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This document provides technical detail and supporting data for the research findings discussed in 'The student journey in VET: the many faces of completion and non-completion'. The analysis in this technical paper explores: (1) an approach to identifying VET subject enrolment activity that serves a compliance or regulatory purpose; (2) variability in completion rates across VET qualifications, and associated differences in patterns of subject enrolments and outcomes; (3) different indicators of student outcomes in VET, including program completion, subject completion, and movement to subsequent VET; (4) student training pathways exploring the extent to which students undertook programs, stand-alone subjects, or a combination of the two, and how this training choice evolved over time; and (5) student training pathways exploring the extent to which students went on to enrol in a program at a higher, lower, or the same level of educations, and how these pathways compared for students who did and did not complete their initial program.

Skilling Australia's current and future workforce is the theme for the 32nd National Vocational Education and Training (VET) Research Conference 'No Frills.' In keeping with the conference's theme, this discussion paper explores the resilience of the Australian VET sector and how it can continue to foster adaptability in the face of ongoing change.

'Transforming the future' can have different connotations in different contexts, but here the author focuses on the way in which the vocational education and training (VET) sector is adapting, anticipating and activating change in response to future skill demands. This discussion paper explores how the sector assists learners to skill, upskill and reskill, which in turn actively contributes to the Australian economy. Without a doubt, the past few years have been both difficult and unpredictable for many, with the ongoing COVID-19 pandemic and other natural disasters such as bushfires and floods. This paper therefore also considers how the VET system has been able to adapt to these unforeseen events and what can be learnt from these responses and adapted for the future.

This paper summarises the exploratory quantitative analysis undertaken to investigate how vocational education and training (VET) students cluster and segment in the Australian VET market. This analysis is outlined in three sections. The first section focuses on 'clustering' as a technique for grouping data and the three clustering algorithms used. These are then discussed in more detail to provide some insights into how they operate. Their specific data requirements, along with their strengths and weaknesses, are also considered. In next section the outputs of the clustering approaches are considered. The resultant clusters are examined to better understand them, and meaningfully label and group them into segments. The final section returns to the raw data. This step was necessary to further explore (in this case, only some of) the identified market segments. Three key market segments are explored: students in targeted English programs; students in social inclusion programs; and migrant students.

This paper is the first publication from a project focused on the quality of teaching, learning and assessment practices in the vocational education and training (VET) sector in Australia -- what we understand these to be and how they might be measured. Based on a review of the literature, this paper explores current definitions of quality in VET, the factors that impact on the quality of delivery and the various measures used to make judgements about it.

The past informs the future. It achieves this in two ways: first, by providing the context in which decisions are made, and, second, by delivering the various experiences that enable discovery of what does and does not work. As the Australian vocational education and training (VET) system has evolved, the institutional structures and frameworks that are now in place may determine the direction of its next turn, while the willingness to learn from past experiences will dictate whether it will turn at all. 'The past informing the future' is the theme for the 2021 'No Frills' Conference -- a conference to be held online, because if anything has been learned from 2020, it is that the freedom to travel is no longer guaranteed. This 'No Frills' discussion paper reflects on some key developments in VET's past and how they have shaped the sector's approach to enduring issues such as VET's purpose, national harmonisation, and quality.

"Workforce-Ready: Challenges and Opportunities for VET" is the theme for the 29th National Vocational Education and Training Research Conference 'No Frills' from July 7-10, 2020. The phrase 'workforce-ready' might bring several different scenarios to mind. It may conjure an image of graduates making their first foray into the world of work. Or perhaps it evokes a sense of preparing for future jobs, the details of which are not yet clear. It might also elicit thoughts of people needing to upskill, perhaps to re-enter the labour market after an absence, or in response to some change in their organisation or with their job. It could also mean something as simple as getting the necessary accreditation to work in a particular industry. The vocational education and training (VET) system plays a large role in meeting all these needs. A large focus for the VET sector is on providing individuals with the skills they need to get a job or change jobs. This function of the VET sector is clearly reflected in the National Student Outcomes Survey, which shows that two commonly reported reasons why graduates undertook their training was to get a job (30.7% in 2019), or to try for a different career (11%; NCVER 2019a). This role is particularly pertinent in the current environment of substantial job losses due to the impact of the COVID-19 pandemic. Treasury expects the unemployment rate to rise to 10% in the June quarter, up from 5.1% (Frydenberg 2020). Young people are likely to be particularly affected, being overrepresented in the jobs hardest hit by the pandemic, for example, hospitality, retail, the arts, and sports and recreation. Many will explore training as a pathway to re-enter the labour market. This No Frills discussion paper considers the balance between ensuring that people have the skills they need to work now and equipping them with the knowledge and/or skills that will enable them to adapt to the changes they will inevitably see in their working lives.

