How can young people prepare for a successful school to work transition?
Labour market information and research is an important part of the careers planning and decision-making puzzle that often gets overlooked.
Many school leavers are sold the narrative that a university degree is the best pathway to sustainable employment. However, this is not always correct – as of 2021, 1 in 4 unemployed Australians has a degree. Graduate oversupply is a significant issue in some industries, with degrees such as law having a well-documented oversupply of graduates, and other popular degree choicesalso face the issue of a lack of employment opportunities for graduates.
As highlighted by the Foundation for Young Australians 2018 “The New Work Reality Report”, on average it takes 2.6 years to transition from leaving education to full-time work. And while nearly 60% of young Australians aged 25 hold a post-school qualification, 50% of them are unable to secure more than 35 hours of work per week.
The labour market, like any other economic market is dependent on supply vs demand. As highlighted by the conversation, universities don’t control the labour market. Are we educating our youth that the labour market is a significant determining factor in employment outcomes, and giving them the skills to navigate this?
There is significant evidence that vocational education pathways (VET) often lead to better employment outcomes, however unfortunately there is also significant evidence that our society still holds a strong bias towards these pathways.
So, what sectors have the highest demand for workers? Let’s take a look at the labour market predictions for the next 5 years in Australia – this predicts in what sectors the highest growth of jobs will occur. Unsurprisingly, VET pathways feature significantly in these sectors, and many of these qualifications are actually free at the moment for the majority of Victorians.
Together, the four industries below are projected to generate over three-fifths (or 64.4 per cent) of total employment growth over the five years to November 2025.
Health Care and Social Assistance is projected to make the largest contribution to employment growth over the next 5 years, increasing by 249,500 jobs. Increasing demand for childcare and Australia’s ageing population contribute to this strong projected growth. Vocational qualifications such the Certificate III in Early Childhood Education & Care, Certificate III in Individual support or the Certificate IV in Ageing support are entry pathways into this sector, and are also on the Victorian government’s Free TAFE course list!
Accommodation and Food Services is the next sector with the highest projected growth (139,900), with this sector projected to recover from the major impacts of COVID-19. Vocational pathways are well established in this sector, such as the Certificate III in Hospitality, Certificate III in Tourism and Certificate III in Commercial Cookery – all three are also on the Free TAFE course list.
Professional, Scientific and Technical Services is predicted to grow by 131,100. This category covers a broad range of industries; however, Computer System Design and Related Services is expected to contribute significantly to the growth in this category. Many people are not aware of the diversity of vocational qualifications offered in the information technology space, from Certificate III to Diploma level. The Certificate IV in Cyber Security is also currently on the Free TAFE course list.
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