Australia is poised to revolutionise its occupational classification system by replacing the Australian and New Zealand Standard Classification of Occupations (ANZSCO) with the new Occupation Standard Classification for Australia (OSCA). This significant transition, effective from Friday, 6 December 2024, will impact skilled individuals, employers, industries, and migration professionals alike. Both Australia and New Zealand will implement customised occupational statistical classifications tailored to their unique labour market needs.
In this blog, we will delve into what OSCA entails, how it differs from ANZSCO, and its implications for skilled migration and employment in Australia.
Understanding ANZSCO
The Australian and New Zealand Standard Classification of Occupations (ANZSCO) serves as a framework for classifying and describing occupations within the labour markets of both countries. It groups jobs with similar tasks and responsibilities into distinct categories, assigning each occupation a unique six-digit code. For individuals seeking skilled visas, selecting a profession from the ANZSCO list that corresponds with their training and work history is crucial. This classification system assists the Department of Home Affairs in determining whether applicants possess the qualifications necessary to address skills shortages in the Australian labour market.
Introducing OSCA
The Occupation Standard Classification for Australia (OSCA) represents a new approach to occupational classification, reflecting the current and anticipated needs of the Australian labour market. Designed to provide a more comprehensive, updated, and flexible classification of occupations, OSCA aims to enhance accuracy and usability for employers, industries, and government bodies alike.
Key Differences Between ANZSCO and OSCA
While both ANZSCO and OSCA serve as classification systems, they are not identical. The most significant distinction lies in their scope: ANZSCO covers both Australian and New Zealand labour markets, whereas OSCA is specifically tailored for the Australian workforce. Below is a comparison highlighting the key differences:
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Drivers for Change: Transitioning from ANZSCO to OSCA
The transition from ANZSCO to OSCA is a result of extensive discussions and analysis of the evolving labour market dynamics. Several key drivers have prompted this shift:
1. Labour Market Differences: Since the establishment of ANZSCO in 2006, the labour markets in Australia and New Zealand have diverged significantly. Currently, 56 out of 1,076 occupations exhibit differing skill levels between the two countries.
2. Limited Participation of New Zealand: New Zealand’s statistics agency has been unable to engage in the targeted updates conducted in 2021 and 2022. Consequently, it did not participate in the Australian Bureau of Statistics (ABS)’s comprehensive review over the last four years, prompting the Australian Government to launch its own classification system.
3. Flexible Classification to Meet Industry Needs: Both the ABS and New Zealand Statistics Agency recognise the necessity of adopting distinct approaches to address their stakeholders’ needs. The transition aims to create a more relevant and accurate classification system, specifically targeting the unique conditions of the Australian labour market.
Impact of the ANZSCO to OSCA Transition on Skilled Migrants and Employers
The transition to OSCA is set to yield significant benefits for both skilled migrants and employers in Australia:
· Simplified Visa Application Process: Skilled migrants will find the visa application process more straightforward due to clearer occupation classifications. The system focuses on the latest market demands, making it adaptable to changing needs.
· Enhanced Recruitment Strategies for Employers: Employers will gain from a more precise classification system that aligns with their specific requirements. This will facilitate improved recruitment strategies, helping them identify the right talent more efficiently.
· Regular Updates for Relevance: OSCA’s design allows for frequent updates, ensuring it remains pertinent in a rapidly changing economic landscape. This adaptability will help both employers and skilled migrants stay aligned with current labour market conditions.
What About Other Joint Classifications?
While OSCA will replace ANZSCO, the future of other joint classifications, such as the Australian and New Zealand Standard Industrial Classification (ANZSIC), is still under review. Two additional classifications that currently remain unchanged are:
· Australian and New Zealand Standard Offence Classification (ANZSOC)
· Australian and New Zealand Standard Research Classification (ANZSRC)
The transition from ANZSCO to OSCA, set to commence on December 6, 2024, marks a significant evolution in Australia’s approach to occupational classification. This initiative aims to streamline the immigration process, aligning it more closely with labour market needs. It is essential for all stakeholders—including employers, skilled migrants, and migration professionals—to stay informed about the latest developments.
For more tailored guidance on how these changes may impact your migration plans or employment strategies, book a complimentary consultation with our team at NB Migration
today. Our experienced professionals are here to assist you in navigating the complexities of this transition and ensuring your success in the Australian job market.