Future-proofing Australia’s workforce by growing skills in science, technology,
engineering and maths (STEM) /April 2015

A smart moveor 5.1mJobs at risk fromdigital disruption

Innovation and STEM
education are key tofuture growth$57.4bn
Increase in GDP if we shiftjust 1% of our workforce into
STEM roles.

pwc.com.au

PwC | A smart move2

Contents

01

Overview................................................................................. 4

02

The need to act......................................................................... 603

The critical role of STEM.........................................................1404

The benefits of growing STEM .................................................1705

A framework for action...........................................................21

PwC | A smart move3

OverviewAfter a sustained period of economic
prosperity, Australia is facing some toughchallenges. Slowing growth, declining
real wages, falling productivity, and theend of the mining boom, to name a few.
At the same time, businesses are coming
to terms with the massive disruptive
impact that digital technologies arehaving on business models, supply chainsand customer behaviour.
These changes are putting major pressure
on the Australian workforce, and thecompanies that rely on it.
Building on cutting edge work
undertaken at Oxford University, newanalysis by PwC shows that 44 per cent(5.1 million) of current Australian jobs
are at high risk of being affected bycomputerisation and technology overthe next 20 years.
In order to realise our potential
for innovation, Australia needs anappropriately skilled workforce; aworkforce fit for the future.
Businesses competing in a global economy
driven by data, digital technologies andinnovation will need more employees
trained in science, technology,
engineering and mathematics (STEM).
Research indicates that 75 per cent of thefastest growing occupations now require
these skills.1

Unfortunately, Australia is lagging on anumber of key STEM indicators. STEM
university completions are flat, thenumber of Year 12 students studying
STEM subjects is declining and businesses
are struggling to find STEM employees.
The benefits of a stronger commitment
to STEM are many. It would help meetworkforce needs, better equip workers
with vital skills for the future and drive
innovation and productivity. It would alsodeliver economic growth.
Modelling by PwC finds that shifting
just 1 per cent of the workforce into
STEM roles would add $57.4 billion to
GDP (net present value over 20 years).
This report argues the case for growing
the STEM workforce and outlines
some of the benefits and impacts forbusinesses specifically and the Australianeconomy broadly.
And it calls on business, including PwC, totake a leading role alongside government
and the education sector in order todeliver the STEM outcome Australia needs
to remain a competitive, innovative andprosperous nation.

PwC | A smart move4

PwC | A smart move5

The need to act
Australia is waking up to the fact that the good times can’t go on forever.
In the face of economic challenges and a digital revolution that’s reshaping
business and the workforce, we need to act.

The economic challenges are significant.
Australia’s recent economic history is truly
impressive. The twenty four-year period
from 1991 to 2015 is one of the longest
continuous economic expansions of any
developed country.2
Our prosperity during this period wasunderpinned by two key factors. One was
the economic reforms of the 1990s, which
drove productivity growth and createdthe foundation for long-term economic
success. The other was the China-led
surge in demand for commodities during
the 2000s, which saw Gross Domestic
Product (GDP) grow by 44 per cent.3
But in the wake of the GFC and the endof the commodity boom, Australia has
become something of a victim of its
own success. While the first ten yearsof growth were fuelled by genuine
innovation and hard-won reforms suchas trade liberalisation and a national
competition policy, growth in the second
decade was largely good luck.
We now face significant economic
challenges that are both circumstantial andstructural: slower GDP growth, declining
real incomes, low productivity growth,
declining employment, sluggish global
growth and rising shortfalls in tax revenue.

Governments are finding it difficult
to fund the services we expect – goodschools, a strong health system, effective
public infrastructure and a safety net for
those that need it the most. Unless there’s
substantial action towards addressingthese fiscal pressures, Australians can
expect to see their standard of living
deteriorate over the coming decades.
We’re at an inflexion point.
The opportunity to move towards a moreinnovative, productive and sustainableeconomy is in front of us and we needto respond.

