Australian Institute for Social Research Informing decisions. Complex not Simple: the VET Pathway...

Australian Institutefor Social ResearchInforming decisions.

Complex not Simple: the VET Complex not Simple: the VET Pathway from Welfare to Pathway from Welfare to

WorkWork

Dr Kate Barnett, Deputy Executive Director,Dr Kate Barnett, Deputy Executive Director,Australian Institute for Social ResearchAustralian Institute for Social Research

AISR Research Seminar Series, August 29AISR Research Seminar Series, August 29thth 2008 2008


Context: confluence of economic Context: confluence of economic and demographic changeand demographic change

• Strong growth in Australian economyStrong growth in Australian economy

• Trend to a knowledge economyTrend to a knowledge economy

• Population and workforce ageingPopulation and workforce ageing

• Emergence of skills shortageEmergence of skills shortage


Opportunity for Under-Opportunity for Under-employedemployed•Shortfall of 240,000 people with VET Shortfall of 240,000 people with VET

qualifications projected for 2006-qualifications projected for 2006-2016.2016.

•Shortfalls specifically at Cert III, Shortfalls specifically at Cert III, Diploma, Advanced Diploma levels.Diploma, Advanced Diploma levels.

•Opportunity to address Australia’s Opportunity to address Australia’s Social Inclusion Agenda + Social Inclusion Agenda + Productivity AgendaProductivity Agenda


What is Welfare to Work?What is Welfare to Work?

• Welfare ReformWelfare Reform context – perceived need to context – perceived need to reduce dependence on income support reduce dependence on income support while promoting self sufficiency via work.while promoting self sufficiency via work.

• Central policy goal of governments of Central policy goal of governments of Australia, NZ, Great Britain, Canada, USA.Australia, NZ, Great Britain, Canada, USA.

• Both liberal and conservative governmentsBoth liberal and conservative governments

• These spend less on average on income These spend less on average on income support than many European nations.support than many European nations.


Policy Goals and Welfare to Policy Goals and Welfare to WorkWork4 population targets (at 2007) –4 population targets (at 2007) –

11 New applicants for disability support New applicants for disability support assessed as able to work P/T (38,000)assessed as able to work P/T (38,000)

22 Parents whose youngest child <7 years old Parents whose youngest child <7 years old (285,000)(285,000)

33 Newstart/Youth Allowance recipients of 2+ Newstart/Youth Allowance recipients of 2+ years (50,000)years (50,000)

44 Unemployed mature age people (110,000).Unemployed mature age people (110,000).


W2W Targets’ Educational levelW2W Targets’ Educational level

Having at least Year 12 reduces risk of Having at least Year 12 reduces risk of unemployment by 60% (ACOSS, 2008)unemployment by 60% (ACOSS, 2008)

W2W groups have low levels of formal W2W groups have low levels of formal education (< Year 10):education (< Year 10):

•People with a disability (63%)People with a disability (63%)•Unemployed Parenting Payment (72%)Unemployed Parenting Payment (72%)•Mature age unemployed (43%)Mature age unemployed (43%)•Long term unemployed (64%)Long term unemployed (64%)


Quick fix solutionsQuick fix solutions

• W2W policy does not distinguish W2W policy does not distinguish betweenbetween

a)a) Quality trainingQuality training

b)b) Quality employmentQuality employment

• Therefore promotes ‘churning ‘ – Therefore promotes ‘churning ‘ – welfare-to-work-and-back-to-welfarewelfare-to-work-and-back-to-welfare


Quality Training + Quality Training + EmploymentEmployment• Training that increases skills and leads Training that increases skills and leads

to recognised qualification.to recognised qualification.

• Work that provides ongoing Work that provides ongoing opportunity to keep increasing skills, opportunity to keep increasing skills, provides security.provides security.

• Meets individual need as well as Meets individual need as well as broader economy.broader economy.


Welfare to what kind of work?Welfare to what kind of work?

• 27% of unemployed Australians who got 27% of unemployed Australians who got casual jobs were back on benefits 12 casual jobs were back on benefits 12 months later.months later.

• 46% remained in casual employment.46% remained in casual employment.

• Associated with low skills or disability Associated with low skills or disability (Productivity Commission: 2006).(Productivity Commission: 2006).

• UK and US research – 21%-25% return UK and US research – 21%-25% return to benefits within 3 months of getting a to benefits within 3 months of getting a jobjob


Welfare to what kind of work?Welfare to what kind of work?

