Australia’s Big Change to Occupation List: New Occupational System Replaces ANZSCO

In a significant move to better align with evolving labor market conditions, the Australian Bureau of Statistics (ABS) has announced the introduction of a new classification system for occupations in Australia. Starting on December 6, 2024, the ANZSCO (Australian and New Zealand Standard Classification of Occupations) will transition to the Occupation Standard Classification for Australia (OSCA), 2024, version 1.0. 

This new system is tailored specifically for Australia, allowing ABS to address unique national needs while maintaining a degree of compatibility with New Zealand’s occupational classifications.

What is OSCA?

OSCA, or the Occupation Standard Classification for Australia, is a new framework developed to reflect Australia’s labor market better than the joint system used in ANZSCO. While OSCA will maintain comparability with New Zealand’s classifications, it will offer a more flexible, targeted approach to cater to the specific demands and evolving nature of the Australian workforce.

Key Drivers for the Change

Several factors have motivated this shift:

1. Divergent Labor Markets: Since ANZSCO's inception in 2006, the Australian and New Zealand labor markets have evolved in significantly different ways. ABS and Stats NZ have determined that a single classification system no longer adequately captures the unique characteristics and trends within each country's workforce.

2. Missed Updates for New Zealand: In recent years, Australia has undergone targeted updates to the ANZSCO system (specifically in 2021 and 2022), but Stats NZ was unable to participate in these revisions. This created discrepancies that made the joint classification less effective for New Zealand, underscoring the need for separate systems.

3. Stakeholder Needs: The decision to adopt distinct occupational classifications stems from feedback from stakeholders in both countries. By localizing the classification systems, ABS and Stats NZ aim to better address the needs of policymakers, researchers, and businesses in each country.

   
   

Impact on Stakeholders and Labor Market Analysis

The shift to OSCA in Australia represents an important change for many industries, including education, recruitment, and workforce planning. Key benefits and impacts include:

• Improved Data Relevance: With OSCA tailored to the Australian context, data users can expect more accurate labor market statistics that reflect domestic job roles and classifications.

• Targeted Policy-Making: Localized data will better inform government agencies and policymakers, allowing them to develop programs and policies that are better suited to address specific workforce challenges in Australia.

• Streamlined Reporting for Businesses: For employers and HR professionals, the new OSCA system will provide a more relevant classification framework that aligns with contemporary Australian occupational roles, which could simplify compliance and reporting processes.

The Future of ANZSCO

While OSCA will become the primary occupational classification framework in Australia, ANZSCO will still be accessible on the ABS website for reference purposes. This ensures that users who rely on historical data, such as researchers and analysts, can continue to access and utilize ANZSCO’s framework when needed.

Transitioning to OSCA: What to Expect

As OSCA is rolled out, ABS will provide guidance and resources to help stakeholders transition to the new system. These resources will include:

• Updated Occupation Descriptions: OSCA will feature revised definitions and descriptions for various occupational categories, which should provide clearer insights into the nature of roles within Australia.

• Training and Support: ABS is expected to offer webinars, training sessions, and documentation to assist users in understanding and utilizing the new classification system effectively.

• Publicly Available Classification Framework: In keeping with ABS’s commitment to transparency, OSCA’s full classification framework will be available online, enabling public access to occupational data that aligns with Australian labor market trends.

Looking Ahead

As Australia introduces OSCA, this transition marks a new chapter in occupational classification, enabling a more nuanced understanding of the national workforce. While ANZSCO served both countries well for over a decade, OSCA represents a modernized approach that prioritizes flexibility and relevance. This change is likely to yield significant benefits, especially in terms of labor market insights and policy development, as Australia continues to adapt to the rapidly evolving global economy.