4	Vocational education and training
This chapter focuses on performance information — equity, effectiveness and efficiency — for government funded vocational education and training (VET) in Australia in 2005. The VET system delivers employment related skills across a wide range of vocations. It provides Australians with the skills to enter or re-enter the labour force, retrain for a new job or upgrade skills for an existing job. The VET system includes government and privately funded VET delivered through a number of methods by a wide range of training institutions and enterprises. 
VET services delivered by providers receiving government funding allocations, which relate directly to training activity funded under the Commonwealth–State Training Funding Agreement, are reported in this chapter. These VET services include the provision of vocational programs of study in government owned technical and further education (TAFE) institutes and universities with TAFE divisions, other government and community institutions, and government funded activity by private registered training organisations (RTOs). The scope of this chapter does not extend to VET services provided in schools (which are within the scope of chapter 3) or university education.
Indigenous data in the vocational education and training chapter
The vocational education and training chapter in the Report on Government Services 2007 (2007 Report) contains the following data items on Indigenous people:
•	VET participation rate, 2005
•	proportion of students who reported as Indigenous, 2005
•	load pass rate, 2001–2005
•	number of VET qualifications completed, 2000–2004
•	number of units of competency and modules achieved/passed, 2001–2005
•	proportion of graduates who were satisfied with the quality of their completed course, 2001–2005
•	proportion of graduates in employment and/or continued on to further study after completing a course, 2001–2005.
Supporting tables
Supporting tables for data within the VET chapter of this compendium are contained in attachment 4A of the compendium. These tables are identified in references throughout this chapter by an ‘A’ suffix (for example, table 4A.3 is table 3 in the VET attachment). As the data are directly sourced from the 2007 Report, the compendium also notes where the original table, figure or text in the 2007 Report can be found. For example, where the compendium refers to ‘2007 Report, p. 4.15’ this is page 15 of chapter 4 of the 2007 Report, and ‘2007 Report, table 4A.2’ is attachment table 2 of attachment 4A of the 2007 Report.
Framework of performance indicators
Data for Indigenous people are reported for a subset of the performance indicators for VET services in the 2007 Report. It is important to interpret these data in the context of the broader performance indicator framework outlined in figure 4.1. The performance indicator framework shows which data are comparable in the 2007 Report. For data that are not considered directly comparable, the text includes relevant caveats and supporting commentary. 

Figure 4.1	Performance indicators for VET services
	
Source: 2007 Report, figure 4.3, p. 4.10.
Indigenous participation in VET
A key national goal of the VET system is to increase opportunities and outcomes for disadvantaged groups including Indigenous people. The Steering Committee has identified ‘Indigenous participation in VET’ is an output indicator of equitable access to VET services (box 4.1). 

Box 4.1	Indigenous participation in VET	
‘Indigenous participation in VET’ is an output indicator of Indigenous people’s access to the VET system.
‘Indigenous participation in VET’ is defined as the number of all government funded participants in the VET system who self-identified that they are from an Indigenous group, as a proportion of the total number of people in the population in that group aged 15–64 years.
A lower participation rate means the group is under‑represented in VET; a higher participation rate means the group is over‑represented in VET.
Care needs to be taken in interpreting the participation rates presented for Indigenous people because (1) the data depend on self‑identification at the time of enrolment, and (2) the number of non-responses (that is, students who did not indicate whether they belong to this group) varies across jurisdictions. Data are for government funded VET students.	

Nationally, the VET participation rate for all Indigenous students (the number of all Indigenous students as a percentage of Indigenous people aged 15–64) was 17.1 per cent. Although not directly comparable, the participation rate for 
15–64 year old students (the number of 15–64 year old students as a percentage of the 15–64 year old population) was 8.1 per cent (figure 4.2). These student participation data are not age standardised, so the younger age profile of the Indigenous population relative to all Australians is likely to affect the results.
Figure 4.2	VET participation rate, by Indigenous status, 2005a, b, c
	
