Late last month Jobs and Skills Australia (JSA) released its National Skills Taxonomy Discussion Paper.  In it they note that “a skills taxonomy is the practice of organising skills into distinct categories or clusters based on their definition. Skills taxonomies can vary in their detail, structure, and definitions. The features of a skills taxonomy are dependent on their intended use.”

JSA believes that developing a National Skills Taxonomy, or NST, “will offer a common language and understanding of skills, connect the education, skills, and employment sectors and create a truly integrated domestic skills system that supports better outcomes for Australians.”

The discussion paper itself points to the importance of skills development to help address skill needs and shortages and “empower individuals to transition between jobs and industries.” It also suggests that “the development of the NST is seen to assist in the connection of a joined up tertiary system, recognising the importance of closer collaboration between vocational education and training (VET) and higher education for Australia’s skills formation.”

The paper is organised into 4 sections:

  • The case for change, including the context in which the NST is being developed (Section 1)
  • Potential use cases, vision and principles for the NST (Section 2)
  • Considerations for the design, development and implementation of an NST (Section 3), and
  • Next steps for stakeholders and JSA following this consultation (Section 4).

According to the paper, skills and their development are at the centre of Australia’s education system and labour market. Nevertheless, challenges persist in responding to needs. Translation barriers in addressing skills mismatches and gaps include:

  • “Skills shortages in critical occupations and roles
  • Slow adoption of new or emerging technology and practices
  • Employers unable to identify which individuals have the right skills
  • Individuals lacking the right mix of skills for available jobs
  • Disjointed career and educational pathways for individuals
  • Underinvestment by businesses and individuals in professional development and lifelong learning, and
  • Individuals not adequately prepared for transitions into further education or employment.”

There are a number of skills taxonomies already in use which draw on those from Australia and overseas, including the US, Europe and Singapore.

It’s argued that an NST can help:

  1. Enhance career planning and development
  2. Support skills-based hiring
  3. Inform training product and course design
  4. Simplify and streamline skills recognition
  5. Identify, understand and plan for future skills demand
  6. Inform strategic business decisions
  7. Develop workforces and
  8. Define workforce roles

However, according to the paper, it will need to be comprehensive, interoperable, evolutionary, integrative, accessible, contextualised and dynamic.

Building it will be complex and the paper suggests a number of design decisions are needed, including:

  • How should skills be defined?
  • What level of granularity is required?
  • What level of information and other attributes should be attached to a skill?
  • Should proficiency and/or levelling be reflected? And how?
  • What should be emphasised in the taxonomies’ organising structure?
  • How should the taxonomy align with other existing taxonomies? And finally
  • What additional features should be considered?

It also requires a governance model and consideration as to how skills will be identified and then validated.

The paper has a lot of detail, so give it a careful read and maybe add your voice to how it should come together.

Contributing to the debate: How can you do it?

JSA are interested in your views on:

  • “the benefits and limitations of existing skills taxonomies
  • how an NST could help across education, training or the labour market
  • the principles and key features you want in an NST
  • what data should inform an NST and how it should be maintained.”

A range of events are being held during July. Readers can also make a submission. Submissions close on 9 August.