Registered Nurses will be the fastest growing degree-level occupation and carers the fastest growing vocational occupation, according to Australia’s new productivity agency.

Federal Skills Minister Chris Evans says low-skilled jobs are disappearing from the economy and the workforce will need to adapt quickly.

A new government agency, launched last week by the minister, will work with industry to lift the level of skills among Australia's workforce.

"We have enormous opportunities in Australia as a result of the growth in the economy," Senator Evans told reporters in Canberra on Thursday.

That economic growth would create enormous opportunities for people to move into high-skilled and well-paid jobs.

"Low-skilled jobs are disappearing from the economy as a result of technology (and) structural changes," he said.

The new Australian Workforce and Productivity Agency replaces Skills Australia and will work to identify and close skills shortages within Australia's workforce.

While industry should always offer jobs to Australians first, there will still be a place for skilled foreign workers, particularly in the health sector.

"If it wasn't for Indian doctors and Irish nurses we would be closing wards in Australia," Senator Evans said.

The agency will be led by Philip Bullock, who is the former managing director of IBM Australia.

Its board will include serving RBA board member Heather Ridout and Australian Chamber of Commerce and Industry chief Peter Anderson.

Australian Workers' Union boss Paul Howes was offered a seat on the board but turned it down because of his other commitments.

The productivity agency’s modelling found registered nurses would be the fastest growing degree-level occupation and carers the fastest growing vocational occupation.

AAP