Training & Education Industry - Environment Scan 2015
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Training & Education Industry Environment Scan 2015
Predicting change
Contents
1. Executive summary 2
2. Industry intelligence 6
3. Identified workforce development needs 20
4. Current impact of training packages 26
5. Future directions 38
Appendix A - Methodology and bibliography 42
Appendix B - Training and Education Occupations in demand 48
Appendix C - NCVER data 50
The Environment Scan
the people doing the jobs across the
Context, purpose & audience
industries and who experience firsthand
Continuing advances in technology and the impact of change. It also draws
ongoing pressure on productivity are on a range of topical sources such
building the demand for creative and as the latest industry, enterprise and
innovation skills with which workforces government research, and international
can use Big Data, engage with complex developments. The Escan methodology
systems and focus on customers. With can be found at Appendix B.
these skills Australian industry can better
The Escan’s formal audience is the
respond to the challenges of operating
Department of Education and Training
in a global marketplace.
– both to contribute to industry skills
As industries continue to evolve, converge needs advice and also as evidence
or relocate, and as new job roles emerge to support endorsement of training
and others become obsolete, developed package upgrades. The relevance of
economies are looking to ‘early warning the Escan however extends far beyond
systems’ to detect the onset of economic and continues to be used extensively
and industry trends. The Environment by state and territory governments,
Scans – or Escans – undertaken annually industry bodies, enterprises and many
by Industry Skills Councils report these other stakeholders involved in skills and
trends and assist governments and workforce development.
industry to shape responsive vocational
As a document limited in size, the
training systems.
Escan does not seek to capture every
Specifically, Innovation and Business issue within each industry, rather it is a
Skills Australia’s (IBSA) Escan identifies snapshot of a continually developing
the factors currently having impact picture that is intended to alert and
on the skill needs of the workforces inform a wide audience and enhance
of its six industries and considers how their capacity to act.
well the national training system, its
The Escans are part of Industry Skills
products and services, and industry
Councils’ broader role in gathering
itself are responding.
industry intelligence and undertaking
National, real time industry intelligence high quality analysis of the skills needs
is what sets the Escans apart from and profile of current and future industry
other reports on the national training workforces. Escan 2015 has been
system. The Escans capture data and produced with the assistance of funding
information from IBSA’s ongoing visits provided by the Australian Government
and conversations with key industry through the Department of Education
stakeholders, regulators and, critically, and Training.
Training & Education Industry | i
CHAP TER 1 Executive summary
IBSA Environment Scan 2015
CH AP TER 1
Executive summary
The Training and Education Industry has been – and is – undergoing change principally
affected by two factors: changes in funding models and the comprehensive introduction of
demand driven systems. Revenue was expected to reach $104.7 billion in 2013-14, was
confirmed at $110.9 billion in October 20141 and is forecast to reach $136.7 billion by 2018/19.2
The Education and Training industry provides education services from preschools and schools,
through to vocational education and training (VET) and higher education.
The demographics provided in this The VET sector is being affected by the • higher level VET qualifications
Escan address the full industry however following trends: becoming more popular and lower
Chapter 3 onwards concentrates level qualifications losing relevance.
• rising unemployment increasing
on VET sector as IBSA’s key area of
demand for upskilling and reskilling
responsibility.12
of previously employed VET workers
The Business Council of Australia
Over the five years through to 2013-14, and new entrants
noted that VET is a crucial piece of
industry revenue was forecast to grow by
• changes in funding models and the national armour needed to protect
an annual rate of 1.9 percent to reach
programs affecting income streams, Australia’s economic competitiveness
$9.6 billion.3 However while revenue
governance and operations and and social cohesion.4 The importance of
may have been on the rise, in 2013,
asset utilisation VET to the Australian economy cannot
compared with 2012, the number of
be underestimated.
students enrolled in the public vocational • demand for improved quality and
education and training (VET) system embracing new training package For the VET sector workforce
decreased by 3.4 percent to 1.9 million standards development issues centre on:
and total subject enrolments decreased
by 3.9 percent, from 16.8 million to • increasing competition with higher • changes required by providers,
16.2 million. education providers and schools and their ageing workforce, to
offering VET qualifications adapting to a risk based regulatory
environment, especially the pre-
• rising international student numbers
retirement component of the
as a result of the lower value of the
1 IBISWorld, (2014) Industry Report P, Education and workforce
Training in Australia, October 2014. Australian dollar
2 IBISWorld, (2014) Industry Report P, Education and • online and mature age education
Training in Australia, April 2014.
opportunities for those seeking 4 Business Council of Australia, June 2014, Jennifer
3 IBISWorld, (2014) Industry Report P8101, Technical professional development, and Westacott, Swinburne University 2014 Chancellor’s
and Vocational Education and Training in Australia, Lecture : Redefining Vocational Learning in the Global
2014. Economy
2 | Chapter 1 Executive summary
Predicting change
• being able to respond to This Escan also reports on the use Training Packages; that chapter
new funding arrangements and and continuous improvement of the considers the workforce development
policies effecting traditional Foundation Skills Training Package. issues as well as:
income streams This package supports learning in what
• increasing the utilisation of the
have been known as employability
• maintaining standards to protect Foundations Skills Training Package
skills as well as language, literacy
and provide confidence in the across all industries, and
and numeracy particularly for those
sector, and
who have barriers to workforce • ensuring the TAE Training and
• making the best use of the participation. These skills are also Education Training Package is
stronger and increasingly pervasive critical for future learning. effective as the primary influencer
presence of technology to design, on the quality of VET in Australia.
Future directions outlined in Chapter
deliver and assess skills and
5 address both the Training and
knowledge.
Education and Foundation Skills
Training & Education Industry | 3
CHAP TER 2 Industry intelligence
IBSA Environment Scan 2015
CH AP TER 2
Industry intelligence
International students studying and Government, along with enterprise,
THE TRAINING AND
living in Australia contributed $15.6 public and private training providers.
