Hands-on skills are critical to energy industry: report

Recent research from Powering Skills Organisation (PSO) has indicated that Australian productivity is being hampered due to skills shortages in the energy sector. One crucial finding was that technology and automation cannot replace much of the industry’s hands-on work.

PSO’s report, ‘Productivity and Skills: Exploring their unique relationship in the energy sector’, shows that workforce shortages are slowing productivity across energy, infrastructure, housing and clean energy projects because workers must complete much of the sector’s work in person, onsite and under strict safety requirements.

PSO's Chief Executive Officer Anthea Middleton said Australia cannot solve its productivity challenge without investing in skilled energy workers.

“While technology may improve productivity in some industries, energy workers still need to build, maintain and connect the systems Australia relies on every day,” Middleton said.

“When businesses cannot access enough skilled workers, projects slow down, costs rise and productivity suffers.”

According to PSO, electrician shortages present a major problem as demand for clean energy and electrification skills grows. While many workers want to upskill, the research found that they struggle to access additional training because of cost pressures, heavy workloads and limited flexibility.

On the bright side, the report identified practical reforms that could lift productivity without increasing workforce pressure: these include stronger post-trade training pathways, national licensing for electricians and clearer professional development frameworks.

Middleton said governments and industry could deliver immediate economic benefits by strengthening workforce capability.

“If Australia wants to lift productivity, we need to back the workforce that powers the economy,” she said.

“Investing in skills and training delivers one of the fastest and most practical opportunities to improve productivity outcomes.”

Image credit: iStock.com/Thurtell