A partnership approach is vital for navigating workforce demands and the development of skills and training in Australia, Federal Minister Andrew Giles said at an Australian Industry Group webinar this month.
Mr Giles, who said he valued engaging with our Centre for Education and Training (CET), took part in a Q&A on a range of issues including apprenticeship incentives for employers, AI competency and shifting community perceptions about vocational and technical pathways.
“Everything we do in this space, we do in partnership with states and territories, employers, workers and those who represent them and the people who deliver training,” he said.
“The changing nature of work demands constant vigilance and deep engagement with all workplace parties and those who engage broadly in shaping the world of work and the process of skills development.
“It’s about how we can more effectively work together to ensure more Australians are equipped with the skills they want to navigate their way through the world of work and to make sure Australian businesses can readily access skilled workers.”
Australian Industry Group works closely with Mr Giles — the Minister for Skills and Training — on a broad range of issues.
“We’re given the opportunity to discuss important issues, put our views forward on behalf of industry and employers and have those views listened to,” Caroline Smith, Executive Director of our Centre for Education and Training and webinar host, said.
“The scale of reform in Australia's post-school education and training system in recent years has been significant: a National Skills Agreement and establishing Jobs and Skills Australia, Jobs and Skills Councils, a new Australian Tertiary Education Commission, free TAFE, enhanced workplace delivery of foundation skills and much more,” Dr Smith said.
“Australian Industry Group has strongly advocated for and supported many of these reforms and has been actively involved in their implementation. It’s great to see where these are now translating into impact.”
Mr Giles said he was pleased with the progress made on his watch.
“Occupations in shortage have been coming down year on year, and there have been significant reforms to the systems architecture that relate to the labour market, especially with regards to skills and training,” he said.
“Jobs and Skills Australia enables us to better understand the labour market, better analyse future trends and dig deeply into what is happening in workplaces, as well as inform policy development.
“Jobs and Skills Councils are showing the importance, possibilities and potential of an industry-led approach to workforce planning and skills development — and the benefit of having a National Skills Agreement cannot be overstated.
“The partnership approach to dealing with workforce demand and the development of skills and training in Australia is central to my sense of going about my role.
“I deeply appreciate the engagement I have with Australian Industry Group.”
Mr Giles: Commencements have softened, but we’re seeing stronger retention, lower cancellations and the reshaping of the system to deliver a clearer focus on pathways where an apprenticeship is the way to gain a qualification.
I've been heartened in the past few months by state governments in South Australia and Victoria making significant contributions to support apprenticeship training: 1000 places in South Australia and 2000 electrical in Victoria.
Mr Giles: The changes we've made are grandfathered, and there are ongoing supports in priority occupations, many of which fall within the Key Apprenticeship Program.
However, circumstances have required the Government to look hard at our spending profile, particularly in the context of an inflationary environment and the uncertain global environment. We've made tough decisions, based on evidence presented to us around the relative impact of the incentives on larger businesses compared to small and medium enterprises on hiring decisions.
Mr Giles: I understand the challenges of low productivity and supervision for an apprentice early in their career, but that’s an extension of the challenge of any new starter in a new workplace. The nature of the apprenticeship arrangement reflects a broader pattern of a worker not being productive at the start of their engagement, particularly in roles that have some degree of specialisation.
We need to have a wider conversation. Part of the issue is about better pairing young people's appetite for career pathways that align with the needs of industry now and into the future.
We’re not seeing that alignment at the start. We've got a bit of work to do around reshaping some of those decisions. There's real scope for the Jobs and Skills Councils to consider:
While the focus on apprenticeships in the Budget largely falls on changes to the incentive regime, the changes we’ve foreshadowed to the list of priority occupations is also significant.
From 1 January next year, the same time as the incentives changes kick in, the priority list will be updated annually so we see a better reflection of national and regional shortages to better support business planning. We’ll have a list that's not only evidence-based but more targeted and responsive to changing workforce needs and more supportive of business planning.
Mr Giles: This has been a significant feature of the National Skills Agreement, and we've been working with each jurisdiction on different pathways to facilitate that. I'm conscious our training and assessment workforce is a bit older than we'd like it to be, and we know that in areas of high demand, such as electrical and plumbing, training capacity is increasingly a concern.
Trying to find ways to make the transition from work on the tools to work that involves training — or combining both — has been a big focus.