"The student journey: skilling for life" is the theme for the 28th National Vocational Education and Training Research Conference 'No Frills'. In this discussion paper, we look at how vocational education and training (VET) supports lifelong learners. We explore VET's role in assisting lifelong learning and seek to understand how VET will need to transform in the future to enable it to confront the challenges of an increasingly complex and changing world. We also profile the various lifelong learner types.

This discussion paper explores the possibilities and risks that data linkage presents for the vocational education and training (VET) sector. Along with a broad overview of the nature of data linkage, it highlights possible applications for data linkage in the VET sector and examines the key challenges associated with its use. A number of case studies are reviewed to illustrate the advantages data linkage can offer, as well as the challenges that may arise. In order to better understand the options for data linkage from an education and employment perspective, a 'map' of relevant Australian datasets is presented, along with a list of data sources that may be of use to VET research. As well as selected Australian datasets, the paper reviews some international datasets of potential interest for VET research in Australia. Using the insights gained from past data-linkage projects and taking into account the privacy and ethics concerns, the paper presents a set of six principles for data linkage. These principles provide researchers with basic steps for guidance when embarking upon a data-linkage project. Finally, future directions for data linkage in VET research are explored.

The National Student Outcomes Survey (SOS) collects information about students who completed their vocational education and training (VET) in the previous calendar year. The gathered information on the surveyed VET students includes their reasons for training, employment outcomes, satisfaction with training, and further study outcomes. The survey covers students who have completed a qualification (graduates) and those who have completed only part of a course and then left the VET system (subject completers). The National Centre for Vocational Education Research (NCVER) has conducted the survey with government-funded VET students annually since 1999. In 2016, the scope of the survey was expanded to report on the outcomes of graduates whose training was Commonwealth--or state-funded as well as fee-for-service graduates. These graduates were referred to as total VET graduates. An explanation of the difference between total VET and government-funded student outcomes can be found in appendix A. The expanded scope was applied to the 2017 survey for graduates (following a successful trial in 2016) and for the first time for subject completers and the series renamed VET student outcomes. At the time of sample selection, insufficient information is available from the National VET Provider Collection to identify 'actual' subject completers. Instead, a sample of potential subject completers is chosen, which includes students who are continuing in the VET system. The status of respondents is determined through the survey responses. As such, respondents to the SOS include a number of students who were sampled as subject completers based on administrative data reported to the National VET Provider Collection, but self-identify in the questionnaire as graduates. For many years these 'self-reported graduates' (SRGs) were categorised as graduates in survey outputs, because the self-report was deemed to be more reliable than the collection data. However, it became apparent that many SRGs were not, in fact, graduates. In response to this issue, in 2012, NCVER created a logistic model that predicted the eligibility of a SRG being an 'actual' graduate based on their personal and training characteristics (Braysher 2012). This model has since been run annually for each SOS to assign group membership to SRGs. Those SRGs that were not predicted by the model to be a graduate were re-assigned to their original subject completer status. One of the conditions of the initial analysis was that the model should be reviewed at least every four years to assess its ongoing validity and to make possible modifications should demographics and administrative data change and alter the predictive power of the model. The model was reviewed by NCVER in 2015 (unpublished). The review found some changes in data quality, but found no evidence that these changes were affecting the estimates. At the time no changes were recommended to the logistic model or graduate reclassification procedure, but it was recommended that the model be reviewed again at a later stage. In relation to data quality, the proportion of subject completers claiming to be self-reported graduates has declined significantly since 2007, particularly from 2015 to 2017, highlighting the improvement in the quality of the National VET Provider Collection data since the need to run the model arose (appendix B). Hence, it was appropriate to review the model again. This report presents the findings of an additional comprehensive review of the model and methodology.

