Smart and Skilled: making NSW number one - Discussion paper September 2011

Page created by Brad Thomas
 
CONTINUE READING
Smart and Skilled: making NSW number one - Discussion paper September 2011
Smart and Skilled:
  making NSW number one
   Discussion paper
   September 2011

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES   WWW.DET.NSW.EDU.AU
Smart and Skilled: making NSW number one - Discussion paper September 2011
Smart and Skilled:
making NSW number one

The NSW Government wants to                   ■■   a more flexible and demand-driven    ■■   100 per cent increase in
rebuild our State and make NSW                     vocational education and training         completions in higher-level
number one. To do this we need a                   system                                    qualifications at Diploma level and
skilled workforce that can contribute                                                        above
                                              ■■   greater contestability of funding
to increased productivity, workforce               for public training and greater      ■■   20 per cent increase in the number
participation and business demand                  competition between providers             of completions in higher-level
for high-level skills.                                                                       qualifications at Certificate III
                                              ■■   support for TAFE as the public
                                                                                             and above by women, Aboriginal
                                                   provider
We must adapt our vocational                                                                 students and students in rural and
education and training system to              ■■   greater transparency in the system        regional New South Wales by 2020.
meet these future needs. We must                   to support informed choices by
                                                                                        We have done this because future
encourage more people to take                      employers and students
                                                                                        prosperity will rely on a highly-skilled
vocational education and training                                                       and knowledgeable workforce. Our
                                              ■■   a drive for improved quality1.
qualifications, particularly at higher-                                                 population is ageing and, to meet the
                                              Doing what is best for NSW
levels. We need to structure our                                                        resulting decrease in worker numbers,
vocational education and training             New South Wales has agreed to the         effort will be required to help more
system to meet student demand                 national framework for reform. In         people gain the skills they need to
and the needs of business for an              implementing reform we will do what       participate in the workforce.
innovative and capable workforce.             is best for New South Wales. Our
                                              prime objective is to support growth      Businesses will rely more and more
                                              and jobs.                                 on having a high-skilled workforce to
Through this discussion paper we
                                                                                        improve productivity and compete in
are seeking your advice on how
                                              In NSW 2021: A Plan to Make NSW           a changing global economy. In the
we can improve the capacity of our
                                              Number One we have set targets to         future, high-skilled jobs are expected
vocational education and training                                                       to grow at two-and-a-half times the
                                              increase attainment levels and make
system to meet these needs.                   sure more people gain higher-level        rate of low-skilled jobs. At current
                                              tertiary qualifications. These include    rates there is an expected shortfall of
COAG Reform
                                              national targets agreed through           high-level qualifications to meet this
To support a more skilled                     COAG. Our targets are:                    demand by 2015.
workforce, the Council of Australian
                                              ■■   50 per cent increase in the          We must strengthen our vocational
Governments (COAG) has agreed to                   proportion of people between         education and training system to
a national framework to revitalise the             the ages of 20 and 64 with           respond to these changing needs.
vocational education and training                  qualifications at Certificate III    Our State has the largest vocational
system. This framework covers:                     and above                            education and training system

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                                WWW.DET.NSW.EDU.AU   2
Smart and Skilled: making NSW number one - Discussion paper September 2011
in the country with more than                 businesses, students and regional
2,000 training organisations and              communities also rely on TAFE NSW
an estimated 830,000 students.                to deliver training. A strong and
TAFE NSW plays an important role              responsive TAFE NSW is critical to
with more than 550,000 student                meeting our future workforce needs.
enrolments across 10 Institutes and
130 campuses.                                 These are some of the issues to
                                              consider. A snapshot with further
The investment we make in our                 details on the NSW economy,
vocational education and training             workforce and vocational education
sector must be in high-quality learning       and training system is in the Appendix
and training that has the greatest            to this paper.
economic and social impact. Greater
effort will be needed to increase
access to training for more of the
population and to increase the take-
up and completion of higher-level
qualifications.

Our modern economy requires both
sophisticated technical skills and,
importantly, substantial underpinning
knowledge and ability to continue
learning and enhancing one’s skills.
Our system needs to enhance and
respond to this broader expectation.

