What’s behind Australia’s decline in workplace training?

Findings from the Committee for Economic Development of Australia’s (CEDA) ‘Learning curve: Why Australia needs a training boost’ report, released last week, have highlighted a troubling decline in workplace training in Australia. 

Despite the well-documented benefits for employers and employees alike, work-related training has dropped by 14 per cent since 2007, falling in 17 of 19 industries. This decline has occurred even as participation in work-related training has increased in most other developed countries over the past decade.    

This decline in training is happening at a time when Australia is facing worker shortages, and businesses are struggling to come to terms with global megatrends including Artificial Intelligence (AI), an aging workforce and the energy transition. 

To help fill skills gaps and address these challenges head-on, investment in work-related training is critical, CEDA argues. 

CEDA’s report is a must-read for anyone working in senior management, human resources and organisational development — but if you don’t have time to sift through all 52 pages, we’ve compiled some key takeaways below. 

Why work-related training in Australia is declining

While participation in formal education in Australia has increased since 2007, work-related training has seen a steady decline. 

The key barriers to undertaking work-related training are a by-product of our dynamic and fast-paced economy: not having enough time, heavy workloads and the challenge of integrating training into daily operations are cited as key constraints in the report. 

“Time constraints are one key barrier identified by both workers and employers,” Andrew Barker, CEDA’s Head of Research said.  

“Another is concerns that staff will take their new skills to a competitor after receiving training. But our analysis found participants were actually less likely to move jobs after receiving training.”

The benefits of training for employees and employers

Training offers significant advantages for both employees and employers. 

For employees, the report found that training leads to higher incomes — on average, a 20% increase within a year of completing a training program. Employees are also more likely to stay in their current job and report higher satisfaction levels.

For employers, investing in training translates into increased productivity, greater job satisfaction for your staff, and improved retention. Employees who feel supported in their development are more engaged and less likely to leave, which is especially important in today’s competitive labour market.

How to support a learning culture in your organisation

According to CEDA, organisations must nurture a culture of continuous learning to reverse the declining workplace training trend. That’s not the only benefit though — organisations that actively foster a culture of learning tend to be more innovative, profitable, and resilient. 

So what does that look like in practice? To create an environment where learning thrives, the report recommends that organisations:

1. Identify and address barriers 

Understand the specific challenges preventing employees from participating in training—whether it’s time, resources, or a disconnect between training and day-to-day work. Once you understand what these challenges are, try and address them to make training more accessible and relevant.

2. Measure the Return On Investment (ROI) of any training you undertake

Track the impact of training programs to ensure they deliver tangible results. Measuring the return on investment (ROI) will help demonstrate the value of training, both at an individual, and an organisational level.

3. Prioritise practical skills

While compliance training is necessary, it can take up valuable time that could be better spent on attaining practical job-specific skills, like how to harness AI. The report recommends organisations better target compliance training through measures such as regular evaluation and minimising unnecessary re-training

“Employers should also take care that compliance training does not crowd out time for upskilling in more functional areas,” Andrew said. 

“Compliance training can be necessary to ensure safety, but when poorly delivered it can cut the time available to develop more practical skills.”  

What’s next?

“At a time of weak productivity growth, high skills mismatch, skill shortages and low job mobility, we should do everything we can to improve productivity and workers’ career trajectories through training,” Andrew said.

If you’re ready to create a culture of continuous learning in your organisation and ensure your workforce remains skilled and adaptable in a rapidly changing environment, we’d love to help. 

At Professional and Continuing Education, we’re experts in designing workplace training that is practical, measurable, and aligned with your organisation’s strategic goals — whether that’s leadership development, emerging digital skills, or adapting to AI. 

To learn more about how we can support your business, visit our Workforce Strategy, Education & Planning page or speak with our team today.