This paper explores the issue of how vocational education and training (VET) is actually used in the labour market, in particular the match between what people study and the jobs they get. This match is pretty poor in most occupational groups with the exception of the trades. However, the paper concludes that the mismatch reflects the generic nature of VET rather than wastage. This view is reached because a relatively high percentage of graduates report their training is relevant even though they do not end up in their intended occupation.
Trade apprenticeships in Australia from 1967 to 2006 are modelled in this paper. These models are used to understand how apprentice numbers in the trades respond to changes in labour market conditions. The models also allow commentary on the impact of recent government policy initiatives on trade apprentices. The paper finds that some trade apprenticeships are particularly sensitive to labour market conditions; that historical relationships between apprenticeship numbers and the labour market in the majority of occupations have broken down in the last ten years; and that government initiatives have been unable to counteract completely this trend.