EDUCATION INDUSTRY billion to the Australian economy in These organisations operate to provide
The introduction of demand driven 2013, a 3.8 percent increase from 2012 nationally consistent training and skills
systems and related changes in funding ($14.5 billion). This rise is suggested development across Australia.
models is the single largest change in to have been the result of Australia
Approximately 4,650 registered
the Training and Education Industry. being a more attractive destination with
training organisations (RTOs) from
Revenue reached $110.9 billion in the drop in the value of the Australian
around the country deliver training
2013-14 and is expected to be dollar. Education related travel services
and issue qualifications from nationally
$136.7 billion by 2018-19.5 are Australia’s largest services export
recognised training packages and
ahead of other personal travel services
External drivers having impact on this state and territory accredited courses.
($13.1 billion) and professional and
industry include: As the sector has evolved over recent
management consulting services ($4.6
decades, particularly into a more open
billion),6 making this industry a vital part
• the population aged between five and competitive market, the range of
of the Australian economy.
and 18 which influences demand ownership models, delivery modes,
for government and private schools Figure 1 shows that over the four course offerings and learner profiles
and has a flow on effect to post year period, preschool education, has expanded. Today, there is a diverse
secondary school government school education and range of public and private provider
private school education increased, models catering to a wide variety of
• public funding for primary and
VET remained steady, and the language learners and business opportunities.
secondary education
and other education, and university The provider types include:
• public funding for tertiary education and other higher education sectors
• TAFE – publicly-owned providers of
– as public funding declines, have decreased.
VET, accounting for the highest single
enrolments are expected to follow
concentration of student enrolments.
• secondary school retention rates, Vocational training There are 58 TAFEs across Australia
which when on the rise lead to and education sector delivering qualifications across
increases in demand on secondary approximately 500 campuses.
school resources and result in VET enables students to gain
qualifications for all types of • Private – privately operated
more students moving onto higher
employment, and specifically, skills organisations registered to provide
education, and
for the workplace. VET is provided VET, increasing from around 2,500
• the value of the Australian dollar through the eight state and territory businesses in 2005 to over 3,000, or
which effects international governments and the Australian by 20 percent, in 2014.
enrolments to Australian institutes.
• University – comprised of both
dual-sector institutions that typically
6 Australian Education International, (2013) Research
5 IBISWorld, (2014) Industry Report P, Education and Snapshot – Export income to Australia from
offer higher level VET qualifications
Training in Australia, April 2014. international education activity in 2013. such as diplomas and advanced
6 | Chapter 2 Industry intelligencePredicting change
Figure 1: Training and education market segmentation, 2011-14
Language and other education 2013-14
2012-13
Vocation education and training
2011-12
Private school education 2010-11
University and other higher education
Government school education
Preschool education
0 20 40
Source: IBISWorld, Industry Report P, Education and Training in Australia, April 2014.
diplomas, and universities which requirements of business members through to 2013-14, industry revenue
are RTOs or operate in partnership and industry learners; there are was forecast to grow by an annual rate of
with an RTO. There are currently 13 approximately 200 in operation. 1.9 percent to reach $9.6 billion9 in 2013,
universities operating as RTOs. compared with 2012:
• Professional Association – similar
• School – over 400 providers to industry associations, around • the number of students enrolled in
deliver VET programs and support 30 private organisations deliver the public VET system decreased by
school students to combine VET qualifications specific to the 3.4 percent to 1.9 million
vocational studies within their members they represent.
• total subject enrolments decreased
secondary education curriculum,
• Other – all other providers that by 3.9 percent, from 16.8 million to
sometimes including structured work
do not fit into the above 16.2 million
placements, or always in the case
categories and have been
of school-based traineeships and • two in every five or 41.1 percent of
grouped as ‘not elsewhere
apprenticeships. students studying AQF qualifications
classified’ by training.gov.au.7
were enrolled in a certificate III,
• Enterprise – the primary operation
The most accurate picture of the followed by certificate IV with
of the enterprise does not involve
sizeable workforce of trainers, teachers, 19.8 percent and certificate II
training and assessment, rather
assessors and other VET staff estimated with 17.6 percent
qualifications are delivered as
there were around 73,000 TAFE
a company adjunct to serve the • total hours of delivery decreased
employees and 150,000 employees in
specific skill requirements of its own by 2.7 percent, from 558.4 million
other RTOs in 2011.8
workforce. There are nearly 300 to 543.5 million
enterprise RTOs. The VET sector is crucial to the Australian
• full year training equivalents (FYTEs)
economy - for the development of the
• Community – not-for-profit decreased by 2.7 percent, from
national workforce and as a major
organisations that provide 775,500 to 754,900
export industry. While over the five years
training and assessment to meet
a social objective, for example in • South Australia was the only
adult learning or the training of jurisdiction to record a growth in
marginalised groups – about 7 Standards for Registered Training Organisations and VET activity, with increases in student
VET Regulators, (2014) Decisions Regulation Impact
350 are currently in operation. Statement for the decision of the COAG Industry and
numbers by 16.3 percent, subject
Skills Council enrolments by 20.5 percent, hours
• Industry Association – private
8 Productivity Commission 2011, Vocational Education
organisations that provide training
and Training Workforce, Research Report for “A
and assessment tailored to the practical definition of the Vocational Education and 9 IBISWorld, (2014) Industry Report P8101, Technical and
Training workforce”. Vocational Education and Training in Australia, 2014.
