Calls for industry to invest more in skills through on-the-job training – comment by CEO, Jenny Dodd

The campaign to form the next Australian Government has concluded and we have voted. What a privilege it is to be able to choose our next Federal government. Congratulations to the Australian Labor Party on their decisive victory. This means a continuation of some key policies for tertiary education such as free TAFE, the National Skills Agreement and the implementation of the Accord.

During May 2025, as part of its election coverage, the Australian Financial Review asked numerous prominent people to propose one policy initiative that political parties should take on. The people asked came from many different roles and careers. Hence, there were varied views. For example, one prominent person talked about boosting GST to pay for health care, education and NDIS (16 April), another suggested allowing superannuation funds to invest in Australian start-up ventures (11 April), and another proposed prioritising regulating digital assets (2 May).

One prominent person interviewed was from the tertiary education sector. Professor John Buchanan from Sydney University last Friday said, “employers should share the costs of quality on-the-job training.” (AFR 2 May 2025 page 8).

John stated that employer contributions to on-the-job skill development is falling. He quoted that “in 2005, almost 40 per cent of workers reported their employer provided them with work-related training. By 2021, this had fallen to 23 per cent.” His point is that it is the role of tertiary education to provide formal education and skill development for the workplace, but alone tertiary education providers cannot deliver ‘job-ready graduates”. That rounding out of a new employee so they have the skills needed by their employer is the role of the workplace.

Internationally, we have seen a rise in learn while you earn models. For example, New Zealand is shifting back to industry skills boards. We have also seen the call for more workplace learning in Australia. For example, the degree apprenticeship in South Australia, the call by some parts of the aged care sector for more on the job training, and the potential for vocational degrees which are most likely to be earn while you learn.

This authentic learning in workplaces is welcomed. It will help students be more job ready. However, as John says it needs financial contributions from employers.

We can expect in this new term of government there to be a rise in new entrants through ‘learn while you earn’ schemes. This model will be most effective where there are strong financial contributions from employers, not just government incentives. Equally so ongoing employer investment in existing workers’ skill development will help address the skills shortages that have been part of the economy since the previous election.