer fit for purpose,” Haidermota adds. “Government, education providers, industry and business must work together to close transition gaps and build a workforce that is resilient, adaptable and future-ready.”
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