a Government recurrent funded VET students of all ages. b The Indigenous participation rate is the number of students of all ages who reported being Indigenous as a percentage of the experimental estimates of Indigenous people aged 15–64 years for 30 June 2005 (ABS 2004, (30 June 1991 to 30 June 2009)); low projection series, tables 25–34, pp. 53–62). The Indigenous participation rate in the 2005 Report and in other VET publications was based on the number of students who reported being Indigenous as a percentage of the total Indigenous population from the ABS experimental projection of all Indigenous people. c Care needs to be taken in interpreting these data because the Indigenous population’s age profile is younger than that of the non‑Indigenous population. Participation rates for all ages are likely to differ from participation rates for working age populations. 
Source: ABS (2004); ABS Australian Demographics Statistics (unpublished); NCVER AVETMISS collection (unpublished); table 4A.1; 2007 Report, figure 4.8, p. 4.16.
In 2005, 4.3 per cent of government funded VET students in Australia identified themselves as Indigenous, while 12.8 per cent of students did not report their Indigenous status (figure 4.3). The proportion of government funded VET students who identified as Indigenous was higher than the proportion of Indigenous people in the total population nationally (2.4 per cent) (table 4A.1).
Figure 4.3	VET students, all ages, by Indigenous status, 2005a, b
	
a Government recurrent funded VET students. b Students reported as Indigenous and are not adjusted for status not identified.
Source: NCVER AVETMISS collection (unpublished); table 4A.1; 2007 Report, figure 4.9, p. 4.17.
Indigenous outcomes
‘Indigenous outcomes’ is an outcome indicator (box 4.2).

Box 4.2	Indigenous outcomes	
‘Indigenous outcomes’ is an outcome indicator of the extent to which Indigenous people engage with and achieve positive outcomes from VET. This indicator comprises three elements:
•	‘Indigenous students’ achievement in VET’ measures Indigenous students’ success in VET. It reports on load pass rates achieved by Indigenous students and the number of Indigenous students who commenced and completed expressed as a proportion of all course commencing enrolments by Indigenous students in that year. 
•	‘Skill outputs of Indigenous students’ measures the level of skill outputs achieved in a given year by Indigenous students from the VET system in a given year. It reports on the number of qualifications completed by Indigenous students, the number of units of competency and the number of modules (outside training packages) achieved/passed by Indigenous students. 	
(Continued on next page)	

Box 4.2	(Continued)	
–	‘Qualifications completed by Indigenous students’ is defined as the number of qualifications completed by Indigenous students each year in VET, where a qualification is a certification awarded to a person on successful completion of a course in recognition of having achieved particular knowledge, skills or competencies. 
–	‘Units of competency achieved by Indigenous students’ is defined as the number of units of competency achieved by Indigenous government recurrent funded VET students, where a unit of competency is defined as a component of a competency standard and/or a statement of a key function or role in a particular job or occupation.
–	‘Modules completed by Indigenous students’ is defined as the number of modules (outside training packages) achieved each year by Indigenous government recurrent funded VET students, where a module (also called a subject) is a unit of education or training which can be completed on its own or as part of a course. Modules may also result in the attainment of one or more units of competency.
•	‘VET outcomes for Indigenous students’ measures the VET system’s ability to meet Indigenous students’ objectives. It reports on the benefits Indigenous students gained from the VET system and the proportion of Indigenous students who improved their employment or further study outcomes after completing a course.
High ‘load pass rates’ and ‘number of students who commenced and completed’ indicate that student achievement is high, which is desirable. Higher numbers of qualifications completed, and units of competency or modules achieved/passed results in a greater increase in VET skills, all else being equal.
Reporting on students who commenced and completed is dependent on the capacity to track individual students over more than one calendar year and the data are not yet available. Qualifications completed in 2004 are counted in 2006 and are included in the 2007 Report.	

