Higher education, vocational education and training is an Australia's welfare topic

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Higher levels of educational attainment tend to be associated with an increased likelihood of being employed, and higher earnings (OECD 2022). On average across Organisation for Economic Co-operation and Development (OECD) countries, adults with a tertiary degree earn twice the amount of their secondary-educated peers (OECD 2022).

Increasing levels of education has been shown to have an overall positive effect on an individual’s life satisfaction, particularly through the indirect effects of improved income and better health (Powdthavee et al. 2015), see ‘Chapter 2 Social determinants of subjective wellbeing’ in Australia’s welfare 2021: data insights.

Impacts of COVID-19

In 2020 and 2021, the higher and vocational education and training sectors were heavily affected by the COVID-19 pandemic. In an effort to reduce the spread of the virus, initiatives such as international travel restrictions and border control measures, non-essential service shutdown, social distancing and remote and home-based learning were implemented.

Restrictions on international travel saw a fall in the number of international students undertaking studies at Australian universities. In 2020, the number of international students enrolled in Australian higher education institutions dropped by about 34,400 – this was the first year in which the number of international students decreased since 2011 (DoE 2022a, DoE 2022b). In 2021, the number of international students enrolled in Australian higher education institutions decreased again by approximately 48,700 students (DoE 2023). The proportion of students studying externally (entirely online or off-campus) also increased substantially. In 2021, 27% of domestic students and 15% of international students studied externally, compared with 22% and 2% respectively in 2019 (DoE 2023). 

Similarly, face-to-face classes in the Vocational Education and Training (VET) sector were heavily restricted and moved to online methods. The impact was more profound for those students undertaking work placements in the health, aged care, and early childhood sectors, as these sensitive settings were subject to strict infection control conditions. The changes in mode of delivery of VET in response to COVID-19 may have lasting impacts, with the blended delivery of VET (that is, online in combination with another delivery mode), continuing to grow in 2021, and the proportion of online-only VET subjects remaining steady in 2021 compared with 2020 (Hume and Griffin 2021).

In April and May 2020, the number of apprenticeship and traineeship contract commencements declined, and the number of suspended contracts increased dramatically (Hall 2021). The then Australian Government’s COVID-19 Economic Recovery Plan included measures to support new apprenticeships, including the Boosting Apprenticeship Commencements wage subsidy. Over the period between 5 October 2020 and 31 June 2022, the subsidy provided up to $7,000 per quarter to cover 50% of wages for commencing or recommencing apprentices (DEWR 2023). The introduction of the subsidy did appear to impact apprenticeship and traineeship numbers as, in 2020–21, the number of people commencing an apprenticeship or traineeship increased by 61% compared with the previous financial year (NCVER 2022d).

The COVID-19 pandemic also affected the outcomes of those who had completed their education or training in 2019. Based on data from the National Student Outcomes Survey, of people who completed vocational education or training in 2019, 56% reported better employment after training. This was 10 percentage points less than for those who completed a qualification in 2018 (66%) (NCVER 2021a).

Of people completing VET qualifications in 2019 who were employed after completing their training:

  • about 1 in 3 (35%) reported having their hours reduced in 2020 since COVID-19
  • 7.1% reported being temporarily stood down in 2020 due to COVID-19.

Of those who were not employed at the end of May 2020, 21% reported they had lost their job due to the pandemic (NCVER 2021b) (see Employment and unemployment).

The impact of the COVID-19 pandemic on the higher and vocational education and training sectors is yet to be completely understood and will be a topic for researchers and the education sector into the future.

Characteristics of non-school education students

What are non-school qualifications?

Non-school qualifications include Certificate I to Certificate IV, Diploma, Bachelor, Master and Doctoral level qualifications. When determining an individual’s highest level of educational attainment, the Australian Bureau of Statistics (ABS) considers non-school qualifications at a Certificate III level or above to be higher than a Year 12 level of education (ABS 2021). However, other measures of school attainment group Certificate III with Year 12 attainment (ACARA 2020).