• Average spent on training for long Average spent on training for long term unemployed by Job Network = term unemployed by Job Network = $350 for 3 days training$350 for 3 days training

• Job Network clients on benefits for 5+ Job Network clients on benefits for 5+ years growing (DEEWR: 2008)years growing (DEEWR: 2008)

18% (2004); 29% (Mar 2008)18% (2004); 29% (Mar 2008) 10% of all UE (1999); 25% (Mar 2008)10% of all UE (1999); 25% (Mar 2008)


The Problem of IncentivesThe Problem of Incentives

Current …incentives skew Current …incentives skew employment provider behaviour employment provider behaviour towards obtaining short term jobs towards obtaining short term jobs rather than equipping job seekers rather than equipping job seekers with the skills they need to obtain with the skills they need to obtain sustainable employment and sustainable employment and contribute to Australia’s skills base contribute to Australia’s skills base and productivity”and productivity” (DEEWR: 2008)(DEEWR: 2008)


Project purpose (NCVER Project purpose (NCVER funding)funding)•To explore the capacity of the VET To explore the capacity of the VET

system to provide for students system to provide for students from the Welfare to Work target from the Welfare to Work target group.group.

•To explore the role VET can play To explore the role VET can play in assisting the welfare to work in assisting the welfare to work transition.transition.


ResearchResearch Questions + Questions + MethodologyMethodologyResearch QuestionResearch Question LitLit SurvSurv FGFG IntInt CSCS

1. Research findings1. Research findings

2. Issues - W2W 2. Issues - W2W groupsgroups

3. Issues - VET 3. Issues - VET providerprovider

4. Effective training 4. Effective training for W2W – what is for W2W – what is neededneeded

5. Effective training – 5. Effective training – what existswhat exists

6. VET+non-VET 6. VET+non-VET packagepackage


Survey sampleSurvey sample

• 1,872 TAFESA preparatory students 1,872 TAFESA preparatory students phoned via TAFESA.phoned via TAFESA.

• 418 met criteria of recent/current 418 met criteria of recent/current CentrelinkCentrelink recipient + enrolled in recipient + enrolled in preparatory program.preparatory program.

• 168 agreed to be interviewed.168 agreed to be interviewed.

• 130 ultimately surveyed using CATI phone 130 ultimately surveyed using CATI phone based method.based method.


Focus Group SampleFocus Group Sample

• 70 of the 130 students surveyed agreed 70 of the 130 students surveyed agreed to participate in a focus group.to participate in a focus group.

• 45 of these were invited to 1 of 4 groups 45 of these were invited to 1 of 4 groups held on different TAFESA campuses.held on different TAFESA campuses.

• 55thth group based in a child care centre group based in a child care centre that had provided preparatory training that had provided preparatory training on site leading to child care on site leading to child care qualification. This site also provided 1 of qualification. This site also provided 1 of 2 case studies.2 case studies.


Findings: the VET pathwayFindings: the VET pathway

• VET can provide pathway to quality VET can provide pathway to quality employment for disadvantaged people.employment for disadvantaged people.

• Most require preparatory pathway first, Most require preparatory pathway first, addressing gaps in previous education (eg addressing gaps in previous education (eg literacy, numeracy).literacy, numeracy).

• Most require range of supports to address Most require range of supports to address complex and multiple need (eg support for complex and multiple need (eg support for personal, financial, child care, transport personal, financial, child care, transport issues).issues).

• Therefore, preparatory pathway is Therefore, preparatory pathway is holisticholistic (not (not just training) and just training) and integratedintegrated with other VET with other VET


The vocational preparatory The vocational preparatory pathwaypathway

The VPE curriculum allows them to gain The VPE curriculum allows them to gain the foundation concepts in a supported the foundation concepts in a supported environment with trained literacy and environment with trained literacy and numeracy specialists while also numeracy specialists while also undertaking vocational electives and undertaking vocational electives and work experience placements to work experience placements to prepare them for focused vocational prepare them for focused vocational skills development.skills development.


Reasons for studying at VETReasons for studying at VET

• To get a job or a better job (56%)To get a job or a better job (56%)

• To develop skills (31%)To develop skills (31%)

• To obtain a qualification (23%)To obtain a qualification (23%)

Additional reasons were non-vocational Additional reasons were non-vocational egeg

• To learn interesting things (5%)To learn interesting things (5%)

• To meet new people (1.5%)To meet new people (1.5%)


Barriers faced by studentsBarriers faced by students

• Competing work-study-family Competing work-study-family responsibilities (esp child care, child responsibilities (esp child care, child rearing) (29%)rearing) (29%)

• Poor health (16%)Poor health (16%)

• Not being used to studying/ learning Not being used to studying/ learning difficulties/ concentration difficulties (11%)difficulties/ concentration difficulties (11%)

• Costs associated with study (10%)Costs associated with study (10%)

• Getting to and from study (time, costs) (9%)Getting to and from study (time, costs) (9%)


Impact of VET pathway: Impact of VET pathway: StudentsStudents• Improved self-confidence & self esteemImproved self-confidence & self esteem

• Improved healthImproved health

• Reduced social isolationReduced social isolation

• Increased personal support networks Increased personal support networks (peers + TAFESA staff) - especially (peers + TAFESA staff) - especially Women’s Education Program studentsWomen’s Education Program students

• Motivation to continue their studiesMotivation to continue their studies

• Better informed re: work & trainingBetter informed re: work & training


Impact of VET pathway: Impact of VET pathway: StudentsStudents• TAFESA preparatory programs rated highlyTAFESA preparatory programs rated highly

• 1 to 5 scale – 52% were Very Satisfied (5) 1 to 5 scale – 52% were Very Satisfied (5) + 36% Fairly Satisfied (4). + 36% Fairly Satisfied (4).

