Australia’s labour market is undergoing significant, rapid change. As outlined in the recent Employment White Paper, in the coming decades our economy and labour market will be shaped by an ageing population demanding quality care and support; digital and technological advancement; climate change and the ‘net zero’ transformation; and geopolitical risk and fragmentation.

The vocational education and training (VET) sector is and will continue to be a significant contributor to ensuring the workforce is sufficiently skilled and adaptable to respond to the challenges and opportunities of an increasingly dynamic labour market. Evidence indicates that approximately 51 per cent of all current jobs require a VET qualification. Over the next 10 years, around 44 per cent of all new jobs will require a VET qualification, and 48 per cent will require a bachelor’s degree or higher.

Despite the critical importance of VET to Australia’s economic security, many people hold negative perceptions of VET and the careers to which it leads. VET is often perceived as less intellectually demanding and inferior to university, and as leading to lower-paid, more physically demanding, and less stimulating employment. These negative perceptions are often driven by low levels of understanding of VET and VET-enabled careers, as well as by policy decisions and media representations which reinforce the belief that university education is necessary for personal and professional success.

This inquiry has examined the reasons for negative perceptions of the VET sector, as well as measures to ensure current and prospective VET students—as well as other stakeholders—have sufficient information about the sector and are actively encouraged to consider a VET pathway. The Committee recognises that information and marketing measures are not sufficient. Real changes must be made to ensure that the sector delivers the high-quality education and training needed to respond to current and emerging skills needs.

Report overview:

This report is divided into six chapters, including the introductory chapter.

• Chapter 2 provides an overview of the VET sector, including governance structure and how courses are delivered. It also considers perceptions of the sector among members of the public, employers, and target cohorts.
• Chapter 3 explores measures to increase awareness and understanding of VET and to promote VET as a sector of choice to prospective students and other key stakeholders.
• Chapter 4 examines perceptions of VET in secondary schools and ways to address these perceptions. It also discusses measures to improve VET delivered to secondary school students (VETDSSS).
• Chapter 5 examines the nature and quality of training in the VET sector. This includes national training packages, assessment processes and the role of micro-credentials. It also explores measures to attract, retain and develop the VET teaching workforce, and measures to improve the apprenticeship and traineeship pathways and enhance completion rates.
• Chapter 6 examines the structure and governance of the sector, including the mix of providers, regulation, the student experience, access to VET, and funding. It also considers measures to better align the VET and higher education sectors.