Australian Vocational Education and Training Responses in the New Global Economic Context Christine Dacey

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1 Australian Vocational Education and Training Responses in the New Global Economic Context Christine Dacey Branch Manager, Industry Engagement Branch Australian Department of Education, Employment and Workplace Relations Japan OVTA Center November 2009

2 three themes Australia s labour market situation and the impact on the global recession on unemployment Specific vocational education and training initiatives implemented in response to the global recession How these responses worked as part of an integrated whole of government response.

3 DEEWR at the heart of Australia s productivity agenda International, national, local competition Entrepreneurship & management & firm innovation Early childhood, schooling, higher education, VET systems Efficient, well-paid jobs in a productive economy for all Australians The value of goods & services The firm & the workplace People & skills Literacy, numeracy, problem solving, specific skills International national & local customers Access to ideas, capital & other inputs Personal, community, and cultural attributes

4 Policy drivers: jobs, productivity, skills and social inclusion The Jobs agenda: Supporting fair and safe Australian jobs and workplaces The Productivity and Skills agenda: promoting a high wage/productivity economy growing higher-level skills to retain jobs and build a competitive edge for Australia The Social Inclusion agenda: mitigating further disadvantage for marginalised groups and assisting regions hardest hit by the GFC Office of Early Childhood Education and Child Care Council of Australian Governments & Schooling Tertiary, Youth and International Employment Employment and Strategic Policy Workplace Relations Corporate and Network

5 Introducing Australian Education Australia is a federated nation

6 Strategic Policy Planning, Funding and Regulation responsibility National Quality Assurance Delivery Governments steer Productivity Agenda Council of Australian Governments Ministerial Council Government Skills Australia Australian Government State and territory governments Industry Skills Councils Government registration and accreditation bodies providers (public, community, enterprise and private for profit) Industry Providers Customers Students Businesses Delivery

7 A unified approach to attainment Australian Qualifications Framework Senior Secondary Schooling Senior Secondary Certificate of Education 3.4m students 15% population Vocational Education and Training Vocational Graduate Diploma Vocational Graduate Certificate Advanced Diploma Diploma Certificate IV Certificate III Certificate II Certificate I 1.67m students 8% population Higher Education Doctoral Degree Master Degree Graduate Diploma Graduate Certificate Bachelor Degree Associate Degree/ Advanced Diploma Diploma.98m students 5% population

8 Lifelong learning people their skills and their application

9 Many reasons for training Entry-level training Apprenticeships and traineeships Training and retraining existing workers Learners with special needs Community engagement

10 Over 4000 training providers Technical and Further Education (TAFE) institutes Private training providers Dual sector institutes universities delivering higher education and vocational education and training Community training providers Secondary schools Business

11 Future directions focus on achieving the Council of Australian Governments targets Lift Year 12 or equivalent attainment to 90% by 2015 Halve proportion of 20 to 64 y.o. with below Certificate III qualifications by 2020 Double higher qualification completions (Diploma and Advanced Diploma) by % of y.o. attain a higher education qualification by 2025

12 Before global recession low unemployment JP Morgan Dec Qtr UEFO June Qtr 2010 per cent per cent 4.0 Unemployment rate - seasonally adjusted Unemployment rate - trend Feb-1978 Feb-1980 Feb-1982 Feb-1984 Feb-1986 Feb-1988 Feb-1990 Feb-1992 Feb-1994 Feb-1996 Source: ABS Labour Force Statistics (LFS). Graph 3: Unemployment rate ( ) Feb-1998 Feb-2000 Feb-2002 Feb-2004 Feb-2006 Feb-2008 Feb-2010

13 Unemployment is expected to continue to rise June % June % Feb % May % The Treasury has stated that the rate is likely to rise to above 8.25% by June 2010 and 8.5% by 2011 The longer term outlook for the labour market is unclear 0 May-79 May-82 May-85 May-88 May-91 May-94 May-97 May-00 May-03 May-06 May-09 Source: ABS Labour Force Statistics (LFS)

14 Global recession impact uneven across Australia Youth unemployment is at 12.3% and rising People commencing trade apprenticeships decreased by 21.2% to March 2009 The trades affected: automotive, engineering, construction, electro technology and wood trades 363 localities severely disadvantaged worsening

15 Industries previously affected percentage change in employment Finance and Insurance Construction Retail Trade Employment - Total Accomodation and Food May-90 Aug-90 Nov-90 Feb-91 May-91 Aug-91 Nov-91 Feb-92 May-92 Aug-92 Nov-92 Feb-93 May-93 Aug-93 Nov-93 Feb-94 May-94 Aug-94 Nov-94 Feb-95 May-95 Aug-95 Nov-95 Feb-96 May-96 Source: ABS Labour Force Survey Cumulative % change in employment by industry (May 1990 May 1996)

16 More people collecting 700,000 unemployment benefits 650, , ,000 March , , ,000 November , , ,000 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Source: DEEWR, based on Centrelink data

17

18 responses for infrastructure Infrastructure A$42b for national building projects. A$14.7b went to schools refurbishment projects IT Infrastructure A$43b investment in a national broadband network. A$80m for broadband technology in public training institutes

19 responses for jobs Jobs and training partnership agreements A number of agreements have been negotiated by COAG with the state and territory governments to benefit: young Australians retrenched workers

20 responses for jobs Employment services reform A$6m Employer Brokers support employers in industries with labour shortages Place-based approaches tailored solutions to meet unique circumstances of local communities

21 VET responses Productivity Places Program (PPP) extra training places additional training places over 5 years Includes places for redundant workers Industry-driven system

22 PPP: four program sub-elements places for existing workers places for job seekers New Enterprise Incentive Scheme Structural Adjustment Places

23 Australian Apprenticeships February 2009 Australian Apprenticeships Incentive Program A$145.6m Assistance for unemployed apprentices and trainees to complete training A$9.7m Budget continued investment in apprenticeships and traineeships A$3.8b over 4 years

24 more Australian Apprenticeships Increase higher level qualifications A$4000 incentive payments to employers Mid-career apprentices payment modified to support those 25 years and over Fast track apprenticeships Registered training organisations funded to accelerate training

25 Foundation Skills improve adult English language, literacy and numeracy retrenched workers A$21.3m Indigenous Australians A$3m innovative workplace program English Language and Literacy (WELL) A$23.8m young job seekers pre-vocational training A$30m increase qualified teachers A$3.7m

26 responses for sustainability Clean Sustainable Skills Package green jobs and training opportunities A$94m young job seekers to build skills in environmental work experience and training program Training for unemployed youth in environmental programs and installing home insulation Trade apprentices commencing after 2010 will graduate with green skills

27 responses for sustainability Skills for a low carbon economy carbon challenge measure build for emerging skills needs develop qualifications and training in key carbon exposed industries reward educational providers for outstanding training and work practices National Green Skills Agreement new trade apprentices to graduate with green skills, knowledge and training

28 Other VET initiatives Teaching and Learning Capital Fund A$500m Vocational Education Broadband Network A$81.9m Trade Training Centres in Schools A$2.5b over 10 years

29 Conclusion Take a whole of government approach Learn from history Modify existing policy to meet current circumstances Build flexibility into new policy

30 Thank You

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