We need to make sure that our
vocational education and training
system responds to demand and
students and employers have greater
opportunities to select learning that
is high quality, responsive and has
flexibility to meet their changing
needs. We need to encourage local
training to meet local needs. Many

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                            WWW.DET.NSW.EDU.AU   3
Smart and Skilled: making NSW number one - Discussion paper September 2011
Increase participation
in vocational education
and training

Greater participation in vocational
education and training for all age         Tell us what you think                    Tell us what you think
groups
                                           ■■   How can we engage more of            ■■   How can we encourage more
To increase productivity and                    the working age population                people to complete higher-
participation in the economy we must            in vocational education and               level qualifications?
engage more people in vocational                training?
education and training and lift                                                      ■■   How can we build better
educational attainment levels across       ■■   How can we equip people                   pathways to higher-level
the working age population. We must             with the skills they need                 qualifications across our
support all age groups, particularly            to participate more fully in              education sectors?
those who need skills and knowledge             work?
to be able to participate more fully in    ■■   How can we improve training        Entitlement to training
the workforce. It also means looking            and job outcomes for
at new ways to assist disadvantaged             disadvantaged learners?            A reform principle agreed by the
learners to acquire the skills they                                                Council of Australian Governments
need to gain sustainable jobs. And it      ■■   How can we maximise
                                                                                   is having a more demand-driven
involves making sure that those who             vocational education and
                                                                                   vocational education and training
live in rural and remote communities            training opportunities for
                                                                                   system. Both Victoria and South
do not miss out on the learning they            people in rural and remote
                                                                                   Australia have adopted a broader
                                                communities?
need to make a contribution to their                                               demand-driven entitlement to
communities.                                                                       training as a key reform, and Western
                                          Increase attainment of higher-level      Australia and Queensland are
                                          qualifications                           considering an entitlement as a way
                                                                                   to increase training participation.
                                          A more productive economy and
                                          workforce requires more of the           An entitlement to a government-
                                          population to have higher-level          funded training place is an option to
                                          qualifications at diploma level and      increase participation in vocational
                                          above. We need to make sure that         education and training and is
                                          New South Wales can meet future          often associated with a demand-
                                          demand for high-level skills so          driven system. The concept involves
                                          that our businesses and industry         giving eligible students access to
                                          can remain competitive in a global       a subsidised training place with
                                          environment.                             an approved registered training
                                                                                   organisation.

4   WWW.TRAINING.NSW.GOV.AU                                                     NSW DEPARTMENT OF EDUCATION AND COMMUNITIES
Smart and Skilled: making NSW number one - Discussion paper September 2011
An entitlement model of training is           approved training organisation             available to university students, such
different from a supply-driven system         chosen by the student or employer.         as HECS - HELP, are not available
where the government funds a fixed                                                       to most vocational education and
number of places using approved               As well as increasing the State’s          training students in New South
training organisations.                       productivity, TAFE NSW has a               Wales. Improved access to such
                                              legislative requirement to provide         loans may need to be considered to
A broad-based entitlement can                 vocational education and training          increase student participation.
increase participation in vocational          services that are widely accessible.
education and training if more                This includes training for apprentices
people are eligible for a government-         and priority entry for young people
subsidised training place and they            and disadvantaged learners. There are
have more control over what and               also broad categories of exemptions         Tell us what you think
where they study. An entitlement              and concessions for student fees to
may enable a student to gain an               support access to training in TAFE          ■■   To what extent could a
initial post-school qualification, to         NSW.                                             training entitlement increase
consolidate skills or to gain higher-                                                          training participation and
level qualifications. The availability        An entitlement would need to                     meet the future skill needs
                                              operate within Government budgets                of individuals, businesses,
of training and the degree of
                                              for vocational education and training.           regions and our economy?
subsidy can vary depending on the
circumstances of the individual and           In offering a broader entitlement, the      ■■   What should an entitlement
the type of qualifications undertaken.        Government may need to consider                  to training cover?
                                              what contributions individuals and
A key consideration under an                  employers should make to the cost of        ■■   How do we match individual
entitlement is aligning student               training. Research has shown that the            demand with industry needs
demand with industry and economic             higher the qualification, the higher             under an entitlement model?
skill needs.                                  the return to the individual in terms of
                                                                                          ■■   Under an entitlement, how
                                              earnings and employment prospects.               should the level of investment
There are already some examples               Both individuals and employers                   in training made by
of entitlement in the vocational              already make some private investment             government, individuals and
education and training system in              in training, and the development of              employers be determined?
New South Wales. These include an             an entitlement should not displace
entitlement to a government-funded            that investment.                            ■■   Should student loans be
place for young people aged 15 to                                                              available for government-
24 and for apprenticeships and most           Some full fee-paying vocational                  funded vocational
new-entrant traineeships. In areas            education and training students                  qualifications? If so, what
of apprenticeship and traineeship             are able to access student loans.                should they look like?
training, the funding flows to the            However, the kinds of student loans

