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Home Insiders & Advisers News Extra Earnings for School-Based Vocational Training and Education in the Long-Run, Study Finds

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Extra Earnings for School-Based Vocational Training and Education in the Long-Run, Study Finds

Students are forced to make early career choices with limited job experience and training. Some find themselves enrolling straight to university because that was the only pathway they were exposed to, without an understanding of whether it was the right pathway for them or not.

The report by Grattan which was released in August showed that there is no single, clear pathway that benefits all students. For those students who want a more practical approach to learning and education, and are reluctant/unable to access university, VET is a viable solution.

Some are not aware that the financial and employability outcomes of VET (Vocational Education and Training) are sometimes higher than university. The latest report published by the University of Melbourne shows that upper secondary VET participants earn extra earnings of $26,408, for VET without workplace learning, $39,954 for VET with workplace learning, and $60,294 for apprenticeships/traineeships (equivalent to receiving a one-off payment at the time of leaving school).

Other key insights from the report are:

  • Students who participated in school-delivered VET programs provide students with a head-start in the labour market
  • While males earn around 50,000 more than non-participants of VET programs, there was no equivalent premium for females
  • The continuation of VET study after school is associated with higher rates of full-time employment, career job-attainment and job satisfaction up to seven years after school

As you may know that the youth unemployment rate is double the rate of the entire population and has not budged from the 12% mark. While VET might not be the right pathway for every student, by providing the right guidance and information at the right time for the ones who are, we might be able to improve these numbers with VET.

To access the complete report, click here.