Ageing of Australian population will result in 1.65% annual growth of labour demand as export shifts to services by 2030

Australia’s economy would be shifting in just over a decade from mining to services. This change would worsen the skills shortage and result in a 1.65 percent yearly growth for labour by 2030 when 20 percent of the country’s population would be over 65 years old, says a new ANZ report.

The report, "Servicing Australia's Future," says the country’s export would focus on health, education, tourism and professional services by 2030 on account of its greying headcount, reports ABC. These services would have the strongest growth prospects expected at 6 percent annually to 2030.

To meet the manpower demands of these sectors, ANZ acting chief economist Richard Yetsenga says, presents challenge how to fund the tertiary education sector. He explains, “The technology argument hasn’t considered the implications of an economy shifting from producing goods to producing services, increased health spending to support an ageing population, and new services export opportunities in Asia.”

Yetsenga says the growth in education demand would be a major challenge to tertiary funding. It is important to secure investment on education from the private sector. He adds that partnerships between business and universities would ensure development of a workforce fit for a future economy driven by services.

The report pushes for redirection of mining investments to fund the development of services companies, specifically in the fields of computer software and research. During this period, the share of the services sector to the Australian economy would grow from the current 72.4 percent to 77.3 percent, reports Financial Review.

As companies compete for more skilled and educated workers with technological edge, there must be some adjustments that business need to make. These include adopting more flexible approach to work arrangements such as more employees being allowed “work-from-home” arrangements and more part-time jobs available.

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