Australian Institute for Social Research Informing decisions. Complex not Simple: the VET Pathway from Welfare to Work Dr Kate Barnett, Deputy Executive Director, Australian Institute for Social Research AISR Research Seminar Series, August 29 th 2008

Australian Institute for Social Research Informing decisions. Context: confluence of economic and demographic change Strong growth in Australian economy Strong growth in Australian economy Trend to a knowledge economy Trend to a knowledge economy Population and workforce ageing Population and workforce ageing Emergence of skills shortage Emergence of skills shortage

Australian Institute for Social Research Informing decisions. Opportunity for Under-employed Shortfall of 240,000 people with VET qualifications projected for Shortfall of 240,000 people with VET qualifications projected for Shortfalls specifically at Cert III, Diploma, Advanced Diploma levels. Shortfalls specifically at Cert III, Diploma, Advanced Diploma levels. Opportunity to address Australia’s Social Inclusion Agenda + Productivity Agenda Opportunity to address Australia’s Social Inclusion Agenda + Productivity Agenda

Australian Institute for Social Research Informing decisions. What is Welfare to Work? Welfare Reform context – perceived need to reduce dependence on income support while promoting self sufficiency via work. Welfare Reform context – perceived need to reduce dependence on income support while promoting self sufficiency via work. Central policy goal of governments of Australia, NZ, Great Britain, Canada, USA. Central policy goal of governments of Australia, NZ, Great Britain, Canada, USA. Both liberal and conservative governments Both liberal and conservative governments These spend less on average on income support than many European nations. These spend less on average on income support than many European nations.

Australian Institute for Social Research Informing decisions. Policy Goals and Welfare to Work 4 population targets (at 2007) – 1 New applicants for disability support assessed as able to work P/T (38,000) 2 Parents whose youngest child <7 years old (285,000) 3 Newstart/Youth Allowance recipients of 2+ years (50,000) 4 Unemployed mature age people (110,000).

Australian Institute for Social Research Informing decisions. W2W Targets’ Educational level Having at least Year 12 reduces risk of unemployment by 60% (ACOSS, 2008) W2W groups have low levels of formal education (< Year 10): People with a disability (63%) People with a disability (63%) Unemployed Parenting Payment (72%) Unemployed Parenting Payment (72%) Mature age unemployed (43%) Mature age unemployed (43%) Long term unemployed (64%) Long term unemployed (64%)

Australian Institute for Social Research Informing decisions. Quick fix solutions W2W policy does not distinguish between W2W policy does not distinguish between a) Quality training b) Quality employment Therefore promotes ‘churning ‘ – welfare-to-work-and-back-to-welfare Therefore promotes ‘churning ‘ – welfare-to-work-and-back-to-welfare

Australian Institute for Social Research Informing decisions. Quality Training + Employment Training that increases skills and leads to recognised qualification. Training that increases skills and leads to recognised qualification. Work that provides ongoing opportunity to keep increasing skills, provides security. Work that provides ongoing opportunity to keep increasing skills, provides security. Meets individual need as well as broader economy. Meets individual need as well as broader economy.

Australian Institute for Social Research Informing decisions. Welfare to what kind of work? 27% of unemployed Australians who got casual jobs were back on benefits 12 months later. 27% of unemployed Australians who got casual jobs were back on benefits 12 months later. 46% remained in casual employment. 46% remained in casual employment. Associated with low skills or disability (Productivity Commission: 2006). Associated with low skills or disability (Productivity Commission: 2006). UK and US research – 21%-25% return to benefits within 3 months of getting a job UK and US research – 21%-25% return to benefits within 3 months of getting a job

Australian Institute for Social Research Informing decisions. Welfare to what kind of work? Average spent on training for long term unemployed by Job Network = $350 for 3 days training Average spent on training for long term unemployed by Job Network = $350 for 3 days training Job Network clients on benefits for 5+ years growing (DEEWR: 2008) Job Network clients on benefits for 5+ years growing (DEEWR: 2008)  18% (2004); 29% (Mar 2008)  10% of all UE (1999); 25% (Mar 2008)

Australian Institute for Social Research Informing decisions. The Problem of Incentives Current …incentives skew employment provider behaviour towards obtaining short term jobs rather than equipping job seekers with the skills they need to obtain sustainable employment and contribute to Australia’s skills base and productivity” (DEEWR: 2008)

Australian Institute for Social Research Informing decisions. Project purpose (NCVER funding) To explore the capacity of the VET system to provide for students from the Welfare to Work target group. To explore the capacity of the VET system to provide for students from the Welfare to Work target group. To explore the role VET can play in assisting the welfare to work transition. To explore the role VET can play in assisting the welfare to work transition.