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                                WWW.DET.NSW.EDU.AU     5
Smart and Skilled: making NSW number one - Discussion paper September 2011
Target vocational education
and training to business,
industry and regional needs

Aligning the Government’s                     need to be equipped with a skilled
investment in vocational education            workforce to service local business        Tell us what you think
and training with the State’s priorities      and industry demand and to capture
is vital to meeting the future skill          new economic opportunities.                ■■   What is the best way to
                                                                                              ensure that the Government’s
needs of the economy. To do this, we
                                              It is also important to maximise the            funds for vocational
need to ensure that the investment
                                              outcomes from training. Businesses              education and training
in vocational education and training
                                              need access to training that is                 flow to areas that maximise
flows to where there is critical
                                              flexible, tailored and responsive to            economic benefits for our
demand for skills and we have the
                                                                                              businesses and the State?
right mix of skills and knowledge to          their needs. Having a vocational
maximise economic benefits.                   education and training system that         ■■   How can we maximise
                                              can quickly respond to the changing             vocational education and
To do this, we need to make sure              needs of businesses or changes in the           training opportunities to
that the vocational education and             economy will increase the likelihood            meet the needs of our
training system can anticipate and            that the skills people learn are applied        regions?
respond to changing economic and              productively in workplaces and that
                                                                                         ■■   How can our vocational
social conditions. Modern workplaces          businesses can expand and prosper.
                                                                                              education and training system
have to deal with environmental
                                                                                              adapt and be responsive
changes, new technology, innovation
                                                                                              to the changing needs of
and greater global competition. This
                                                                                              business and industry and
requires workers with high levels
                                                                                              changes in the economy?
of knowledge, skill and autonomy
to undertake complex tasks, adapt
to changes and solve problems.
Our vocational education and
training system must develop both
technical competencies and broader
knowledge capability.

The Government’s investment in
vocational education and training
must also meet the diverse skill needs
across our regions. Not all regions
are the same. There are differences in
demographics, industry base and in
economic opportunities. Our regions

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                              WWW.DET.NSW.EDU.AU   6
Smart and Skilled: making NSW number one - Discussion paper September 2011
Role and function of TAFE
NSW as the public provider

TAFE NSW plays an important role in           TAFE NSW is the largest provider of
our vocational education and training         vocational education and training        Tell us what you think
system and makes a significant                in the State. It has a unique role
contribution to our economy and               in servicing the training needs of       ■■   What should the role of
                                                                                            TAFE NSW be in the context
communities. Training through TAFE            industry and our regions and local
                                                                                            of a broader entitlement to
NSW is offered across ten institutes          communities, with its responsibilities
                                                                                            training in our vocational
with over 130 campuses and specialist         spanning high-level workforce
                                                                                            education and training
centres in regional and metropolitan          development for industries to
                                                                                            system?
areas.                                        improving skill and job outcomes
                                              for disadvantaged learners and           ■■   How should TAFE NSW be
In 2010, TAFE NSW delivered more              communities.                                  better utilised to meet the
than 70 per cent of all flexible                                                            future skill needs of our
vocational education and training in          We need to consider the role and              workforce?
Australia and commenced delivery              function of TAFE NSW in supporting
of its first degree. In the same year,        expanded training opportunities
there were over 550,000 enrolments            in the context of greater choice
in TAFE NSW and over half of those            and make sure that TAFE NSW
students were in regional areas. Some         is well positioned to operate in
89 per cent of TAFE NSW graduates             an environment of increased
were satisfied with the quality of            contestability of government-funded
the training they had received. TAFE          training.
NSW has also made an important
contribution to shifting the balance
toward higher-level qualifications by
increasing training completions at
Diploma level and above. Between
2005 and 2010, TAFE NSW greatly
decreased its reliance on direct
government funding, growing its
external revenue by more than 70
per cent3. This external revenue is
re-invested back into training more
students across the State.