Training & Education Industry | 7IBSA Environment Scan 2015
of delivery by 24.7 percent and these concerns and make progress training product (qualifications
FYTEs by 24.7 percent. All other on agreed reforms. During early and units of competency) they are
jurisdictions reported declines in 2014, the Australian Government already registered to deliver – thus
these activity measures, and sought submissions on VET reform and removing the requirement for a
held nationwide consultations with training provider to apply for a
• the number of students enrolled
representatives from industry, business change of scope, and pay the
in national training package
and training providers. The following required fee, to continue to deliver
qualifications declined by 4.9
areas for attention were identified from a training product that has been
percent to 1.4 million.10
this process: updated and endorsed as equivalent
Operating revenues for the public VET to the superseded product.
• improving engagement with industry
system in 2013 were $8,519.1 million,
• The Unique Student Identifier (USI) is
an increase in nominal terms of $116.2 • reducing red tape across the sector
now in place creating certainty for
million, or 1.4 percent from 2012.11
• streamlining the system for students the sector and with training providers
Publicly funded training activity was
and providers of training, and having completed preparations
delivered by 2,094 distinct training
for implementation from 1 January
providers in 2013. This included 60 • improving funding mechanisms 2015. The USI will provide a national
technical and further education (TAFE) to better meet the skills needs online, authenticated record of
institutes, nine other government of business. students’ training attainment and will
providers, 423 adult and community
Progress is evident in the following: serve as a building block for a range
education providers and 1,670 other
of VET reforms.
providers.12 What is not clear is the • In August 2014, the Australian
amount spent on privately funded Government announced the • Young workers will be offered
training – details of the type of fee for establishment of the Vocational new training schemes shaped by
service training, the numbers being Education and Training Advisory employers to meet market demands
trained and where and how. Board to provide advice to the in an overhaul of the nation’s $6.8
Minister for Industry regarding billion vocational training system.14
Reforms13
priorities for reform of the VET sector. • The $476 million Industry Skills Fund
While the VET sector has significant
• The COAG Industry and Skills is a key element in the Australian
strength and has been shaped by various
Council agreed to re-examine Government’s competitiveness
reforms, concerns prevail around:
provider and regulatory standards agenda and may provide up to
• the responsiveness of the system to to ensure they better recognise 200,000 training places and support
the needs of industry and employers the different level of risk posed services over four years to businesses
by different providers, and to especially SMEs and will be delivered
• incentives distorting actual industry through a Single Business Service.
better align with the Australian
skills needs
Government’s plans to remove The next twelve months should see
• the complexity of the system unnecessary regulation and red these reforms bedded down, existing
tape – revised standards were programs reshaped and employers
• inconsistent quality, and
implemented on 1 January 2015. exerting far more influence over the
• unnecessary regulatory burden VET sector.
• The establishment of the Australian
and red tape.
Industry and Skills Committee was Quality and assessment
announced and will provide industry
A VET Reform Taskforce has been with a formal role in relation to policy Quality remains topical for all VET
established to look at ways to address directions and decision making stakeholders. New regulatory standards
in the national training system. In for training providers and regulators
addition, the National Skills Standard were approved in September 2014
Council (NSSC) was dissolved and to underpin a risk based regulatory
10 NCVER 2014, Australian vocational education and
training statistics: financial information 2013, NCVER, its ongoing functions delegated to system. They aim to introduce important
Adelaide.
selected senior officials, prior to changes to strengthen industry
11 NCVER 2014, Australian vocational education and the Australian Industry and Skills engagement, improve the quality of
training statistics: financial information 2013, NCVER, Committee commencing operations. training and reduce the regulatory
Adelaide. burden on training providers.
• From July 2014, the Australian Skills
12 NCVER 2014, Australian vocational education and
Quality Authority (ASQA) and The new standards also increase
training statistic: students and courses 2013 – publicly
funded training providers, NCVER. Note the sum of the Western Australian Training protections for students who want to
providers exceeds the distinct number of providers
Accreditation Council (TAC) will undertake nationally recognised training
as in some cases they reported in more than one
category. automatically update a training
provider’s domestic scope to include
13 Australian Government (2014), Dept of Industry, VET 14 The Australian (2014), David Crowe, Bosses get more
any new, equivalent version of a
Reform, accessed August, 2014. say on training. September 8, 2014
8 | Chapter 2 Industry intelligencePredicting change
Figure 2: VET sector versus industry costs, 2013-14
60
50
40
Average costs of all industries
in sector (2013-14)
30
VET sector costs (2013-14
20
10
0
t
t
es
n
er
es
es
ofi
n
t io
Re
th
ti
ag
as
Pr
ili
ia
O
h
W
Ut
ec
rc
Pu
pr
De
Source: IBISWorld Industry Report P8101, Technical and Vocational Education and Training in Australia, 2014
and strengthen the qualifications • streamlining the regulatory strengthen industry’s influence on the VET
requirements for the delivery of training framework to free up providers from sector and may reduce the number of
and assessment. unnecessary red tape and enable poor performers that do not meet industry
regulators to better respond to poor expectations and requirements.
The new standards came into effect
quality providers.15
on 1 January 2015 and transition
arrangements will apply. As an integral The key changes in the standards relate Higher education
part of implementing the new standards to: quality of trainers and assessors; A total of 1,313,776 domestic and
and reflecting its new role, ASQA will: quality in governance of RTOs; international students enrolled at higher
increased industry engagement; and a education institutions in 2013, an increase
• develop and publish a users’ guide
streamlined regulatory framework. of 4.5 percent from 2012. Domestic
to the new standards
The issue of quality in assessments students totalled 985,374 or 75.0 percent
• undertake a series of information of all students, which was an increase of
has implications for the credibility
sessions across Australia, which 5.5 percent over 2012. The remaining
of VET qualifications and the
will include detailed information on 328,402 students were overseas student
competence of the graduates who
the new standards and monitor the enrolments, an increase of 1.5 percent
hold these qualifications.
effect on duration of training among over the same period. Postgraduate
other things The Figure 2 shows very low profit students increased by 5.9 percent to
margins in the VET sector, with wages 347,069 while undergraduate students
• consider a code of conduct for
the biggest expense largely as a result of increased by 3.8 percent to 925,791.
