The most up-to-date research into Western Australia’s labour force reveals an ageing, gendered workforce that must diversify to address future challenges associated with technological change, automation and labour shortages.
The Future of Work: The Shifting Demographics within Western Australia’s Labour Force found while there had been many positive changes in the workforce over the past three decades – including an increase in female participation and more flexible workplace arrangements – more work was needed to protect WA against predicted skilled worker shortages in the future.
The research is the 72nd FACTBase Bulletin to be delivered by the Committee for Perth in conjunction with the University of Western Australia, as part of the Committee’s 2020-2021 major project The Future of Work: Equipping WA and its people for the changing world of work.
CEO Marion Fulker said the research showed three major factors had impacted workforce demographics in WA over the past three decades – the increase in female labour force participation, the increase in older people in the workforce (over 60 years of age) and increasing cultural diversity.
“The other ways our workplaces are changing are the increase in part-time work which is up from 15% in 1978 to 31% in 2020 and the rise of the gig economy/contract work of which 64% of workers male.”
“While these changes have helped WA respond to shifts in the economy, more work is needed to be done to ensure we are in the best possible position to respond to future changes associated with the Fourth Industrial Revolution – including automation and technological shifts.”
The report found that increasing diversity in the workforce is an important first step. And while female participation in the labour force has risen from 46.4% in 1978 to 62.5% in 2020, it is still lagging behind men at 74.3%.
“Our research shows work remains gendered – with women making up the biggest proportion of workers in the health care and social assistance, and education and training sectors, while men dominate in non-service industries including construction and manufacturing, and the professional, scientific and technical service sectors,” Mrs Fulker said.
“Women are also overly represented in retail sales and food and accommodation services – industries most susceptible to automation and technology change and among those adversely impacted by COVID-19.
“Of concern is the ever present gender pay gap and the lack of female participation in the STEM sectors.
“Promoting diversity makes sense. It provides a bigger pool of talent and workers with different skills, heightened flexibility, improved productivity and bottom line, increased labour force competitiveness and more innovation and creativity.”
Other key findings about the demographics of WA’s workforce include:
- Nearly a third of WA workers are aged over 60 years – an increase from 11% in 2000 to 31% in 2020
- More than half (54%) of workers aged over 60 years in 2020 worked part-time
- Female part-time workers made up 5% of labour force in 2000 and 16% in 2020
- Older workers have been the most impacted by the current downturn
- WA has highest proportion of workers born overseas (compared to other Australian states)
- Overseas born workers are likely to be skilled
- Indigenous Australians are under-represented in the workforce and in key sectors
The findings all present opportunities and areas where improvements should focus to try and create workforce resilience.
Some of the potential actions to help boost workforce resilience include:
- Increasing female labour force participation (reduce barriers)
- Reducing gender segregation and increase diversity and participation in STEM sectors
- Providing opportunities for workers to reskill or upskill
- Technology training – particularly for older workers
- Attracting skilled workers from overseas
- Enabling the emerging workforce to develop “future” skills
- Identifying policy responses to address underemployment
- Positive discrimination for Indigenous students and workers across sectors