Publications - October 2010

South Australia is set to experience solid economic growth, potentially at a higher rate than the nation.

But if the state is to profit from this growth and avoid capacity constraints, the Commission believes

South Australia must have in place policies and programs to achieve a more highly qualified and

skilled workforce.

The Commission remains convinced that we must increase the proportion of South Australians with

higher level qualifications, broaden and deepen the state’s skills base, and significantly increase

employment participation.

Using the Economic Development Board’s growth forecasts, the Commission has estimated that

78,000 new jobs will be created over the five-year period of this plan (2008-09 to 2013-14), and the

number of net job openings resulting from replacement demand will be 84,000.

The combined impact of economic growth plus the need to replace workers leaving the workforce or

changing occupations will result in estimated total job openings of about 162,000 over the five years

to 2013-14.

The Commission’s modelling suggests that the combined demand for qualifications from new entrants

and existing workers will amount to an extra 293,000 qualifications over the five-year period.

The projected supply of qualifications is estimated to total 273,000 over the same period, based on

current estimates of public funding (including the extra qualifications generated by the state

government’s election commitment and the current Productivity Places Program), and the extra

qualifications gained through future overseas and interstate migration.

In comparing demand and supply of qualifications, the modelling suggests that within the higher

education sector there is likely to be a significant shortfall of 23,000 qualifications at Bachelor degree

level or higher.

In the vocational education and training sector, there is projected demand for qualifications of 185,000,

which is broadly in line with the projected supply of 188,000. However, there are some significant

imbalances between qualification levels, which will need to be addressed.

The government’s Skills for All proposal released in July 2010, which outlines a 10-point reform program

aimed at creating a fairer, more flexible and modern VET system, has drawn heavily on the policy

proposals of the Commission in its 2009 plan. The Commission commends the government’s intentions

for reform and looks forward to the final policy White Paper due for release later in 2010.

As the government finalises and implements its Skills for All agenda, the Commission urges it to

consider the policy issues discussed in this plan.