Australian Institute for Social Research Informing decisions. Research Questions + Methodology Research Question LitSurvFGIntCS 1. Research findings 2. Issues - W2W groups 3. Issues - VET provider 4. Effective training for W2W – what is needed 5. Effective training – what exists 6. VET+non-VET package

Australian Institute for Social Research Informing decisions. Survey sample 1,872 TAFESA preparatory students phoned via TAFESA. 1,872 TAFESA preparatory students phoned via TAFESA. 418 met criteria of recent/current Centrelink recipient + enrolled in preparatory program. 418 met criteria of recent/current Centrelink recipient + enrolled in preparatory program. 168 agreed to be interviewed. 168 agreed to be interviewed. 130 ultimately surveyed using CATI phone based method. 130 ultimately surveyed using CATI phone based method.

Australian Institute for Social Research Informing decisions. Focus Group Sample 70 of the 130 students surveyed agreed to participate in a focus group. 70 of the 130 students surveyed agreed to participate in a focus group. 45 of these were invited to 1 of 4 groups held on different TAFESA campuses. 45 of these were invited to 1 of 4 groups held on different TAFESA campuses. 5 th group based in a child care centre that had provided preparatory training on site leading to child care qualification. This site also provided 1 of 2 case studies. 5 th group based in a child care centre that had provided preparatory training on site leading to child care qualification. This site also provided 1 of 2 case studies.

Australian Institute for Social Research Informing decisions. Findings: the VET pathway VET can provide pathway to quality employment for disadvantaged people. VET can provide pathway to quality employment for disadvantaged people. Most require preparatory pathway first, addressing gaps in previous education (eg literacy, numeracy). Most require preparatory pathway first, addressing gaps in previous education (eg literacy, numeracy). Most require range of supports to address complex and multiple need (eg support for personal, financial, child care, transport issues). Most require range of supports to address complex and multiple need (eg support for personal, financial, child care, transport issues). Therefore, preparatory pathway is holistic (not just training) and integrated with other VET Therefore, preparatory pathway is holistic (not just training) and integrated with other VET

Australian Institute for Social Research Informing decisions. The vocational preparatory pathway The VPE curriculum allows them to gain the foundation concepts in a supported environment with trained literacy and numeracy specialists while also undertaking vocational electives and work experience placements to prepare them for focused vocational skills development.

Australian Institute for Social Research Informing decisions. Reasons for studying at VET To get a job or a better job (56%) To get a job or a better job (56%) To develop skills (31%) To develop skills (31%) To obtain a qualification (23%) To obtain a qualification (23%) Additional reasons were non-vocational eg To learn interesting things (5%) To learn interesting things (5%) To meet new people (1.5%) To meet new people (1.5%)

Australian Institute for Social Research Informing decisions. Barriers faced by students Competing work-study-family responsibilities (esp child care, child rearing) (29%) Competing work-study-family responsibilities (esp child care, child rearing) (29%) Poor health (16%) Poor health (16%) Not being used to studying/ learning difficulties/ concentration difficulties (11%) Not being used to studying/ learning difficulties/ concentration difficulties (11%) Costs associated with study (10%) Costs associated with study (10%) Getting to and from study (time, costs) (9%) Getting to and from study (time, costs) (9%)

Australian Institute for Social Research Informing decisions. Impact of VET pathway: Students Improved self-confidence & self esteem Improved self-confidence & self esteem Improved health Improved health Reduced social isolation Reduced social isolation Increased personal support networks (peers + TAFESA staff) - especially Women’s Education Program students Increased personal support networks (peers + TAFESA staff) - especially Women’s Education Program students Motivation to continue their studies Motivation to continue their studies Better informed re: work & training Better informed re: work & training

