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Kym Peake, Deputy Secretary, Skills Victoria
“Welcome to Gaining the Edge”
VTA State Conference – 4 May 2011
1
Introduction
Introduction
The productivity challenge
The participation and attainment challenge
Victoria – leaders in education and training
Outcomes – reimagining the tertiary education landscape
Equity – extending opportunities to more Victorians
Innovation – resetting our relationships
Conclusion
2
Australia’s labour productivity growth rate has slumped over the
past decade
Labour productivity growth
% pa (5-year rolling averages)
3.5
‘Selected
sectors’
3.0
2.5
‘Market’
sector
2.0
1.5
1.0
0.5
0.0
80
85
90
95
00
05
10
Note: ‘Selected sectors’ are agriculture, forestry & fishing; mining; manufacturing; electricity, gas, water & waste services; construction; wholesale trade; retail trade; accommodation &
food services; transport, postal & warehousing; information, media & telecommunications; financial & insurance services; and arts & recreation services.
‘Market sector’ comprises these sectors plus rental, hiring & real estate services; professional, scientific & technical services; administrative & support services; and other services. Data
are for financial years ended 30 June.
Sources: ABS; Grattan Institute.
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Long-term productivity growth requires systemic solutions for ALL
sectors, not just picking winners or relying on the mining sector
Contribution to GDP in 2009
Government actions
• Reducing regulation
Contribution to GDP
Financial services
Mining
Other
Manufacturing
Education and
training
Construction
Professional
services
Retail trade
Wholesale trade
Transport
Health
Public
administration
• Introducing tax reform
• Targeting infrastructure
investment
• Increasing take-up of
technology
• Improving innovation
• Tackling labour shortages
Source: ABD Cat. No. 5206.0
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Increased workforce participation is part of the solution for
improved economic growth and higher living standards
Australian workforce participation rates
are middle ranking internationally…
… and
OECD Participation Rates 2009 People 15 and over (%)
Workforce Participation in Australia 2000-2011
90
80
70
60
50
40
30
20
10
0
75
70
% 65
60
y
rk
e
Tu
ic
o
M
ex
ce
SA
Fr
an
us
t
U
ra
lia
K
U
A
C
an
a
da
en
Sw
ed
nd
55
la
Ic
e
have increased slightly over the
past decade
Source: OECD Online Employment Statistics, accessed May 2011
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
Source: ABS; Labour Force Statistics 2011.
5
Victoria is well placed to respond to the social and economic
imperatives to meet the demand for skills
Victoria is a top performer in Year 12 completions, attainment of Certificate III
and above, and higher education qualifications
Year 12 attainment levels by jurisdiction,
2010 (%)
Cert III and above attainment levels by
jurisdiction, 2010 (%)
85
60
80
55
75
50
70
45
65
40
60
35
55
50
30
ACT VIC NSW QLD WA
NT
Source: ABS; Education and Work Statistics 2010
SA
TAS
ACT VIC NSW QLD WA
NT
SA
TAS
Source: ABS, Education and Work Statistics 2010
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The Victorian Training Guarantee appears to be resulting in strong
enrolment growth supported by an increase in training providers
Demand
has
increased
with
growing
enrolments
under the
VTG
Supply of
training has
increased
220,295
enrolments
173,943
enrolments
2008: Pre introduction
of the skills reform
(‘baseline’ data)
181,536
enrolments
2009: VTG
implemented for
‘Skills Deepening’
enrolments
(Diploma level and
above) from 1 July
2010: VTG extended
to eligible 15 to 24
year olds for all
qualification levels
(‘Youth Compact’
enrolments) and to
retrenched workers
aged 25 years or
over
Relative to 2008, there has been a
27% increase in enrolments
now covered by the VTG:
• 24% increase in Skills
Deepening enrolments;
• 28% increase in Youth
Compact enrolments
An additional 350 private providers have been contracted to
deliver Government subsidised training since the introduction of
the VTG (with a total of more than 520 contracted public and
private providers)
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What should the tertiary landscape look like in the future? There
are a range of directions that tertiary education could take…
How can government remove barriers and encourage creative approaches?
Incrementalist
• More partnerships
between VET and higher
education institutions to
offer better pathways
• Making it easier for
students to simultaneously
enrol in VET and higher
education institutions
• More practical and
workplace learning
opportunities within
higher education
Lower degree of change
Diverse
Integrated
• VET providers offering
degrees - including "2 plus
2" diploma/degree
programs
• End to structural and
institutional divisions
between VET and higher
education
• Universities offering
double enrolment in a
degree and certificate
qualification
• A single entitlement
funding model
• More "mixed institutions"
specialising in particular
fields - e.g. polytechnics
• The rise of the "omniinstitution"
• Teaching-only institutions
offering undergraduate
degrees
Higher degree of change
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We all need to work together to do more for Victorians from equity
groups and disadvantaged cohorts
Government funded enrolment by
Indigenous students
Government funded enrolment by
students with a disability
7000
30000
6000
25000
5000
20000
4000
15000
3000
10000
2000
5000
1000
0
0
2005
2006
2007
2008
2009
2010
2005
2006
2007
2008
2009
2010
Enrolments for these groups are growing but not as strongly as for the general population.
This is important because we know that 83% of Australians with a Cert. III or higher have a
job at any given time compared with 57% of those without a qualification at this level
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Skills Victoria will work with tertiary providers, businesses, schools,
industry and learners to identify opportunities for innovation
Skills Victoria (Government)
Opportunities
for innovative
pathways
ACE
VET
HEI
Individuals
Opportunities
for innovation in
curriculum
Schools
Business
Industry
Opportunities
for innovations
in curriculum
and pedagogy
to meet needs
of the
knowledge
economy
Opportunities
for research and
innovation in
workforce
training and
development
Government subsidised training market
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