University graduates alone won’t fill the capability gap

The APS will need to broaden education pathways to fill digital skills gaps.

The APS has long relied on graduate programs to source digital talent, primarily targeting university graduates with bachelor’s degrees or higher. With 74% of new digital and ICT hires holding a bachelor’s degree or above, this approach heavily shapes the talent pool.1

To close the growing digital skills gap over the next five years, the APS will need to broaden its recruitment strategy and tap into more diverse education pathways. The talent pool of degree-qualified candidates is shallow and fiercely competitive: only 38% of course completions come from domestic students,2 and international graduates are ineligible for APS roles unless they hold citizenship. Meanwhile, just 14% of new APS digital and ICT hires hold VET-level qualifications.3

This represents an opportunity to develop more strategic partnerships with the sector, ensuring the APS can leverage offerings to build the capability required by the service.

Figure 1: Education as a supply capability

Chart shows 62% ICT university completions are international students and 82% of VET completions are domestic.
Department of Education 2023, NCVER 2024
  • Figure 1: Data table

The Opportunity

VET pathways offer flexible, practical upskilling and can boost workforce diversity through lower entry barriers and shorter study times. Although many employers say graduates need extra training to be job-ready,4 the APS could benefit from strategic partnerships with VET providers to align training with specific capability requirements.

Micro-credentials are rapid, targeted skill development courses and are increasingly offered by tertiary education providers. Micro-credentials can help the APS quickly build, upskill or reskill its digital workforce to meet evolving needs.

  • Questions for agency consideration:

  • Exploring whole-of-APS opportunities:

Case Study 1: NSW 20% Alternative Pathways Pledge

The NSW Government has committed to sourcing 20% of digital entry-level hires from alternative pathways by 2030. This includes non-university routes into the sector, including VET courses, traineeships, micro-credentials and earn-while-you-learn models of capability building. Not only does this deepen talent pools, but also drives cultural change to provide greater opportunity for underrepresented cohorts such as women, people with disability and First Nations employees. In 2024, 22 Compact Partners signed onto this commitment, including from state government, multinationals, industry bodies and education providers.
  1. Australian Public Service Commission, APS Employment Database custom request RFI 2086, June 2024
  2. Department of Education, Awards Course Completion Pivot Table 2023; NCVER, Total VET students and courses, 2023
  3. Australian Public Service Commission, APS Employment Database custom request RFI 2086, June 2024
  4. Australian Information Industry Association, Digital State of the Nation 2024: AIIA Member Survey, July 2024