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                             WWW.DET.NSW.EDU.AU   7
Greater choice for
individuals and employers

The Council of Australian                     A demand-driven system entails
Governments has acknowledged the              individuals and employers exercising a    Tell us what you think
role of contestability of funding for         degree of choice in their selection of
publicly-funded vocational education          training qualifications and providers.    ■■   What type of information
                                                                                             is needed by individuals
and training as a way of providing            Having government funds follow their
                                                                                             and employers to inform
greater choice. While New South               choice and targeting training to the
                                                                                             their choice of vocational
Wales invests the largest dollar              priority needs of the economy may
                                                                                             education and training?
amount of funding of any State                enable the system to better respond
or Territory in contestably-funded            to current and future demand.             ■■   How can we continue
training, only a relatively small share                                                      to assure the quality of
of government funds is open to                To exercise greater choice, employers          vocational education and
competition. At 19.6 per cent, the            and individuals need to be able                training in the context of
share invested in contestable training        to make informed decisions. They               greater choice?
in New South Wales is below that              need access to information on what
in other large states and below the           training is available and what they can
Australian average of 21.7 per cent.          expect to gain from that training.

Transparent and high-quality                  They also need to be assured that
vocational education and training to          the vocational education and training
inform choice                                 they receive is of high quality and
                                              that it meets the needs of business
If we are to encourage more people            for a knowledgable, capable and
to engage in vocational education             competent workforce. If we are
and training, particularly in higher-         to offer greater choice to students
level qualifications, we need to              and employers we need to consider
consider ways to expand the capacity          whether our existing quality
of our vocational education and               safeguards should be strengthened
training system and provide greater           to ensure greater quality and viability
choice for those who use our system.          of services and that the outcomes
                                              delivered meet the needs of industry
                                              and the economy.

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                              WWW.DET.NSW.EDU.AU   8
Role of competition                        We need to consider what
                                           role increased contestability of              Tell us what you think
In New South Wales both public and         government-funded training could
private training organisations are able    play in helping to meet the future            ■■   How could increased
to compete for funding through a                                                              contestability of government-
                                           workforce needs of New South
contestable training market to deliver                                                        funded training support
                                           Wales. This includes our need for
traineeships, apprenticeships and                                                             greater participation in
                                           higher-level qualifications, increased
other priority industry qualifications.                                                       vocational education and
                                           participation in training and greater
                                                                                              training and greater take-up
                                           choice for the users of training.
New South Wales has one of the                                                                of high-level qualifications?
most open contestable training             We also need to consider how                  ■■   What factors should the
markets with all registered training       a community service obligation                     Government consider in
organisations in Australia eligible to     may be managed in a contestable                    increasing contestability of
compete for funding. At the same           market to ensure support for critical              training funds?
time, we have the lowest share of          government priorities including
funds invested in contestable training     improving outcomes for groups                 ■■   How should community
of all large states.                                                                          service obligations be
                                           including Aboriginal people or people
                                                                                              managed in a contestable
                                           with a disability and to ensure access
The contestable training market has                                                           market?
                                           for those in remote areas.
made an important contribution to
                                                                                         ■■   What criteria and what
training participation and supporting
                                                                                              accountabilities should
the needs of business and industry in
                                                                                              training organisations meet
New South Wales.
                                                                                              to be eligible for government-
                                                                                              funding?
Students undertaking training in
apprenticeships and new-entrant
traineeships under the contestable
training market have increased by
20 per cent since 2006, and over
70 per cent of training delivered
through these arrangements is work-
based. Some 87 per cent of training
participants who receive government-
funded training with private training
providers in New South Wales are
satisfied with the quality of training4.

9   WWW.DET.NSW.EDU.AU                                                              NSW DEPARTMENT OF EDUCATION AND COMMUNITIES
Improve vocational education
and training completion rates

New South Wales has one of the
highest training completion rates in          Tell us what you think
the country (34 per cent versus 27
per cent nationally). Overall, however,       ■■   How can we improve
                                                   vocational education and
completion rates in vocational
                                                   training completions?
education and training in Australia
are generally low2. In comparison,            ■■   In what critical areas should
undergraduate degree completion                    they be improved?
rates trend between 70 and 80
per cent.                                     ■■   How can we improve
                                                   completions for apprentices
We need to increase the number of                  and trainees?
people who both start and complete
a vocational qualification. The more
people who complete their study, the
more skills we have available to be
applied in the workforce and to meet
future demand for skills.

Vocational education and training
completions need to increase
across all qualification levels and for
apprenticeships and traineeships,
particularly in skill shortage areas.

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                        WWW.DET.NSW.EDU.AU 10
Consultation process

This discussion paper is designed to
facilitate public debate on how best
to equip the vocational education and
training system in New South Wales
to meet our future workforce needs.

The NSW Government is keen to
hear your views and will conduct a
series of consultations around the
State. An electronic version of this
discussion paper and the schedule for
consultations can be found at www.
training.nsw.gov.au.

