Time is right to invest in upskilling workers

Delivering skills for industry is what drives Industry Training Organisations. Work-based training and education is who we are, what we do, what gets us up in the morning. That is pretty good, since "deliver skills for industry" is also priority number one in the Government's tertiary education strategy.

It's the most "industry-facing" tertiary education strategy to date and its minister, Steven Joyce, should be congratulated for that. Since the global financial crisis, many governments have taken a hard look at their education systems to see if they are getting the productivity bang for their education buck.

Search Google news: vocational education is gaining global prominence as countries "refresh", "re-emphasise" "revitalise", "elevate", "repackage", "transform", and "dispel misconceptions" about vocational education, left, right and centre.

New apprenticeship starts was the "first priority" in the Queen's Speech to the United Kingdom parliament this year; China's Premier Li launched a national week to accelerate development of vocational education in China.

Here at home we have a strengthening labour market crying out for skilled workers, refreshed "New Zealand Apprenticeships" and new modernised legislation. Our sector has had a big shake-up but participation is up and performance is way up. Eleven highly capable training organisations are skilling, upskilling and reskilling workers across major industries.

People often ask "when will they bring back apprenticeships?" Rest assured, apprenticeships are back. We've even got our own vocational education week, "Got a Trade? Got it Made!", from August 21 to 28.

But back to "delivering skills for industry". When you've got a goal, aligning your actions and resources in behind it is pretty critical. So, it was a bit disappointing on Budget day to see that more than three-quarters of "reprioritised" tertiary funding was tagged for courses at degree level and above.

The funding was aimed at critical areas where there are clear industry shortages, such as agriculture and engineering. But why just degrees?

Mr Joyce's announcement on Budget day noted that with more people in fulltime work, demand for fulltime study is falling. A few years ago, when jobs were short, we had queues outside the polys and unis to rival the Super 15 final, and we saw funding shifted from industry training to the university sector.

So, when we were short on jobs, the answer was "more degrees". Now there are plenty of jobs, the answer is still "more degrees".

Really? Three out of 10 school leavers take on degree-level study in our universities and polytechs. Three.
By the age of 24, around four out of 10 Kiwis have had a crack at a degree. That's fantastic, and one day many will knock on the door looking for work and end up making enormous contributions to our industries. But depending on where you live, it's worth noting that many university students leave town to study, and forget to come back.

Many pack up their degrees, skills, taxes, and a jar of Marmite - and head straight to departures at Auckland's International Terminal.

I have nothing against higher education - it's a pathway to great knowledge, and top-notch jobs and careers. But I'd like to see a much broader focus on the pathways for 10 out of 10 young people, all needing to gain a foothold in the world of work. And I'd like to see more emphasis on developing and deploying skills directly in our workplaces.

The time is right to invest in upskilling workers, in work, through industry training. It's efficient. It's cheaper. Workers pay tax rather than draw down loans and allowances. Skills gained "on the job" are the right skills for our economy.

But the benefits go way beyond the short-term gains. As the economies of northern Europe seem to know very well, it's vital that firms maintain a supply chain of talent - people in training on the way to being fully productive - to keep their businesses going and growing.

"Delivering skills for industry" requires a system that deploys skilled people when and where they are needed, and enables business to thrive and our country to prosper. - See more at: http://www.itf.org.nz/news-and-publications/media-statements/josh-williams-opinion-piece/#sthash.bL2XPC6U.dpuf