Australian employers prioritise basic over advanced digital skills

A new analysis by Indeed's APAC Economist, Callam Pickering, highlights that Australian employers are currently prioritising workers with basic digital skills over those with expertise in artificial intelligence.

Data from the Indeed Hiring Lab shows that during the 2023-24 financial year, 11.6% of Australian job postings mentioned basic computer skills in their descriptions, whereas artificial intelligence was referenced in only 2.2% of postings and generative AI in merely 0.07%.

Despite 33% of Australian workers feeling "excited" and 43% "capable" about integrating AI into their work, many employers still focus on recruiting individuals with fundamental computer competencies.

Basic digital skills are particularly sought after in sectors such as administrative assistance, accounting, and logistic support, according to Indeed's findings. These sectors frequently highlight these requirements in job descriptions.

Callam Pickering's analysis indicates that the lack of basic digital skills can significantly hinder jobseekers, especially given the prominence of online platforms like Indeed for job searching and application processes.

As digital skills are projected by Jobs and Skills Australia to grow rapidly in importance, individuals without these capabilities may face marginalisation in the job market.

Indeed examined job postings that mentioned basic computer skills by looking for phrases like "computer skills", "computer literacy", and references to Microsoft Office software to understand their prevalence across various sectors.

A considerable variation exists within sectors regarding the requirement for basic computer skills. Sectors such as administrative assistance often list these skills as prerequisites, although some roles may not explicitly require them, perhaps assuming applicants already have them.

In 2023-24, office-based roles had the highest share of postings requiring basic computer skills, led by 41% of roles in administrative assistance, 37% in accounting, and 36% in logistic support.

Conversely, in-person roles in sectors such as beauty & wellness, physicians & surgeons, and childcare rarely mention such skills, underscoring the lesser emphasis on digital literacy for these professions.

In the realm of software development, low mention rates (6.9%) of basic digital skills may reflect a higher focus on advanced technical competencies for these roles.

An analysis of specific job titles within various sectors showed broad discrepancies in digital skills requirements, revealing a lack of uniformity, even within similar job roles.

Administrative assistance roles like branch administrators (94%) and documentation officers (78%) frequently require basic computer skills, whereas roles like assistant coordinators (1.9%) do not.

The customer service sector displays a wide range of digital skill needs, with roles like medical collectors (96%) requiring them, contrasting sharply with overnight customer service representatives who seldom need them.

In retail trade, while only 5.6% of postings cite these skills, roles such as assistant buyers (81%) and inventory managers (44%) tend to list them as necessary.

Management roles also show diverse digital skill requirements, with site administrators (65%) often needing these skills, unlike project leader II or department heads.

Basic computer skills continue to be crucial for the Australian job market, as tangible examples like computer literacy and proficiency in Microsoft Office are considered fundamental.

This trend aligns with similar patterns observed in the job markets of the United States and United Kingdom, highlighting a global concern regarding the need for digital skill development.