The Occupation Standard Classification for Australia (OSCA) is an important development in how occupation information is managed and used in Australia. Introduced by the ABS (Australian Bureau of Statistics), OSCA replaces the Australian and New Zealand Standard Classification of Occupations (ANZSCO), offering a more improved framework connecting Australia’s labour market and statistical needs.
In New Zealand, the National Occupation List (NOL) has taken over from ANZSCO, providing a customised solution for New Zealand’s workforce classification.
Overview of OSCA
OSCA is a standard framework created to organize, research, and report on occupation-related data. It was introduced following an extensive review of ANZSCO between July 2022 and December 2024.
The ABS uses OSCA for statistical outputs such as the Census of Population and Housing, the Labour Force Survey, and administrative datasets like the Linked Employer-Employee Dataset. OSCA is crucial in labor market analysis, workforce strategy development, and skilled migration planning. By giving a picture of occupation trends, OSCA supports critical decision-making to address skills shortages, inform educational institutions, and ensure the availability of qualified professionals across industries.
From ANZSCO to OSCA
The ABS and Stats NZ managed ANZSCO, which was introduced in 2006. It worked as a shared framework for classifying occupations in both countries. However, in 2024, the two organizations transitioned to independently managed systems better to reflect the unique elements of their respective labor markets.
OSCA now works as Australia’s official occupation classification system, replacing ANZSCO and providing a more national and contemporary approach to workforce data. Similarly, New Zealand’s National Occupation List (NOL) manages its specific workforce needs, making them more effective policy and planning outcomes.
Understanding OSCA’s Framework
OSCA is based on “job” and “occupation,” further defined by skill level and specialization. It covers all legal jobs and occupations within the Australian labor market, excluding volunteer roles without pay or illegal activities.
- Job: A job is defined as a set of tasks performed by an individual for an employer in exchange for pay or profit. This includes self-employment and jobs with payment in kind, such as roles where compensation is provided through housing, food, or other means.
- Occupation: An occupation refers to a group of jobs requiring highly similar tasks. These tasks are classified based on skill level and skill specialization.
Skill Level and Specialisation
Skill level is determined by the complexity and range of tasks required for a job and is
influenced by:
1. Formal education and training: Qualifications outlined in the Australian Qualifications Framework (AQF).
2. Relevant experience: Time spent gaining experience in related occupations.
3. On-the-job training: Additional training is required after starting a job.
4. Personal attributes: All the aspects, such as creativity, physical fitness, or specific talents.
Skill specialization concentrates on the skills required for specific tasks, including required knowledge, tools, and technologies.
OSCA’s Five Skill Levels
OSCA’s Five Skill Levels
OSCA categorizes occupations into five skill levels, each reflecting varying degrees of education, training, and task complexity:
- Skill Level 1: Requires a Bachelor’s degree or higher. Examples: Civil Engineer, Software Engineer, Nurse Practitioner.
- Skill Level 2: Requires a Diploma, Advanced Diploma, or Associate Degree. Examples: Hotel Manager, ICT Customer Support Officer, Medical Laboratory Technician.
- Skill Level 3: Requires a Certificate III or IV, often combined with two years of on-the-job training. Examples: Early Childhood Educator, Automotive Electrician, Real Estate Agent.
- Skill Level 4: Requires a Certificate II or III, sometimes paired with additional experience. Examples: Assistant in Nursing, Security Officer, Bus Driver.
- Skill Level 5: Requires secondary education or Certificate I. Minimal or no formal training may be required. Examples: Kitchenhand, Sales Assistant, Factory Worker.
Extensive experience may substitute formal education for certain roles, while others demand specific credentials, such as licensing or registration. For instance, chiropractors require formal qualifications and registration with the Australian Health Practitioners Regulation Agency.
Why OSCA Matters
OSCA is a tool for managing Australia’s labor market and workforce strategies. It organizes jobs and occupations to help policymakers and organizations in three main ways:
- * Analyze the labor market and tackle skill shortages.
- * Create educational programs that meet industry needs.
- * Assist skilled migration programs by identifying essential workforce demands.
OSCA’s Role in Decision-Making
OSCA informs decisions in areas such as:
- * Workforce planning to help industry growth.
- * Statistical reporting, including the Census and Labour Force Survey.
- * Skilled migration programs to attract and retain talent.
It also ensures that Australia’s workforce remains competitive and adaptable to global economic changes, providing a foundation for long-term growth and prosperity.
Disclaimer: The above information is not tailored to personal circumstances.
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