In this post
- 1. The VET system can help to address Australia’s basic skill shortages
- 2. Increasing workforce participation in the labour market makes economic sense
- 3. To make these increases in the labour market, funding is required for vocational education and training
- 4. A new national set of priorities that focuses on successful TAFE’s and other VET schools would allow us to meet an increasing demand for workers
- 5. VET providers are crucial for a successful workforce, especially for the disadvantaged.
5 Reasons VET Priorities Make Economic Sense

In this post Show
- 1. The VET system can help to address Australia’s basic skill shortages
- 2. Increasing workforce participation in the labour market makes economic sense
- 3. To make these increases in the labour market, funding is required for vocational education and training
- 4. A new national set of priorities that focuses on successful TAFE’s and other VET schools would allow us to meet an increasing demand for workers
- 5. VET providers are crucial for a successful workforce, especially for the disadvantaged.
We have a problem here in Australia. Multiple studies have found that we’re expecting to experience a skill shortage and that our economic growth will be significantly constrained by those skill shortages.
The university sector is already well funded, so it’s well and truly time the VET sector got some attention, and here’s why:
1. The VET system can help to address Australia’s basic skill shortages
Of Australian adults,
44%
lack the literacy skills that people need for basic everyday tasks.
VET providers are in one of the best positions to address this shortage, by starting the conversations with Australians who may not be comfortable in higher education, university-based situation.
Jobs that were once easily completed with a lower literacy rate now require a number of forms, use computers and do a number of other jobs that require high literacy and numeracy based abilities.
Without first addressing these levels of literacy and numeracy, it’s unlikely that Australia will be able to address their skill shortages in time to keep up with our needs.
2. Increasing workforce participation in the labour market makes economic sense
This would allow for more government policies that could result in both short term and long term gains for Australia, and not just within the vocational education or higher education sectors.
Consider how many schools and hospitals would gain from a short term influx of cash, or how much pay off they would get out of long term investments in training for teachers and nurses.
VET graduates are in a prime position to be able to start working quickly, making this increase in our world of work more realistic.
3. To make these increases in the labour market, funding is required for vocational education and training
The same study found that this expansion in participation rates would require an expansion of qualifications that would need enrollments in both higher education and VET graduates to increase by 3 percent a year.
Without this increase of level qualifications, with VET priorities, we not only won’t be able to bring the extra money into our economy but also won’t be able to keep up with the different needs of our country
4. A new national set of priorities that focuses on successful TAFE’s and other VET schools would allow us to meet an increasing demand for workers
The last time the VET system agreed on its purpose and operating framework was back in 1974 after the Kangan Institute review of the sector.
Since then, the conversation regarding further education has largely focused on universities, with the department of education occasionally throwing the sector a bone in terms of funding.
But with an increase in workforce participation needed, the operating principles of VET and their primary purpose needs a national review to ensure that we’re future-ready.
As it stands, the VET sector has been on the decline as a result of poor marketisation policies and an increase in the popularity of university degrees. Especially in cities like Melbourne or Sydney, even though those degrees don’t always result in employability.
If a new national set of priorities recognised how successful VET funding could be for a variety of groups, then economically, we’d be more set up for the future.
5. VET providers are crucial for a successful workforce, especially for the disadvantaged.
While making VET a priority means navigating federal-state relationships and basic questions of form, the successful implementation of VET would mean that more people could have new jobs – especially for people with social or economic disadvantages.
It makes social sense as well as economic sense for government departments and private sectors to consider how VET providers create opportunities for the disadvantaged.
VET priorities make sense for both economic and social reasons. Investing in VET systems means that we’ll be able to both improve tax revenue from workers and meet a potential worker shortage.
As well as increasing adult literacy rates and ensuring that the disadvantaged in society continue to benefit from the system.
Latest Articles
Your Ultimate Guide to a Successful Career in Bookkeeping
Embarking on a career in bookkeeping is not just about dealing with numbers, it’s about playin...
How to Grow Your Bookkeeping Career in 5 Simple Steps
Financial literacy and accountability for decision-making are key to the success of many small to me...
Xero vs MYOB: Which Course is Right For You?
When it comes to bookkeeping and accounting software, the debate often boils down to Xero vs MYOB. B...
Want to read more?
Government changes to university fees: what you need to know
There have been some changes to university fees in Australia. Here’s what you need to know about the...
What Jobs Are In Demand In Australia? High Demand Jobs in Every Industry
Discover the most in-demand jobs in Australia for each industry, so you can pick a resilient and hig...
The Role of Artificial Intelligence in Online Education
Artificial intelligence is increasingly becoming a core part of online education. It has the ability...