Build the workforce and skills the economy needs

Tasmania faces a workforce challenge that is sharpening rather than easing. Tasmania's labour force participation rate sits below the national average, and the Tasmanian Chamber of Commerce and Industry has estimated that lifting it to the national average would create over 11,000 jobs across a decade and add $3.7 billion to the state's economy. With projected demand for an additional 32,000 workers over the next two years on top of labour needs for major projects, the participation gap matters more each year.

Tasmania's long-standing demographic profile adds to our workforce pressures. The state has the oldest median age in Australia, and natural population decline is projected from the early 2030s. Without continued growth in the working-age population - through participation, migration and the transition of young people into work and training - Tasmania's economy will face difficulty accessing the people it needs.

Over 90 per cent of employment growth in the next decade will require a post-secondary qualification, and AI, automation and other technological changes will continue to reshape the work Tasmanians do.

Uplifting educational attainment will require a responsive tertiary education sector that is supporting pathways for young people but also lifelong learning and skills uplift as the economy changes. Tasmania has built a strong foundation to respond to these challenges. The Tasmanian Skills Plan sets clear priorities for vocational education and training, The Youth Jobs Strategy is focusing on school-to-work transitions and addressing youth disengagement. The Regional Jobs Hub network has demonstrated a business-facing, person-centred, place-based employment model helping regions thrive.

This Strategy proposes ongoing effort to support a more planned and integrated approach with government, industry, community, regions, education and training sectors.

As many of the employment and participation levers sit with the Australian Government, it will be important to ensure they are supporting and aligning their effort with the state.