Each jurisdiction has different thoughts on how best to enable this, but I'm pleased this is an area where achieving a high-level consensus then working our way through what works on the ground is starting to show dividends.
Many tradespeople tell me it's the supervision part of their role they enjoy the most. They ask how we can more easily build a bridge between that desire and what work in training and assessment looks like and what progression in training and assessment looks like.
I'm pleased with the progress we're making, but there's a lot more to be done, particularly as we look at the increasing significance of, for example, the work we're doing on better recognising migrant skills and high-quality Recognition of Prior Learning (RPL).
Mr Giles: This goes to the possibilities of our JSCs: making real the idea of training products and workforce planning that's industry-led and reflects the workforces of today. As the world of work changes rapidly, we've got to make sure people are qualified and in a position to, as readily as possible, step straight into the workplace.
In some areas, we're seeing a virtuous circle where apprentices are not only learning when they're in their workplace, but they're sharing what they’re picking up at their RTO (Registered Training Organisation), TAFE or GTO (Group Training Organisation), with their employer.
Making sure we have that industry engagement in the training system is fundamental to the systems architecture we've put in place.
Mr Giles: As well as digital literacy broadly, AI competency increasingly needs to be considered as a foundation skill.
I'm struck by a couple of things: one, our most recent evidence shows 3 million Australians lack the foundational skills they should have been supported to acquire.
Problem number two is when I say ‘most recent’, that data is 14 years old.
So many workplaces rely on effective digital skills, so this is a real challenge for reskilling and upskilling.
If we think about the jobs being generated in the Australian economy right now, this has never been more important.
Finding ways to ensure appropriate learning can be delivered in an appropriate environment (usually the workplace) is something I'm keen on.
We also need to do a better job of putting ourselves in the shoes of more kinetic learners — making sure we’re not trapped by our own experiences.
Mr Giles: Challenges with rolling out initiatives in remote and regional Australia include the tyranny of distance and physical barriers which may be greater for First Nations people with cultural obligations or people with caring responsibilities.
However, we are committed to building systems that better enable Australians in all parts of the country to access training on terms that work for them. For example, the partnership we had with the Queensland Government to deliver enrolled nursing on the Torres Strait in response to community needs couldn't be met by people having to leave community to go to Cairns to do their physical training.
The TAFE Centres of Excellence and the national TAFE network have a role to play, as do non-TAFE providers.
Mr Giles: We're making progress. It’s an idea that's easy to articulate but has been bedevilled in implementation.
When we look at RPL, a lot of the broader systems reform work will play a big role in enabling an approach that's built on quality as well as integrity. There are some good examples of practice that I'd like to see rolled out more broadly.
In particular, the Advanced Entry Trades Training commitment that we made last year with the states and territories is something I'm excited about.
For many people, a four-year apprenticeship is not realistic later in life, yet they’re not far off or at a level of competency of a tradesperson.
Considering whether there are unnecessary barriers preventing people from being recognised is equally important.
We can also think about dovetailing the Migrant Skills Announcement package in the Budget to align with the work being progressed through Advanced Entry Trades Training, as they're trying to achieve similar outcomes.
If we can move beyond that pass-fail assessment, that would be a big step forward. It would assist the labour market and enable more people to feel more satisfied and fulfilled in their working lives.
Mr Giles: Whenever I'm in front of a microphone or screen, I say that more in four in 10 jobs generated in the Australian economy require a VET qualification. If that's the starting point, we're more likely to get better engagement all the way through.
We're also seeing the system respond to the increasing awareness of the remuneration of trades such as electrical and plumbing, as well as technology-driven uncertainty in the workplace.
A great part of the story is being work-ready through trades training. When I think of my professional training as a lawyer, I was very unprepared for the world of work on day one as an articled clerk.
Finally, we've got to address long-running issues of safety and wellbeing with trade apprenticeships.
We've got to be clear about zero tolerance, because I know parents are anxious.
To sum up, there’s strong demand in the labour market for vocational qualifications. Trades offer meaningful work and good remuneration.
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Wendy Larter is Communications Manager at Australian Industry Group.
A former journalist for newspapers and magazines including The Courier-Mail in Brisbane and Metro, the News of the World, The Times and Elle in the UK, she is passionate about giving businesses a voice.
