In December 2024, Australia will switch from ANZSCO to OSCA, a customized occupation categorization system designed to provide precise labor market insights and localized data analysis.
The Australian Bureau of Statistics (ABS) has announced the launch of a new classification system for jobs in Australia, a significant move to better line with changing labor market conditions. The Occupation Standard Classification for Australia (OSCA), 2024, version 1.0 will replace the ANZSCO (Australian and New Zealand Standard Classification of Occupations) as of December 6, 2024.
Because this new system is uniquely designed for Australia, ABS can meet specific national demands while still retaining some degree of consistency with the occupational classifications used in New Zealand.
What is OSCA?
A new framework known as OSCA, or the Occupation Standard Classification for Australia, was created to better represent Australia’s labor market than the joint method employed in ANZSCO. Although OSCA will remain comparable to the categories used in New Zealand, it will provide a more tailored and adaptable approach to meet the unique needs and changing nature of the Australian workforce.
Key Drivers for the Change
Several factors have motivated this shift:
1. Divergent Labor Markets: The labor markets in Australia and New Zealand have developed very differently since ANZSCO was established in 2006. It has been concluded by ABS and Stats NZ that a single classification system is no longer sufficient to reflect the distinct features and patterns seen in each nation’s workforce.
2. Missed Updates for New Zealand: Targeted system modifications to the ANZSCO have recently taken place in Australia (more precisely, in 2021 and 2022), but Stats NZ was not allowed to take part in these changes. This led to disparities that highlighted the necessity for distinct systems and reduced the effectiveness of the joint categorisation for New Zealand.
3. Stakeholder Needs: We decided to implement different occupational classifications based on input from stakeholders in both nations. The localisation of classification systems is an attempt by ABS and Stats NZ to better serve the interests of researchers, businesses, and policymakers in each nation.
Impact on Stakeholders and Labor Market Analysis
In Australia, the use of OSCA signifies a significant shift for numerous businesses, such as workforce planning, recruitment, and education. Principal advantages and effects consist of:
– Improved Data Relevance: Users of the data should anticipate more accurate labor market statistics that represent domestic employment roles and classifications thanks to OSCA’s Australian-tailored design.
– Targeted Policy-Making: Localized data will help government organizations and decision-makers create programs and policies that are more appropriate for addressing particular workforce issues in Australia.
– Streamlined Reporting for Businesses: The new OSCA system might make compliance and reporting procedures easier for employers and HR specialists by offering a more pertinent classification structure that corresponds with modern Australian occupational positions.
The Future of ANZSCO
Even though OSCA will take over as Australia’s main framework for occupational categorization, ANZSCO will remain available for reference on the ABS website. This guarantees that users—like researchers and analysts—who depend on historical data will be able to access and make use of ANZSCO’s framework as needed.
Transitioning to OSCA: What to Expect
ABS will offer direction and resources to assist stakeholders in adjusting to the new system when OSCA is implemented. Among these resources will be:
– Updated Occupation Descriptions: Revisions to the definitions and descriptions of several occupational categories will be included in OSCA, which should offer further insight into the makeup of employment in Australia.
– Training and Support: It is anticipated that ABS will provide training events, webinars, and documentation to help users comprehend and make good use of the new classification system.
– Publicly Available Classification Framework: The public will have access to occupational data that is in sync with Australian labor market developments thanks to the online availability of OSCA’s complete classification system, which is in line with ABS’s commitment to transparency.
Looking Ahead
With the implementation of OSCA in Australia, occupational classification is entering a new phase that will allow for a more sophisticated view of the country’s workforce. While ANZSCO provided excellent service to both countries for more than ten years, OSCA is an updated strategy that places an emphasis on adaptability and significance. As Australia continues to adapt to the quickly changing global economy, this transition is expected to have a substantial positive impact, particularly in terms of insights into the labor market and policy development.
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