In Australia, non-school education can be broken into 2 categories:

Higher education

  • usually leads to the attainment of a Bachelor, Master or Doctoral degree, Graduate Certificate or Graduate Diploma
  • is provided by universities, for-profit or not-for-profit institutions, or Technical and Further Education (TAFE) institutes (TEQSA 2019).

VET

  • provides training focused on technical skills and knowledge for a particular job or industry, with apprenticeships and traineeships forming a core part
  • usually leads to the attainment of Certificate or Diploma qualifications
  • is offered by private providers, enterprise providers, community education providers, schools, universities, and TAFE institutes (NCVER 2022e).

Table 1 provides a summary of the characteristics of people enrolled in higher education or VET during 2021.

Table 1: Characteristics of higher education and VET providers and students, 2021
 Higher educationVET
Number of providers1403,529(a)
Number of students1.6 million2.6 million(b,c)
Percentage of students who are female57.2(d)48.2(e)
Percentage who are First Nations students1.5(d)5.1(e)
Percentage who are full-time students67.6(d)22.3(e)
Percentage who are international students27.5(d)11.0(e)
Percentage of students in regional/remote areas13.4(d)28.5(e)

(a) Includes Australian providers operating overseas (NCVER 2022e).

(b) Includes students enrolled with Australian providers operating overseas (NCVER 2022e).

(c) Only includes VET students enrolled in Australian Qualifications Framework (AQF) level courses.

(d) Students as a proportion of all higher education student enrolments in 2020 (DoE 2023).

(e) Students as a proportion of VET students enrolled in AQF level courses in 2021 (NCVER 2022e).

Sources: DoE 2023; NCVER 2022e.

Enrolments in non-school qualifications

In May 2022, almost 3 million people aged 15–74 years (16%) were studying, either in school or non-school education. Of these, 2.1 million people aged 15–74 (10% of males and 12% of females aged 15–74) were enrolled in non-school qualifications (ABS 2022).

In May 2022:

  • People aged 20–24 were the most likely to be enrolled in a non-school qualification (43% of the population of that age), followed by those aged 15–19 (23%), and 25–29 (17%).
  • Most enrolments were for a bachelor’s degree (39%), followed by Certificate III or IV level study (22%), postgraduate level degree (18%), and diploma or advanced diploma (12%).
  • Among people enrolled in a non-school qualification, a greater proportion of male students (27%) than female students (18%) were enrolled in a Certificate III or IV. Female students were more likely than male students to be studying for a bachelor’s degree (40% and 38%, respectively) and a postgraduate level degree (21% and 16%, respectively).
  • The most common fields of study were Society and culture (22% of people enrolled, up slightly from 20% in 2013), Management and commerce (18%, down from 24% in 2013) and Health (17%, up from 13% in 2013) (Figure 1). Enrolments in other fields of study remained fairly consistent over the period (ABS 2022).

For information on Aboriginal and Torres Strait Islander (First Nations) people and higher education, vocational education, and training, see Education of First Nations people.

For information on the association between socioeconomic status and university participation, see ‘Chapter 7 Relative influence of different markers of socioeconomic status on university participation’ in Australia’s welfare 2023: data insights.

Figure 1: Percentage of people aged 15–74 studying for a non-school qualification, by field of study, 2013 to 2022

Percentage of people aged 15–74 studying for a non-school qualification, by field of study, 2013 to 2022

The line graph shows the field of study chosen by students aged 15–74 studying non-school qualifications, for each year since 2013. The proportion of students studying agriculture, environmental and related studies ranged from 1.6% in 2013 to 2.0% in 2022; architecture and building from 5.0% to 5.0%; creative arts from 5.1% to 4.8%; education from 7.7% to 7.1%; engineering and related technologies from 11.0% to 10.6%; food, hospitality and personal services from 3.1% to 3.1%; health from 13.4% to 17.2%; information technology from 3.0% to 3.8%; management and commerce from 23.7% to 18.1%; natural and physical sciences from 3.9% to 5.0%; and society and culture from 20.1% to 21.7%.

Source: ABS 2022.

Pathways after leaving school

One of the major pathways after completing school is further education and training. Of people aged 15–20 who left school in 2021, 55% were enrolled in non-school study in May 2022: 39% in higher education, 13% in TAFE and 3.7% in another type of study institution (ABS 2022).