“Growth from productivity
almost halved in the 2000s
as we rode the commodity
boom. But where will
the next wave of growthcome from?”
Jeremy Thorpe, PwC

PwC | A smart move6

Sources of growth in Australian income
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%

1960s
Labour utilisation

1970s

1980s

Terms of trade

1990s
Net foreign income

2000 to 2013
Productivity

Source: Dr Martin Parkinson (2014) ‘Enhancing Our Living Standards Through Tax Reform’, speech to the BusinessCouncil of Australia/PwC Tax Reform Forum, Sydney, 11 September

PwC | A smart move

7

PwC | A smart move8

Digital is disrupting
everything
Inextricably woven into the fabric of oureconomic future is the impact of digital
disruption, arguably the most significant
mega-trend of the 21st century. Digitaltechnologies are radically changing theway we live, consume and work.
For example:
Machine learning, which allows
computers to make intelligent
decisions by processing massive
amounts of data, will be asource of major productivity
gains. This will have significant
implications for traditional
workforces.4
3D printing stands to potentiallydisrupt traditional supply chainsby lowering the cost of ‘where’
and ‘how’ manufacturing isdone. An estimated 41 per centof air cargo and 37 per cent ofocean cargo are threatened by
3D printing.5
Crowdsourcing, enabledby online social networks,
is creating a new humanresource model by allowing
companies to engage with a
globally distributed workforce
to complete tasks on demand
and at scale.6

Businesses and institutions alike areworking hard to adapt. How we respondto these changes will go a long way
to determining the effectiveness ofAustralia’s businesses and the prosperity
and well-being of our society.
Top threats to growth according toAustralian CEOs

79%

concerned about the impact
of changes in core technology

74%

worried about cyber risks

74%

say availability of key skills– including technology skills– is a threat

67%

concerned about the speed oftechnological change

PwC | A smart move9

Jobs are at risk
One of the major implications of digital
disruption for Australia is the impact
it will have on our workforce. Many of thejobs people work in today simply won’t
exist in the next decade, either entirely,or at the same number.
Building on cutting edge work
undertaken at Oxford University,7 newanalysis by PwC shows that 44 per cent(5.1 million) of current Australian jobs
are at high risk of being affected bycomputerisation and technology overthe next 20 years.
By ‘high risk’ we mean there’s a greaterthan 70 per cent chance the job could be
automated by technology. 8

Jobs most likely to be affected are thosewhere computer learning systems or
robotics are able to perform simple androutine tasks faster and more accurately
than humans. These typically include
unskilled or low-skilled activities in
offices, factories and shops. For example:
data entry, operating a checkout,bookkeeping, doing simple officeadministration and operating machinery.9
The impact on the Australian workforce
will be significant not only for employees
but also for businesses, which are
already struggling to find appropriately
skilled talent.

Australian jobs most at risk from computerisation and technology in next 20 years
Probability of
being automatedNumber ofworkers affected

Accounting clerks/bookkeepers

97.5%

263,348

Checkout operators/cashiers

96.9%

128,745

General office administration workers

96.1%

284,171

Wood machinists

93.4%

31,081

Financial and insurance administration workers

93.1%

128,425

Farm, forestry and garden workers

92.5%

106,017

Personal assistants and secretaries

92.4%

137,917

Sales administration workers

91.1%

56,964

Keyboard operators

87.1%

59,852

Hospitality administration and support workers

85.5%

248,862

Sales assistants and salespersons

85.2%

698,780

Real estate sales agents

85.2%

70,673

Factory process workers

84.6%

52,631Fabrication trades workers

84.3%

90,039Receptionists

83.9%

169,371

Clerical and office Support workers

83.8%

114,710Printing trades workers

82.9%

23,930

Mobile plant operators

82.8%

127,298

Food preparation assistants

82.5%

154,438

Food process workers

82.2%

63,072

Glaziers, plasterers and tilers

81.4%

60,977

Food trades workers

80.7%

173,639

Automobile, bus and rail drivers

80.5%

94,946

Machine operators

80.1%

83,757

Occupation

Derived from Oxford University study, PwC analysis

PwC | A smart move 10

Jobs that will likely be
automated in the next
20 years

97.5%
Accounting clerks andbookkeepers

96.9%
Checkout operators

96.1%

General office support eg data
entry, mail92.4%
Personal assistants
and secretaries

92.5%

Farm and forestry workers

PwC | A smart move 11

A workforce for the future
As Australia looks towards new sourcesof growth in a rapidly changing global
economy, we need to start building aworkforce fit for the future.
But what does the workforce of the
future look like? And where should we befocusing our attention? Identifying jobs
that have a low risk of being automated isa good place to start.