Indigenous students’ achievement in VET 
In 2005, the national ‘load pass rate’ for Indigenous government funded students (66.0 per cent) was lower than the national load pass rate for all government funded students (78.0 per cent) (figure 4.4). 
Figure 4.4	Indigenous students’ load pass rate, 2005a
	
aGovernment recurrent funded VET students.
Source: NCVER AVETMISS collection (unpublished); table 4A.2; 2007 Report, figure 4.35, p. 4.51.
The load pass rate for Indigenous government funded students increased nationally from 62.4 per cent in 2001 to 66.0 per cent in 2005 (figure 4.5). 
Figure 4.5	Indigenous students’ load pass ratea
	
aGovernment recurrent funded VET students.
Source: NCVER AVETMISS collection (unpublished); table 4A.2; 2007 Report, figure 4.36, p. 4.52.
Indigenous students’ skill outputs 
The indicator ‘skill outputs of Indigenous students’ measures the skill outputs of Indigenous students from the VET system in a given year. It reports on the number and proportion of qualifications completed, units of competency and modules (outside training packages) achieved/passed in a given year.
Qualifications completed — Indigenous students
Nationally, Indigenous students completed 6700 VET qualifications in 2004 — the same number of qualifications as completed in 2003. In 2002, 7600 qualifications were completed, 7400 in 2001 and 7100 in 2000. Indigenous students accounted for 2.4 per cent of all the qualifications completed in 2004 (table 4A.3). The number of qualifications completed by Indigenous students varied across jurisdictions (figure 4.6).
Figure 4.6	Qualifications completed, by Indigenous statusa, b, c
	
aQualifications completed includes courses accredited or approved by a local State/Territory authority. b The number of qualifications completed includes both government funded and non-government funded VET students. c Represents students eligible to be awarded a qualification.
Source: NCVER AVETMISS collection (unpublished); table 4A.3; 2007 Report, figure 4.37, p. 4.53.
Units of competency and modules completed by Indigenous students
Nationally, the number of units of competency achieved/passed by Indigenous government funded students increased by 21.3 per cent (from 149 800 in both 2003 and 2004 to 181 700 units in 2005). The number of units of competency achieved/passed in 2002 was 133 900 and 108 100 in 2001 (table 4A.4).
Nationally, the number of modules achieved/passed by Indigenous government funded students decreased by 7.0 per cent from 69 000 in 2004 to 64 200 in 2005. The number of modules achieved/passed in 2003 was 80 200, 108 100 in 2002 and 122 900 in 2001 (table 4A.4). The number of units of competency and number of modules achieved/passed varied across jurisdictions (figure 4.7). 
Figure 4.7	Units of competency and modules achieved/passed, by Indigenous studentsa
	
a Government recurrent funded VET students.
Source: NCVER AVETMISS collection (unpublished); table 4A.4; 2007 Report, figure 4.38, p. 4.54.
Indigenous students’ satisfaction with VET
The indicator ‘Indigenous students’ satisfaction with VET’ reports on the proportion of Indigenous students who indicated they were satisfied with the quality of their completed VET course.
Nationally, 90 per cent of Indigenous students surveyed in 2005 indicated that they were satisfied with the quality of their completed course, compared with 88 per cent for all students (figure 4.8).
Figure 4.8	Proportion of TAFE graduates who were satisfied with the quality of their completed course, by Indigenous status, 2005a, b, c, d
	
a Satisfaction with overall quality of training was rated as satisfied or very satisfied on a 5 point scale. b Indigenous data for the ACT are not published due to 5 or less responses. c The error bars in the figure represent the 95 per cent confidence interval associated with each point estimate. d The estimates for VET outcomes have large confidence intervals for some jurisdictions and are considered too unreliable for general use.
Source: NCVER Student Outcomes Survey (unpublished); table 4A.5; 2007 Report, table 4A.43; 2007 Report, figure 4.39, p. 4.55.
Of those Indigenous students who completed courses in 2005, the proportion of those who indicated that they were satisfied with their courses was: 
•	88 per cent of those seeking employment related outcomes
•	85 per cent of those seeking further study outcomes 
•	95 per cent of those seeking personal development (figure 4.9).
Further information on Indigenous students’ views of their VET courses is available in the 2006 Report (SCRGSP (2006), box 4.18, p. 4.59) and in the latest NCVER publication, Indigenous Australians' training experiences 2004 – First findings (NCVER 2005).
Figure 4.9	Proportion of Indigenous TAFE graduates who were satisfied with the quality of their course, by purpose of study, 2005a, b, c, d
	