Internationally, Australia's tertiary education system, comprising the higher education and vocational education and training (VET) sectors, is highly regarded, with both sectors subject to ongoing national review and reforms. This paper explores in detail the multiple issues that lie at what might be termed the "boundaries and connections" between these sectors. The purpose of this occasional paper is twofold, the first being to provide a brief illustration and commentary on the relative trend change and potential trajectories of Australia's vocational education and training (VET) sector by comparison with the higher education sector. This provides the necessary context for the second objective, which is to explore in detail the multiple issues that lie at what might be described as the "boundaries and connections" between these two components of the tertiary education sector.

This occasional paper provides a stocktake of recent developments in continuing professional development for VET practitioners. It explores issues such as industry currency, the debate around a professional association for VET and the Certificate IV in Training and Assessment as the minimum qualification for VET practitioners. Through synthesising the literature, the paper highlights enduring issues for continuing professional development in VET, such as the need to address both pedagogical knowledge and industry skills, and the necessity for individuals to actively engage and willingly participate in professional development in order for changes in practice to occur.

Quality in vocational education and training (VET) is a perennial topic of interest, attracting much attention from participants, providers, funders, regulators and public commentators. Quality is as much subjectively in the "eye of the beholder" as it is objectively assessed through hard data, measures and surveys. This paper summarises the quality of the VET system in Australia from the lens point of the eye of the beholder. It considers the perspectives of five key stakeholder groups: learners, employers/industry, providers, government and regulators. The paper explores, from the perspective of each of these groups, what is important in regards to the VET system, what constitutes and promotes a good-quality VET system, and what are the enablers and barriers to having a system that meets their expectations. The paper then examines the usefulness of the measures of quality currently available, as well as approaches that might be more effective. Key messages include: (1) Quality is context- and purpose-specific and means different things to the five stakeholder groups; (2) These multiple perspectives on quality operate at differing levels -- at the training program, at employment outcomes and at higher systemic levels; (3) Effective, fair and prompt regulation is foundational and essential in removing poor quality training from the system; and (4) A number of enabling factors have the potential to either support or detract from VET quality. These factors may impact both objective measures and subjective views of quality.

This working paper is the first publication coming out of a project investigating the role of vocational education and training (VET) in developing digital skills in the Australian workforce, using two sectors as case studies--Transport and Logistics, and Public Safety and Correctional Services. The study employs a mixed method approach, combining both qualitative and quantitative analyses. It involves industry training package content analysis, content extraction and analysis from online job vacancy advertisements, and key industry interviews, as well as a quantitative employer survey. In the online job vacancy analysis, a total of 1,708 job advertisements covering 74 occupations/job titles were analysed to explore digital skills requirements. In addition, a detailed content analysis was conducted of 11 training packages, with a specific focus on the qualifications for these occupations. In this analysis, 758 units of competency were analysed to examine how and the extent to which digital skills provision is embedded into qualifications. Findings showed that only a small number mentioned digital skills as a requirement. The training packages for these industries contained significant digital training content but with the majority of these units of competency occurring as electives. These findings raise questions about whether employers are making assumptions about the digital skills of potential employees.