Modelling shows that the jobs most
likely to endure over the next couple ofdecades are ones that require high levelsof social intelligence, technical ability
and creative intelligence. This includes
doctors and nurses, teachers, engineers,and information communication andtechnology (ICT) professionals, andmanagers.

Australian jobs least at risk from computerisation and technology in next 20 years<1%

Doctors, nurses and midwives

Probability of
being automatedNumber ofworkers affected

Medical practitioners

0.4%

89,754

Education, health and welfare managers

0.7%

75,082

Midwives and nurses

0.9%

301,762

Advertising, Public Relations andsales managers

1.5%

126,616

Database and systems administrators, andICT Security Specialists

3.0%

34,764

Education professionals

3.3%

56,264

ICT managers

3.5%

57,184

Tertiary-level teachers

3.6%

116,001

School teachers

4.0%

407,693

Engineering professionals

4.2%

132,736

Legal professionals

6.5%

82,552Social and welfare workers

6.8%

123,933

Accommodation and hospitality managers

7.2%

100,765

Construction, distribution andproduction managers

8.2%

258,794

Child carers

8.4%

130,510

ICT network and support professionals

9.7%

49,688

Occupation

Jobs unlikely to be
automated in the next
20 years<1%

Education, health andwelfare managers

3.5%

ICT managers

Derived from Oxford University study, PwC analysis

4.0%

School teachers

4.0%

Engineers

PwC | A smart move 12

But what about the jobs we don’t
yet know we need, the jobs of the
future? The rapidly changing natureof technology and global competition
makes it difficult to predict precisely whatthese will be.
What we do know, however, is thattechnology and innovation, which aretransforming our economy whether welike it or not, are key to solving both ourworkforce and our growth challenge.
For example, in 2013 data-driven
innovation added $67 billion to theAustralian economy, or 4.4 per centof GDP.10 And innovation and digitaltechnologies have the potential toincrease Australia’s productivity and raise
GDP by $136 billion in 2034, and create
close to 540,000 jobs.11

Australian business leaders intuitively
understand this. More than 80 per centbelieve innovation is the main driver tocreating a competitive economy and thebest way to improve productivity.12 But weneed to lift our game; the OECD recently
rated Australia as only ‘average’ in its
competency and capacity to innovate.13
In order to realise our potential, Australia
needs a workforce that is technologicallysavvy and able to innovate. And one of
the best ways to do this is by improving
capabilities in STEM.

PwC | A smart move 13

The critical roleof STEMA STEM education underpins
innovation and plays a criticalrole in economic and businessgrowth. But Australia is lagging
on key indicators of STEM.
In order to realise our potential
for innovation, Australia needs anappropriately skilled workforce.
Businesses competing in a global economy
driven by data, digital technologies
and innovation will need more STEMtrained employees. Research indicatesthat 75 per cent of the fastest growing
occupations now require STEM skills,14
and over 70 per cent of Australian
employers identify STEM employees as
being among the most innovative.15
There will also be a growing need for thebroad skills that STEM fosters. Criticalthinking and problem solving, analytic
capabilities, curiosity and imagination
have all been identified as critical ‘survival
skills’ in the workplace of the future.16

What counts
as STEM?
There is no universally agreed
definition of what counts as a STEM
education or field of occupation.
In Australia it’s generally considered
to include an education at the
Bachelor level or higher in thefields of:• natural and physical sciences• information technology• engineering and related
technologies• mathematics.
From an economic view however,qualifications at the Diploma level
and in related fields can also be
important to consider, including:• architecture and building• agriculture, environmental
and related studies• health.