The proportion of school leavers who enrolled in further study and the type of study they enrolled in was different for students that did or did not complete year 12. Among people who left school having completed year 12 or equivalent, 58% were enrolled in non-school study; 46% in higher education, 9.2% in TAFE and 2.2% in another type of study institution. Among people who left school having completed year 11 or below, 42% were enrolled in non-school study the following year; 13% in higher education, 19% in TAFE and 10% in another type of study institution (ABS 2022).

Another major pathway after leaving school is entering the labour force. About 32% of 2021 school leavers were employed and not enrolled in study in May 2022, 18% part time and 14% full time. Almost twice the proportion of 2021 school leavers who left school in year 11 or below were employed full time and not enrolled in study (22%) compared with those who completed year 12 (12%) (ABS 2022).

Attainment of non-school qualifications

In May 2022, just over 6 in 10 people aged 15–74 (63%), or 12.0 million people, had a non-school qualification. Approximately 6.1 million people (32%) had a non-school qualification at the bachelor’s degree level or higher, and 5.6 million people (30%) had a certificate, diploma, or advanced diploma as their highest non-school qualification. Between 2013 and 2022, the percentage of people aged 15–74 years that have a non-school qualification has increased from 56% to 63% (ABS 2022).

In May 2022:

  • People aged 35–44 were most likely to have a non-school qualification (79%), with the rate of attainment decreasing with increasing age (45–54 years, 72%; 55–64 years, 62%; 65–74 years, 54%).
  • Among people aged 50–74, men were more likely than women to have a non-school qualification. For people aged 15–49, women were more likely to have a non-school qualification than men.
  • By highest level of non-school qualification, a higher percentage of women (35%) had a bachelor’s degree or above than men (29%), while men (33%) were more likely than women (27%) to have a certificate, diploma, or advanced diploma as their highest non-school qualification.
  • People born overseas (69%) were more likely than people born in Australia (60%) to have a non-school qualification.
  • People living in the highest socioeconomic area quintile, using the Index of Relative Socio-Economic Disadvantage (see glossary) were more likely to have a non-school qualification than people in the lowest socioeconomic area quintile (72% compared with 51%, respectively).
  • People living in Major cities were more likely to have a non-school qualification than those living in regional or remote areas (Major cities, 65%; Inner regional, 60%; Outer regional, 56%; Remote and very remote, 58%) (ABS 2022).

Apprenticeships and traineeships

Apprenticeships and traineeships (see glossary) are central components of the vocational education and training system. They provide the opportunity to train and study toward a nationally recognised qualification, combining on- and off-the-job training to enable individuals to develop their skills while participating in the workforce and earning an income.

1 in 8 trade workers are apprentices or trainees

As at 30 June 2022, 1 in 8 (13%) workers in trade occupations were apprentices or trainees and 1 in 33 workers (3.1%) in all occupations were employed as an apprentice or trainee (NCVER 2022a).

As of 30 June 2022, 415,240 apprentices and trainees were training in Australia, an increase of 22% since June 2021 (Figure 2). Of these apprentices and trainees in training:

  • 58% were training for a trade and 42% were training for a non-trade
  • 35% were aged 25–49, 31% were aged 20–24, 29% were aged under 19, and 5.0% were aged 50 or older
  • 31% were female and 69% were male
  • around 1 in 20 (5.4%) were First Nations people
  • around 1 in 36 (2.8%) had disability
  • around 1 in 14 (6.4%) were school-based (NCVER 2022c).

The number of people commencing apprenticeships and traineeships has increased

Between 2019–20 and 2020–21, the number of people commencing an apprenticeship or traineeship increased by 61%, with 216,428 people commencing in 2020–21. This was the first time since 2010–11 that the number of people commencing an apprenticeship or traineeship had increased. In 2021–22, the increase continued, with 264,320 apprentices and trainees commencing, an increase of 22% since 2020–21 (Figure 2). These increases may be related to the apprenticeship and traineeship wage subsidies provided by the Australian government as part of the COVID-19 economic recovery plan (see Impacts of COVID-19).