This occasional paper provides the views of 17 "thought leaders" in the Australian vocational education and training (VET) sector. Their insight and opinions were sought to inform a larger research project focused on the student entitlement reforms that were introduced into the national VET system from 2012. These individuals offered a variety of senior-level vantage points on the topics of: (1) Australia's national training system: why it has been developed, what its key elements are, and the aspects where consistency has been sought and the aspects where flexibility has been sought; (2) VET student training entitlements: why this initiative has been introduced and the implications of the agreed flexibility in approach to its implementation by jurisdictions, in terms of maintaining a functional national training system; and (3) the implications of the VET student entitlement initiative for future national VET reform. A particular emphasis has been on the implications of the reforms and the challenges faced in its implementation in the context of achieving a balance between national consistency and jurisdictional flexibility. The interviewees considered key elements of the national training system, namely: standards for VET products (training packages and materials); standards for VET providers; and a flexible training market. The interviewees commented on the consistency and flexibility sought in each of these key elements, highlighting where tensions exist, particularly in student training entitlements. The following are appended: (1) Project statement provided to interviewees about the project and Project protocols; and (2) Interview guide questions. Information about the NVETR Program funding is provided at the end of this paper.

This occasional paper provides an overview of the development of Australia's national training system and is a key knowledge document of a wider research project "Consistency with flexibility in the Australian national training system." This research project investigates the various approaches undertaken by each of the jurisdictions to establish a student entitlement funding model and also examines one of the often overlooked fundamentals of the national training system--the dynamic tension that exists between consistency and flexibility. This paper reflects on the history of vocational education and training (VET) in Australia. A key focus is the development of the national training system, which has emerged over the last two decades. The authors also explore the dynamic tension, built into the system, to achieve both national consistency and sufficient flexibility to ensure that training meets specific local, industry and learner needs. Australia's national training system: goals, objectives and key elements 1992 to 2015 is appended.

This paper was a keynote address at the Australian Vocational Education and Training Research Association (AVETRA) conference held in Canberra in April 2012. The author notes that industry is arguably the key stakeholder in the Australian vocational education and training (VET) sector, but is not a single actor nor a disinterested consumer of training. Rather, industry consists of a range of bodies, all of whom are active players in the sector. The paper discusses six areas of research which are pertinent to industry. These areas are: (1) the value of completing an apprenticeship or traineeship; (2) the role of wages in completion rates for apprenticeships and traineeships; (3) the value of completion of VET qualifications; (4) the level of matching between what people are training in and the jobs they get; (5) the role of VET in innovation; and (6) VET and workforce development. All of this research raises questions about VET and industry, either in terms of how public training funds are allocated or the educational principles on which VET is based. In particular, the major points made are that the value of training is quite variable and this should be a consideration in its public funding, and the narrow industry focus of VET needs to be leavened with more general education. (Contains 5 tables, 8 figures and 2 footnotes.)

This work asks one simple question: "how reliable is the method used by the National Centre for Vocational Education Research (NCVER) to estimate projected rates of VET program completion?" In other words, how well do early projections align with actual completion rates some years later? Completion rates are simple to calculate with a cohort of students who start together in a very short program with a defined end date. The context in vocational education and training (VET) is, however, far more complex. Program lengths vary and may span several years, students commence at different times and many study part-time. Waiting for all students to complete or "drop out" of their training before calculating an actual completion rate gives a reliable answer, but is somewhat impractical. This paper summarises the key findings from a technical review of the validity of the method long used by NCVER in estimating projected completion rates for government-funded VET programs. This analysis required the interrogation of large longitudinal data sets with tens of millions of enrolments over multiple years. The outcomes are revealing because of ever-high interest in completion rates as measures of the efficiency and effectiveness of the VET sector. Key findings include the following: (1) The method long used by NCVER for estimating VET program completion rates using data from the National VET Provider Collection is shown to be reliable and aligns well with actual rates of completion for historical estimates; (2) Given that it takes a number of years for actual rates of completion to stabilise, the method is well suited for inclusion as part of any method of assessing completion rates, where the projected completion rate method is used to estimate rates for the most recent years and actual rates used for prior years; (3) The technical review has also shown that the current predictive method can be improved by defining a program's commencing year as the year it first appears in the National VET Provider Collection rather than using the commencing flag variable; and (4) It is anticipated that the incorporation of unique student identifiers into any preferred methodology, and its extension to total VET activity, can be phased in from the collection of 2017 training activity. "The Current Method for Projecting Rates of Completion: A Working Example" is appended.

