QS Quacquarelli Symonds has released its inaugural World Future Skills Index with Australia being recognised among the top-performing countries across the globe.
The QS World Future Skills Index evaluates how well countries are equipped to meet the evolving demands of the international job market by measuring four main points:
- Skills Fit – how well the education system aligns with the needs of industry and employers
- Academic Readiness– how well a country is positioned to deliver the skills necessary for future industries
- Future of Work – the readiness of a country’s job market to recruit for the most in-demand skills of the future
- Economic Transformation– how ready a country’s economy is to leverage the next wave of skills-led industrial growth
Australia
QS analysed 81 countries, finding that Australia lies fourth overall when all four indicators are considered and is deemed a Future Skills Pioneer[1].
| QS World Future Skills Index – Top Performers | ||||||
| Country/Territory | Skills Fit | Academic Readiness | Future of Work | Economic Transformation | Final Score | Category |
| United States | 94.4 | 98.2 | 100.0 | 97.9 | 97.6 | Pioneers |
| United Kingdom | 100.0 | 100.0 | 95.6 | 92.7 | 97.1 | Pioneers |
| Germany | 89.2 | 99.6 | 94.7 | 94.7 | 94.6 | Pioneers |
| Australia | 87.2 | 98.9 | 96.5 | 90.6 | 93.3 | Pioneers |
| Canada | 90.9 | 97.8 | 97.4 | 78.1 | 91.0 | Pioneers |
| Netherlands | 88.6 | 99.3 | 90.4 | 81.2 | 89.9 | Pioneers |
| Switzerland | 80.7 | 97.1 | 82.6 | 96.8 | 89.3 | Pioneers |
| France | 84.8 | 92.6 | 91.3 | 84.3 | 88.2 | Pioneers |
| Singapore | 83.2 | 91.7 | 92.2 | 85.4 | 88.1 | Pioneers |
| South Korea | 84.4 | 88.4 | 76.5 | 100.0 | 87.3 | Pioneers |
| China | 78.5 | 93.9 | 87.8 | 88.5 | 87.2 | Pioneers |
| Spain | 76.4 | 96.3 | 93.0 | 70.8 | 84.1 | Pioneers |
| Israel | 70.6 | 93.0 | 73.0 | 98.9 | 83.9 | Pioneers |
| Sweden | 80.4 | 95.1 | 72.2 | 86.4 | 83.5 | Pioneers |
| Japan | 73.4 | 87.9 | 74.7 | 95.8 | 83.0 | Pioneers |
| Belgium | 72.4 | 95.9 | 71.3 | 91.6 | 82.8 | Pioneers |
| Ireland | 81.8 | 95.5 | 86.1 | 67.7 | 82.8 | Pioneers |
| Denmark | 73.0 | 96.7 | 66.1 | 93.7 | 82.4 | Pioneers |
| Hong Kong SAR | 77.0 | 98.6 | 69.5 | 80.2 | 81.3 | Pioneers |
| Italy | 70.3 | 97.4 | 85.2 | 69.7 | 80.7 | Pioneers |
The Index shows that Australia performs well in each of the four indicators.
Skills Fit —Score 87.2/100
Australia shows significant progress in aligning its skills landscape with industry demands, especially in areas like digital literacy, AI, and cybersecurity. Through initiatives like the Digital Skills Organisation Pilot, Australia is focusing on equipping its workforce with advanced digital competencies. However, there is still a gap in ensuring broader inclusivity across rural regions.
Academic Readiness—Score 98.9/100
Australia is a global leader in academic research and innovation, particularly in AI and digital transformation. Institutions like the University of Melbourne and Australian National University have established themselves as key players in AI education. The Australian government has been actively funding AI and digital technologies through its AI Roadmap, aiming to increase research output and prepare students for future industries.
Future of Work —Score 96.5/100
Australia is excelling in the transition towards a green economy, with policies focused on sustainability and renewable energy. Programs such as the Green Skills Agreement focus on training the workforce in sustainable practices, preparing them for the evolving job market. The emphasis on integrating green skills into vocational and higher education demonstrates Australia’s readiness for future challenges.
Economic Transformation —Score 90.6/100
Australia’s economy is highly adaptive, with a strong focus on digital and green infrastructure. Investments in digital connectivity, renewable energy, and industrial innovation are shaping Australia’s capacity for economic transformation. While economic growth remains strong, continued focus on diversifying into emerging sectors is crucial.
In addition, Australia achieves a perfect score (100.00) in Workforce Readiness one of the sub-indicators of Economic Transformation, which consists of unemployment rate, labour potential/talent availability and gross graduation ratio/higher education output.
Between 2017 and 2023 demand for green skills worldwide increased by 230%, AI skills by 200% and digital skills by 100%, data from QS 1Mentor has found. Australia’s 2024 Universities Accord noted that the tertiary education system needs to “quickly leverage resources and meet urgent, targeted skill needs” and invest steadily in longer-term skills and innovation capability.”
QS’ analysis revealed a positive alignment between the skills higher education institutions are providing and those most in demand by employers.
Matteo Quacquarelli, Vice President of Strategy & Analytics at QS, said “The statutory body Jobs and Skills Australia is clear that the country’s higher education system, together with other vocational education and training sectors, needs to develop a well-equipped and thriving workforce that enhances lives and provides value for employers. “The QS World Future Skills Index demonstrates that Australia’s universities are already doing this better than many higher education systems around the world.”
The research undertaken by QS also measures the preparedness of key industries to embrace future skills.
Quacquarelli said, “An area where stakeholders need to focus is around sustaining growth in AI, sustainability and digital industries. Investment in infrastructure, R&D and workforce capabilities is vital in this regard.”
The analysis recommends that Australian higher education providers:
- Establish lifelong and personalised learning paths for students
- Implement modularised learning, advancing curricula in alignment with the skills necessary for future innovation and aligning academia to industry needs
- Develop targeted international research partnerships aligned to local industry needs to drive research innovation and deliver economic growth
In turn, the Australian government should:
- Leverage the strength of higher education to attract international talent to fill short-term, high impact skills gaps within economies
- Introduce smart and targeted immigration policy to enable these high-skilled workers to contribute to society, gaining the work-based skills to thrive on returning home
- Connect industry and higher education’s capacity for research innovation and foster partnerships to drive economic stimulus and industrial diversification
Quacquarelli concludes, “Australia is a leader in academic research and innovation in AI and digital transformation fields, as demonstrated in the QS World University Rankings by Subject 2024: Data Science and Artificial Intelligence where six universities feature among the global top 50.
“Initiatives such as the AI Impact Navigator framework for companies, the 2024 National Science Statement and strategic AI-focused agreements with partners such as Singapore highlight Australia’s commitment to driving the next wave of industrial advancement. Our analysis offers targeted recommendations for policymakers and higher education leaders, emphasising the need to strengthen essential skills, invest in critical sectors, and proactively address potential workforce shortages in emerging industries.
“Currently, the demand for AI, green and digital skills is already outpacing supply. Without immediate action, this gap could widen, posing significant challenges for future economic growth.”
The QS World Future Sills Index briefing paper can be seen here.
[1].The QS World Future Skills Index classifies economies into four categories based on their overall performance: Future Skills Aspiring, Practitioner, Contender, and Pioneer.