PwC | A smart move 14

STEM underpins innovation
Countries that lead in STEM education
also rank high on innovation. Germany,for example, ranks third in the OECDin terms of graduates in STEM fields,compared to the US which ranks
33rd.17 In 2011 Germany produced
53 patents per 1000 researchers,
while the US produced 39.18
Sweden, which has a reputation forsuccessfully commercializing innovative
research, including seat belts, pacemakers
and Skype, has a STEM-focused education
system. 90 per cent of Swedish students
attend highly digitally equippedschools and each year several thousand
teachers attend national STEM-focusedtraining centres.

In the US the Obama administration
recently announced over $240 million
in new private-sector commitments toinspire and prepare more students –especially those from underrepresented
groups – to excel in STEM fields.
The ‘Educate to Innovate’ campaign has todate resulted in over $1 billion in financial
and in-kind support for STEM programs.
By developing the right infrastructure andteaching capabilities, these countries are
growing a workforce of the future thathas the core skills and competencies fordriving innovation.

Leading businesses get it too• Computer networking giant Cisco
this year announced a five-year,$31 million program to increase
the pool of talent with STEM skills
in Australia.
• BHP Billiton last year launched
a $28.8 million CSIRO education
program aimed at increasing
interest and achievement among
Aboriginal and Torres Strait
Islander students in STEMrelated professions. More recently
they have announced a further$22 million commitment over
five years to encourage girls to
study maths.
• Microsoft has just announced its
first flagship store outside the US
would be in Sydney; the company
said it was committed to being partof the fabric of the community andwould offer training workshops andsupport STEM education.
• Recently, the IBM Foundation
announced support for bringing
its highly acclaimed P-TECH
schools model to Australia, withpilots announced for Ballarat andGeelong in Victoria.

PwC | A smart move 15

We could be doing much better
Despite these and other positive
initiatives, Australia overall is lagging
behind many of its OECD peers on anumber of key indicators for STEM.
Year 12 participation in STEM subjects
is declining. Over the twenty-year
period from 1992 to 2012 there was afall in participation of 11 per cent forintermediate mathematics,19 10 per centfor biology, 5 per cent for chemistry and7 per cent for physics.20
Enrolments and completions in university
STEM courses have remained flat over theperiod 2001 to 2013. Non-STEM, on theother hand, has grown steadily.
In 2012 in the highly innovative
manufacturing nation of Singapore,
52 per cent of university graduates werefrom a STEM-related course. In Australia
the proportion was just 16 per cent.

While these results are a concern, it’s
important to recognise that education is
one of a number of ways to boost STEM
skills. Alternatively, Australian businesses
could reskill current employees or bringtalent in from overseas. In fact, it has beenargued that at the global level, there’s no
shortage of STEM skills. Rather, there’s
just a location mismatch. For example,
there may be a shortage of electricalengineers in the UK but a large andgrowing supply in India.
What is clear, however, is that thecountries with a strong track record ininnovation also tend to have a strong
commitment to STEM education
and as a result a strong pipelineof STEM workers.

Number of students completing degrees in STEM*
250,000
Non-STEM Completions
STEM Completions
200,000

150,000

100,000

50,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: Department of Education (C’th), PwC analysis.
*STEM qualifications includes degree completions in natural and physical sciences (including mathematics), information technology, engineers and related
technologies, architecture and building, and agriculture, environmental and related studies.

PwC | A smart move 16

The benefits ofgrowing STEM
Growing STEM would help
businesses meet workforce needs,
better equip workers with vital skills
for the future and drive innovationand productivity. It would alsodeliver economic growth and higher
wages for STEM workers.

Modelling by PwC shows that if
Australia were to target a similar
growth trajectory to competewith STEM leaders like Germany,
126,327 Australian workers – or
1 per cent of the current workforce –would need to move into more STEM
occupations by 2035.23

We know Australia needs to grow its
STEM workforce. The shift away frommining-led growth to knowledge, services
and construction is well underway.
For example, the services industries
account for the majority of the Australianeconomy.21

This means that over and above thecurrent expected number of graduates,
we would need to train: an additional
20,500 new engineers, 17,500 businessand system analysts and programmers,
13,500 construction, distribution andproduction managers, 12,000 naturaland physical scientists, 9,500 architects,
designers, planners and surveyors, and53,000 workers in other STEM fields.