Quality outcomes from vocational education and training (VET) are fundamental to ensuring a skilled workforce and supporting a productive economy. In a competency-based training system, assessment is the gatekeeper for quality. Audits undertaken by the Australian Skills and Quality Authority (ASQA) have identified concerns with compliance against the assessment requirements of the Standards for Registered Training Organizations (RTOs) 2015 (Standards for RTOs). ASQA strategic reviews, including into aged and community care, early childhood education and care, equine programs and security training industries, highlighted assessment as an area requiring more attention if the quality of training is to improve. In response to concerns about assessment, and to ensure high-quality within the system, the Council of Australian Governments (COAG) Industry and Skills Council agreed that further reform options be developed to improve the quality of assessment of student training outcomes and enhance confidence in the VET sector. Specifically, the Industry and Skills Council agreed to explore reform options to support the following principles: (1) Graduates have the required competencies for the job role and there is consistency across RTOs in the quality of assessment; (2) Trainers and assessors have the capability to assess appropriately; (3) Assessment meets the standard set by industry; and (4) The regulator has the capacity to effectively regulate assessment practices and outcomes and take appropriate action. The discussion paper sought stakeholder views on further specific reforms that may ensure the existing reforms that could generate the intended impact and are not held back by ongoing concerns over RTO compliance with assessment requirements. The appendices are included.

This paper was presented at the 2009 Economic and Social Outlook Conference, November 5-6 at the University of Melbourne. It takes a sceptical view of the push for "green skills", arguing that skills required in the labour market evolve relatively slowly, and that the way business operates is driven by changing costs, new technologies and new regulations, with sustainability being only one of many factors. In addition, the presentation provides some data on "sustainable" courses in tertiary education and then looks at three areas which have implications for the public investment in education and training: the levels of skill acquired through apprenticeships and traineeships, the pay-off to undertaking VET qualifications, and the role of diplomas in the labour market. (Contains 9 tables, 3 figures, and 1 footnote.)

This paper was presented in Sydney in September 2008 at a seminar conducted by Skills Australia and the Academy of Social Sciences. It examines the demand for training. It concentrates on the factors that affect individual and employer demand, and points out that accredited vocational education and training (VET) need to be considered in the context of extensive use of non-accredited and on-the-job training. (Contains 3 footnotes, 9 tables and 1 figure.) [This work has been produced by the National Centre for Vocational Education Research (NCVER) on behalf of the Australian Government and state and territory governments with funding provided through the Australian Department of Education, Employment and Workplace Relations.]

The vocational education and training (VET) sector has a long tradition of measuring and reporting outcomes. The public face of this is the "Annual National Report of the Australian Vocational Education and Training System" published (and tabled in the Commonwealth Parliament) since 1994. The reporting framework has undergone a number of changes corresponding to revision in high-level strategies developed by the former Australian National Training Authority (ANTA). This, however, is about to change. The catalyst for a radical examination of the reporting framework is the Council of Australian Governments' (COAG) reform agenda. This reform agenda is shaking up the funding relationships between the Commonwealth and the states and will place increasing reliance on measuring and reporting outcomes as distinct from focusing on the resources used (that is, inputs). In this paper, the author provides a history of performance measurement for the VET sector, beginning with the creation of the Australian National Training Authority and ending with what individuals know of the current reforms. As well as describing the various measures, he discusses the challenges that are thrown up by indicators. He concludes with his suggestions for indicators for the vocational education and training system. (Contains 7 footnotes.)

This Working Paper contains three sections: the background to existing User Choice resourcing principles and their interrelationships as of March 2004; analysis of the existing arrangements, including their consistency with each other and with the User Choice principles agreed by Ministers; and concluding comments. The author found a considerable measure of consistency in the priorities by which User Choice resources were allocated by the different Australian States and Territories in early 2004. Differences in theoretical approach and in practice, in terms of process structure and resource allocation outcomes were found. Opportunities for improving the learning partnership between different stakeholders are also noted. One attachment, Statement of User Choice Policy (MINCO; November 2003), is included. (Contains 5 tables.) [For companion report, "User Choice Resourcing Arrangements in Australia in March 2004. Working Paper No. 57," see ED505817.]

