In a new report, titled ‘Servicing Australia’s Future’, ANZ warns Australia might face a substantial shortage in skilled labour by 2030 due to a shift in the economy.
From a predominantly industrial-based economy, Australia has now formulated its modern structure around health, education, tourism and professional services.
According to the report, by the year 2030, 20 per cent of the Australian population is expected to be older than 65. The more the population ages the likelier it is for the economy to lean towards skilled anthropocentric services.
Many mining investments would be redirected to fund development of services companies, in areas including computer software and research.
“The technology argument hasn’t considered the implications of an economy shifting from producing goods to producing services, increased health spending to support an ageing population, and new services export opportunities in Asia,” acting ANZ chief economist Richard Yetsenga said in a statement.
“These forces will create substantial change in the Australian labour market.”
The projected growth in health, education and professional services 15 years from now will reach six per cent and as a result, Australian society will require professionals with a high level of education, posing many financial challenges.
“As education demand grows, a major challenge will be tertiary funding. Securing private sector investment will be vital, with partnerships between business and universities more important than ever to ensure we develop a workforce fit for a services-driven economy,” Mr Yetsenga said.
ANZ said a growing service sector could change the distribution of wealth, with demand for labour in services and a contraction in capital-intensive industries like mining supporting “a recovery in the labour share of income”.
Meanwhile, projected demand for labour will also continue to rise, at a pace of 1.6 per cent per year, something which could balance the current growing income inequality.
However, while the economy is constantly adapting to new drivers, career paths tend to not be as linear and simple as they once were.
This translates to continuously up-skilling and learning transferable skills which can be used in a number of roles, sectors and markets.