The increase was greater for non-trade occupations (68% increase from 2019–20 to 2020–21 and 30% from 2020–21 to 2021–22) than trade occupations (increases of 52% and 13%, respectively) and greater for females (increases of 73% and 30%, respectively) than males (53% and 17%, respectively) (NCVER 2022d).

Between 2012–13 and 2019–20, the number of people commencing apprenticeships and traineeships declined steeply. The number of people commencing apprenticeships increased between 2009 and 2011 due to the Apprentice Kickstart initiative. The decline from 2012–13 reflects changes to Australian Government incentive payments and a decrease in demand for labour in some industries such as mining and utilities (Gilfillan 2016). In the 12 months ending 30 June 2020, 134,800 people commenced an apprenticeship or traineeship, the lowest number since 1996–97. The decline in 2019–20 may be due to the impacts of the COVID-19 pandemic on individuals, businesses, and governments. As such, data covering the years 2020, 2021 and 2022 should be interpreted carefully when comparing with previous years (NCVER 2022d).

Figure 2: Number of apprentices and trainees in the 12 months ending 30 June, by contract status and occupation type, 2007–08 to 2021–22

Number of apprentices and trainees in the 12 months ending 30 June, by contract status and occupation type, 2007–08 to 2021–22

This line graph shows that the number of apprentices and trainees who commenced or were in training peaked in 2011–12, then declined until 2019–20, before increasing again in 2020–21 and 2021–22. The number of apprentices and trainees who completed their training peaked in 2012–13 then declined until 2020–21, before increasing in 2021–22.

Note: Data for ‘in-training’ is as at 30 June. All other statuses are for the 12-months ending 30 June.

Source: NCVER 2022d.

Completion of apprenticeships and traineeships

In 2021–22, more than 88,800 people completed an apprenticeship or traineeship, with 42,800 (48%) completing a trade occupation and 46,100 (52%) completing a non-trade occupation (Figure 2).

More than half (56%) of apprentices and trainees who started training in 2017 completed their apprenticeship or traineeship requirements. Completions were slightly higher for those in a non-trade occupation (57%) compared with those in a trade occupation (54%) (NCVER 2022b).

Non-school qualifications and employment

Non-school qualifications are associated with improved employment status, with employment rates higher for people with non-school qualifications compared to those without. Of people aged 15–74 with non-school qualifications, 79% were employed in May 2022, compared with 58% of those without qualifications (ABS 2022).

Of people aged 15–74 who completed a non-school qualification in 2021, 85% were employed in May 2022, 5.2% were looking for work, and 10% were not in the labour force. The proportion of people who were employed was highest for people who had completed a Graduate Diploma/Graduate Certificate (93%) and lowest for people who had completed a Certificate I/II (71%). By field of study, the proportion of people who were employed was highest among people who studied in the natural and physical sciences (93%), education (92%) and engineering and related technologies (91%), and lowest for people who had studied in the creative arts (71%) (ABS 2022).

International comparisons

In 2021 (or latest available year), Australia ranked 10th highest out of 38 OECD countries for the proportion of those aged 25–34 having a tertiary education (OECD 2023).

The OECD defines tertiary education as having an International Standard Classification of Education of 5 or above (OECD 2017). In Australia, this means tertiary education comprises qualifications at Diploma level or above (UNESCO 2019). According to the OECD, Australia (54%) ranked below South Korea (69%), Canada (66%) and the United Kingdom (58%), but above the United States (51%), and the OECD average (47%) (Figure 3).

Figure 3: Percentage of people aged 25–34 with tertiary education, OECD countries, 2021 or latest available year

Percentage of people aged 25–34 with tertiary education, OECD countries, 2021 or latest available year

This horizontal bar chart shows the proportion of those aged 25–34 with tertiary education across 38 OECD countries. In 2021 or latest available year, the proportions ranged from 27% in Mexico to 69% in South Korea. Australia ranked 10th, with 54% of people aged 25–34 having a tertiary education.

Source: OECD 2023.

Where do I go for more information?

For more information on higher education, vocational education and training, see: