Australia’s vocational education and training (VET) system continues to produce strong outcomes for learners and is better supporting Australians into areas of critical skills need, a new report from Jobs and Skills Australia has found.
The National Skills Agreement Outcomes Framework Balanced Scorecard: Baseline Report is the first of its kind for the VET sector, establishing a baseline of evidence against National Skills Agreement (NSA) outcomes to better monitor the health of the VET system into the future.
The Outcomes Framework enables governments to better track, monitor and respond to changes over the life of the NSA; the $30 billion agreement between the Albanese Government and states and territories which aims to transform the national VET system.
The report identifies areas of strength for the VET sector, including:
- higher earnings: VET graduates experienced a median income uplift of $14,100 post training;
- stronger pathways: more VET graduates progressing on to a higher-level qualification; and
- better training and workforce alignment: more students entering training in areas of critical skills need, alongside improvements over the last two years in shortage occupations where VET is the primary pathway.
Opportunities for improvement are also identified in the report, including:
- foundation skills: while rates are improving, continued progress is needed in numeracy, problem-solving and writing; and
- participation: participation rates have largely held steady, however people with disability remain underrepresented in VET.
Importantly, the findings assist Australian governments to measure the impact and progress of fundamental reforms to the VET sector.
The report reinforces the importance of accessible lifelong learning pathways, effective supports and flexible training that help people adapt to changing workforce needs.
It also highlights VET’s role in building skills that drive productivity and workforce outcomes, aligning with the Albanese Government’s reforms to strengthen qualifications, improve skills utilisation and better match training with labour market demand.
Given the early stage of implementation for many NSA reforms, the results establish an important baseline for monitoring progress across the vocational education and training sector over time.
The NSA Balanced Scorecard Baseline Report is available from jobsandskills.gov.au.
Quotes attributable to Minister for Skills and Training, Andrew Giles:
“When we came to office, the Coalition had left Australia with skills shortages at a 50-year high, billions of dollars cut from TAFE and training, and no plan whatsoever to set up Australia’s VET system to deliver for our future.
“We need certainty in the VET system to ensure it delivers for Australia.
“The Albanese Government negotiated with every state and territory to deliver our five-year National Skills Agreement – a landmark plan that is rolling out $30 billion worth of investment into TAFE and training across Australia.
“These findings provide an important foundation for assessing the National Skills Agreement as it progresses and we continue to ensure Australians can get the skills they want, to do the jobs we need.”
Quotes attributable to Jobs and Skills Australia Acting Commissioner, Ms Megan Lilly:
“The National Skills Agreement Balanced Scorecard Baseline Report is a significant milestone, bringing together national indicators, measures and targets to provide important insights into VET performance and a baseline for measuring future progress.”
“By establishing a common baseline across key indicators, measures and targets, we can track progress, identify areas for improvement and ensure the VET system continues to deliver the skills Australians need.”
“A strong skills system relies on strong evidence. This baseline report provides an independent, system-wide view of VET performance and a foundation for tracking future progress.”
BACKGROUND
The National Skills Agreement is a five-year joint agreement between the Albanese Labor Government and states and territories to strengthen the VET sector, providing $12.6 billion total of Commonwealth funding over the life of the five-year agreement.
The NSA is transforming Australia’s VET system by placing TAFE at its core and ensuring all Australians have access to high-quality, responsive training that supports meaningful jobs, stronger productivity and a future-ready workforce.