education brokers, and
face to face teaching and administrative More than half of all students were
• publish information and guidance on staff requirements. Other costs include female, making up 55.6 percent of
the process of transition to the new marketing, particularly the use of enrolments, and over 70.4 percent of
standards. social media, which has risen, along students were studying full time.16
with increased competition. A highly
The new standards for RTOs and VET competitive marketplace with slim profits In 2013, students who self identified
regulators aim to improve quality can provide both a fertile environment as Aboriginal and Torres Strait
outcomes from the VET system by: for excellence to flourish and a haven for Islander were up 9.1 percent to
a minimalist approach to training and 13,781 and made up 1.2 percent
• increasing the responsiveness of
its duration. The reforms are expected to of commencements, up 7.7 percent
training providers to the needs of
to 6,275. Increases in Indigenous
industry
• focusing on quality training and 15 Department of Industry ( 2014), Regulating for Quality,
assessment outcomes, and accessed http://www.vetreform.industry.gov.au/news/ 16 Australian Department of Education (2013), Summary of
new-standards-training-providers-and-regulators the 2013 full year higher education student statistics.
Training & Education Industry | 9IBSA Environment Scan 2015
Figure 3: International education income activity by sector, 2013
Higher Education
Vocation Education Training
ELICOS
Schools
Non-award
Other education services
Source: Australian Education International, (2013) Research Snapshot – Export income to Australia from international education activity in 2013.
student numbers were recorded across for the teaching subsidies before International education
all broad fields of education where quality checks could be undertaken
students were enrolled, with the largest by the national regulator, the Tertiary International education remains a
increase in Information Technology.17 Education and Quality Standards major export for Australia, with higher
Agency (TEQSA).19 education generating the biggest
Growth over the past five years in the share of the income, followed by
university and other higher education The Review of the Demand Driven VET. English Language Intensive
industry is expected to result in revenue Funding System report by D Kemp Courses for Overseas Students
of $27.2 billion in 2013-14.18 Higher and A Norton into higher education (ELICOS) is the first step in an
education providers are developing in Australia has found that Australian study pathway for two out
new courses and methods of delivery demand has: of every five international students
to meet the broad needs of the studying in Australia’s tertiary sector.21
• increased enrolments in higher
community and industry. A major Figure 3 shows the break up by sector
education by low socio economic
workforce issue facing the industry is of international education income.
status students
the impending retirement of its ageing
workforce and the impact this is International student numbers
• increased higher education
expected to place on student to increased by 2.3 percent between
opportunities for people in
staff ratios. 2012 and 2013, with the biggest
regional and remote areas and
increases in ELICOS and non-award
Indigenous Australians
Reform of higher education legislation categories, and the biggest decrease
was reported on 03 September • allowed online education to in the VET category Table 1 details
2014 by the Australian as, for the expand, and these 2011 to 2013 trends. The
first time, allowing private higher increases in enrolments in the higher
education providers access to public • encouraged technology based education, ELICOS, and non-award
funded teaching subsidies. The article innovation.20 sectors is a contrast to the previous
highlights the likelihood that more year where all sectors experienced a
than 20 private colleges would qualify decline in enrolments. This may signal
19 The Australian 3 September 2014, Higher Education renewed interest in Australia as a
segment, Spotlight on TEQSA over provider quality
checks, Bernard Lane.
17 Ibid
20 Kemp, D. and Norton, 2014, A Review of the Demand 21 Australian Education International,(2014) Research
18 IBISWorld, (2014) Industry Report P8102, University Driven Funding System, http://www.education.gov.au/ Paper, Study pathways of international students in
and other higher education in Australia, 2014 report-review-demand-driven-funding-system Australia, 2014/01
10 | Chapter 2 Industry intelligencePredicting change
Table 1: International student numbers by sector, 2012-13
% growth % growth
Sector 2011 2012 2013
2011-12 2012-13
Higher education 225,477 215,792 217,250 -4.3 0.8
VET 118,609 103,234 98,792 -13.0 -4.3
ELICOS 79,911 78,970 93,436 -1.2 18.3
Non-award 27,716 25,263 28,110 -8.6 11.3
Schools 20,611 18,447 17,711 -10.5 -4.0
Total 425,601 401,722 410,925 -5.8 2.3
Source: Australian Education International, (2013) Research Snapshot – International student numbers 2013
destination for international students. in Australia for the first time. Of delivery flexibility and range of
this cohort, 35.6 percent undertook online courses in recognition of the
Students from China make up 29
ELICOS studies prior to commencing in opportunity and demand for workers
percent of all international students
VET, 14.9 percent in higher education to upskill. Annualised growth leading
in Australia, the highest of any
and 2.3 percent in school.22 This data up to 2013-14 was forecast at 14.4
nationality, followed by India and the
demonstrates the importance ELICOS percent, with a slower forecast growth
Republic of Korea with 8.8 percent
plays as a pathway into VET. predicted of 8.8 percent through to
and 4.9 percent respectively. Students
2018-19.23 Online education provides
from China and Malaysia dominate Online education a way to expand access to higher
the higher education numbers, while
Online education continues to grow education beyond the traditional
the majority of students from India are
at a rapid pace with higher education school leaver and works towards
in VET and this group also forms the
and VET providers increasing their previously set Australian Government
majority of international students
targets of 40 percent of 25-34 years
in VET.
In 2013, 34,000 international students 22 Australian Education International (2014) Research
commenced a VET course of study Paper, Study pathways of international students in 23 IBISWorld, (2014) Industry Report X0008, Online
Australia, 2014/01 education in Australia, 2014.