Additionally, Australia expects tospend over $100 billion in new
infrastructure projects over the next
five years. The demand for engineers
and construction managers alone will
be significant.
But what is an appropriate STEM target
across the whole economy? We looked
to countries considered to be leadersin STEM, to see what they consider
reasonable targets for accelerated
workforce growth.
According to the European Centre forthe Development of Vocational Training,
demand for STEM skills in Germany could
potentially be as high as 7.6 per cent morethan forecast.22

To put these numbers in perspective,
in 2014 the University of Melbourne’s
Faculty of Science had 6,500 graduate
and undergraduate students enrolled.24
Australia would need at least anotherdedicated science faculty of comparable
size to reach the STEM target.
The table on the following page shows
the 10 STEM jobs that would grow themost if Australia met the accelerated
STEM target.25

PwC | A smart move 17

Top 10 jobs that need to grow to achieve STEM target by 2035
Estimatedbaseline
workers in 2035

Number ofadditional
workers in 2035

Percentage
growthEngineering professionals

175,484

20,596

11.7%

Business and systems analysts,
and programmers

186,631

17,672

9.5%

ICT network and support
professionals

66,833

6,043

9.0%

Database and systems
administrators, and ICT security
specialists

46,805

3,861

8.2%

Natural and physical science
professionals

149,009

11,856

8.0%

ICT and telecommunications
technicians

82,102

5,803

7.1%

ICT managers

77,146

5,247

6.8%

Architects, designers, planners
and surveyors

155,550

9,700

6.2%

Building and engineering
technicians

164,930

8,348

5.1%

Construction, distribution andproduction managers

329,242

13,563

4.1%

Job

Source: PwC

PwC | A smart move 18

More STEM workers would deliver
an economic boost
Growing Australia’s STEM workforce
would also deliver a sustained boost to
the economy. This is because higher skill
workers create more valuable goods andprovide more valuable services than lower
skilled workers. They can then sell theseat higher real prices and command higher
wages for doing so.
Modelling by PwC shows that if
Australia were to develop a STEM
workforce in line with other leading
STEM countries, it would generate,in present value terms, an additional$57.4 billion in GDP over the next 20
years.

That’s roughly equivalent to our motor
vehicles and parts industry, and almost
twice as big as our aircraft manufacturingindustry.
While the benefit of this boost would
be felt right across the economy, someindustries stand to gain more thanothers. The professional, scientific andtechnical services industry would see
the biggest gain with an additional$21 billion (net present value) of output.
The benefit for the mining industry
would be marginal given that the mining
construction boom is now over andoperations are not as heavily reliant on
STEM occupations.

Benefit to key industries as a result of increasing the STEM workforce
Additional output (NPV,$AUD million) over andabove baseline by 2035

Cumulative growthover and above
baseline percentage

Professional, scientific and technicalservices

21,070

1.1%

Information media andtelecommunications

4,821

0.6%

Financial and insurance services

12,013

0.5%

Construction

6,123

0.4%

Electricity, gas, water and waste
services

1,539

0.3%

Manufacturing

4,107

0.2%

Wholesale trade

2,233

0.2%

Rental, hiring and real estate services

1,664

0.2%

Retail trade

1,321

0.2%

Administrative and support services

1,072

0.2%

Transport, postal and warehousing

1,018

0.1%

Public administration and safety

803

0.1%

Arts and recreation services

183

0.1%

Mining378

0.0%

Industry

Source: PwC

PwC | A smart move 19

Real wages growth for key STEM jobs
A stronger STEM workforce will also havea positive impact on wages growth. STEM
occupations tend to be relatively higher
paying, reflecting higher productivity;
expanding the STEM workforce will resultin a growth in higher paying jobs.
Engineers could expect to see an almost
2 per cent increase over and above
baseline growth each year, with businessand systems analysts and programmers
enjoying 1.4 per cent annualised growthin wages above baseline.

For example, if Australia increased its
STEM workforce in line with global
peers, business and systems analysts
and programmers on an average incomeof $100,000 in 2015 could expect to beearning $149,000 by 2035 - this wouldmeans be an additional $8000 per year,
over and above projected wage growth.

