Ensuring Vocational is Not Second

BestDr John Spierings

Senior Adviser on Skills & Higher Education, DPMO & PMO 2008-13

Some Global Trends

• Everything is mobile, everything is tradeable…nothing in the air is solid

• Increasing marketization of education across all sectors – higher education , schools, early childhood as well as VET – privileges private goods over public benefits

• Greater choice in education confers greater risks for individuals, without necessarily greater rewards

• VET is at the pointy intersection of public, student & industry interests - it is the education sector most entwined with changes in labour markets

• Labour markets are increasingly precarious in terms of hours, pay, duration & pathways. Entry level work opportunities in manufacturing, public service, finance sectors have evaporated across OECD

• Future mobility framed around achieving a senior school qualification, higher ed or VET equivalent

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Australian Strengths

• National qualifications framework – provides certainty & clarity for students, industry & training providers. Point of difference with universities & schools

• VET qualifications are integrated into the broader tertiary education landscape

• Training packages establish the ‘units of competency’ in VET qualifications

• Joint employer & union management of packages via Industry Skill Councils

• Innovations such as group training schemes cover small employers & disadvantaged students

• Apprenticeship participation withstood the Global Financial Crisis

• 500 Trade Skills Centres in Schools – potential base to strengthen voced options for students

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Snapshot of Australian Apprenticeship System

• Trend: Removal of govt incentives - non-trade commencements fell by 90K to 146K, 2012 to 2013 (37.5%) Trade commencements rose by 2.3% over same period

• Balance: 40% of commencements are in trades

• Pay: 55% of Adult Award in 1st year (previously 35%); 80% for those aged 21+

• Returns: Labour market returns for apprentices are strong – above average earners & lower unemployment

• Quality: 80% of employers & 87% of students express satisfaction with training quality

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Australian weaknesses

• Australian apprentices are employees as well as students – training experience is strongly related to the quality of the enterprise

• Business still views training as a cost rather than an investment – poor data on business training expenditure

• Low industry participation - only 100,000 businesses employ apprentices & trainees. Leads to ‘free riding’, skills shortages, diminished opportunities

• Low completion rates – 50% attrition in trades; 60% in other qualifications. Long tail in literacy & numeracy capabilities (1:8 & 1:5 in lowest literacy & numeracy bands)

• No ‘master’ or ‘elevated’ trade qualifications

• Poor career guidance services for students

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What needs to be done

• Public support for high quality institutions of learning dedicated to vocational skills

• Extend sector-based training levies to share the costs & reward successful employers. Enhance group training schemes

• Embrace problem solving, design skills & collaboration as core VET competencies

• Lift entry-level standards & qualifications of VET teachers

• Conduct external validation of qualifications & providers

• Attract powerful new friends to champion VET

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