Occupation Standard Classification for Australia (OSCA) | Comprehensive Guide

 

Are you searching for how jobs are categorized in Australia or how this affects employment and migration? If so, you’re in the right place!

 

In December 2024, Australia introduced OSCA, marking a significant shift from the previous Australian and New Zealand Standard Classification of Occupations (ANZSCO). This change reflects the evolving nature of the job market in Australia and aims to provide a clearer, more relevant framework for classifying occupations.

 

Understanding OSCA is important for various stakeholders, including employers, job seekers, and educational institutions. Learn everything you need to know about OSCA in this blog. 

 

Key Highlights of OSCA

Here are the important points of OSCA: 

• The Occupation Standard Classification for Australia (OSCA) was launched in December 2024 to replace the previous ANZSCO system.
• OSCA aims to provide an accurate representation of the current job market in Australia, adapt to emerging industries.

• The OSCA framework consists of five hierarchical levels: major groups, sub-major groups, minor groups, unit groups, and occupations.
• The OSCA consists of five distinct skill levels, from Skill Level 1 (Bachelor Degree or higher) to Skill Level 5 (secondary education or Certificate I).

 

Historical Background

The ANZSCO was a joint classification system used by both Australia and New Zealand to categorize occupations. It played a crucial role in labor market analysis, immigration processes, and workforce planning. 

 

However with the passage of time,  it became evident that the labor markets in Australia and New Zealand were diverging significantly. For instance, certain occupations that were relevant in New Zealand were not applicable in Australia and vice versa. 

 

This divergence highlighted the need for a more tailored approach to occupational classification that could better reflect the unique characteristics of the Australian labor market.

 

Need for Change from ANZSCO to OSCA 

As industries evolved and new job roles emerged, the limitations of ANZSCO became more apparent. It was difficult for employers to use a classification system that didn’t meet the complexities of their particular requirements.

 

Additionally, job seekers struggled to understand how their skills and qualifications fit into an outdated framework. After recognizing these challenges, Australian authorities decided to change it. 

 

The goal was to create a classification system that not only addressed current job roles but also had the flexibility to adapt to future changes in the workforce.

 

So, what exactly is OSCA? 

 

What is OSCA?

The Occupation Standard Classification for Australia (OSCA) is a new framework designed specifically for classifying occupations within Australia. Its primary purpose is to provide a clear and organized way to categorize jobs based on skill levels and responsibilities.

 

OSCA was developed through consultations with various stakeholders, including industry experts, educators, and government representatives. This collaborative effort ensured that the new classification system meet the needs of all parties involved.

 

What are the Key Objectives of OSCA?

The main objectives of OSCA include the following:

 

• OSCA aims to provide an accurate representation of the current job landscape in Australia.
• The classification system is designed to adapt to emerging industries and evolving job roles.
• By refining skill level definitions and categorizing occupations clearly, OSCA eliminates confusion among employers and job seekers.

 

What are the Key Features of OSCA?

The Occupation Standard Classification for Australia (OSCA) has many features including the following: 

 

• Flexibility: The OSCA structure allows for new occupations to be added as they emerge, ensuring it stays relevant in a changing job market.
• Clarity: By organizing occupations into distinct levels, OSCA provides clarity for job seekers, employers, and policymakers regarding the skills and qualifications required for various roles.
• Relevance: The classification is tailored specifically to Australia’s labor market, making it easier to understand local job requirements and opportunities.

 

So, How does the OSCA categorize different occupations within Australia? Or What are the key components of the OSCA framework?

 

To learn more about this, continue reading.

 

OSCA Structure Overview

The Occupation Standard Classification for Australia (OSCA) consists of five hierarchical levels that help organize jobs based on their characteristics, skill requirements, and specializations. 

 

These hierarchial levels of OSCA include major group, sub-major group, minor group, unit group and occupation.

 

Here is the brief description of each of these levels:

 

• Major Group: The broadest categories of jobs, formed using a combination of skill level and broad skill specialization. Each major group has a unique one-digit identifier.

 

• Sub-Major Group: It is the subdivision of each major group, formed using a combination of skill level and finer skill specialization. Each sub-major group has a unique two-digit identifier.

