SKILLS FOR ALL

Mrs GERAGHTY (Torrens) (14:14): My question is directed to the Minister for Employment, Higher Education and Skills. Can the minister inform the house about the need to improve skills levels in South Australia?

The Hon. T.R. KENYON (Newland—Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for Recreation and Sport) (14:14): I thank the member for Torrens for her question and for her deep interest in skills training—

Members interjecting:

The SPEAKER: Order!

The Hon. T.R. KENYON: She is a very strong advocate for skills training in South Australia. There have been several recent good economic indicators highlighting the resilience of our economy. South Australia currently has 5.1 per cent unemployment; state final demand rose by 1.7 per cent over the March quarter; retail trade rose by 0.5 per cent during April; and South Australia's exports increased by 8.8 per cent in the 12 months to April.

However, we know that our economy has the potential for further growth if we can get more people into training for jobs and in those areas where we know there will be skills shortages. The Training and Skills Commission predicts that growth in our economy, combined with replacement demand for jobs, will result in 163,000 job openings over the next five years. Of these, 69,000 will be new and 94,000 job openings will result from people leaving the workforce.

These skills shortages are further exacerbated when you take into account the 260,000 South Australians that we need to reach to encourage them to engage in learning and work, and participate in the workforce. This group includes 115,500 people who are currently underemployed and who want to work more, another 97,800 people who want to work but who are not actively looking for work, and a further 46,500 people who are unemployed and looking for work. These are the people we need to reach if we are going to improve South Australia's participation rate, which currently sits at 62.9 per cent in trend terms. This is an unacceptable number for South Australia and it cannot continue.

Raising the participation rate in South Australia requires a significant contribution from all the major players—businesses, industry, individuals and, of course, the state government. The greatest potential lies in increasing participation amongst those people currently not engaged in the labour force at all. The profile of the most disadvantaged people in these groups is typically those people facing long-term unemployment or other significant barriers to participation, including basic literacy and numeracy skills.

The state government's Skills for All reforms, kicking in from next month, include a number of initiatives designed to remove the financial barriers to training, as well as providing support to these groups and encouraging greater participation in the workforce. About 400 fee-free courses at certificate I and II levels, as well as English language, literacy and numeracy courses, will be offered for the first time to give people foundation level skills to get into further training and gain employment. Skills for All will also support those who may face economic and social barriers to finding work by helping them start their training through adult community education.

In addition, 26 STEM field courses in science, technology, engineering and maths related areas, which have been identified as priorities for the state, will also be fee free for the first time from July. Those 26 fee-free courses include a Certificate III in Telecommunications, vital to ensuring the successful rollout of the National Broadband Network throughout South Australia, and an Advanced Diploma of Computer Systems Technology, critical for jobs in our growing defence industry. The importance of our advanced manufacturing industry is also supported by a Diploma of Electrical Engineering.

It is critical that our two strategies, Skills for All and STEM, align with our public and private investment in research and development to support our advanced manufacturing and services sectors. The state government is embarking upon the most significant reforms to the vocational education and training sector in South Australia's history, with our Skills for All reforms a key weapon in lifting our participation rate.