Additional information on the
consultation process, including
how to make a submission, can
be accessed from this site. All
submissions will be treated as
public documents unless you tell us
otherwise. Written submissions close
on 4 November 2011.

Other useful information can be
found at:

NSW State Plan - www.2021.nsw.gov.
au/index.php

Council of Australian Governments
- www.coagreformcouncil.gov.au/
agenda/skills.cfm

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES   WWW.DET.NSW.EDU.AU 11
Appendix:
A snapshot of NSW

New South Wales is a large economy            The Economy                               ten years our productivity growth has
with a population of over seven million                                                 been slightly below the national rate.
people and production of goods and            The growth that New South Wales           Importantly though, more than half of
services worth over $400 billion5. Our        has achieved over the last ten years
                                                                                        our industries have productivity levels
                                              has been unlike the growth attained
State comprises over 30 per cent of                                                     above the national average, including:
                                              in states that have benefited from
the nation’s economy with exports                                                       professional, scientific and technical
                                              the resources boom. Growth in New
worth $56 billion in 2009-10 and              South Wales has come from strong          services; manufacturing; health care
the largest share of private business         economic fundamentals and a diverse       and construction10.
investment in Australia6.                     industry base with good long-term
                                              economic prospects.                       Projections from the Commonwealth
Our economy is diverse, covering                                                        Government’s Intergenerational
value-added services, manufacturing,          Like most advanced economies our          Report 2010 show that over the next
construction, mineral resources and           future ability to compete in a global
                                                                                        40 years, productivity growth in
agriculture. Around 74.6 per cent of          environment will involve increasing
                                                                                        Australia could fall from the average
the State’s economy is made up of             productivity, and offsetting the impact
                                              of an ageing population on workforce      of 1.8 per cent a year achieved over
services7. Our comparative strengths                                                    the past 40 years to 1.6 per cent.
                                              participation.
are in high-end services which are the                                                  The corresponding growth in living
fastest growing component of world            Productivity                              standards (as defined by real Gross
trade. Services account for about 70
                                              The mid 1990s was a period of high        Domestic Product per capita) could
per cent of employment in New South
                                              productivity growth where New South       decline from 1.9 per cent to 1.5 per
Wales and service exports generated
                                              Wales led the country. Over the last      cent per year.
over $20 billion in 2009-108.

Small and medium businesses account              Growth in labour productivity, NSW and Australia11
for most of the employment in New
South Wales and will continue to play
an important role in generating jobs
for the State.

The next ten years will see an
increased demand for higher-skilled
jobs in New South Wales. Across the
nation higher-skilled jobs are expected
to grow at two-and-a-half times the
rate of low-skilled jobs9.

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                              WWW.DET.NSW.EDU.AU 12
Meeting productivity needs of                 further. Current projections indicate       The next ten years will see demand for
business                                      that ageing will shrink the size of the     470,000 net new jobs in New South
                                              working age population relative to          Wales19. Most of these jobs will be
Businesses need skilled workers to            total population from 70 per cent to
start and grow. Only 52 per cent of                                                       higher-skilled jobs with the growth
                                              61 per cent by 202516. Research has         greatest in services such as healthcare;
employers believe that the skills of          shown that higher-level skills increase
their employees are adequate for what                                                     professional and technical services
                                              the chance of sustainable employment:
is needed in the workplace12. A more                                                      and in construction. This will increase
productive workforce requires people          ■■   people with a Diploma or Advanced      demand for professionals, managers,
to learn skills that can be readily                Diploma have an 80 per cent            technicians and trades.
applied to the workplace needs of                  chance of employment compared to
businesses.                                        55 per cent for those with a Year 10   Most people of working age in New
                                                   School Certificate or below17.         South Wales have a qualification and
Research has found that higher-                                                           some 35 per cent have a qualification
level skills increase earnings and
                                                                                          at Diploma level and above20. To meet
productivity:                                 The Workforce                               future demand for high-level skills we
■■   those with a Bachelor degree earn        In New South Wales about 60 per             will need to lift the attainment levels
     almost two-and-a-half times more         cent of the population aged 15              of working age people, including the
     than people whose highest level of       years and over are in employment18.         45 per cent without a non-school
     education attainment is Year 1113        The top five employing sectors are:         qualification21.
                                              healthcare and social assistance; retail
■■   firms with more qualified managers                                                   Forecasts indicate that there will be a
                                              trade; professional, scientific and
     are better managed and more                                                          shortfall of higher-level qualifications
                                              technical services; construction; and
     productive14.
                                              manufacturing.                              by 2015.
Workforce participation
                                              Forecast labour market and student demand for qualifications, NSW22
In 2010-11, the rate of labour force
participation in New South Wales
was 64 per cent, below the national
average of 66 per cent15. Historical
changes in the structure of the
economy have involved a shift from
heavy manufacturing to more high-
end services and this has resulted in
some decline in male participation
rates over time.