Figure 4: International students by country and sector, 2013
Non-award
Schools Malaysia
Vietnam
ELICOS
Republic of Korea
India
VET
China
Higher Education
0 20 40 60 80
Source: Australian Education International, (2013) Research Snapshot – International student numbers 2013
Training & Education Industry | 11IBSA Environment Scan 2015
Figure 5: Major market segmentation for online education (2013-14)
9%
30%
People aged 17 years
18%
and under
People aged 18 to 24 years
People aged 25 to 44 years
43% People aged 45 years and over
Source: IBISWorld, Industry Report X0008, Online education in Australia, 2014.
olds possessing a Bachelor degree around job and family commitments. as the Gonski model, was implemented
by 2025. in January 2014. The new system is
expected to more accurately reflect
The market segmentation for online Schools school populations, the capacity
education depicted in Figure 5 shows that The school sector of the Training of parents to contribute and more
the second highest user group of online and Education industry is mostly equitable funds distribution. The
education is those 45 years and over – funded by the Australian, state and Australian Government has committed
the likelihood is that this group would be territory governments, with the latter $2.8 billion to the Gonski reforms from
looking to enhance their employability; two providing 85 percent of schools’ 2013-14 to 2016-17.24
the third highest user group, those aged revenue. A new funding structure for
25-44 years, are likely to be upskilling for government schools, generally known
career changes, but who are also working 24 IBISWorld, (2014) Industry Report P8026, Government
schools in Australia, 2014.
Table 2: VET in Schools students by major qualifications, Australia 2012
AQF School- School- School- Other VET Other VET Other VET Total VET Total VET Total VET
Qualifications based based based in Schools in Schools in Schools in Schools in Schools in Schools
apprentices apprentices apprentices students students students students students students
and trainees and trainees and trainees
(% of (% of (% of (% of (% of (% of (% of (% of (% of
17,400) 18,500 23,000 216,500) 230,900) 229,600) 233,800) 249,400) 252,600)
2010 2011 2012 2010 2011 2012 2010 2011 2012
Certificate IV 2.8 4.6 4.7 1.4 1.4 1.8 1.5 1.6 2.1
or higher
Certificate III 53.7 55.6 65.6 13.7 15.1 20.1 16.7 18.1 24.3
Certificate II 42.1 38.8 29.2 57.9 61.6 61.5 56.7 59.9 58.6
Certificate I 1.4 1.0 0.5 24.6 20.6 15.5 22.9 19.1 14.2
Other 0.0 0.0 2.4 1.4 1.1 2.2 1.3 0.8
100% 100% 100% 100% 100% 100% 100% 100% 100%
Source: NCVER 2013, Australian vocational education and training statistics, VET in Schools 2012 data tables, Australia
12 | Chapter 2 Industry intelligencePredicting change
The majority of VET in Schools students A report integrating 2011 Census data • for males, trade studies are
were male, comprising 54.7 percent of with 2006 VET in Schools data collected associated with better
the students in 2012. The most popular by NCVER has provided insights employment outcomes
training packages for VET in Schools into the various pathways of students
• many students who study trades
students remained constant from 2011, participating in VET in Schools programs
end up working in trades
with Tourism, Hospitality and Events and their post school destinations and
having 16.9 percent of the students, outcomes. Students who were in Year 11 • more than one in five VET in
followed by Business Services with and doing VET in Schools as part of their Schools students complete a
10.8 percent and Information and studies in 2006, and their destinations Certificate III or IV, and
Communications Technology with five years later in 2011, were the focus
9.4 percent. Tourism, Hospitality of the study. Findings included that: • around one in twenty VET in Schools
and Events and Sport, Fitness and students complete further study in a
• for school students who don’t go on related field.27
Recreation each had 14.6 percent
to higher education, participation
of the school based apprentice and These findings provide supporting
in VET in Schools is associated
trainee students.25 evidence that VET in Schools provides
with higher rates of engagement in
VET in Schools numbers continue to employment or study five years after a sound employment pathway.
increase for both apprentices and trainees studying at school IBSA developed a series of case studies
and other VET in Schools students. Over with RTOs on VET in Schools in early
• on average, VET in Schools students
70 percent of school based apprentices 2014. The interviews conducted as part
are slightly less likely to complete
and trainees were enrolled in Certificate of this work clearly showed there were
Year 12 than other students
III and IV qualifications, an increase of just significantly different delivery practices
under 10 percent on the 2011 enrolments • participation in VET in Schools is and perceived attitudes towards VET
in these level qualifications. Of the other associated with increased rates of in Schools between jurisdictions and
VET in Schools students, 21.9 percent Year 12 completion for Aboriginal between providers. Funding models
were enrolled in Certificate III and IV and Torres Strait Islander students across jurisdictions also vary widely
qualifications, an increase of and heavily influence decisions on
5.4 percent on 2011.26 • VET in Schools leads to better
participation in VET in Schools.
engagement outcomes
25 NCVER 2013, Australian vocational education and • higher level VET qualifications lead
training statistics, VET in Schools 2012 data tables, to better engagement outcomes
Australia
• VET in Schools is associated with
26 NCVER 2013, Australian vocational education 27 ABS, Outcomes from Vocational Education and
and training statistics, VET in Schools 2012 data higher levels of employment Training in Schools, experimental estimates, Australia
tables, Australia 2006 – 11, released July 2014.