Additional wages growth over 20 years if we increase the STEM workforce

Occupation

Cumulative growthover and above
baseline percentage

Engineering professionals

1.8%

Business and systems analysts, and programmers

1.4%

ICT network and support professionals

1.3%

Database and systems administrators, andICT security specialists

1.1%

Natural and physical science professionals

1.1%

ICT and telecommunications technicians

1.0%

Air and marine transport professionals

1.0%

ICT managers

1.0%

Architects, designers, planners and surveyors

0.8%

Building and engineering technicians

0.6%

Source: PwC

Australia stands to gain significant benefits by building the STEM workforce. But thiswill be no mean feat. Industries and institutions will need to create new STEM roles;
workers will need to be re-skilled and redeployed.
So, how do we do it?

PwC | A smart move 20

A framework
for action
There are many voices in the STEM
debate. What’s clear is that no
single group can solve the problem
on its own. Business, government
and educators need to plan andwork together to create the STEM
workforce Australia needs.

Business must playa leading role
Australian businesses already have an
important role in building an innovation
ecosystem through providing venture
capital and R&D. But they also have a roleto play when it comes to STEM education.
After all, they will be the ones fighting for
STEM talent if we continue down the pathof flat growth. Here’s how they can help.

Engage, influence and connect
Driving change through the education
system is challenging. And in the caseof STEM it needs to begin with a clear,shared understanding and belief in theimportance of the challenge and theinnovation outcomes we’re striving for.
This starts with more open discussions
between business and education leaders.

In terms of policy reform, business is wellplaced to help move the agenda forward
through thought leadership and advocacy.
In particular, they can provide dataand insights to help governments makeevidence based policy decisions.

Innovate
Advances in technology have thepotential to disrupt education in thesame ways they are disrupting entire
industries. Business is at the forefront of
this change. How can they bring thoseskills to the table and combine it withthe deep knowledge of our educators, tounearth new solutions in the challenge ofeducating to innovate?

Scale
While the importance of STEM has gained
increasing prominence of late, the issue
is not new. Many long-standing initiatives
are in play and new ones are emerging.
The challenge is not a lack of solutions butof identifying and scaling the solutions
that can achieve rapid and nationallevel change.
Perhaps the most important rolefor business is to apply its expertisein growth and expansion, and inparticular in adapting solutions to
new markets.

Business also has the opportunity to better
connect with students. This can be done
by profiling emerging STEM careers,
talking about workforce needs, offering
workforce and internship experiences
and breaking down the stereotypes andbarriers that still remain today. It’s notnew, but scope exists for a much morecoordinated approach to engaging withthe potential STEM workforce.

PwC | A smart move 21

The skills that business brings to the table
include: evaluating initiatives likely to
succeed, developing rapid scale solutions
and mobilising resources to makechange happen.
This is not just about identifying
philanthropic programs for businesses
to support. It’s about creating an
ecosystem of high potential commercial,semi-commercial and philanthropic
solutions – both within and external tothe education system.

The benefit ofleadership on STEM
As digital technologies continue to disrupt,
and as Australia looks for new avenues ofgrowth, a growing number of businesses
will be facing a STEM skills deficit. Businesstherefore needs to be part of a collective
effort to create the scale of change required.
Those that engage now will be those thatreap the rewards.

PwC | A smart move 22

Methodology
PwC undertook computable general equilibrium (CGE) modelling to arrive at
the conclusions contained in this report. CGE models recognise that complex
macroeconomic mechanisms and inter-industry interactions exist in the economy.
It can be used to estimate the direct, indirect and induced impacts of different STEM
scenarios on the national economy, including on specific industries and occupations.