An ageing population has the potential
to reduce workforce participation even

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                                 WWW.DET.NSW.EDU.AU 13
Young people under the age of 25              Potential additions to employment, NSW, 201125
are less likely to have a higher-level
qualification (Diploma level and
above) as they are just starting out
in their working life. The likelihood
of having a higher-level qualification
increases for 25 to 34 year olds,
but for those aged above 35, the
possibility of attaining a higher-level
qualification starts to decrease23.

Making use of the skills we have
available to us is important for
increasing productivity. Degree-              Again, most are women (59 per             entire State have access to training so
qualified migrants who are not from           cent) and almost half do not have a       they too can benefit from growth and
an English-speaking country are at            vocational education and training or      sustainable jobs.
least twice as likely to be unemployed        higher education qualification.
and almost twice as likely to be in
a low-skilled job compared to other
                                              Of those unemployed, 57 per cent          The Vocational Education and
                                              do not have a vocational education        Training System
degree-qualified people24. Often this
                                              and training or higher education
is due to a lack of recognition of their
                                              qualification26. Young people make        New South Wales has the largest
qualifications and the low level of
                                              up 43 per cent of unemployment and        vocational education and training
English language skills.
                                              Aboriginal people are three to four       system in the country with over
There are also many people in the             times more likely to be unemployed27      2,000 training organisations and an
State who are willing to work but are
                                              28
                                                 .                                      estimated 833,000 students. This
not fully engaged in the workforce.                                                     includes 583,000 students trained
                                              While New South Wales has many            in public institutions and through
There are some 900,000 people
                                              prosperous regions, others rely heavily   government-funded private training
able to work and almost half of
                                              on industries that are vulnerable to      provision, and an estimated 250,000
these are not currently in the labour
                                              economic change and/or have large         students studying under private fee-
force. Most are women (65 per
                                              populations of disadvantage. These        for-service arrangements29 30.
cent) and most people who are not
                                              communities also tend to have higher
in the labour force do not have a
                                              rates of unemployment. In achieving
non-school qualification. There are a
                                              our growth potential we need to
further 278,500 who are employed
                                              make sure that people across the
but would like to work longer hours.

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                              WWW.DET.NSW.EDU.AU 14
Servicing the diverse needs of a large        ■■   raising the numbers of apprentices      Participation in vocational education
and complex economy like New                       taking advantage of competency-         and in training
South Wales has its challenges and                 based progression
                                                                                           New South Wales has the largest
our vocational education and training
                                              ■■   creating partnerships with industry     share of government-funded student
system has served us well in creating
                                                   to skill the workforce for innovation   commencements in the country.
better opportunities for learners by:
                                                   and with community groups to            While in the past year there has been
■■   expanding the availability of                 gain better job outcomes for job        some growth in government-funded
     training to workers and job                   seekers.                                student commencements, since 2006
     seekers, especially for higher-                                                       there has been a decline of five per
                                              These results come from a
     level qualifications (Diploma and                                                     cent. This compares with growth of
                                              commitment to reform where New
     Advanced Diploma)                                                                     19 per cent in government-funded
                                              South Wales is:
                                                                                           student commencements for the rest
■■   increasing provision of flexible                                                      of Australia. The decline in student
                                              ■■   leading the adoption of national
     training through on-line and                                                          commencements has been evident
                                                   regulation of the vocational
     workplace delivery                                                                    across all age groups but particularly
                                                   education and training system
■■   increasing high-quality vocational                                                    for those aged between 25 and 4431.
                                              ■■   driving greater competency-based
     education in schools
                                                   progression for apprentices             Participation in higher-level
■■   developing partnerships with                                                          qualifications
                                              ■■   implementing a training
     universities to create pathways into                                                  In recent years there has been growth
                                                   entitlement for 15 to 24 year olds
     higher education                                                                      in the share of students training
                                              ■■   leading the development of a            in higher-level qualifications. At
■■   lifting Aboriginal participation
                                                   nation-wide unique student              12 per cent, the share of students
     in training and improving
                                                   identifier                              commencing training in higher-level
     outcomes for apprenticeships and
     traineeships                             ■■   changes in TAFE NSW for                 government-funded qualifications
                                                   greater local responsiveness,           (Diploma and Advanced Diploma)
■■   producing one of the highest                                                          in New South Wales is below the
                                                   competitiveness and commercial
     training completion rates in                                                          national average of 14 per cent.
                                                   activity.
     the country, with a significant
     increase in completions of Diploma       This puts us in a good starting              In 2010, vocational training graduates
     qualifications and above for TAFE        position to strengthen areas of our          made up about seven per cent of
     NSW and other providers                  training system that need attention.         university enrolments in