Figure 6: Total persons employed in Training and Education Industry by sector, May 2011-14
May 2011 May 2012 May 2013 May 2014
‘000
500
450
400
350
300
250
200
150
100
50
0
School Education Tertiary Education Adult, Community and Preschool Education Education and
Other Education Training, nfd
Source: ABS, 6291.0.55.003 – Labour Force, Australia, Detailed, Quarterly, May 2014, SuperTABLE E08 – Employed persons by Occupation (ANZSCO occupation) nfd Not further defined
Note: Tertiary education includes higher education and VET employed
Training & Education Industry | 13IBSA Environment Scan 2015
Figure 7: Total persons employed in the Training and Education Industry, by sector by state or territory,
May 2014
NSW VIC QLD SA WA TAS NT ACT
‘000
160
140
120
100
80
60
40
20
0
School Education Tertiary Education Adult, Community and Preschool Education Education and
Other Education Training, nfd
Source: ABS, 6291.0.55.003 – Labour Force, Australia, Detailed, Quarterly, May 2014.
nfd Not further defined
Note: Tertiary education includes higher education and VET employed
Figure 8: Total persons employed in Training and Education Industry by sector by gender, May 2014
Males Females
‘000
400
350
300
250
200
150
100
50
0
School Education Tertiary Education Adult, Community and Preschool Education Education and
Other Education Training, nfd
Source: ABS, 6291.0.55.003 – Labour Force, Australia, Detailed, Quarterly, May 2014,
nfd Not further defined
Note: Tertiary education includes higher education and VET employed
14 | Chapter 2 Industry intelligencePredicting change
Figure 9: Education profile of the Training and Education workforce
Education and Training All Industries
26.5
Postgraduate qualification
9.1
36.9
Bachelor degree
19.4
9.8
Advanced Diploma and Diploma
10.6
8.9
Certificate III and IV
20.6
10.9
Year 12
19.3
6.0
Years 10 and 11
16.8
0.1
Certificate I and II
0.2
0.9
Below Year 10
4.1
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
Share of Employment (%)
Source: Dept of Employment, Labour Market Information Portal, Employment by industry and educational attainment, accessed August 2014.
Preschool education projected to be 1,014,700 by November The workforce age profile for the
2018, representing a 13.2 percent Training and Education Industry
Preschool services are usually increase.29 Figure 6 shows small increases shows a relatively old workforce, with
available to children aged three to in the numbers employed in the School a median age of 44 years (2012)
five years, in the year prior to Education and Adult, Community and compared with 40 years for the All
commencing primary school. There Other Education and Pre-school sectors Australian workforce. Workers in
are a number of different providers between May 2013 and May 2014 the Training and Education Industry
and their roles vary by state. Victoria but numbers of people employed have dominate each age category from
and New South Wales use community remained comparatively steady over the 35 years upwards. The workforce
based providers, while in the other period, with the biggest increase in the has become older over the last ten
states preschool is incorporated into Adult, Community and Other sector. years, increasing from 14.1 percent
the public education system. aged 55 and over in May 2003 to
Figure 7 shows that the distribution
Over the 10 years through to 22.2 percent in May 2013, compared
of employees in Training and
2018-19, industry value added is with All Industries which increased
Education aligns with state or
estimated to rise by a compound annual from 12.1 percent aged 55 and over to
territory population size.
rate of 9.6 percent, a strong performance 17.5 percent for the same period. So,
when compared with annualised GDP Figure 8 illustrates the prominent the gap is currently widening with the
growth of 2.5 percent. This indicates role females play in all sectors, but figure below showing the age range at
that preschool education is growing at a particularly in the preschool sector May 2013.30
faster pace than the overall economy.28 and school education, where males
Figure 11 shows 62.4 percent of the
represent only 4.9 percent and 25.3
Training and Education workforce
percent of the workforce respectively.
WORKFORCE was employed full time, compared
The Training and Education workforce with All Industries of 70.1 percent.
CHARACTERISTICS AND The Tertiary Education sector has the
is highly educated with over 63.4
EMPLOYMENT TRENDS percent with Bachelor degrees or higher largest proportion of full time workers.
The Training and Education workforce compared with All Industries with 28.5
totalled 896,300 in May 2014 and is percent; see Figure 9 for further detail.
29 LMIP Industry Trend Data tool(2014) Dept of
28 IBISWorld, Industry Report P8010, Preschool Employment, Trend Data and Projections, accessed 30 Source: ABS Labour Force Survey cat. No.
education in Australia Industry report, 2014. August 2014 6291.0.55.003, four quarter average.
Training & Education Industry | 15IBSA Environment Scan 2015
Figure 10: Employed persons by age compared with All Industries (% share of employment), May 2013
30
25
20
Training and Education
15
All Industries
10
5
0
15-19 20-24 25-34 35-44 45-54 55-64 65
and over
Source: ABS Labour Force Survey cat. No. 6291.0.55.003, four quarter average.
Figure 11: Full time employment by sector (percentage share of employment), May 2013
Adult, Community and Other Education
Preschool Education
Education and Training
School Education
All Industries
Tertiary Education
0 10 20 30 40 50 60 70 80
Figure 12: DEEWR projected employment growth by sector, five years to November 2017
Preschool Education
Education Support Services
Adult, Community and Other Education
Tertiary Education
School Education
-5,000 5,000 15,000 25,000 35,000
Source: DEEWR 2013 Employment Projections to November 2017.
16 | Chapter 2 Industry intelligencePredicting change
Industry and • Online and mature age education followed by tertiary education (16,400).
and upskilling – will continue to
workforce outlook open new markets and strategic
Workforce trends effecting the VET
sector include:
use of online education will benefit
Industry outlook - VET industry
providers looking to innovate • an ageing, highly qualified
and workforce
by utilising new technology to workforce – with the associated
Again, the Business Council of deliver and manage training. The challenges of maintaining industry
Australia considers VET a crucial proliferation of free online education currency and integrating the use of
piece of the national armour needed is both an opportunity and a threat technology to deliver and assess
to protect Australia’s economic that needs to be managed by the skills and knowledge development
competitiveness and social cohesion.31 industry.