 

• Minor Group: Minor groups are further subdivisions within each sub-major group, formed using a combination of skill level and finer skill specialization. Each minor group has a unique three-digit identifier.

 

• Unit Group: These are the groups of closely related occupations that share similar tasks. Each unit group has its own four-digit identifier.

 

• Occupation: It is the most detailed level, representing specific job types with unique sets of tasks. Each occupation is identified by a six-digit code.

 

The following diagram provides a summary of the OSCA structure, along with an illustrative example of how it is organized.

 

 

Distribution of Groups in OSCA

Each major group contains a varying number of sub-major groups, minor groups, unit groups, and occupations. The table below illustrates the distribution among the major groups.

 

Major Group	Sub-Major Groups	Minor Groups	Unit Groups	Occupations
Managers	7	15	58	132
Professionals	9	25	116	345
Technicians and Trades Workers	9	23	77	225
Community and Personal Service Workers	7	12	58	138
Clerical and Administrative Workers	8	14	38	80
Sales Workers	3	5	14	35
Machinery Operators and Drivers	4	7	22	71
Labourers	6	10	38	130

 

Elements of Groups and Occupations

Each level in the OSCA structure has specific elements such as identifier, title, lead statement, skill level and specialization. Below is the detailed breakdown of each element for different levels:

 

Elements of Major, Sub-Major, Minor, and Unit Groups

The elements of each major, sub-major, minor and unit group are:

 

• Identifier: A numerical code representing the group.
• Title: Describes the group.
• Lead Statement: Describes relevant skill specializations.
• Inclusion/Exclusion Statements (optional): Clarifies what occupations are included or excluded from the group.
• Skill Level Statement: Describes the skill levels relevant to the group.
• Subcategories: Lists groups in the level immediately below.

 

Elements of Occupations

Each occupation consists of the following elements:

 

• Identifier: A numerical code for the occupation.
• Principal Title: The most common title for the occupation.
• Lead Statement: Describes relevant skill specialization and any registration or licensing requirements.
• Inclusion/Exclusion Statements (optional): Clarifies what occupations are included or excluded.
• Alternative Titles: Other commonly used titles for the occupation.
• Specialization(s): Subsets of jobs within the occupation that involve specialized tasks.
• Skill Level: One of OSCA’s five skill levels relevant to the occupation.
• Main Tasks: The primary tasks associated with the occupation.

 

Identifiers in OSCA

Identifiers are unique numerical codes assigned to each group and occupation. Here is the breakdown of identifiers based on classification levels:

 

• One-digit identifiers for major groups.
• Two-digit identifiers for sub-major groups.
• Three-digit identifiers for minor groups.
• Four-digit identifiers for unit groups.
• Six-digit identifiers for occupations.

 

Below is an example of illustrative example of OSCA Occupation Code Structure.

 

 

Residual Groups

Identifiers ending with ‘9’ denote residual categories that include jobs not classified within specific sub-groups or occupations. For instance, Sub-major Group 89 Other Labourers refers to all jobs in Major Group 8 that do not fall under the following Sub-major Groups:

 

• 81 Cleaner and Laundry Workers
• 82 Construction and Mining Labourers
• 83 Factory Process Workers
• 84 Farm, Garden and Forestry Workers, or
• 85 Fast Food Cooks and Food Preparation Assistants.

 

Supplementary Identifiers

Identifiers ending in zero are used for responses that cannot be coded to an occupation but can be coded to a major, sub-major, minor, or unit group.

 

OSCA’s Five Skill Levels 

The Occupation Standard Classification for Australia (OSCA) categorizes occupations into five distinct skill levels. Each skill level reflects the necessary qualifications, experience, and training required to perform various job roles. 