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                                  WWW.DET.NSW.EDU.AU 15
New South Wales, down from just                    Vocational education and training completion rate by state35
over eight per cent in 200832. Building
pathways to higher-level qualifications
from school to vocational to higher
education will help build a skilled
workforce.

Vocational education and training
completions

New South Wales has one of the
highest vocational education and
training completion rates in the              Targeting priorities                   are: finance; professional services;
country (34 per cent versus 27 per                                                   healthcare; manufacturing and
cent nationally). Overall, however,           Aligning the Government’s
                                                                                     construction. In 2009-10, these
                                              investment in training with the
completion rates in vocational                                                       sectors accounted for a combined
                                              State’s priorities is fundamental to
education and training in Australia                                                  42 per cent of Gross State Product
                                              meeting the future skills needs of
are generally low33. In comparison,           business. The five sectors in New      and 41 per cent of employment. The
undergraduate degree completion               South Wales that make the highest      share of government-funded student
rates trend between 70 and 80                 combined contribution to Gross         commencements in these sectors was
per cent34.                                   State Product and employment           33 per cent.

           Share of government-funded commencing students compared to economic contribution, NSW36

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                           WWW.DET.NSW.EDU.AU 16
Choice for users

New South Wales has a highly
competitive vocational education and
training market. There are over 2,000
training organisations operating
in the State. There are some 750
training organisations registered
across Australia which are approved
to compete for NSW government-
funded training. While New South
Wales invests the largest amount of
funding of any State or Territory in
contestably-funded training, only a
relatively small share of government
funds is open to competition. At
19.6 per cent, the share invested in
contestable training in New South
Wales is below that in other large
states and below the Australian
average of 21.7 per cent.

                Proportion of Government recurrent funds for competitive tendering and user choice, 200937

            %

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                      WWW.DET.NSW.EDU.AU 17
References

