Without urgent action and collaboration by government, business and the community, Victoria's future labour supply will be unable to support current levels of output, let alone expand to meet growing local and export opportunities, says VECCI.
As such, the demographic, social and environmental challenges we face demand a rethink of our current approaches to education, training, and employment that recognise the essential interdependencies existing across the sectors.
According to VECCI Chief Executive Officer Mr Wayne Kayler-Thomson, this is the key conclusion of the Localising Skills and Education Taskforce, which will report its findings at the Victoria SummitTM at Parliament House in Melbourne on 15 November 2007.
"The VECCI Victoria SummitTM in 2005 firmly placed on the agenda of business and Government the impact the issue of scarcity of skilled professionals and tradespeople, the gaps in our public education and training system, and the ageing of the population will have on Victoria's labour market and wider economy", says Mr Kayler-Thomson.
"However, while Governments have responded to some of the recommendations from the last Summit by increasing the expansion of vocational education in schools, and by providing incentives for a greater uptake of trade apprenticeships, the issues of skill and labour shortage and the ageing workforce have worsened as the economy continues to grow and employ more Victorians than ever before.
"The loss of skilled and experienced workers to retirement is also having an impact and is only likely to increase as the bulk of the 'baby boomer' generation move into their late 50s and early 60s over the next decade.
"Broad-brush solutions alone are not adequate and communities, businesses and government need to consider strategies that target specific needs.
"To address our existing skill and labour shortage we need a range of strategies that make the most of those individuals who are currently locked out of the workforce. The current under-utilised labour pool has a high level of disadvantage, requiring targeted intervention and capacity building to overcome barriers to employment. While the business sector is not equipped to deal with this problem on its own, VECCI believes many of these barriers can be overcome through collaboration with the community sector and with support from government.
"Alongside increasing participation, Victoria's working age population must also grow, and this will rely heavily on migration; both from interstate and overseas. Victoria must ensure it is attractive to skilled workers and consider ways to better assist recent arrivals to integrate into local communities and networks.
"There also needs to be greater sophistication in our approach to the structure of secondary education in Victoria.
"The recognition of the importance of vocational skills in preparing young people for the workforce has never been greater, and should be capitalised on if we are to succeed in increasing our vocational completions by 50 percent to meet projected future demand.
"Industry is quickly realising that they have a vested interest in ensuring the education system is instilling relevant and essential skills and knowledge into our youth. Secondary education should encourage closer links, partnerships and collaboration between schools and industry.
"Since 2005, the issue of climate change has also emerged as a key area of public policy and debate - a transition to a low carbon model for Australian industry is likely to see a significant investment in new technology, and a rethink of current production methods and service delivery practices, although this presents unique opportunities and challenges", says Mr Kayler-Thomson.
Recommendations:
- The Australian and Victorian Governments should establish an innovative strategy that addresses the needs of the disadvantaged that are seeking work and employers who are prepared to support an initiative that:
- Encompasses a Skill-Build program that addresses the needs of various disadvantaged categories through personal development, skills training and better integrated work experience opportunities, and includes regional Workforce Participation Transition
- Trials to forge new collaborative partnerships involving business, community support agencies and training providers to tailor local solutions. The trials would also address barriers to participation as well as infrastructure needs such as access to transport, childcare, affordable housing and other barriers, as a focus for targeted investment.
- The Australian and Victorian Governments should increase funding of the higher education and vocational education and training sectors to meet skill requirements
- The Victorian Government should introduce Learning Vouchers for adults and school leaving age youth to access training and support
- The Australian Government should provide additional support services for all categories of migrants to assist in their integration into Australian society, with an emphasis on flexibility to meet individual needs and raise skill levels
- The Victorian Government should initiate a state-wide program to encourage high schools to adopt the principles of the evolving 'Coburg High School' model
- The Victorian Government should provide support to parents of disadvantaged students across primary and secondary years with a focus on strengthening the capacity and commitment of parents to support learning and career pathways for their children
- The Victorian Government should invest further resources in schools to improve school retention and education achievement of primary and secondary age students, particularly those with learning difficulties or problem behaviours
- The Australian and Victorian Governments should establish an Energy Improvement Jobs Fund. Its role would be to assist companies and workers make the transition from carbon-intensive jobs to low carbon roles by assisting with the cost of retraining workers, and by providing incentives to companies to manage workers in transition.
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