 

Understanding these levels is crucial for job seekers, employers, and anyone involved in workforce planning. Here’s a breakdown of each skill level:

 

Skill Level	Description	Occupations
Skill Level 1	Requires skills equivalent to an AQF Bachelor Degree or higher and five years of relevant experience.	Civil Engineer, Composer, Cotton Grower, Mathematician, Nurse Practitioner, Paediatrician, Sales and Marketing Manager, Secondary School Teacher, Software Engineer.
Skill Level 2	Requires skills equivalent to an AQF Diploma, Advanced Diploma, or Associate Degree and three years of relevant experience.	Executive Assistant, General Duties Police Officer, Hotel or Motel Manager, ICT Customer Support Officer, Medical Laboratory Technician, Office Manager, Plumbing Inspector, Post Office Manager, Ship’s Officer.
Skill Level 3	Requires skills equivalent to an AQF Certificate III or Certificate IV.	Automotive Electrician, Bookkeeper, Butcher, Dressmaker or Tailor, Early Childhood Educator, Electrical Fitter, Firefighter, Hairdresser, Real Estate Agent, Senior Beef Cattle Station Worker.
Skill Level 4	Requires skills equivalent to an AQF Certificate II or Certificate III and at least one year of relevant experience.	Accounts Clerk, Assistant in Nursing, Bus Driver, Correctional Officer, Medical Receptionist, Miner, Security Officer, Sewing Machinist, Storeperson, Waiter.
Skill Level 5	Requires compulsory secondary education or AQF Certificate I. May require a short period of on-the-job training.	Commercial Cleaner, Factory Worker, Freight Handler, Fruit and Vegetable Packer, Kitchenhand, Sales Assistant.

 

The OSCA structure provides a comprehensive framework for classifying occupations in Australia. By organizing jobs into distinct levels with clear identifiers and descriptions, it helps individuals navigate their career paths while assisting employers in finding suitable candidates for specific roles.

 

So, how OSCA differs from the previous classification system, ANZSCO? Let’s explore!

 

What is the Difference between ANZSCO and OSCA?

The main difference between ANZSCO and OSCA classification systems is that ANZCO deals with both New Zealand and Australian labour markets, while OSCA is designed only for the Australian workforce industry. 

 

To learn more about the differences between ANZSCO and OSCA, look at the table below:

 

Feature	ANZSCO	OSCA
Development	Joint system for Australia and New Zealand, established in 2006.	Australia-specific classification system will be released on December 6,2024.
Focus	Cover both Australian and New Zealand labour markets.	Designed specifically to the Australian labour market requirements.
Flexibility	Less adaptive to rapid changes in the workforce.	More adaptive and flexible.
Occupation Classifications	May include outdated roles.	Updated classifications that align closely with modern labour demands.
Skill Level Definitions	Skill levels defined but may lack clarity in categorization.	Refined skill level definitions.
Support for Emerging Roles	Limited support for rapidly growing industries.	Designed to accommodate new and emerging occupations.

 

What are the Implications of ANZSCO to OSCA Transition for Stakeholders?

The introduction of OSCA has important implications for various stakeholders in Australia’s labor market:

 

1. Employers and HR Professionals

For employers and human resource professionals, OSCA provides an improved framework for creating job descriptions and recruitment processes. HR teams can better identify candidates whose qualifications align with specific job requirements with clearer classifications and updated skill level definitions. 

 

Additionally, workforce planning becomes more effective when using a classification system specifically designed to meet Australia’s labor market needs. Employers can analyze trends within their industries more accurately based on updated occupational data provided by OSCA.

 

2. Skilled Workers and Migrants

For skilled workers, OSCA offers clearer pathways for skill recognition and migration opportunities. Job seekers can easily understand how their qualifications fit into the new classification system, making it simpler to identify suitable employment options.

 

Moreover, migrants looking to work in Australia will benefit by understanding which occupations are in demand based on updated classifications under OSCA.

 

3. Educational Institutions

Educational institutions also play an essential role in aligning their training programs with updated classifications provided by OSCA. By understanding which skills are currently relevant in the labor market may be needed in future industries, educators can design their curriculum accordingly.

 

This alignment ensures that students graduate with qualifications that meet employer expectations. And thus prepare them for successful careers within their chosen fields.

 

Final Thoughts

Occupation Standard Classification for Australia (OSCA) is a valuable system for understanding the job market, planning careers, and making informed decisions about education and training. 

 

OSCA helps in addressing skill shortages, planning for workforce development, and supporting economic growth by providing a detailed classification of occupations.

 

Are you planning to move to Australia and don’t know where to get started? Schedule an online consultation with our experts at The Migration and get customized solution to your problems. 

 

 

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