Melbourne, Australia (PRWEB) June 21, 2012
The Technical and Further Education (TAFE) industry in Australia is undergoing considerable change as the Federal Government is making a concerted push for national reform of the vocational training system. Over the five years through 2011-12, industry revenue grew by an average 2.8% per annum to amount to $7.98 billion. This includes government funding and other income including fee for service and other student charges. According to IBISWorld industry Analyst Ee Jen Lee, “income from private sources has increased at a much faster rate than government funding”. There has been rapid growth in the number of international students in vocational education from 2007 to 2009, but this has slowed significantly recently. Federal and state governments control the TAFEs and Australian Technical Colleges, meaning that industry market share concentration is low.
In what marks a substantial change to the industry, the Victorian and SA state governments have opened up their vocational training systems to market-based competition. Lee adds, “instead of providing recurrent funding to TAFE institutions as they did in the past, these governments now fund VET through a student entitlement or voucher system, whereby student choice determines where government funding flows to”. Although international enrolments are projected to fall in 2011-12, the domestic market is expected to strengthen. Several reforms undertaken by various states have been made in the direction of a demand-driven funding system. With more options made available to students, IBISWorld forecasts an increase in the take-up rate of VET studies. As such, Technical and Further Education industry revenue is projected to increase by 1.9% in 2011-12.
Technical and Further Education industry revenue is forecast to increase in the next five years. Skill shortages have become an issue in many industries in the Australian economy, and the provision of appropriate training will be of key importance to the Technical and Further Education industry over the next five years. Despite the strengthening labour market, student commencements have been growing strongly in the past two years. This suggests a marked change of perception in the value of education and the need for upskilling. As such, this trend is likely to persist over the next five years. The anticipated increase in economic activity is also likely to support an increased demand by employers for apprentices and trainees.
For more information, visit IBISWorld’s Technical and Further Education report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes recognised institutions that provide technical or vocational education courses. Vocational education and training is delivered by Registered Training Organisations including TAFE Institutes, dual-sector institutions, enterprises and other private and community providers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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