It's Time To Make A National Investment In Vocational Education And Skills

With some economic commentators tipping that unemployment will reach 15% as a result of measures taken to contain the Covid-19 virus outbreak, now is the time for the Australian Government to step-up and make a major investment in vocational training and skills to support jobseekers.

The anticipated spike in unemployment presents both the need and opportunity to support jobseekers through training and reskilling. The independent vocational education and training sector is positioned to take the lead role in this, given that it supports around 80% of the 4.1 million students in vocational education and training.

As part of sustained engagement with the Australian Government, the Independent Tertiary Education Council Australia (ITECA) has recommended the Australian Government act with some haste to develop and implement a range of measures to support jobseekers through job-relevant training and reskilling. This needs to be targeted and directed towards supporting the long-term economic prosperity of Australia.  

An immediate and practical solution, that also focuses on broader economic benefits for the longer term, would be to invest in training in occupations that currently appear on the skills needs list compiled by each state / territory. Students would be offered subsidised training via a direct Australian Government voucher which a jobseeker can ‘redeem’ at any Registered Training Organisation (RTO) in an accredited course to receive a full qualification (e.g. Certificate II, Certificate III, Certificate IV and Diploma) in occupations that are directly aligned with local needs. 

Beyond the support for jobseekers that an investment in training and reskilling will bring, there is an added benefit associated with such a commitment – the sustainability of independent RTOs.

A recent analysis by ITECA, made possible thanks to the great support of our members, has identified that three in four independent vocational education and training providers anticipate a reduction in their enrolments due to the Covid-19 outbreak. Recent Australian Government initiatives such as the JobKeeper payment and suspension of certain fees and charges levied by the Australian Skills Quality Authority (ASQA) will help the sector; however, the reality is that independent RTOs are struggling to assist students, support their employees and keep their doors open. It’s time that the Australian Government step-up and back the sector.

The latest data from the National Centre for Vocational Education and Research (NCVER) show that independent RTOs employ over 200,500 people. In addition, NCVER data reveal that while non TAFE providers employ 81.5% of the VET workforce and deliver to more than 80% of Australia’s 4.1 million VET students, they manage to do so with around 62% of trainers and assessors. So, independent RTOs are leaner and more efficient than public TAFE colleges that are fully subsidised by the taxpayer.

Importantly, NCVER data continues to show that independent RTOs enjoy superior completion rates, post-study employment rates and employer satisfaction than taxpayer subsidised public TAFE colleges. The NCVER data highlights the importance of making an investment in training and reskilling that will not only benefit jobseekers, but also ensure the sustainability of the independent vocational education and training system. For this reason, any Australian Government investment in training and reskilling needs to be provider-agnostic, ensuring students have a genuine choice about where they wish to study and train for their future, and be available on a competitive basis to both independent RTOs and taxpayer subsidised public TAFE colleges.

Now is the time to make a national investment in vocational education and skills. It will support not only jobseekers, but also jobs in Australia’s independent tertiary education sector.

Troy Williams, ITECA Chief Executive