At every five-yearly census, the Australian Bureau of Statistics (ABS) recalculates both the SEIFA (Socio-economic Indexes for Areas) indexes and also recalibrates the borders and sizes of the geographic areas from which these SEIFA measurements are derived. Further, over time, the composition of geographic areas may change, due to urban renewal or other factors. The National Centre for Vocational Education Research (NCVER) reports vocational education and training (VET) participation rates at least annually, and the question that arises is how well do the SEIFA indexes perform over the interim years, that is, between the releases of new census data. Of particular interest is the reporting of participation rates for the census years. In reporting the 2011 year, NCVER uses the 2006 census data, as the ABS does not release new SEIFA values until 18 months after each census. The focus of this paper is on VET participation rates; however, the methodology would be equally applicable to higher education or school participation. The approach used in this paper is that the 2006 and 2011 National VET Provider Collections have had the 2006 and 2011 SEIFA measures applied to each of them, along with the Australian populations at each time. Using these data, it was possible to determine VET participation rates (by age) as a proportion of the Australian population, using both the 2006 and 2011 census data. The SEIFA index used in this paper was the Index of Relative Disadvantage (IRSD). [Funding for this document was provided by the Australian Department of Industry.]

The vocational education and training (VET) system can provide an entry point to the education sector for people who have experienced disadvantage in their lives. Participation in VET can provide personal benefits as well as lead to further study and/or employment. How disadvantaged learners participate in vocational education and training is an important consideration. Further study and employment outcomes are more likely to stem from completing a higher-level VET qualification, but disadvantaged learners tend to enrol in lower-level qualifications. Hence, whether or not disadvantaged learners are transitioning from lower-level VET qualifications to higher-level vocational education and training and into higher education is of interest. Based on a review of the literature, this paper synthesises what is currently known about these transitions for disadvantaged learners. Disadvantaged learners tend to be over-represented in lower-level VET qualifications and underrepresented in higher-level VET and higher education. There is little in the literature that provides student perspectives on transitions from lower-level to higher-level vocational education and training and from VET into higher education. The literature shows that transition from VET to higher education is a viable pathway for some disadvantaged learners, although it is not used as widely as it could be. There are a number of factors that act as barriers: (1) Transition from vocational education and training to higher education is more likely to occur from higher-level VET qualifications. However, disadvantaged learners re-engaging with the education sector are more likely to enrol in lower-level qualifications. (2) Transition from VET to higher education can be complicated, even for students who are not disadvantaged. This is despite the array of formal arrangements, such as credit transfer, and supports that are in place. (3) Support services can make a difference, but there is a tension between providing individually tailored support and system-wide support. Limited resources are an issue, and priority should be given to supports most likely to lead to positive outcomes. This paper shows that disadvantaged learners tend to be over-represented in lower-level VET qualifications and underrepresented in higher-level VET and higher education. Transition from VET to higher education is a viable pathway for some disadvantaged learners, but this pathway is not used as widely as it could be.

This literature review examines the available research on skill sets. It provides background for a larger research project "Workforce skills development and engagement in training through skill sets," the report of which will be released early next year. This paper outlines the origin of skill sets and explains the difference between skill sets developed by national vocational education and training (VET) industry bodies for training packages and those developed by registered training organisations (RTOs) for particular clients. The researchers consider the rationale for skill sets and explain their role in the national training system. The review identifies a number of perspectives on skill sets and their contribution to the VET system: (1) Some research suggests that skill sets are a valuable VET solution because of their flexibility and capacity to be responsive to changing labour market needs; (2) Skill sets may also provide a quick and more cost-effective option for learners and may appeal to those who might be daunted by the prospect of having to undertake a full qualification; and (3) Conversely, some suggest that skill sets may confine individuals to narrow job roles and reduce their labour mobility. (Contains 4 tables and 1 footnote.) [Funding for this paper was provided through the Department of Industry, Innovation, Science, Research and Tertiary Education.]

