The Times Australia
The Times World News

.

without it, we're just pouring water into a leaking bucket

  • Written by John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney
without it, we're just pouring water into a leaking bucket

This article is part of The Conversation’s series looking at Labor’s jobs summit. Read the other articles in the series here[1].

Australia has more qualified teachers and nurses than at any point in its history. There is no “shortage” of these skills.

The problem is that within five years of gaining their qualification, as many as one in four nurses[2] and a similar proportion of teachers[3] have decided to do something else.

The dropout rate is intensifying. Between 2016 and 2021 the proportion of nurses registered but not working in the profession rose by 63% nationally[4]. In Victoria it was 85%.

Employers desperate for skilled staff in particular want immediate fixes. Many see the problem as lack of supply, because they cannot find the workers they want at the prices they want to pay.

But what if the problem is the nature of what employers are demanding? What if their preoccupations with maximising short-term commercial gains is the root cause of the problem?

Developing “mental wealth” is just as important as material and commercial growth. Without this, solutions such as importing more workers or increasing course numbers are like pouring water into a leaking bucket.

What is mental wealth?

Mental wealth is a relatively new term to express the social and economic value of mental health. It has two dimensions: mental capital and mental wellbeing[5].

Mental capital is the stock of cognitive and emotional capabilities – things like the ability to reason clearly and successful social functioning. Unlike physical capital (buildings and machinery) that depletes with use, mental capital grows if treated well.

Mental wellbeing derives from life satisfaction, having sufficient physical resources, connection with others and a sense of purpose. High wellbeing deepens mental capital. Low wellbeing depletes it.

Read more: 5 charts on Australian well-being, and the surprising effects of the pandemic[6]

From a mental wealth perspective, action is required on three fronts.

1. Skills transferability (creating quality occupations)

Just as mental health affects our ability to cope with life’s ups and down, mental wealth affects a workforce’s ability to adapt to changing circumstances – something crucial for economic development. Such capability is nurtured by empowering workers to master quality, transferable vocational skills.

Apart from the professions and a few skilled trades, Australia offers little in terms of strong, ongoing development of quality transferable skills.

Consider our approach to intermediate-level service work.

Our labour market and vocational education arrangements treat customer service, carers and administrative support roles as entirely separate domains of work.

In reality, however, many people flow between jobs of this nature. It is not uncommon for child-care workers, for example, to move into retail and administrative roles[7].

We need to build on the reality of these flows to create occupational structures that deepen transferable skills and enable people to move more easily between related areas, as opportunities rise and fall in different parts of the labour market[8].

Deepening this transferability will require greater cooperation between employers and unions across different sectors – as well as educators.

Renewed interest in multi-employer or sectoral bargaining is a welcome development in this context. Such arrangements could help develop greater communication and trust between all stakeholders.

2. Vocational education

Occupational reform also requires supportive changes in education. We especially need to make non-university education options more attractive.

Since the late 1980s, Australia’s TAFE sector has been run down by failed experiments in outsourcing. Public funds have been wasted on promoting “competition”. It has increasingly become a realm where businesses, manipulating government funding models, can make profits by delivering poor-quality courses.

It is time to rebuild the sector[9].

Read more: Is education or immigration the answer to our skills shortage? We asked 50 economists[10]

3. Employer investment in learning

But arguably the weakest element of our workforce development system is the lack of investment in workplace learning.

Skills development is what economists call a “public good” – the benefits do not accrue just to those who pay for it. In business this contributes to employers’ reticence to invest in skilling up workers lest they be “poached” by rivals who haven’t made the same investment.

To avoid freeloaders, many countries have schemes that pool employer funds for skills development. France, for example, imposes a Contribution to Professional Training[11] on all employers based on their payroll costs (0.55% for small businesses, 1% for large ones and 2% for labour hire firms).

This money goes into sector-based funds, which businesses can then claim back for workplace training. This arrangement ensures all businesses contribute to paying for skills development, and have an incentive to provide it.

No resources to waste

These proposals would not only help Australia address skills shortages but move us onto a trajectory that deepens and does not deplete our mental wealth.

We can’t afford to pour resources into a leaking job bucket.

We need initiatives that address the causes and not just react to the symptoms of our current labour market challenges. The proposal outlined above provide evidence based solutions that must not be ignored.

Read more https://theconversation.com/mental-wealth-and-jobs-without-it-were-just-pouring-water-into-a-leaking-bucket-189539

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

Duke of Dural to Get Rooftop Bar as New Owners Invest in Venue Upgrade

The Duke of Dural, in Sydney’s north-west, is set for a major uplift under new ownership, following its acquisition by hospitality group Good Beer Company this week. Led by resp...

Prefab’s Second Life: Why Australia’s Backyard Boom Needs a Circular Makeover

The humble granny flat is being reimagined not just as a fix for housing shortages, but as a cornerstone of circular, factory-built architecture. But are our systems ready to s...

Melbourne’s Burglary Boom: Break-Ins Surge Nearly 25%

Victorian homeowners are being warned to act now, as rising break-ins and falling arrest rates paint a worrying picture for suburban safety. Melbourne residents are facing an ...

Exploring the Curriculum at a Modern Junior School in Melbourne

Key Highlights The curriculum at junior schools emphasises whole-person development, catering to children’s physical, emotional, and intellectual needs. It ensures early year...

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...

The Role of Your GP in Creating a Chronic Disease Management Plan That Works

Living with a long-term condition, whether that is diabetes, asthma, arthritis or heart disease, means making hundreds of small decisions every day. You plan your diet against m...