Labour and Skills Forecasts

Labour and Skills Forecasts for the Service Industries

To provide a detailed view of the training needs of the service industries, SSA recently engaged Monash University through its Faculty of Education Centre for the Economics of Education and Training (CEET), to develop two reports: a labour and skills forecast for the service industries and a report on productivity in the service industries.

The Labour Forecast report puts forward a set of 'baseline' forecasts for qualification requirements for the service industries based on employment needs. The forecasts are not based on "best or worst case economic scenarios" but on the assessment of the future economic conditions in Australia made in the third quarter of 2009. The forecasts draw attention to the unique characteristics of the service industries workforce and highlight that skill and employment needs are based on a complex interaction of industry growth, replacement of workers and the ongoing trends in "skills deepening".

The productivity report has been commissioned to encourage debate among stakeholders on the nature of productivity measures and their application to industry. While - on the surface - it may appear strange for a Skills Council to ask an economist to consider productivity measures, the intent behind the work is to raise the question - what do we actually mean by productivity? This question is particularly pertinent when one considers the broader ramifications of how the effectiveness of our national skilling system is harnessed, if it is to contribute to a broader increase in national productivity. The report seeks to explore a range of productivity measures as they apply to the service industries and broader Australian industry. The report also provides a brief case study on a modern service industry business and highlights how changes in this business may not be reflected in productivity measures. Service Skills Australia commends this report for consideration and we look forward to its contribution to the broader debate and workforce development agenda.

Copies of both reports can be downloaded here:

Productivity in the Service Industries

Forecast of Labour and Skills Requirements in the Service Industries