By Dr Nigel Palmer Senior Policy Manager, Skills and Education

 

The skills needs of employers fundamentally amount to two things: the availability of skilled workers, and the relevance of their skills for the contemporary world of work. Our labour market is a dynamic one. Workforce needs continue to evolve, as do patterns of participation in education and training. The capabilities available in the workforce also depend on the availability of relevant training opportunities. A dynamic skills environment creates both challenges and opportunities for employers. Staying attuned to these shifts is crucial if employers are going to be able to keep pace with changing workforce needs.


Meeting skills needs

Meeting skills needs in a dynamic economy requires a combination of strategies, including proactive recruitment, investment in training, engagement with education providers and appropriate calibration of Australia’s skilled migration program. It also depends on the effectiveness of programs and initiatives aimed at helping employers meet their skills needs. These include the programs and incentives that attract and retain apprentices and trainees, and support their success.

Traditional educational models are being complemented by micro-credentials, online learning offerings and industry-led training activities. Work-integrated learning opportunities, including apprenticeships, traineeships, internships and industry placements have become a central feature of pathways to meaningful work through education and training. The responsiveness of these offerings, and innovation in the ways we recognise and communicate evidence of attainment, will be crucial if we are to support diverse pathways to education and work in the broadest possible sense. These pathways also need to be responsive to industry needs. Employers play a crucial role in the development and, often, the delivery of learning opportunities instrumental in building and sustaining a skilled economy.
 

The Workforce Skills Survey

The Business NSW Workforce Skills Survey first ran in 2017. This survey considers the challenges NSW employers are facing in meeting their skills needs, the impact of those challenges, and how employers are responding in a dynamic and changing environment. The survey arose as an adjunct to the NSW Business Conditions survey; the flagship survey for Business NSW that has run successfully for fifteen years. Findings from the survey inform our contribution to public policy on a range of issues, including vocational education and training, apprenticeships, traineeships, industry engagement with education providers, skilled migration and related considerations pertinent to promoting participation in education and work, and sustaining a skilled economy.

The 2024 Workforce Skills Survey captured a range of valuable insights on the issues an challenges NSW employers face in meeting their skills needs. You can watch a video of the report launch here. That survey found a shortage of skills across NSW, with 77% of employers struggling to recruit the people they need. Ongoing shortages continue to have an impact, with 38% of employers facing significant challenges as a result. The 2024 survey also highlighted the broader range of issues and challenges that employers face when unable to meet their skills needs. This includes working longer hours, challenges in meeting service objectives, increased operating costs and the risk of losing business to competitors. The survey also explored the skills needs of employers and the preparedness of graduates in meeting those needs.

Business NSW has just launched its Workforce Skills Survey for 2025. Conducting this survey on an annual basis means we can track changes in the NSW labour market, see the impact of our advocacy efforts and ensure that NSW employers continue to have a voice in skills, education and workforce development. This year’s survey take a fresh look at workplace capabilities in the context of evolving skills needs. It brings a particular focus to supporting NSW apprentices and trainees, and to the evolving role of digital capabilities in the contemporary workplace.

Findings will help keep pace with a dynamic and changing labour market, and inform improvements to programs and services that help employers meet their skills needs. By participating in this survey, employers have a unique opportunity to contribute to a broader understanding of the state's skills ecosystem. The survey is currently available to all employers across NSW. Last year, the majority of survey responses were completed in under 15 minutes. It takes a few minutes more for employers of apprentices or trainees. If you could spare that time again this year it would be greatly appreciated. The survey closes on Friday, October 10th, 2025.