a Satisfaction with overall quality of training was rated as satisfied or very satisfied on a 5 point scale. b The seeking further study outcomes data for Tasmania was nil or rounded to zero. Data for Victoria, SA, the ACT and the NT are not published due to 5 or less responses. c The error bars in the figure represent the 95 per cent confidence interval associated with each point estimate. d The estimates for VET outcomes for Indigenous students have large confidence intervals for some jurisdictions and are considered too unreliable for general use.
Source: NCVER Student Outcomes Survey (unpublished); table 4A.5; 2007 Report, figure 4.40, p. 4.56.
Indigenous students employment and further study outcomes
‘Indigenous students’ employment and further study outcomes’ measures the proportion of Indigenous students who improved their employment circumstances or continued on to further study after completing training. 
In 2005, 81 per cent of Indigenous students surveyed nationally indicated that they were employed and/or in further study after completing a course (table 4A.6). Of those graduates who were either employed and/or continued on to further study after completing a course, 64 per cent indicated that they were employed (compared with 77 per cent of all students) and 36 per cent continued on to further study (compared with 35 per cent of all students) (figure 4.10).
Figure 4.10 	Proportion of TAFE graduates who were in employment and/or continued on to further study after completing a course, by Indigenous status, 2005a, b, c, d
	
aThe findings on further study outcomes are not applicable to module completers. A module completer, by definition, is someone who has left the system. b Indigenous data for the ACT are not published due to 5 or less responses. c The error bars in the figure represent the 95 per cent confidence interval associated with each point estimate. d The estimates for VET outcomes for Indigenous students have large confidence intervals for some jurisdictions and are considered too unreliable for general use.
Source: NCVER Student Outcomes Survey (unpublished); table 4A.6; 2007 Report, table 4A.19; 2007 Report, figure 4.41, p. 4.57.
Of those Indigenous students who went on to further study, 67 per cent continued on to further study within the TAFE system (compared with 62 per cent for all students) and 15 per cent went to university (compared with 23 per cent for all students) (figure 4.11).
Figure 4.11	Indigenous TAFE graduates who continued on to further study after completing a course, by type of institution, 2005a, b, c, d, e
	
aThe findings on further study outcomes are not applicable to module completers. A module completer, by definition, is someone who has left the system. b The Indigenous at University data for Tasmania and the ACT was nil or rounded to zero. The Indigenous at TAFE data for the ACT are not published due to 5 or less responses. c TAFE includes TAFE institutes and TAFE divisions of universities. d The error bars in the figure represent the 95 per cent confidence interval associated with each point estimate. e The estimates for VET outcomes for Indigenous students have large confidence intervals for some jurisdictions and are considered too unreliable for general use.
Source: NCVER Student Outcomes Survey (unpublished); table 4A.6; 2007 Report, table 4A.19; 2007 Report, figure 4.42, p. 4.58.

Supporting tables
Supporting tables for data within this chapter are contained in the attachment to the compendium. These tables are identified in references throughout this chapter by an ‘A’ suffix (for example, table 4A.3 is table 3 in the VET attachment). The tables included in the attachment are listed below. 

Table 4A.1	VET participation by Indigenous status, 2005 (per cent)  	
Table 4A.2	Load pass rates by Indigenous status (per cent) 	
Table 4A.3	Number of VET qualifications completed, by Indigenous status ('000)  	
Table 4A.4	Number of units of competency and modules completed, by Indigenous status ('000) 	
Table 4A.5	Proportion of Indigenous graduates who were satisfied with the quality of their completed course, by purpose of study    	
Table 4A.6	Proportion of Indigenous graduates in employment and/or continued on to further study after completing a course (per cent)    	
References
ABS (Australian Bureau of Statistics) 2004, Experimental Estimates and Projections, Aboriginal and Torres Strait Islander Australians 1991 to 2009, Cat. no. 3238.0, Canberra.
SCRGSP (Steering Committee for the Review of Government Service Provision) 2006, Report on Government Services 2006, Productivity Commission, Canberra.
NCVER (National Centre for Vocational Education Research) 2005, Australian Vocational Education and Training Statistics: Indigenous Australians’ Training Experiences 2004 - First Finding, Adelaide.