3.3 Build the digital capability of Victoria’s workforce

Developing a digitally skilled workforce is critical to take advantage of new technologies and improve labour productivity.

Digital skills are needed to engage with a wide range of technologies in work and life. Almost 90 per cent of the workforce, including in health, retail, manufacturing and agriculture need digital skills; for example, to use productivity software tools such as spreadsheets or messaging and collaboration tools.

Acquiring strong digital skills requires good knowledge of digital processes and tools and learning that is contextualised in a work setting. In Victoria, through the Skills Solutions Partnerships program, RMIT, Grampians Health and Cisco are piloting a new co-designed approach to uplift digital capabilities that are specific to the health workforce and looking into new approaches to deliver digital training across health occupations.

Leveraging digital technologies, including Artificial Intelligence (AI) tools, could improve labour productivity. For example, AI helps health care professionals improve diagnoses and monitor patients’ vital signs.²⁵ To make the most of these opportunities, Victorians must have the digital knowledge and skills needed to use and adapt to new technologies.

The demand for advanced digital skills is growing

From 2014 to 2022, the Victorian technology workforce increased by 100,000 to reach 279,000 workers and employment is expected to keep growing over the next decade. Information technology (IT) encompasses a range of technologies and systems that store, receive or send information.²⁶

AI, machine learning and generative AI tools are impacting skills needs and reshaping IT jobs. Around 39 per cent of Victorian IT businesses use AI and Machine Learning and nearly 30 per cent of IT job advertisements in Victoria mention the need for cloud computing skills and 15 percent mention the need for cyber security skills.²⁷

Emerging digital skills are in demand among IT occupations

Responding to the rapidly changing digital skills needed in IT jobs is essential

Given the rapid changes in skills needed to keep pace with emerging technology in IT jobs, learners and businesses are increasingly using internal or industry-specific training, in addition to formal qualifications.

The Victorian Government is making significant investments to boost the digital skills of the state’s workforce. This includes the Digital Jobs program, Free TAFE courses in IT and cyber security, and shorter forms of training including the Victorian Government Cyber Internship Program, and the Women in Security Program.

Vocational education can do more to deliver knowledge and skills that prepare students to engage with current and emerging technologies.

The Future Skills Organisation (FSO) is responsible for developing national VET training products for the technology workforce and is currently undertaking a review of the ICT Training Package.

In developing the training package, consideration should be given to the following principles to improve the employability of graduates:

• Broader outcomes would allow learners to adapt to new and emerging technologies. Adopting an international common language for digital skills that describes skills and competencies, such as the Skills Framework for the Information Age (SFIA), rather than specific software or tools would help Australia align with global best practice.
• More applied project-based learning would support students to develop better problem-solving and analytical skills to meet industry standards
• More co-design with industry would help learners develop relevant skills for jobs in demand.

Boosting female participation in digital careers is important

Women are under-represented in the IT industry. In Victoria, women comprise only 28 per cent of the technology workforce and 17 per cent of the cyber security workforce.²⁸

The Victorian Government is working to boost female participation in IT training and in the IT sector. More women in the IT sector will help meet skills needs and contribute to greater diversity and productivity.

The Digital Jobs program is helping more women move into technology careers, with women representing 59 per cent of program participants and accounting for the majority of the participants who then move into digital roles.²⁹

The Victorian Women in Security program is helping more women move into in-demand cyber security roles by providing training, career coaching and mentoring.³⁰

The SummerTech LIVE program supported 500 tertiary ICT students and recent graduates start their technology careers through 10-12 week paid studentships at small-to-medium sized Victorian businesses.³¹

The success of these programs can be leveraged to inform skilling responses that attract more women into IT training and in-demand jobs such as cybersecurity as well as increase the representation of women in leadership roles in the industry.

Micro-credentials co-designed with industry build the pipeline of digital talent

Micro-credentials continue to successfully up-skill workers with full qualifications, particularly in IT.

The Digital Jobs program has re-skilled over 5,000 mid-career Victorians for jobs in the digital economy. The program offers 12 week of micro-credential training delivered by leading training institutions including Victorian TAFEs. Victoria University Polytechnic and Bendigo Kangan Institute have offered Digital Jobs micro-credentials in key areas including cyber security, programming, software development and IT operations and support. The program has helped participants move into higher paying jobs in the digital economy.