Future-proofing Australia: How Australia’s universities are faring in building the skills of tomorrow

Written by the QS team, based on insights from our session at the Universities Australia Solutions Summit

Fostering innovation within a nation’s higher education system and securing the sector’s long-term sustainability is crucial for economic growth. By 2030, an estimated 375 million workers will need to switch occupational categories, requiring tailored reskilling initiatives and modular, lifelong learning opportunities (McKinsey).  

Governments and educational institutions must acknowledge the significant workforce disruption that’s on the horizon and higher education holds immense potential to drive this change. To support economies to make this workforce transition, higher education systems need to build greater agility through modular learning and curricula advancement to ensure that the skills that businesses need are available in the fifth stage of education. 

Australia is recognised as a future skills leader, but recent policy shifts and employer demands indicate that without decisive action, the gap between education and employment will widen at a critical moment for the country’s economic future. At the same time, Australia remains one of the most attractive destinations for international talent, drawing students and skilled workers from around the world.  

Ernest Fu, a Business Analytics graduate from the University of Melbourne said: “Employability and job prospects were major factors in my decision to study in Australia. As an international student, I wanted to be in a country with strong career opportunities and Australia stood out because of its dynamic job market, particularly within the APAC region. The tech industry is rapidly growing here, creating a wealth of opportunities for graduates.” 

But attracting talent is not enough—Australia must ensure that the skills being developed match the demands of the economy and that these individuals can contribute meaningfully to the workforce.  

How do Australian universities fare in building the skills of tomorrow? 

The QS World Future Skills Index uses data from over 280 million job postings via QS 1Mentor, the QS Global Employer Survey, and economic and demographic statistics from the World Bank Group to evaluate how well countries are equipped to meet the evolving demands of the international job market.  

Australia performs strongly in the QS World Future Skills Index, with a score of 93.3 and places fourth in the world. Only Germany, the US, and the UK have a higher overall score. Australia is part of the Rapid Industry Innovation Cluster, where strong demand for future skills outpaces supply.  

The country’s strengths as a future skills leader include:    

Academic Readiness – Australia excels in AI, digital, and green education, with globally recognised institutions leading innovation in these fields.   

Future of Work readiness – A strong job market prepared to absorb talent in green, AI, and digital industries.   

Economic Transformation – Investment in digital infrastructure, renewables, and workforce training is driving skills-led growth.  

However, a growing gap remains between what graduates learn and what employers need. The future of work is interdisciplinary—it is no longer enough to train students in a single discipline. Engineering must intersect with AI and sustainability. Business education must integrate climate risk and digital strategy. Medical education must prepare students for AI-driven healthcare systems.   

Australia is uniquely positioned to deliver green skills with a job market ready to recruit for those skills 

Sustainability is recognised by both students and employers as being essential to choosing an institution, and to identifying skillsets. In fact, about half of international prospective students (48%) would value a sustainable university more than one ranked in the world top 100 (QS Student Sustainability Survey 2024). 

Australian employers have among the highest demand for green skills among their employees, and Australian universities perform well in green subject areas. Green skills are in particularly high demand in Australia, further emphasising the country’s green credentials.  

However, rapid advancements require ongoing investments in upskilling and reskilling. By fostering stronger collaboration between universities, industries, and government, Australia can ensure its workforce remains competitive, adaptable, and globally relevant. 

Where are the gaps? The urgency to act  

According to the QS World Future Skills Index, the Skills Fit indicator is where Australia has room for improvement, especially across three areas: Human-centered leadership, sustainable and ethical workforce, and adaptive lifelong learning.  

Human-centered leadership and critical thinking 

Employers report a shortage of problem-solving, collaboration, and leadership skills—all essential for future-ready professionals. But beyond employment, we must ensure that graduates emerge with the capacity to question, innovate, and contribute meaningfully to society. Education is distinct from training; it shapes critical thinkers and global citizens who can drive change in any field. 

Sustainable and ethical workforce readiness 

Sustainability is not a passing trend—it is a fundamental economic and social driver, and will become more prevalent in future. Leading universities are embedding green skills into curricula, preparing graduates for careers in climate science, ESG governance, and clean technology. Research shows that institutions prioritising sustainability perform better in employability and research impact, but they also produce citizens who are ready to tackle global challenges. 

Lifelong learning and adaptability 

Traditional degrees remain important, but industry demand is shifting towards stackable credentials and micro-qualifications. Universities must integrate flexible, industry-focused pathways to reskill professionals in rapidly evolving fields such as AI, digital transformation, and green energy. At the same time, we must ensure that education fosters resilience, creativity, and the ability to engage with new ideas across disciplines.  

Mature professionals require flexible, career-aligned learning—an area Australia has yet to scale effectively. Attrition rates are highest among mature online students, underscoring the urgent need for flexible, modular education. 

Domestic enrolments have been declining in Australia, threatening to entrench the gap between education and employment. Without bold action, the gap between education and employment will continue to grow, limiting Australia’s ability to lead in emerging industries. 

A roadmap: Universities as engines of economic growth  

Strengthened collaboration between government, universities, and industries will be essential to fostering innovation and ensuring workforce adaptability. Continued investment in education and R&D will solidify Australia’s global competitiveness and economic resilience. The Australian higher education sector adds AUD $41 billion annually to the economy, drives research and innovation, and is critical to the country’s competitiveness in AI, health technology, and clean energy. 

To fulfil this potential, universities must: 

  1. Embed AI, sustainability, and digital fluency across disciplines 

These are no longer niche skills—they underpin every industry. AI, data analytics, and cybersecurity must be integrated into all subject areas, not just STEM. 

  1. Expand industry partnerships for work-based learning 

Universities must integrate internships, degree apprenticeships, and real-world experiences into the student journey. Students who gain hands-on industry exposure graduate with a significant advantage. 

  1. Position Australia as a regional hub for future skills 

The Asia-Pacific is actively seeking skills leadership, and Australia is well-positioned to take on this role. This requires expanding research collaborations across the region in AI, climate science, and healthcare, and aligning international student strategies with workforce demands to ensure skilled graduates contribute to Australia’s economy. 

Universities cannot work in isolation—collaboration between academia, industry, and government is essential to shaping a future-ready workforce. 


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