Endnotes1	‘Effects of integrative approaches among STEM subjects on students’ learning’, Becker, K. and Park, K.,
Journal of STEM Education Volume 12 – Issue 5 & 6, July-September 20112	Garnaut, R. (2013). ‘Dog Days: Australia After the Boom’, Redback Publishing, Collingwood, Victoria.
3 Minifie, J. (2013). ‘The Mining Boom: Impacts and Prospects’.
4	McKinsey & Company, (2014), The Great Decoupling: The rapid advance of machine learning presents aneconomic paradox: productivity is rising, but employment may not, available at: http://www.mckinsey.com/
insights/public_sector/the_great_decoupling.
5	Strategy& (2015), 2015 Commercial Transportation Trends: 3D printing, available at:
http://www.strategyand.pwc.com/perspectives/2015-commercial-transportation-trends.
6	PwC (2014), Expanding Australia’s Economy: How digital can drive the change, available at:
http://www.pwc.com.au/consulting/assets/publications/Expanding-Australias-Economy-Apr14.pdf.
7	Carl Frey and Michael Osborne (2013), The Future of employment: How susceptible are jobs tocomputerisation? Oxford University,, available at http://www.oxfordmartin.ox.ac.uk/downloads/
academic/The_Future_of_Employment.pdf.
8	Frey and Osborne do not specify a specific timeline rather that “occupations are potentially automatable
over some unspecified number of years, perhaps a decade or two”.
9	This is not to say that jobs will no longer exist or that industries would disappears, rather it is indicativeof where major impacts are likely to occur give the pace of technological development. Rather it isa continuation of a trend we are currently seeing in examples such as automated check-out systems
replacing routine transactions; however, customer service still being performed by people.
10	PwC (2014), Deciding with data How data-driven innovation is fuelling Australia’s economic growth, page13, available at: http://www.digitalinnovation.pwc.com.au/digital-innovation-publications/11	PwC (2014), Expanding Australia’s Economy: How digital can drive the change, page 2, available
at: http://www.digitalinnovation.pwc.com.au/digital-innovation-publications/
12	General Electric. (2013). ‘GE Global Innovation Barometer: 2013 – Focus Australia’.
13	OECD (2012), OECD Science, Technology and Industry Outlook 2012, OECD Publishing, pages 240-243
14	‘Effects of integrative approaches among STEM subjects on students’ learning’, Becker, K. and Park, K.,
Journal of STEM Education Volume 12 – Issue 5 & 6, July-September 201115 Prinsley, R. & Baranyai, K. (2015). ‘STEM Skills in the Workforce: what do employers want’
16	Ellen Kumata, consultant to Fortune 200 companies, as quoted by Tony Wagner, Tony Wager’s Seven
Survival Skills – as defined by business leaders in their own words, available at:
http://www.tonywagner.com/7-survival-skills.
17	The Brookings Institute (2015), Skills and Innovation Strategies to Strengthen U.S. Manufacturing Lessons
from Germany, page 7.
18	The Brookings Institute (2015), Skills and Innovation Strategies to Strengthen U.S. Manufacturing Lessons
from Germany, page 7.
19	John Kennedy, Terry Lyons and Frances Quinn (2012), The Continuing Decline of Science and Mathematics
Enrolments in Australian High Schools, 60(2) Teaching Science, pages 34-46. Research suggests that thedivergence is explained largely due to a preference among year 12 students for selecting non-calculus
based course work.
20	John Kennedy, Terry Lyons and Frances Quinn (2012), The Continuing Decline of Science and Mathematics
Enrolments in Australian High Schools, 60(2) Teaching Science, pages 34-46.
21	Commonwealth Department of Industry (2014), Australian Industry Report 2014: Highlights, page 2.
22	European Centre for the Development of Vocational Training (2014), Forecasting skill demand and supply,
available at: http://www.cedefop.europa.eu/en/events-and-projects/projects/forecasting-skill-demandand-supply/skills-forecasts-detailed-data, last accessed 23 April 2015.
23	According to PwC baseline modelling, by 2035 Australia’s workforce is expected to grow from 11 million
workers to over 15 million. During that time the ‘baseline’ STEM workforce will continue to grow from
760,000 workers to over 1 million workers. To meet our accelerated target we will need an additional
126,327 people working in STEM occupations in addition to the baseline. This equates to approximately
1.1% of the current Australian workforce.
24 	University of Melbourne (2015), Faculty of Science, About us, https://science.unimelb.edu.au/about-us.
25	Assuming a throughout of +6,300 students per year over the next 20 years (eg 6,300 x 20 = 126,000).

PwC | A smart move 23

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