Skills Demand Signals RTOs Should Watch in 2025

The vocational education and training (VET) sector plays a crucial role in shaping the workforce of tomorrow. As we move towards 2025, the landscape of skills demand is rapidly evolving, with new technologies, changing workplace expectations, and shifting economic priorities. For Registered Training Organisations (RTOs), staying ahead of these trends is not just important – it’s essential for delivering relevant, high-quality training that meets industry needs.

In this blog, we will explore the key skills demand signals that RTOs should be aware of as we approach 2025. These insights will help RTOs optimise their training resources, adapt their training materials, and stay compliant with evolving industry standards.

The Changing Landscape of Skills Demand

The world of work is undergoing a profound transformation. Technological advancements, particularly in automation, artificial intelligence (AI), and digital platforms, are reshaping the skills required by the workforce. According to the Australian Industry Group’s 2023 report, over 75% of Australian businesses have seen an increased demand for digitally skilled workers. This is just one example of how technology is pushing the envelope on skill development across industries.

RTOs must ensure they are not only aligning their training packages with these trends but are also anticipating the skills needs that will emerge as these technologies mature.

1. Digital Skills: The Cornerstone of 2025 Training

As Australia continues its digital transformation, digital literacy is becoming a foundational skill across all sectors. According to the National Skills Commission’s 2024 report, demand for workers with advanced digital skills is expected to rise sharply, particularly in fields like information technology, cybersecurity, and data analysis.

RTOs are already facing pressure to update their training resources to include these skills. For example, integrating modules that teach coding, cloud computing, and data science into existing training packages could ensure that learners are equipped with the skills they need to thrive in the digital economy.

Actionable Insight for RTOs:

RTOs should focus on enhancing their RTO training resources with up-to-date digital skills content. This might involve revisiting accredited training materials and ensuring that the curriculum includes emerging technologies like blockchain, AI, and machine learning.

2. Soft Skills: The Increasingly Important ‘Human Touch’

While digital skills are crucial, the need for soft skills like communication, problem-solving, and emotional intelligence is just as vital. A 2023 PwC report highlights that employers value interpersonal skills almost as much as technical expertise, with many positions requiring a blend of both. As automation and AI increasingly handle routine tasks, it is human creativity, decision-making, and leadership that will set workers apart.

RTOs need to ensure that their training materials are equipped to address these needs. Soft skills are integral across nearly every industry, from healthcare to construction, and offering courses that integrate these aspects into vocational training packages will better prepare students for the demands of the modern workforce.

Actionable Insight for RTOs:

Develop training materials that include soft skill-building exercises and assessments, ensuring students can not only perform tasks but also communicate effectively and collaborate in teams. Training packages should blend technical skills with interpersonal competencies.

3. Sustainability and Green Skills: An Industry Shift Towards Environmental Responsibility

As global environmental concerns continue to escalate, the demand for sustainability and green skills has become more prominent. In Australia, industries ranging from construction to energy are embracing sustainability in their operations. The Australian Bureau of Statistics 2024 report notes that ‘green collar’ jobs are on the rise, especially in sectors like renewable energy, waste management, and green construction.

For RTOs, this signals a growing need to include sustainability-focused training in their curriculum. Updating RTO training resources to reflect sustainability principles—such as energy efficiency, waste reduction, and sustainable design—will help prepare students for the future job market.

Actionable Insight for RTOs:

Update your training packages to include sustainability-focused content. RTOs can leverage assessment tools to ensure that students demonstrate an understanding of environmental regulations and sustainability best practices. This approach will make the training more relevant to emerging industries and align with national policy objectives on climate action.

4. Health and Aged Care: Preparing for Australia’s Ageing Population

With Australia’s population continuing to age, the healthcare and aged care sectors are expected to see significant growth. According to Jobs and Skills Australia, aged care employment is projected to increase by 17.5% over the next five years, and the National Skills Commission reports that nearly 100,000 new workers will be needed in the sector by 2026.

RTOs providing healthcare and aged care training must ensure their resources reflect the latest developments in care practices, including aged care compliance, mental health, and person-centred care. This includes ensuring that vocational education in these areas is continuously updated to meet industry standards and regulatory requirements.

Actionable Insight for RTOs:

RTOs should revise RTO training materials in the healthcare and aged care sectors regularly to ensure they include up-to-date practices, compliance requirements, and culturally sensitive care standards. This ensures students graduate with skills that meet the industry’s growing needs.

5. Building and Construction: Meeting Demand for Skilled Trades

The building and construction industry is experiencing a surge in demand, driven by both residential and infrastructure projects. According to the Construction Industry Skills Forecast 2024, skilled trades are in high demand, with shortages in areas like plumbing, electrical, and carpentry. As the industry evolves, RTOs must ensure their training resources and programs reflect both current and future needs, including advanced construction technologies and sustainable building practices.

The need for compliance with industry standards remains essential, with the National Construction Code (NCC) and Australian Standards setting the framework for building practices. Ensuring that RTOs stay aligned with these codes is crucial to preparing students for successful careers in construction.

Actionable Insight for RTOs:

Focus on updating training materials that cover both traditional skills and new technologies, such as Building Information Modelling (BIM), smart homes, and sustainable building practices. Offering assessment tools that reflect industry standards and emerging trends will ensure RTOs remain relevant in this fast-paced sector.

Conclusion: RTOs in 2025 and Beyond

As we look ahead to 2025, RTOs will play a critical role in equipping students with the skills needed to navigate an ever-evolving job market. By staying on top of skills demand signals, such as the need for digital literacy, soft skills, sustainability, healthcare expertise, and skilled trades, RTOs can ensure they remain at the forefront of vocational education.

For RTOs, this means continuously updating RTO training resources to match current and future industry needs. It also means investing in compliant, innovative assessment tools and ensuring training packages are flexible and responsive to the shifting demands of the economy.

By keeping a keen eye on these trends and adapting accordingly, RTOs can help shape a workforce that is skilled, adaptable, and ready to take on the challenges of tomorrow.

For more insights on RTO training resources and how to stay ahead of industry trends, visit VET Resources.