• None rated (1) – Not at all SatisfiedNone rated (1) – Not at all Satisfied

• Less than 1% rated (2) Fairly DissatisfiedLess than 1% rated (2) Fairly Dissatisfied

• High levels of satisfaction reinforced by High levels of satisfaction reinforced by focus group participantsfocus group participants


Impact of Welfare to Work on Impact of Welfare to Work on TAFESATAFESA

• Case load & teaching load increase Case load & teaching load increase (increased no of students + complexity)(increased no of students + complexity)

• Includes increase in students with mental Includes increase in students with mental health disabilities, learning disabilitieshealth disabilities, learning disabilities

• Increase in no of students struggling to Increase in no of students struggling to complete coursescomplete courses

• CentrelinkCentrelink eligibility requirements eligibility requirements determined without consultation with VET; determined without consultation with VET; some show lack of understanding of VET some show lack of understanding of VET (eg funding for short term training).(eg funding for short term training).


Good Practice ModelGood Practice Model

• Coordinated, case managed supportCoordinated, case managed support

• Individualised approach, incl ITPIndividualised approach, incl ITP

• Collaboration within VET + across sectorsCollaboration within VET + across sectors

• Links between VET + employersLinks between VET + employers

• Flexible delivery, incl flexible timetablingFlexible delivery, incl flexible timetabling

• PD of VET staffPD of VET staff

• Learning support integrated with studiesLearning support integrated with studies

• Assistance with child care, study costs, Assistance with child care, study costs, transport coststransport costs


Policy based Disincentives: Policy based Disincentives: CentrelinkCentrelink

• From 2006 onwards, studying for From 2006 onwards, studying for >12months requires transfer to >12months requires transfer to Austudy.Austudy.

• Newstart recipients lose pensioner Newstart recipients lose pensioner concession card. (Lose $93/week if concession card. (Lose $93/week if receiving Rent Assistance)receiving Rent Assistance)

• Single parents lose JET child care Single parents lose JET child care assistance payments ($25/week)assistance payments ($25/week)


Competing Incentives : Competing Incentives : DisincentivesDisincentives

IncentiveIncentive DisincentiveDisincentive

Skills development Skills development Centrelink penalises Centrelink penalises financially for study financially for study >1year>1year

QualificationQualification Costs of study, including Costs of study, including child care etcchild care etc

Secure employmentSecure employment Centrelink accountability Centrelink accountability requirementsrequirements

Improved family lifeImproved family life Juggling work-study-Juggling work-study-familyfamily

Improved confidenceImproved confidence Low confidence levelsLow confidence levels


Enabling VET to provide the Enabling VET to provide the pathwaypathway

• CentrelinkCentrelink disincentives to engage in disincentives to engage in preparatory and then long term VET preparatory and then long term VET study must be replaced by incentives.study must be replaced by incentives.

• TAFESA and other VET providers must TAFESA and other VET providers must have their additional contribution have their additional contribution (regarding disadvantaged learners) (regarding disadvantaged learners) acknowledged in funding.acknowledged in funding.

• Policy bridges between Income Policy bridges between Income Support + VET sector to enable VET Support + VET sector to enable VET preparatory staff to work (with preparatory staff to work (with funding) across sectorsfunding) across sectors..


Enabling VET to provide the Enabling VET to provide the pathwaypathway

• Recognition of impact of Transitions – times Recognition of impact of Transitions – times when people are vulnerablewhen people are vulnerable

• Transition is also a time of growth, providing Transition is also a time of growth, providing support is provided.support is provided.

• Policy bridges remove current reliance on Policy bridges remove current reliance on individual goodwill and chance.individual goodwill and chance.

• Building the skills of under-employed people Building the skills of under-employed people not only supports a skilled economy but not only supports a skilled economy but signifies that Australia is a socially signifies that Australia is a socially responsible as well as a smart nation.responsible as well as a smart nation.


Taking a long term viewTaking a long term view

““As with school education, the As with school education, the impact of vocational training on impact of vocational training on employability is more often felt over employability is more often felt over the long term rather than the short the long term rather than the short term, improving the sustainability term, improving the sustainability of employment as much as the of employment as much as the likelihood that participants will get a likelihood that participants will get a job in the first place” job in the first place” (ACOSS, 2008)(ACOSS, 2008)


For further informationFor further information

•Email Email [email protected]@adelaide.edu.au

•Link to Report Link to Report http://www.ncver.edu.au/publicathttp://www.ncver.edu.au/publications/1987.htmlions/1987.html

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