Australia’s workforce is evolving fast and so are the challenges and opportunities that shape it. The Jobs and Skills Report 2025: Connecting for Impact – Aligning Productivity, Participation and Skills offers a comprehensive look at the nation’s labour market, drawing on deep evidence and engagement to help governments, educators, industry and communities plan for the future.
Connecting for impact is about building bridges; between skills and jobs, education and employment, productivity and participation. Australia’s future prosperity depends on how well we align these forces.
Unlocking inclusive participation is essential to both productivity and social cohesion. Structural and regional barriers continue to hold people back, from training and job-readiness gaps to transport and infrastructure challenges. The report identifies where targeted, data-driven interventions can make the greatest impact to lift participation and improve equity across the nation.
From the rise of Gen AI to inclusive participation and regional challenges. Connecting for impact covers the critical forces reshaping how Australians work and learn. It highlights that service industries have driven nearly 90% of employment growth over the past decade, a trend projected to continue through 2035. As higher-skilled roles expand, we expect to see greater participation across the VET sector.
Gen AI is augmenting work rather than replacing it. While some tasks are being automated, most roles are evolving, demanding stronger digital literacy and human-centric capabilities such as communication, adaptability and critical thinking.
Students participating in VET training have significantly improved income and employment outcomes. This is true for both students who partially complete qualifications, and for graduates, noting that outcomes and income uplift are even greater for graduates.
Transitions between vocational education and higher education are increasing as learners pursue more flexible, lifelong pathways. Tertiary harmonisation efforts are improving credit recognition and qualification alignment, particularly benefiting underrepresented groups.
With its clear, evidence-based insights, the Jobs and Skills Report 2025 serves as a strategic compass for Australia’s workforce future, helping shape a more inclusive, skilled and resilient economy for the years ahead.
Download the report for many more insights.
