National report warns that over a million jobs are at risk if digital education doesn’t catch up — fast
Australia’s economy is riding a digital wave worth $134 billion a year — but there’s a snag. We don’t have enough people with the skills to steer it.
A new report from the Australian Computer Society (ACS) says closing the country’s widening digital skills gap could unlock a $25 billion boost to national productivity. That’s not a typo. Twenty-five. Billion. Dollars. The kicker? We’re nowhere near ready.
The Tech Boom Is Real — But So Is the Skills Crisis
It’s hard to overstate how much digital capability now shapes Australia’s economic engine. Nearly 1.3 million jobs depend on it. From e-commerce to mining automation, from government services to GP clinics — tech is everywhere. And so is the talent crunch.
According to the ACS Digital Pulse 2025 report, at least 150,000 Australian businesses are underperforming because they lack the right digital muscle. The gap isn’t just on the ground floor. It goes right up to the corner office.
In a survey of 300 C-suite leaders and 1,200 workers, nearly half of executives admitted they only had “basic” digital fluency. That’s not just embarrassing — it’s dangerous.
Not Just a Tech Sector Problem Anymore
Gone are the days when tech skills were only needed in IT departments. The report highlights that the average Aussie worker now spends nearly three hours a day doing digitally-driven tasks — emails, CRMs, spreadsheets, design tools, video conferencing, app workflows. You name it.
That translates to a whopping 39% of total work time.
And it’s not just software firms struggling to keep up. Major industries like:
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Healthcare
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Retail
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Manufacturing
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Finance
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Agriculture
…are all reporting bottlenecks linked to weak digital capabilities.
One sentence. Deep breath.
CEOs Admit It: We’re Not Ready for Tomorrow
Let’s talk about the top brass. The people paid to steer the ship through digital waters. Turns out, a large chunk of them are paddling with one oar.
In interviews across the board, from mid-size firms to ASX-listed giants, senior leaders confessed they often delegate tech decisions to “the digital guy” or a young marketing intern. That might’ve been fine ten years ago. Not anymore.
Josh Griggs, CEO of ACS, didn’t sugarcoat it. “Digital skills are the foundation of Australia’s economic future,” he said. “They’re no longer optional or specialised. They’re essential.”
He’s not wrong.
The $25 Billion Question: Who’s Going to Fix This?
If you’re wondering where that big $25 billion figure comes from, it’s not pie-in-the-sky. The report models productivity gains based on international benchmarks — looking at countries like Singapore, Germany, and the UK — where digital upskilling has been systematically integrated into national policy.
Australia? We’re still figuring it out.
Here’s what the ACS report says is urgently needed:
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A national digital capability framework across industries
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Mandatory tech training modules in tertiary education
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Lifelong digital learning incentives for workers and employers
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Targeted programs for SMEs and startups to access digital coaching
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Inclusion of digital literacy in executive and board-level training
Simple ideas. Long overdue.
Where the Skills Shortage Hits Hardest
Some regions and sectors feel the pinch more than others. In rural Queensland, for example, digitising crop management is slowing down because there aren’t enough trained agri-tech workers. In Western Sydney, hospitals are pushing back digital rollout plans because nurses need retraining. In Melbourne’s outer suburbs, retail chains can’t scale because middle managers don’t understand data analytics.
Here’s a breakdown of how the shortage plays out:
| Sector | Impact of Digital Skills Gap | Examples |
|---|---|---|
| Healthcare | Slowed tech adoption in patient systems | Telehealth delays, manual records |
| Manufacturing | Low automation efficiency | Poor use of IoT, robotics |
| Retail | Fragmented e-commerce rollout | Clunky online inventory tools |
| Finance | Rising outsourcing costs | Dependence on external IT firms |
| Agriculture | Limited use of digital sensors & drones | Reduced yield optimization |
Each one is a lost opportunity — and a potential drag on GDP.
Why It’s Now or Never for Australia’s Digital Workforce
There’s something sobering in this report. Not panic, not doomsday—but a quiet urgency. A sense that Australia is at a crossroads.
Tech is evolving faster than policy. Workers are eager but unequipped. And businesses? They’re tired of half-baked pilot programs and one-off workshops.
One Brisbane-based business owner said bluntly, “We spend more time explaining digital tools than actually using them. It’s frustrating.”
That’s time lost. And time is money.
There’s still room to fix it. But that window’s closing.
