AIIA survey finds graduates not job-ready

The local tech sector is still suffering a severe skills shortage according to the Australian Information Industry Association (AIIA). The organisation’s fourth annual Digital State of the Nation survey polled AIIA members and found the strongest skills demand is in AI and cybersecurity.

Among the 2023 results, 41% of respondents were concerned about the state of the Australian economy — the highest on record and more than 10% above the 2022 result. More than one quarter (26%) were unsure if they would actively hire new staff this year, double the result from last year’s survey.

Survey respondents largely said that Australia’s education system is not providing job-ready graduates. Only 3% identified graduates as being job-ready (a drop from 5% in 2022) and, for the second year running, almost half (49%) suggested more training is needed to deliver graduates who could be effective employees. AIIA said these findings raise concerns about Australia’s current ICT training pathways.

When asked what area should be given the greatest government (state and federal) focus, respondents nominated the skills deficit (64% v 73% in 2022), cybersecurity (59%) and a digitised society and economy (57%). Respondents also wanted AI policies that promote safe and fast adoption as a priority (42%).

Employers looking to grow their business still largely intended to hire staff from Australia (69%).Those looking for overseas labour cited skills shortages as the major driver, with labour costs (17%) a less important factor. Cybersecurity skills are most in demand (52%), followed by AI (50%) and big data/analytics (41%). 

This year’s survey asked about sustainability goals for the first time. The majority (83%) said reducing the carbon footprint of their business is important, though 58% admitted that their company does not collect data or measure emissions, making realisation of improvement difficult to monitor. 

AIIA CEO Simon Bush said the results clearly highlighted major industry issues, including problems with current ICT training pathways.

“These responses are clear and encapsulating of the IT industry’s concerns. Our graduates are not job-ready, certainly not in the in-demand areas of cybersecurity and AI, which are among the hardest skills to source in the country, despite being essential for our national capabilities. We need governments to work with the industry to support digital traineeships and apprenticeships, increase support for mid-career transition, provide micro-credential passports and support women moving into tech. All of these measures are needed to improve the skill shortage situation,” he said.

“In the past 12 months there have been plenty of economic changes and increased headwinds, but it is pleasing to see there remains strong interest by ICT organisations in continuing to hire skilled staff. The importance of improving our education pathways and boosting VET and higher education retention rates can’t be downplayed.

Bush argued that technology-focused education needs to start much earlier if we are to deliver on Australia’s ambition to be a leading digital nation.

“This needs to start with critical technology and ICT literacy being taught in preschools and beyond around the country, reverse-engineering industry needs in education settings, embedding work-integrated learning in education, diversifying our workforce and encouraging the community to rethink a career in tech. No one measure will fix our skills shortage, but a concerted push to upskill Australians will provide our nation with the capabilities to be a leading digital nation,” he said.

“Our members have indicated that governments are increasingly understanding the significance of tech and innovation. But further investment in key areas such as cybersecurity, SME support, digital skills and job-readiness of graduates is needed. Recent announcements such as the National Reconstruction Fund and the Industry Growth Program are pleasing signals that the government will support early-stage entrepreneurs, innovators and researchers. These are positive steps, but many more practical steps are needed to support our vital technology sector.

“With diverse respondents to our survey representing the small, medium and multinational members, the AIIA is proud to represent such an engaged membership base. With over 200 members actively engaged with our Policy Advisory Networks and a strong response from our members to the survey, it is clear what Australia’s tech sector is seeking. The AIIA will continue to work with all governments to grow skills in Australia’s tech sector and support the continued economic growth this delivers,” he said.

The full report is available here.

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