TAFE’s role in tackling productivity improvement – comment by CEO Jenny Dodd

During the last week there has been much discussion about productivity. This is not an Australian phenomenon alone; every OECD country has had a decline in productivity. For example, productivity was a theme in the lead up to the Federal budget on Tuesday night. In addition, last Tuesday, Future Skills Organisation (FSO) had a very good seminar on “Building an AI-Enabled Workforce: Impacts for Finance, Tech and Business Education and Training” where the discussion began with a table showing the decline in labour productivity during the last decade.

There are many reasons for the decline in productivity. One factor includes the growth in sectors where it is difficult to capture productivity improvements such as the care industry. For example, in health businesses more staff are being employed, and more technology is being used, but technology improvements in areas such as medicine, do not necessarily reduce costs.

However, there is a need for a post-election conversation about how tertiary education can contribute to improving productivity. As the opening speaker at the FSO webinar stated, adoption of new technology is fundamental for growth in productivity.

On Thursday 20 March in the Australian Financial Review, vice chancellor of the University of NSW, Attila Brungs said, “The education productivity paradox – the nexus between rising education levels and increasing productivity – appeared to be broken, partly because business was not doing its part” (p9 AFR, 20/3/25). Professor Brungs suggested to achieve productivity improvements there needs to be increased skills development of staff within businesses. He went onto say that “we have gone through some of the biggest periods of technological change in the last 10 years, and it’s how we keep people in the workforce updated with new skills (that is important).”

TAFEs’ role in providing post school education and training for young people has never been questioned. We are the place where those wanting traditional trade learning, such as plumbers and electricians go, or young people wanting qualifications in creative arts or business enrol, as well as those with health, community, early childhood career aspirations. Increasingly we are also the place to study for those who are more mature.

TAFEs are also the solution for those who are already in the workforce to gain new skills. I began my career in TAFE delivering commercial training for business clients wanting to upskill their workers in technical communication. This role of TAFE working hand in glove with businesses to skill their workforce has been a part of the TAFE business model for decades.

Over the last ten years acquisition of new skills within workplaces seems to have become the individual’s responsibility. That appeared to be part of the theme of the FSO webinar where it was stated by one speaker that individuals are capturing the benefits of generative AI, not necessarily led by their organisations. Professor Brungs comments are similar about the need for business to lead in upskilling staff.

The next three years will likely drive businesses to invest in the skills of their people. TAFEs’ relationships with the business communities are deep and strong and we continue to foster and build those relationships to be part of the solution for in-house training in either accredited or non-accredited skills that will lead to improved productivity.