In just over six months, thousands of young Australians will be finishing year 12 and moving on to the next stage of their lives, which will begin with making a decision. Typically, they will choose between obtaining a university degree or undertaking vocational education training (VET).
Most will choose the former. Recent data from the Australian Bureau of Statistics shows 63% of people aged 15-74 have a post-school qualification, roughly split between bachelor's degrees and TAFE certificates. In the younger generations, bachelor's degrees are the clear winner.
What's losing out, however, is the trades sector. Australia faces a serious shortage of skilled tradies. According to the National Skills Commission (NSC), across all technician and trades worker occupations assessed for the 2021 skills priority list (SPL), 42% were found to be in shortage compared with 19% across all occupation groups. This is despite a projection for high future demand, with the NSC finding 30% of all occupations for technicians and trade workers have strong growth prospects.
According to Jobs and Skills Australia, these shortages have persisted for many years. "Prior to Covid-19, there was a long-term trend in the labour market where growth in skill level 1 occupations - that is, occupations usually requiring a bachelor's degree or higher educational attainment level - was much stronger than for other occupation types, including technicians and trades workers," a spokesperson says.
Over the past 20 years, in fact, employment in skill level 1 occupations has grown 86%, compared with just 32.7% for technician and trade workers.
The tighter labour market has meant the gap between both is widening. "The 2022 skills priority list found that 31% of all assessed occupations were in shortage (up from 19% in 2021), while 47% of technician and trades worker occupations were found to be in shortage (up from 42% in 2021)," the spokesperson says.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