The role of VET is well recognised and • a highly casualised, flexible
• Trends towards higher level workforce – so providers can nimbly
the need for an accessible high quality
qualifications – create opportunities respond to opportunities
product is also critical to Australia’s
for well articulated pathways and for
growth of new industries. • increasing use of technology to
VET providers to partner with higher
The Training and Education Industry, education providers. deliver and manage training – skill
with a focus on VET, is affected by needs associated with innovative use
the following: of technology, and
Workforce and
• Rising unemployment – demand employment outlook • demand for upskilling of trainers
for VET increases as people seek to – to meet the needs of the wider
The expectation of a gradual
increase their skills to enhance their community seeking higher levels of
strengthening of economic growth
employability. qualifications.
should, in time, lead to stronger
• Changes in funding models and demand for labour. However, with A list of Occupations in Demand is
programs – effects business and growth expected to be below trend provided in Appendix B. The list is
workforce planning by VET providers. over the next year, the unemployment collated from responses to an industry
Government reforms in higher rate is likely to remain elevated before it survey and considered against
education are creating more places gradually declines in 2016. With extra intelligence presented in this Escan on
in undergraduate programs and job seekers likely to be in the labour the industry, employment trends and
an increasing preference for higher market for some time, wage growth is the workforce. This list contributes to
qualifications means VET providers anticipated to remain low.32 Rises in workforce development and planning
are losing some market share. unemployment are expected to effect strategies highlighted in Chapter 3 and
the VET sector. also presents a clear relationship to
• Increasing competition – the training packages.
demand driven model, for both Figure 12 illustrates the employment
vocational and higher education, prospects in the Training and Education The occupations and job roles reported
provides fertile ground for an Industry over the five years to as in demand were:
increase in the number of private November 2017, projected to increase
• Professional – instructional designer
providers. As jurisdictions prioritise by 64,500 or 7.2 percent. This is in
/ adviser / VET curriculum
funding to better address their skill line with the projected growth rate for
requirements, private RTOs are more All Industries of 7.1 percent. Overall, • Professional – language literacy and
able to respond and nimbly align the Education and Training Industry is numeracy
the structure of their courses to take expected to account for 7.9 percent of
Australia’s total employment growth • Professional – training and
advantage of funding shifts.
over that period.33 development
• Rising international student numbers
All sectors of the Training and • Professional – VET eLearning
– will drive enrolment growth and
lead to some revenue growth if Education Industry, other than preschool • RTO manager, and
the value of the Australian dollar education, are projected to record
remains low. Increased competition employment growth over the next five • Auditor – quality compliance and
in the international student market years; preschool education is projected skills auditor.
will require providers to differentiate to record a reduction by 400. The
themselves in the market and make largest employment gain is projected to
better strategic use of available be in school education (up by 37,200),
pathways such as ELICOS.
32 RBA (2014) Statement on monetary policy, August
31 Business Council of Australia, June 2014, Jennifer 2014
Westacott, Swinburne University 2014 Chancellor’s
Lecture : Redefining Vocational Learning in the Global 33 Source: 2013 DEEWR Employment Projections to
Economy November 2017
Training & Education Industry | 17CHAP TER 3 Identified workforce development needs
IBSA Environment Scan 2015
CH AP TER 3
Identified workforce
development needs
The focus of the remainder of this Figure 13 shows the lower level of short to enable sufficient quality
Training and Education Escan is on the compliance at initial audit was against delivery to ensure required skills are
needs and priorities for the VET sector. Standards 1 – Quality training and achieved, and
The other education sectors are covered assessment and 18 – Governance.
• the transactions based regulatory
by other Industry Skills Councils’ Escans
Following the first three years of approach is too slow to focus
or through other planning processes.
national VET regulation, ASQA has adequately on poor quality
drawn these conclusions:35 providers.
MAINTAINING
• three distinct groups have emerged A new regulatory approach is being
STANDARDS in the Australian VET sector: developed with the following features:36
While the Training and Education
–– high quality providers who fully • lower regulatory burden on high
Industry has been heavily regulated,
comply with the required National quality, fully compliant providers
some operators continue to affect the
Standards (around 20% of
reputation of the industry, particularly • provision of more support to
providers)
VET, through poor quality service providers who are trying to do the
delivery; even those with robust –– providers that want to comply right thing but have some difficulty in
standards and processes can fall short. with the National Standards but fully meeting the Standards
At a presentation by ASQA34 it was experience some difficulties, at
• more rigorous regulation of the
reported that: least at initial audit (around 60%
minority who are seriously non-
of providers), and
• most RTOs are not compliant at their compliant, poor quality providers,
initial audit, with only 20 percent –– providers that do not provide and
fully compliant and 80 percent with quality training and are unwilling
• moving the regulatory trigger from
at least one non-compliance, and or unable to comply with the
applications to better identifying and
National Standards (around 20%
• most RTOs are able to achieve managing risk.
of providers)
compliance after 20 days
Certificate IV in Training and
rectification, with 77 percent fully • most providers, some 80 percent,
Assessment is the entry level standard
compliant after rectification and 23 are experiencing some difficulty with
for VET training and assessing, and
percent still not compliant. doing assessment properly
the most common qualification held by
• around one third of providers appear
to be offering courses that are too
34 Source: Presentation by Chris Robinson, ASQA CEO 36 Source: Presentation by Chris Robinson, ASQA CEO
at ACPET ACCI National Skills Summit on Regulatory at ACPET ACCI National Skills Summit on Regulatory
reform in a changing VET sector, June 2014 35 ibid reform in a changing VET sector, June 2014
20 | Chapter 3 Identified workforce development needsPredicting change
Figure 13: Compliance with standards by existing RTOs, audits of existing RTOs (1 October 2013 – 31
March 2014)
120
97 98
100
89 88 90 91 89 90 89 88
82 82
77 77 76
80 72
75
70
62
60 Compliance
60
at initial audit
Compliance following
40
rectification
24
22
20
0
SNR 15 SNR 16 SNR 17 SNR 18 SNR 19 SNR 20 SNR 21 SNR 22 SNR 23 SNR 24 SNR 25
SNR 15: Quality training and assessment SNR 18: Governance SNR 22: Financial management
SNR 16: Training and student information SNR 19: Cooperative with regulator SNR 23: Proper certification
SNR 17: RTO is responsive to clients and stakeholders SNR 20: Compliance with legislation SNR24: Accurate and ethical marketing
SNR 21: Insurance SNR 25: Transaction from superseded courses
Source: Presentation by Chris Robinson, ASQA CEO at ACPET ACCI National Skills Summit on Regulatory reform in a changing VET sector, June 2014.
