Ensuring Vocational is Not Second Best Dr 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

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

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

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

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