FEAR & GREED | Business News We have a skills shortage, and AI can't save us
11 snips
Jan 6, 2026 Joining the discussion is Simon Kuestenmacher, co-founder and director of The Demographics Group, who specializes in population trends. He highlights that Australia’s skills shortage stems from demographic shifts, particularly as baby boomers retire and smaller generations follow. Demand for workers is on the rise due to increasing care needs, while current migration policies may exacerbate the issue. Notably, Simon warns that the ageing population will drive a doubling of aged care needs by 2040, highlighting the limited role of AI in this sector.
AI Snips
Chapters
Transcript
Episode notes
Demographics Are Driving The Shortage
- Australia's skills shortage is driven by demographics as large baby boomer cohorts retire faster than small Gen Z cohorts enter the workforce.
- Demand for workers will rise because ageing populations require more services, creating persistent labour pressure despite population growth.
Aged Care Needs Will Double By 2040
- Ageing means demand for aged care must roughly double by 2040 as the 85+ population rises from 590,000 to 1.2 million.
- This growth is inevitable and creates jobs that AI cannot replace because daily human care is required.
Use AI To Improve Efficiency, Not Replace Care
- Use AI to streamline paperwork and free aged care workers to spend more time on direct care.
- Do not expect AI to replace hands-on caregiving roles that require human presence and empathy.