To meet this challenge, universities are developing specialised training programs that align closely with industry requirements, ensuring that employees are equipped with the skills needed to thrive in a rapidly changing job market.

Leading the charge is the University of Melbourne with its portfolio of programs for professional learning and development for organisations.

Often co-designed to meet the needs of corporate Australia, its courses are tailored to equip employees with the specialised skills needed in fast-evolving sectors like technology, renewable energy, and advanced manufacturing.

By aligning training with industry-specific requirements and industry capability frameworks, the university is helping businesses bridge the skills gap, enhance workforce agility, and remain competitive in a rapidly changing job market.

“Universities are not usually known to do training, particularly workforce training, so the idea of workforce training usually equates with skills or capability development,” says Professor Josephine Lang, academic director of micro-credentials at Melbourne Professional Education. “That is probably the first problem universities have because they think they are not dealing with skills.”

The concept of micro-credentials is helping to change that mindset. “Micro-credentials provide a mechanism for us to explore how we can do that better,” says Lang. “Once you get over the idea that universities can do capability development for workforce training, the next big challenge is working with employers and industry groups to identify workforce planning and training needs.”

Lang says universities have long been effective at developing research partnerships but have been slower to build relationships focused on teaching, learning, and workforce training. “That is only now starting to happen because we are dabbling in the space of micro-credentials.”

The University of Melbourne is offering businesses greater flexibility in workforce training through bespoke learning solutions tailored to industry needs. Rather than a one-size-fits-all approach, organisations can access customised programs that align with their specific challenges and objectives.

This includes masterclasses, curated conversations, and micro-credentials, all designed to provide targeted, job-ready skills in a format that suits both businesses and employees. By adapting content, mode, and delivery to employer requirements, the University is ensuring companies can upskill their workforce efficiently and effectively in a rapidly evolving job market.

Rapid industry change is another challenge for higher education providers. “The workforce is changing, the nature of work is changing, everything is in a state of flux, and universities are adapting as well,” says Lang. “We are grappling with big megatrend factors - sustainability, technology, digital transformation, disinformation, and social unrest - that are also influencing the workforce.”

She says universities can help businesses keep pace with change by translating cutting-edge research into practical training. “What universities are able to provide is to think about how the work we do at the cutting edge, in terms of research, can translate to support what employers and industry groups need. That is the space we can occupy for workforce training and development.”

For businesses looking to upskill their workforce, flexibility is key. The University of Melbourne collaborates closely with organisations to design tailored training solutions that address specific industry needs. Rather than traditional long-term study pathways, companies can access targeted, practical learning experiences that employees can apply immediately in the workplace.

Through short courses, micro-credentials, and bespoke programs, the university helps businesses ensure their teams stay ahead of industry shifts, equipping them with the latest knowledge and skills to drive innovation and competitiveness.

Micro-credentials reshape upskilling

Lang says micro-credentials are emerging as a key solution. “We are playing with micro-credentials as that mechanism for professional learning and development, and we are connecting it back to the cutting edge of research,” she says. “At the moment, we are playing around with cyber and thinking about how to support industry groups in ensuring their organisations are cyber secure.”

The same approach applies to sustainability. “We have professors around the world contributing to international climate reports and research, and they can translate that information into workplace learning with micro-credentials,” says Lang. “That helps industry understand what sustainability means in practical terms.”

With demand for specialised workforce training growing, universities are rethinking their role in helping businesses adapt to change. “We are starting to put micro-credentials in place to support different industry groups,” says Lang. “The workforce is changing, and universities are stepping up to meet the challenge.”

As Australia transitions into an increasingly technology-driven economy, digital skills are no longer confined to the tech sector - they are fundamental across all industries. AI, automation, and digital infrastructure are reshaping workplaces, but the country’s education and training system is struggling to keep pace.

Damian Kassabgi, CEO of the Tech Council of Australia, says these skills shortages are impacting businesses and what needs to be done to bridge the gap.

“Australia is undergoing a seismic shift - technology is becoming central to every industry, from healthcare to advanced manufacturing,” says Kassabgi. “But while the demand for digital skills is surging, our supply of qualified workers isn’t keeping up. That’s creating significant pressure on businesses.”

Industry partnerships

A national shortage of software engineers and developer programmers has persisted for four years, highlighting the scale of the challenge.

“Specialist tech skills are still some of the hardest to recruit,” he says. “For four years running, software engineers and developer programmers have been on the national occupation shortage list. And it’s not just core tech roles - sectors like digital infrastructure are also struggling to find talent, particularly in electrical trades and network infrastructure.”

The rapid adoption of AI is adding another layer of complexity. “AI-powered tools are changing the way we work - streamlining workflows, unlocking new problem-solving approaches, and shifting the focus to higher-value tasks,” says Kassabgi. “This is great for productivity, but it also means that digital literacy is becoming a core requirement for a modern workforce.”

Australia has set a target of 1.2 million tech jobs by 2030, but hitting that milestone requires significant reform in education and training. “The reality is that traditional education pathways aren’t evolving fast enough to keep up with industry demands,” he says. “Companies are finding it increasingly difficult to hire workers with job-ready digital skills, and that’s slowing down innovation and economic growth.”

To address the gap, many organisations are developing in-house training programs. “Businesses can’t afford to wait, so they’re creating their own talent pipelines,” says Kassabgi. “Work-integrated learning models - where employees gain hands-on experience while they train - are becoming more common, but we need a more coordinated approach to workforce development.”

Industry-led credentials and training initiatives have emerged to fill the void, but Kassabgi says they can’t replace formal education. “Industry is stepping up to offer short courses and certifications, but these shouldn’t be seen as a substitute for nationally recognised qualifications,” he says. “The best approach is a combination - blending industry expertise with structured training pathways.”

Industry partnerships, such as the Institute for Applied Technology – Digital (IAT-D), demonstrate the impact of collaborative learning models.

By bringing together Microsoft, NSW TAFE, and leading universities, these programs ensure training is directly aligned with employer needs - delivering micro-credentials that are practical, up-to-date, and job-ready.

“This model works because it’s designed with direct input from industry,” says Kassabgi. “It offers micro-credentials that are practical, up-to-date, and aligned with real-world job requirements.”

Kassabgi says that stronger collaboration between government, education providers, and industry leaders is the key to closing the skills gap. “If we want to future-proof Australia’s workforce, we need to build more partnerships like IAT-D,” he says.

“That means scaling up industry-aligned training programs and ensuring students graduate with the skills employers actually need.”

With tech transforming industries at an unprecedented pace, the stakes are high. “This isn’t just a challenge for tech companies,” says Kassabgi. “Digital capability is now essential across every sector. If we get this right, we’ll unlock new opportunities for workers and keep Australia competitive in the global economy.”

To find out more, please visit the University of Melbourne.