1
 Derived from the COAG Communique – 19             13
                                                        Australian Bureau of Statistics (2010)          25
                                                                                                           Australian Bureau of Statistics (2011)
 August 2011                                            Education and Training Experience, 2009,          Labour Force, July 2011, 6202.0; Australian
                                                        6278.0.                                           Bureau of Statistics (2010) Persons not
2
 National Centre for Vocational Education                                                                 in the labour force, Australia, September,
 Research (2011) The likelihood of
                                                   14
                                                        Green, Roy (2009) Management Matters              2010, 6220.0.
 completing a VET qualification, 2005-07.               in Australia: Just how productive are           26
                                                                                                           Australian Bureau of Statistics (2010)
                                                        we? Report prepared for the Department            Unemployed Workers, Australia, 6265.0.
3
 Data derived from Department of Education              of Innovation, Industry, Science and              Unpublished data. Australian Bureau of
 and Communities’ Annual Reports 2005-                  Research by the University of Technology          Statistics (2010) Education and Work,
                                                        Sydney, Macquarie Graduate School of              Australia, 6227.0. Unpublished data.
 10.
                                                        Management and the Society of Knowledge
                                                                                                        27
                                                                                                          Australian Bureau of Statistics (2011)
4
 National Centre for Vocational Education               Economies.
                                                                                                          Labour Force Australia, Detailed, January
 Research (2010) Student Outcomes Survey,                                                                 2011, 6291.0.55.001.
                                                   15
                                                        Australian Bureau of Statistics (2011) Labour   28
                                                                                                           Australian Bureau of Statistics (2009)
 2005-10.
                                                        Force Australia, July 2011, 6202.0. Labour        Labour Force Characteristics of Aboriginal
5
 Australian Bureau of Statistics (2010)                 force participation includes those over the       and Torres Strait Islander Australians,
 Australian National Accounts: State                    age of 15 who are either in employment            estimates for the Labour Force Survey,
                                                                                                          6287.0.
 Accounts, 2009-10, 5220.0.                             and/or looking for work.                        29
                                                                                                           Students trained in public institutions
6
 Trade and Investment (2010) Economic
                                                   16
                                                        Australian Bureau of Statistics (2009)            include both government-funded places
                                                        Population Projections, Australia, 2006-          and fee-for-service training. Government-
 and Business Climate, www.business.nsw.                                                                  funded places cover training funded by
                                                        2101. Scenario B. 3222.0.
 gov.au/invest-in-nsw/about-nsw/economic-                                                                 government that is delivered by both
 and-business-climate/state-economies.              Australian Bureau of Statistics (2010)
                                                   17
                                                                                                          public and private training institutions.
 Accessed 11 August 2011.                           Education and Work, 6227.0.                         30
                                                                                                           This is based on the Productivity
                                                   18
                                                        Australian Bureau of Statistics (2011) Labour     Commission’s estimate that NCVER data
7
     Access Economics (2010) The NSW Economy                                                              capture at least 70 per cent of training
                                                        Force, July 2011, 6202.0.                         activity. Productivity Commission (2011)
    in 2020: A foresighting study. Report
    prepared for the NSW Innovation Council.
                                                   19
                                                        Access Economics (2010) The NSW                   Vocational Education and Training
                                                        Economy in 2020: A foresighting study.            Workforce.
8
  Department of Foreign Affairs and Trade                                                               31
                                                                                                          National Centre for Vocational Education
                                                        Report prepared for the NSW Innovation
 (2011) Australia’s Trade by State and                  Council.i                                         Research (2011) National VET Provider
 Territory 2009-10, January 2011.                                                                         Collection. Students and Courses 2010.
                                                   20
                                                        Australian Bureau of Statistics (2010)          32
                                                                                                           National Centre for Vocational Education
9
    Department of Education, Employment and             Education and Work, 6227.0.                       Research (2010) Student Outcomes Survey,
    Workplace Relations (2011) Reform of the                                                              2005-2010.
                                                   21
                                                        Non-school qualifications are awarded
    National Training System, Budget 2011-12                                                            33
                                                                                                           National Centre for Vocational Education
                                                        for educational attainments other than
    Fact sheets.                                                                                           Research (2011) The likelihood of
                                                        those of pre-primary, primary or secondary         completing a VET qualification, 2005-07.
10
     Grattan Institute (2010) An analysis of            education. Non-school qualifications            34
                                                                                                           Department of Education, Employment
     Victoria’s labour productivity performance,        may be attained concurrently with school          and Workplace Relations (2010) 2009
     Presentation to a forum hosted by                  qualifications such as a Certificate II           Higher Education Student Statistics.
     Victorian Department of Innovation,                qualification.                                  35
                                                                                                           National Centre for Vocational Education
     Industry and Regional Development,            22
                                                        Access Economics (2009) Economic                  Research (2011) The likelihood of
                                                                                                          completing a VET qualification, 2005-07.
     Melbourne, 14 April 2010.                          modelling of skills demand – NSW
                                                        State results. Report prepared for Skills
                                                                                                        36
                                                                                                           National Centre for Vocational Education
11
    Adapted from Access Economics (2010)                                                                  Research (2011) National VET Provider
                                                        Australia.                                        Collection, Students 2010; Australian
    The NSW Economy in 2020: A foresighting
                                                   23
                                                      Australian Bureau of Statistics (2010)              Bureau of Statistics (2011) Labour Force
    study. Report prepared for the NSW                                                                    Australia, Detailed, Quarterly, May 2011,
                                                     Education and Work, Australia, 6227.0.
    Innovation Council.                                                                                   6291.0.55.003; Australian Bureau of
                                                     Unpublished data                                     Statistics (2010) Australian National
12
     National Centre for Vocational Education      24
                                                      AMP/NATSEM (2010) Calling Australia                 Accounts: State Accounts, 2009-10.
     Research (2009) Survey of Employer Use          Home: The characteristics and                      37
                                                                                                           Productivity Commission (2011) Report on
     and Views of the VET System.                    contributions of Australian migrants.                Government Services, 2011.

 NSW DEPARTMENT OF EDUCATION AND COMMUNITIES                                                                               WWW.DET.NSW.EDU.AU 18
Locked Bag 53
Darlinghust NSW 2010
T: 9266 8201
www.det.nsw.edu.au

© September 2011
NSW Department of Education and Communities
You can also read