The Australian Bureau of Statistics (ABS) and Statistics New Zealand (Stats NZ) have announced upcoming changes to their occupational statistical classifications. The Australian and New Zealand Standard Classification of Occupations (ANZSCO) was jointly developed by the ABS, Stats NZ and the then Australian Government Department of Education, Employment and Workplace Relations.
While maintaining overall comparability, each country will introduce its own tailored classification system to better reflect local labour markets and address stakeholder needs.
In Australia, the new system will be called the Occupation Standard Classification for Australia (OSCA). The first version of OSCA will be released on Friday, 6 December 2024.
Why the Change?
Several factors have driven the move to separate, yet aligned, classification systems:
- Diverging Labour Markets: The differences between Australia’s and New Zealand’s labour markets have grown significantly since the joint classification system, known as ANZSCO, was introduced in 2006.
- Missed Updates: Stats NZ was unable to participate in targeted updates to ANZSCO in 2021 and 2022, and the comprehensive review conducted by the ABS over the past four years has revealed different requirements for each country.
- Stakeholder Needs: Both ABS and Stats NZ have identified different solutions to meet the evolving demands of their respective stakeholders.
What Happens Next?
OSCA will replace ANZSCO starting December 6, 2024, in order to modernise the occupation classification system and better align it with Australia’s labour market needs. Designed to enhance accuracy, flexibility, and usability, OSCA will play a crucial role in various applications, such as informing policy development to address workforce skill shortages, creating Vocational Education and Training initiatives like the Australian Apprenticeships Priority List, and guiding skilled immigration through occupation lists for visa programs.
Takeaways
The introduction of OSCA brings significant benefits for both skilled migrants and employers. It improves alignment with labour market needs, accurately reflecting occupations critical to Australia’s economic growth. This clarity on in-demand roles will make the visa application process more streamlined and transparent, allowing applicants to demonstrate their qualifications more easily. Employers will benefit from a more accurate and flexible system for identifying the skills they require, which will enable more effective recruitment from local and global talent pools.
Additionally, OSCA’s ability to adapt to future labour market trends means that skilled migrants and employers can expect ongoing updates to reflect changes in demand for specific occupations and industries, ensuring that the migration system remains relevant in a rapidly changing economic landscape.