Australian Retailers Association

Response:

Are there other design considerations that could further strengthen JSA’s ability to provide advice to government?

The ARA supports the proposed structure and governance design, as outlined in the discussion paper. We particularly support the ability to appoint additional deputy commissioners as needed to lead short term projects or to focus on a particular sector or geographic area. 

The ARA expresses interest in being part of the tripartite advisory body, noting that as an industry association, we represent the retail sector, the largest private sector employer in the country. 

Retail employs one in ten Australians and powers the economy to the extend of $400 billion each year. So the current labour and skills crisis in retail potentially has a powerful ripple effect across the whole economy. We would like to ensure this is a positive ripple effect, rather than a negative one. 

Response:

What principles could be used to guide JSA’s priorities, and the development of its workplan?

It is the ARA’s view that JSA needs to focus on outcomes in terms of delivering jobs as well as ensuring training meets the needs of industry and the broader jobs market.

To deliver an improved outcomes for employers and employees alike, we believe that increased investment in skills and training needs to be matched with an equal commitment to increasing participation rates in employment. This is particularly relevant among groups that remain under-represented in the workforce, including women, youth, older Australians, First Nations Australians and people living with disability, as well as migrants and those from a culturally and linguistically diverse background. 
There need to be clearly defined short-term goals for JSA, balanced with longer-term vision so that we ensure Australians are appropriately skilled for a rapidly changing economy, particularly noting the changes being made across the economy to respond to climate change. 

In terms of a guiding principles for JSA we recommend the following:
1.	Data and evidence need to inform the agency’s objectives, goal setting and planning for Australia’s workforce, both in the short and long term.

2.	Day to day functions and operations must be focussed on meeting current market and sector-specific demand for labour and skills, as informed by industry consultation.

3.	Objectives must be aligned with and support overall economic policy objectives. For example, ensuring Australia has a skilled workforce to assist in the transition to a net-zero carbon economy and able to adapt to changing technology and market developments.

Response:

How could JSA seek broader input into the development and refinement of its workplan?

The ARA recommends the establishment of an advisory committee, drawn from key stakeholder groups, to provide guidance and feedback as JSA develops and refines its workplan. We would welcome an opportunity to sit on this type of advisory body or similar stakeholder reference group.

Response:

How could JSA engage tripartite partners, experts and other interested parties in its major studies?

The ARA would welcome the opportunity to engage and participate in research conducted by JSA. We recommend that JSA drive this engagement process via outreach to relevant stakeholders and potential partners as well as by issuing open expressions of interest. 

Noting that the tripartite approach includes engagement with states and territories, we recommend that JSA works closely with jurisdictions to ensure that studies match the needs for information nationally as well as in local markets, noting that there are diverse needs across the country. 

Response:

No response provided.

Response:

How can JSA expand its engagement to include a broader range of skills and industry stakeholders in its work?

As noted, the ARA recommends the creation of an advisory body, to guide development of JSA’s work plans and to also enable formal, structured consultation with industry stakeholders. We note that there is a balance to be struck between being inclusive and fully representative while also giving appropriate weight to industries or sectors with large workforces. We suggest that representation on the tripartite body is carefully considered to ensure that a balanced approach is achieved so that it can provide meaningful advice. 

The ARA also supports an expansion of JSA’s engagement to include a broader range of skills. The retail sector has historically suffered from an assumption that frontline retail roles are unskilled. While it is true that many frontline roles do not require specialised qualifications, our experience is that there is high demand for general skills for entry level roles in the retail sector, including basic numeracy and digital literacy and soft skills such as the ability to manage relationships and conflict. 

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No response provided.

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No response provided.

Response:

INTRODUCTION

The Australian Retailers Association (ARA) welcomes the opportunity to comment on the establishment of Jobs and Skills Australia (JSA) following passage of the Jobs and Skills Australia Bill in October 2022. 

The ARA is the oldest, largest and most diverse national retail body, representing a $400 billion sector that employs 1.3 million Australians, making retail the largest private sector employer in the country. As Australia’s peak retail body, representing more than 120,000 retail shop fronts and online stores, the ARA informs, advocates, educates, protects and unifies our independent, national and international retail community. 

We represent the full spectrum of Australian retail, from our largest national and international retailers to our small and medium sized members, who make up 95% of our membership. Our members operate across all categories - from food to fashion, hairdressing to hardware, and everything in between.  

The ARA also has a proven track record training and upskilling the retail sector through our Registered Training Organisation (RTO) the Retail Institute, which marked 30 years in operation in 2022. As Australia’s leading provider of vocational training and professional development for the retail sector, the Retail Institute provides accredited and non-accredited training, short course workshops, online micro-courses and customised in-house training programs for our members across the country.

The retail sector continues to be impacted by labour and skills shortages that pre-date the pandemic. Retail job vacancies have increased significantly across the past year and the scale of the labour crisis impacting retail continues to worsen with the most recent ABS figures reporting 49,900 vacancies across the sector in November 2022.  

Coupled with historical underinvestment in vocational training for frontline retail roles, the sector continues to struggle to attract the talent it needs to drive productivity and maintain strong growth.

The ARA’s view is that broad engagement with jobseekers that are currently under-represented in Australia’s labour market is urgently needed to meet the challenges facing the retail sector. The ARA also believes that this engagement must be supported by investment in skills and training 

In this context, the ARA makes the following recommendations in terms of JSA’s guiding principles.

1.	Data and evidence need to inform the agency’s objectives, goal setting and planning for Australia’s workforce, both in the short and long term.

2.	Day to day functions and operations must be focussed on meeting current market and sector-specific demand for labour and skills, as informed by industry consultation.

3.	Objectives must be aligned with and support overall economic policy objectives. For example, ensuring Australia has a skilled workforce to assist in the transition to a net-zero carbon economy and able to adapt to changing technology and market developments.

In the ARA’s recent pre-budget submission to Treasury, we also made the following recommendations to government in relation to addressing the labour and skills shortage in our sector.

1.	Reduce record-high vacancies for front-line retail roles by: 
•	supporting the design and delivery of customised employment pathways for recently arrived migrants; and
•	providing customised pre-employment training with wrap-around support services for the long-term unemployed.

2.	Create meaningful employment pathways for refugees with support services to ensure a smooth transition into the retail workforce and Australian community.  

3.	Drive more skilled migration for hard-to-fill retail roles by: 
•	creating pathways to permanent residency for skilled migrants; and
•	reforming management of the Skilled Migration List, to improve outcomes for government and industry.

4.	Help the retail sector build a more skilled workforce by: 
•	directing more VET funding to private RTOs who provide the bulk of training to the retail sector;
•	continuing to provide wage subsidies of 30% in the first year of retail traineeships; and
•	reinstating completion bonuses for retail traineeships.

The establishment of JSA is therefore welcome. 

The ARA makes the following recommendations in response to the JSA discussion paper, informed by consultation with members of the ARA’s Advisory Committee on Employment and Skills. 
Thank you again for the opportunity to provide a submission to the Department. We look forward to further engagement as discussions progress on this important initiative and would welcome meeting with you to discuss the ARA’s potential participation in the tripartite advisory body. 

Any queries in relation to this submission can be directed to our policy team at policy@retail.org.au.