There is a need for an effective Vocational Education and Training (VET) system to boost workforce participation and aid companies in developing new technologies, thereby increasing economic productivity.
This research discusses seven trends in global VET development and the issues that VET institutions need to consider. Various macro and micro factors, including policies and management, economy, society, and technology, are driving trends in VET development.
In an effort to understand and evaluate these trends, Cisco and Optus/Alphawest conducted research on emerging global trends in VET. The objective is to share information with VET institutions and policy planners, focusing on potential challenges in the coming years.
The assessment of global trends is primarily based on exemplary studies abroad and the latest policy thinking.
This investigation has identified seven global trends in VET development based on their impact on the field in general and their potential applicability in Australia.
Each trend is presented with a real-world example, encompassing shifts in student learning models, student retention strategies, new forms of learning, and trends in collaboration within the VET sector.
This trend is also occurring locally, where Australian schools are considering students' transitional learning paths. The number of students aged 15 to 19 in Australian vocational education and training institutions increased from 167,100 in 2006 to 216,700 in 2009.
The emphasis on the retention goal, completing year 12 or its equivalent, is a clear indication of the recognized value of the vocational education path.
As demand for new skills and higher qualifications increases and populations in developed countries age, the need for retraining older workers will rise. European countries have been particularly active in addressing this challenge through lifelong learning policies. The percentage of EU citizens aged 50 to 64 participating in training increased from 1% to 26% in EU countries from 2005 to 2009.
Individuals with skills are increasingly moving between countries to meet changing demands. In 2010, an estimated 193 million global migrant workers moved to different countries in search of employment. Consequently, the demand for training, skill retraining, and recognition of migrant labor will continue to grow.
The pace of people moving between countries for vocational education is also expected to increase. However, some evidence suggests otherwise. Two main factors contributing to the trend of not training abroad are:
The economic argument for retaining students is undeniable: acquiring a new customer is significantly more expensive than maintaining an existing one.
Providers are realizing that the majority of costs associated with training a learner are incurred long before completion. In cases where funds are constrained to complete training, the economic cost of losing a student midway is substantial.
The emergence of online learning and blended learning is not a new trend. However, recent trends in blended learning models and online learning focus on two areas:
Uncertainty about revenue, cost pressures, and difficulties in forecasting future skill demands are forcing VET institutions to consider innovative approaches to cost-effective infrastructure.
New financial models and cost-sharing agreements allow cloud-based services to reduce administrative costs while improving focus on instructional services.
The supplier-consumer model between the industry and providers is emerging as a key trend. These models focus on establishing deeper and broader collaborations.
Traditional boundaries between education sectors are blurring. The absolute shift between sectors challenges funding models, recognition of prior learning frameworks, and connections between systems, particularly focusing on disadvantaged students moving between systems.
Skills are an international currency: they are a source of economic advantage and are increasingly ‘tradable’. Some argue that this has always been the case and that the 'war for talent' – a term coined in the late 1980s – has been going on for decades.
However, global trends have important implications for today's training institutions, including both challenges and opportunities. The continued growth and relevance of the TVET sector depends on its ability to respond to new demands from industry, learners and the wider community. Organizations providing training will need to adapt in fundamental ways, and across governance and training/learning.
Specifically, they will need to become more flexible in managing costs, responding to new learner and economic demands, working closely with sectors, industries and learners, and innovating. new in all aspects of the student learning process.
Australia is recognized as a market with advanced vocational education. This is largely influenced by the highly decentralized nature of the TAFE system in some States, and the move towards a model that is competitive in the domestic training market.
Under a competitive model, significant power has been transferred to the consumers of education and training, and the influence of the Government as purchaser has been reduced.