Berwyn Clayton has been involved in the VET (vocational education and training) sector for over 25 years. After beginning her career as a teacher, Berwyn became a pioneer in promoting the value of research. With a record of over 30 publications and 25 conference papers or journal articles, Berwyn has created an impressive body of knowledge, particularly in areas such as assessment and the capability of the VET workforce. Berwyn is also dedicated to supporting and mentoring new researchers, in particular those who were formerly VET practitioners, as she was. Berwyn is currently the Director of the Work-based Education Research Centre (WERC) at Victoria University. It was these attributes that saw Berwyn named VET Researcher of the Year, and give a keynote speech at the National Centre for Vocational Education Research's 2011 National VET Research Conference (No Frills). This speech provides an insight into Berwyn's journey into VET research and demonstrates her hallmark presentation style using pictures (chosen for their amusing as well as didactic impact) to guide readers through the story. Her messages are directed at practitioner researchers. In her speech, she notes that researchers need consciously to go beyond their comfort zone and look impartially at issues from a different perspective, including that of their potential audiences. Practitioner researchers need to seek out mentors and they need to ensure they find the time to write up their work, so that it has a chance to influence practice beyond their immediate circle. Practitioner researchers should be prepared to cope with adverse reactions to--and sometimes misuse of--research findings. (Contains 1 footnote.)

This paper traces the evolution of Australia's apprenticeship and traineeship system since permanent European settlement in 1788. The system was imported from Great Britain; it has evolved and diverged in some areas but retains many of the features of the British model. Most major changes have occurred in the last 25 years. The apprenticeship model--a combination of paid employment, on-the-job and institutional training--has always had particular appeal for meeting intergenerational skills transfer: it provides employers with a source of low-cost labour, the apprentice with paid employment, and an opportunity for government to subsidise employment for those needing help to establish themselves in the labour market. Indeed, the community, employees, unions, employers and government have come to regard apprenticeships as the system for training in the trades and have tolerated few alterations to the system, beyond those resulting from shifts in the occupational and industry mix in the Australian economy and changes in secondary schooling arrangements. The first important reform to apprenticeships occurred in 1985 with the introduction of traineeships, which extended the model to a much wider range of occupations, generally at lower qualification levels. The second was in the mid-1990s when the Australian Government began paying incentives on a large scale to employers to help offset the costs of apprenticeships and traineeships and to encourage more commencements. This had a spectacular impact on traineeship numbers but much less effect on trades apprenticeships. Other significant changes were introduced in 1998; these allowed school students, existing workers and part-time workers to undertake apprenticeships and traineeships. In short, since 1985 the system has moved from one dominated by young males undertaking apprenticeships in the trades to one that provides apprenticeships and traineeships to people of all ages and both sexes, and in a much wider range of occupations. Key messages from this paper include: (1) The apprentice and trainee system needs to address some major issues. Much of the training is at low qualification levels with little or no economic return. And it can be argued that it is neglecting the general education needs of young people; (2) The system needs greater capacity to adapt and respond quickly to changing labour market demands. Australia might look to the experience of countries that use an institutional training model for trade training, which may be much easier to ramp up quickly; and (3) By any standards the cost of Australia's current system places a hefty burden on the public purse, estimated at $2.9 billion in 2008-09. Recorded occupation of a sample of skilled convicts transported to Australia, 1788-1868 is appended. (Contains 4 tables, 2 figures and 1 footnote.)

Recent research in the vocational education and training (VET) sector shows that students are gaining a range of benefits from their studies, beyond expected course outcomes. Students are developing new networks, and gaining confidence and self esteem through the respect received from their teachers and classmates. For some students, these advantages help them to find work and interact more easily with those around them. The networks and trust developed by students can also be referred to as "social capital." While many students are gaining social capital outcomes incidentally, these outcomes can also be actively developed. This paper, presented to Australian Learning Communities Network discusses the concept of social capital and examines the link between social capital and VET. The paper also outlines ways in which social capital can be developed through VET courses and partnerships. The research shows developing social capital can be particularly helpful for marginalised young people. [This work has been produced on behalf of the Australian Government and state and territory governments.]