(SNR – Standards for Initial Registration)
trainers and assessors. If the content opportunity for students to apply • the difficulty in interpreting
or delivery of this qualification is skills in different contexts competencies was largely due to
insufficient the risk is that Australia’s unclear language and jargon.39
• a lack of external scrutiny, and
labour force will not be properly
All VET stakeholders have a role to play
trained, with extensive, potential • insufficient support for professional
in ensuring this key qualification has
economic implications.37 development of VET trainers.38
value and delivers confidence in the
In January 2014 IBSA convened a These concerns were augmented by VET system.
round table to explore problems and recent research aimed at understanding
solutions with the important Certificate
IV in Training and Assessment
how VET practitioners understand and TECHNOLOGY
use competency standards with the
(TAE). Among other issues, a critical following findings: – BRING YOUR OWN
weakness was identified around the
• the interpretation of units of
DEVICE (BYOD)
lack of assessment skills. This has far
reaching and fundamental effects as competency appears to be a The BYOD movement affects both
trainers, ill equipped to undertake highly sophisticated skill, yet the providers and learners. Earlier concerns
skills assessment, cannot properly practitioners in this study did not over hidden costs, employee privacy
teach the skills required. Reasons for appear to learn this in their initial and corporate data security are
lack of assessment skills were identified training, but rather took up to a now giving way to convenience and
and include: year to develop confidence in efficiency. The rise of BYODs is making
interpreting competencies when an impact on the need for IT skills
• use of equivalence when dealing developing curriculum and support, from help desk to mobile
with staff updating qualifications applications development to security
• most experience with interpreting
and compliance. Rules of engagement
• the short course model which has competencies was gained through
for devices need to be established
been adopted for delivery of the practice, professional development
and users educated, both trainers and
Certificate IV TAE, limiting the and informal learning, and
39 Hodge, S 2014 Interpreting competencies in Australian
37 IBSA Report, Australia’s Most Important Qualification- vocational education and training; practices and
A Roadmap for Reform, 2014. 38 ibid issues, NCVER, Adelaide
Training & Education Industry | 21IBSA Environment Scan 2015
learners, on BYOD policies, device COMMUNITY CLIENT DRIVEN SERVICE
access and security.
PARTNERSHIPS AND Skilling workers to develop and
While BYOD is becoming more deliver training when, where and how
commonplace, choose your own
BUSINESS ALLIANCES
the industry needs it means having
device (CYOD) is where organisations IBSA polling found 83 percent of good technical competence as well
are now seeking to limit the number its industry stakeholders plan to as effective facilitation skills. Instead
of mobile applications, devices and increase operational partnerships of using funding programs to meet
operating systems, chosen and owned with other businesses. industry needs, skills in partnering with
by employees, mainly to improve industry and solution selling is expected
Business alliances are important to
the organisation’s ability to provide to become more important. As more
creating and maintaining new income
management and support. private providers enter the market
streams not reliant on traditional
funding for training. IBSA consultations and competition increases, delivering
TECHNOLOGY showed varying levels of support for the tailored training and cost effective,
concept of business alliances but were valid and reliable assessment will be
– SOCIAL MEDIA of critical importance to meet the needs
simultaneously cautious as experience
RTOs can use social media tools such indicates there are few genuine of business. Industry is looking for
as wikis, blogs, discussion boards, opportunities to explore alliances training that is convenient for them
YouTube channels, Twitter and that actually bear fruit. The call is for and their staff, but not necessarily
Facebook to build brand awareness, propositions to be genuine – and for for the providers.
encourage conversations between long term sustainability they need to IBSA consultations raised concerns
interested parties and engage with and return benefits to all stakeholders. about the diminishing value of
motivate students and staff. There are Alliances may operate between qualifications as jobs change and
however risks with social media that organisations for a range of reasons the need for tailored learning rather
need to be factored in. Social media including between: than longer courses. Tailored training
encourages unscripted conversations may include skills sets, single units of
that travel random paths, often breaking • industry and VET providers enabling
competency and unaccredited content.
traditional lines of communication.40 This access to resources such as venues,
means the traditional trainer student equipment, materials, assessors and
paradigm may be affected by multiple current work practices CHANGING
conversations, including negative • VET providers packaging a whole WORKPLACES
ones, with the potential for harm to the solution to clients by aggregating New workplace practices and flexible
reputation of the individual trainer and their different skills base and arrangements provide benefits to
the provider, by disgruntled students; service offering and accessing TAFE workers, and opportunities for work
brand protection is critical. resources by smaller RTOs to be performed to better meet client
McKinsey highlights a number of needs. Development of resources lends
• VET providers and higher education
capabilities required at the strategic itself to flexible arrangements such as
providers identifying pathways and
or organisational level to respond to working from home, and outcomes
strategies that complement their
the rise of social media, including based remuneration places control of
offerings and then providing a
balancing vertical accountability with when and how with the worker.
seamless journey for students, and
horizontal collaboration; understanding
IBSA consultations reiterated the
the cultural and behavioural impact of • community based organisations
importance of trust in working
social media; and leveraging social including education providers,
relationships between employers and
media for key business functions.41 industry and government providing
staff and the need for a significant shift
employment, work experience
in workplace thinking.
and buy in.
40 McKinsey and Co (2013) Six social-media skills every
leader needs
41 McKinsey and Co (2013) Six social media skills every
leader needs
Approximately 4,650 registered training organisations (RTOs) from around the country deliver
training and issue qualifications from nationally recognised training packages and state and
territory accredited courses
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