Australian Institute for Social Research Informing decisions. Impact of VET pathway: Students TAFESA preparatory programs rated highly TAFESA preparatory programs rated highly 1 to 5 scale – 52% were Very Satisfied (5) + 36% Fairly Satisfied (4). 1 to 5 scale – 52% were Very Satisfied (5) + 36% Fairly Satisfied (4). None rated (1) – Not at all Satisfied None rated (1) – Not at all Satisfied Less than 1% rated (2) Fairly Dissatisfied Less than 1% rated (2) Fairly Dissatisfied High levels of satisfaction reinforced by focus group participants High levels of satisfaction reinforced by focus group participants

Australian Institute for Social Research Informing decisions. Impact of Welfare to Work on TAFESA Case load & teaching load increase (increased no of students + complexity) Case load & teaching load increase (increased no of students + complexity) Includes increase in students with mental health disabilities, learning disabilities Includes increase in students with mental health disabilities, learning disabilities Increase in no of students struggling to complete courses Increase in no of students struggling to complete courses Centrelink eligibility requirements determined without consultation with VET; some show lack of understanding of VET (eg funding for short term training). Centrelink eligibility requirements determined without consultation with VET; some show lack of understanding of VET (eg funding for short term training).

Australian Institute for Social Research Informing decisions. Good Practice Model Coordinated, case managed support Coordinated, case managed support Individualised approach, incl ITP Individualised approach, incl ITP Collaboration within VET + across sectors Collaboration within VET + across sectors Links between VET + employers Links between VET + employers Flexible delivery, incl flexible timetabling Flexible delivery, incl flexible timetabling PD of VET staff PD of VET staff Learning support integrated with studies Learning support integrated with studies Assistance with child care, study costs, transport costs Assistance with child care, study costs, transport costs

Australian Institute for Social Research Informing decisions. Policy based Disincentives: Centrelink From 2006 onwards, studying for >12months requires transfer to Austudy. From 2006 onwards, studying for >12months requires transfer to Austudy. Newstart recipients lose pensioner concession card. (Lose $93/week if receiving Rent Assistance) Newstart recipients lose pensioner concession card. (Lose $93/week if receiving Rent Assistance) Single parents lose JET child care assistance payments ($25/week) Single parents lose JET child care assistance payments ($25/week)

Australian Institute for Social Research Informing decisions. Competing Incentives : Disincentives IncentiveDisincentive Skills development Centrelink penalises financially for study >1year Qualification Costs of study, including child care etc Secure employment Centrelink accountability requirements Improved family life Juggling work-study-family Improved confidence Low confidence levels

Australian Institute for Social Research Informing decisions. Enabling VET to provide the pathway Centrelink disincentives to engage in preparatory and then long term VET study must be replaced by incentives. Centrelink disincentives to engage in preparatory and then long term VET study must be replaced by incentives. TAFESA and other VET providers must have their additional contribution (regarding disadvantaged learners) acknowledged in funding. TAFESA and other VET providers must have their additional contribution (regarding disadvantaged learners) acknowledged in funding. Policy bridges between Income Support + VET sector to enable VET preparatory staff to work (with funding) across sectors. Policy bridges between Income Support + VET sector to enable VET preparatory staff to work (with funding) across sectors.

Australian Institute for Social Research Informing decisions. Enabling VET to provide the pathway Recognition of impact of Transitions – times when people are vulnerable Recognition of impact of Transitions – times when people are vulnerable Transition is also a time of growth, providing support is provided. Transition is also a time of growth, providing support is provided. Policy bridges remove current reliance on individual goodwill and chance. Policy bridges remove current reliance on individual goodwill and chance. Building the skills of under-employed people not only supports a skilled economy but signifies that Australia is a socially responsible as well as a smart nation. Building the skills of under-employed people not only supports a skilled economy but signifies that Australia is a socially responsible as well as a smart nation.

Australian Institute for Social Research Informing decisions. Taking a long term view “As with school education, the impact of vocational training on employability is more often felt over the long term rather than the short term, improving the sustainability of employment as much as the likelihood that participants will get a job in the first place” (ACOSS, 2008)

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