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Changing structures in
vocational education
Rod Camm
Managing Director
12th Annual Higher Education Summit
20 May 2014
#145129
To inform and influence Australia’s tertiary
education and training system through
credible, reliable and responsive research
and statistical services
Our Vision
NCVER overview
Support
Inform and influence
Research
Statistical Services
NCVER
The current nature of VET
Sector is Changing
VET is changing
Entitlement
► government subsidised training in first
certificate III qualification;
► government subsidised training for certificate I
& II qualifications where they are components
of the certificate III training; and
► foundation skills training if needed to prepare
for training at the certificate III level
Higher Education is Changing
Demand Driven
► Immediate increase in student numbers
► Increases widely distributed
Review of the Demand Driven Funding
System Report
“there is no persuasive case for returning to the
„capped‟ system…the demand driven system
should be retained, expanded and improved”
The Hon. Dr David Kemp & Mr Andrew Norton
Key elements from the Federal Budget 2014
$820M for an estimated 80,000 additional sub-
bachelor places, including non-university higher
education providers (to be demand-driven)
$745.6M over three years to remove FEE-HELP and
VET FEE-HELP loan fees for higher level vocational
education and training courses
$476.0M over four years for the Industry Skills Fund to
deliver 200,000 targeted training places for small and
medium sized business diversification
$439.0M over five years for Trade Support Loans for
apprentices with financial assistance of up to $20,000
The Language of Markets
Education as an ‘Industry’
► What does it produce?
The Language of Markets
The role of Industry
The Language of Markets
Contestability
► Clarity of Information
Has it worked?
Trends in apprentices and trainee
numbers Early indications for the March 2014 quarter show that:
Trade commencements decreased from 26 000 in the December
quarter 2013 to 24 400 in the March quarter 2014. Since March
2010, this series has maintained a level of about 24 000, fluctuating
by about 2600 commencements per quarter.
Non-trade commencements decreased from 35 200 in the
December quarter 2013 to 32 200 in the March quarter 2014. This
series now shows three consecutive quarters of decline from the
June quarter 2013, following the large fluctuations which occurred
from the September quarter 2011 to the June quarter.
Trade and non-trade commencements,
seasonally adjusted and smoothed,
December 2003 – March 2014
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
December2003
December2004
December2005
December2006
December2007
December2008
December2009
December2010
December2011
December2012
December2013
Nu
mber
('000)
December 2013 Trade December 2013 Non-trade Trade Non-trade
Source: Apprentices & trainees: Early trend estimates, March quarter 2014
Possible causes of the decline
The expiry of the Productivity Places
Program has possibly been a contributing
factor in the decline in student numbers in
2013
The decline may also be a follow-on effect
from the decline in apprentices and trainees
previously identified
State and territory policies?
Victorian Example
Early impacts of the Victorian Training
Guarantee on VET enrolments and graduate
outcomes
Victorian Example
Enrolments
35% growth in enrolments
(largely in private providers)
Outcomes
15 – 19 year olds more likely to get a job
20 – 24 year olds less likely to get a better job
Limited benefits for ‘disadvantaged’ groups
Qualification Utilisation
Stronger match for occupation groups
with Industry licensing requirements and
regulations
Stronger match for
Certificates III and IV than
certificates I and II and
diplomas and higher
Thank you
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