Transcript DEECD Victoria
Vocational Training in Victoria: Reform & Performance
A higher skilled workforce will be critical to securing Victoria’s future competitiveness
Only half of working age Victorians have the core
literacy and numeracy skills
they need for work at a time of increasing structural change in our economy...
We need higher level skills to arrest Victoria’s declining productivity… 2001 to 2005: Victoria’s multifactor productivity growth rate was half the national average 2006 to 2010: Victoria’s growth rate declined at five times the average annual rate of NSW We need to increase workforce participation to mitigate the costs of an ageing population and key workforce shortages (e.g. community services)… But 625,000 low skilled Victorians are in low skilled work or disengaged from work…
Victoria’s VT system has been on a reform trajectory from a centrally planned model to a demand-driven model
Problems with centrally-planned models:
• Inefficient system with misaligned activity, both unmet demand and churn • Objectives not being met early 1990s Profile funding No market TAFE budget funded through contract TAFE attracts students Profile of activity funded Regulated fees Goal: Funding TAFE mid 1990s - 2000s Purchaser provider Portion of funding contestable Government purchased places, mostly with TAFE Planned course provision with capped places Subsidy based on historical cost Fees regulated/capped Goal: Drive efficiency 2008 - 2012 Student entitlement 2012 Refocusing VET Fully contestable market Open contestable market Student entitlement and choice of provider Student entitlement and choice of provider Uncapped places Uncapped places Subsidy based on course cost Subsidy reflects supply demand and public value Flexible fees Fees regulated/capped Goal: Meet student demand Goal: Modern system based on choice and competition
The introduction of the Victorian Training Guarantee in 2009 placed purchasing power in the hands of students
Victorian Training Guarantee:
• Victorians aged under 20 can access training at any level, regardless of prior qualifications • Victorians aged 20 or over can access training in qualifications higher than those they already hold • Access to apprenticeship qualifications is unlimited to Victorians, regardless of age or prior qualifications
The role of industry and employers in the training system has evolved, from passively lobbying government for places to actively engaging with individuals and providers
Old model: Passive industry New model: Active industry Government allocates fixed number of training places in specific courses Training Providers offer fixed number of subsidised places Students access places on a first-come first-served basis Industry & Employers lobby for training places to meet skills needs Government Students Personal entitlement to subsidised training at provider of choice Industry & Employers Influence student choice and provider offerings Training providers Compete to attract students & employers
70% 60% 50% 40% 30% 20% 10% 0% -10%
Recent growth in national context…
% change in number of students in AQF courses of study 2008 to 2012 (NCVER prelim June 2013)
28% ACT 24% NSW 9% NT 10% Qld 61% SA -3% Tas 61% Vic 17% WA
‘Refocusing Vocational Training’ builds on the gains of the demand driven system, while improving core elements of market design • Victorian Training Guarantee retained Fundamentals retained Entitlement Diversity of providers Differentiated subsidies • Funding directed to providers who meet quality requirements and attract students • Lower subsidies for higher quals that deliver greater private returns, but income –contingent loans so no upfront-fees Gaps addressed Unbalanced public investment Supply-driven system Gaps in quality assurance & market oversight Government policy constraining market-driven industry restructuring • Subsidies targeted towards real job pathways • Deregulation of fees • Concessions and loadings for effective participation • Redesign of industry engagement • Improved information to the market • Better commissioning • Improved monitoring of provider and market performance • TAFE transition • ACFE 10 year strategy
Training activity to Q1 2013
Enrolments patterns to Q1 2013 45% 46% 47% 45% 9% Q1 2012 8% Q1 2013 Patterns of Delivery to Q1 2013 TAFE PRIV ACE Apprenticeship and Traineeship trends to Q1 2013
Activity is moving towards courses of higher public value and labour market need
The Minister for Higher Education and Skills talking directly to industry and employers
Direct Consultation
DEECD Market Facilitation and Information Industry Skills Consultative Committee meets 3-4 times a year Monthly Industry Forums hosted by the Minister Seven to date
Industry Associations Employers Skills Portfolio
Wendy Timms Building & Construction Agriculture, Forestry, Fishing Food & Beverage Wood, Pulp, Paper Hospital, Medical, Health Care Residential Care & Social Services ICT, Financial Service Furniture, Admin & support Education
Skills Portfolio
John Spasevski Machinery, Equipment, Transport, Manufacturing, Auto Road &Rail Transport Water, Air & other Transport Warehousing, Logistics & Storage Services Accommodation & Food Services, Personal Services Retail & Wholesale Trade
Skills Portfolio
Lee-Anne Fisher Metals & Metal products Petroleum, Coal, Chemical, Polymer & Rubber products Non metallic & Mineral Products Electricity, Gas, Water & Water Services, Mining, Professional & Scientific Services TLFC, Property Services, Printing HESG Regional Facilitation Managers
The objectives of vocational training
• • • • delivers a productive and highly skilled workforce enables all working age Australians to develop the skills and qualifications needed to participate effectively in the labour market contributes to Australia’s economic future supports increased rates of workforce participation
National Agreement for Skills and Workforce Development
In shortage and specialised occupations
Specialised or In Shortage enrolments as share of all industry -specific enrolments 40% 33% Q1 2012 Q1 2013
Enrolments in Victoria’s largest employing industries
Employment and Enrolments 2012 (% total)
Employment Enrolments Health Care and Social Assistance Retail Trade Manufacturing Construction Professional, Scientific and Technical Services 3% 9% 8% 12% 9% 11% 11% 10% 13% 19% Source: Monash CoPS • • • 54% enrolments in Victoria’s five largest employing industries (51% employment) Enrolment shares exceed employment shares in health and construction - areas of relatively high shortages Gap in Professional Services largely reflects the need for degrees or above
Health care and social assistance
Enrolments patterns to Q1 2013 Enrolments in specialised & in-shortage related courses to Q1 2013 Enrolments by Provider Type, Q1 2013
Top 5 Qualifications
Certificate III in Children's Services Diploma of Children's Services (Early childhood education and care)
Q1 2013
8,576 5,894 Diploma of Nursing (Enrolled-division 2 Nursing) 4,865 Certificate III in Aged Care Certificate IV in Disability 4,486 2,273 Top 5 Qualifications in Q1 2013
Construction
Enrolments patterns to Q1 2013 Enrolments in specialised & in-shortage related courses to Q1 2013 Enrolments by Provider Type, Q1 2013
Top 5 Qualifications
Certificate III in Electrotechnology Electrician
Q1 2013
4,902 Certificate III in Carpentry Certificate III in Plumbing Certificate III in Civil Construction Plant Operations Certificate IV in Building and Construction (Building) Top 5 Qualifications in Q1 2013 4,097 3,565 1,793 1,470
Manufacturing
Enrolments patterns to Q1 2013 Enrolments in specialised & in-shortage related courses to Q1 2013 Enrolments by Provider Type, Q1 2013
Top 5 Qualifications
Certificate III in Process Manufacturing Certificate IV in Competitive Manufacturing Certificate III in Engineering - Fabrication Trade Certificate III in Competitive Manufacturing Certificate III in Food Processing
Q1 2013
3,502 3,079 1,543 1,478 933 Top 5 Qualifications in Q1 2013
Victorian Training Market Quarterly Report Q1 2013
available at:
www.education.vic.gov.au/training/providers/market/Pages/reports.aspx