This paper was presented at the Skills Australia, Academy of Social Sciences seminar in Sydney in September 2008. This paper examines the demand for training. It concentrates on the factors that affect individual and employer demand, and points out that accredited vocational education and training (VET) need to be considered in the context of extensive use of non-accredited and on-the-job training.
Using Australia as an example, this paper shows that globalisation poses distinct challenges for technical and vocational education and training (TVET) systems as nations adjust to their areas of comparative advantage. Other challenges that are less often taken into account are the internationalisation of training markets and the entry and exit of skills embodied in people due to migration flows.
Two well-established findings about employer-provided training form the backdrop to this research. First, the provision of training and its associated expenditure are highly variable across employers, notably by industry and employment size. Second, employer engagement with the formal system of VET is substantial, and growing, but a number of employers are not entirely satisfied with the system. This publication consolidates and synthesises a body of research conducted over the past few years on the topic of training provided by employers for their workforces.