Australia is experiencing a significant demographic shift, with the number of people aged over 65 steadily increasing. In fact, according to government estimates, one in four Australians will be in this age group by 2050.
This has several impacts on our economy, from exacerbating skills shortages as experienced workers leave the workforce to an exponential rise in demand for aged care services.
Both challenges create the same burning platform: to strengthen the vocational education and training (VET) sector.
A strong, contemporary, well-structured VET system is key to creating a workforce pipeline for the aged care industry, trades and even Australia’s defence strategy.
VET is a pathway to the aged care sector
Our aged care sector isn’t just facing a skills shortage – it’s facing a crisis. A recent government report found that 64.6% of workers intend to stay in the industry, which means that over 35% intend to leave. In an industry already facing dire shortages, coupled with an explosion in demand, this could be a devastating blow that will impact us all.
VET courses are key to skilling workers in the industry. In fact, a single VET qualification, Certificate III in Individual Support (ageing), is held by 30.5% of the current aged care workforce.
This course is specifically designed to equip students with the foundational skills to support those in aged care services. Covering everything from personal care and communication to understanding the complex needs of older people, the course is a well-rounded entry point for students and those looking to make a career change alike.
The competency-based nature of VET means that students need to demonstrate that they genuinely have the skills, not just completed a course. The structure combines work placements and study so that students gain theoretical understanding, practical experience and a chance to develop on-the-job soft skills that can’t be taught in a classroom.
In fact, one of the key elements to ensuring success in the aged care sector is early introduction to the workplace. Aged care work is not for everyone. It requires a unique combination of skills and traits to provide care, assist with health and personal hygiene needs, support ongoing well-being and be there to listen, particularly when the person may be struggling with significant change or facing life-changing health issues such as dementia.
One of the things quality training providers, like VERTO, do is to get these students into a work placement early in their journey so that they can see first-hand if it is a fit for them. That way, those who go on to graduate are more likely to be well-suited to the industry.
VET has a key role to play in our AUKUS defence ambitions
A report released by the United States Studies Centre in May 2025 highlighted that ‘an inability to realise a suitably skilled workforce at the scale required remains the single biggest risk factor for AUKUS’s success. Australia faces skills shortages in 36% of AUKUS occupations, including in 50% of technical and trade areas like construction.’
Delivering Australia’s AUKUS ambitions will require a highly skilled workforce, and a high proportion of workers will be tradespeople (and VET graduates).
However, many of our heavy trades are already in skill shortage, and we are facing a housing crisis simultaneously. The demand for skilled trades in our everyday lives is high before we even consider these large-scale initiatives.
It’s going to be a challenge, and a strong VET system is a critical part of the response.
VET is vital to filling broader skill gaps
VET offers a direct and practical pathway into the workforce, equipping students with hands-on skills that align with industry and employer needs. Unlike university pathways that require years of study before a student enters the workforce, VET provides quick routes to employment for both school leavers and mid-career workers looking to upskill or reskill. And critically ensures they are work-ready when they get there.
It's fair to say the sector is well positioned to build the skills Australia needs today and into the future, with many courses developed in consultation with industry and employers.
VET also offers a broader range of courses than most people realise. From hospitality and construction to IT and aviation, it is an entry point to over 500 occupations, many of which are on Australia’s Skills Needs List.
It’s also a fantastic system to reskill workers as technology and automation change our workforce. It enables people to pivot quickly without long periods of unemployment.
Investment now is critical
From aged care to construction, VET is well-placed to respond to skill shortages, offering flexible learning options and industry-led courses that truly respond to evolving industry needs.
It was heartening to see a number of measures in this year’s budget designed to attract more workers to critical industries. However, investing in the VET sector now is also critical to ensure it is poised and ready to respond to growing demand.
In my opinion, one key area is ensuring consistency across state-based funding models. Currently, there are state-by-state discrepancies, and it would be good to see harmony across the board to deliver truly national outcomes.
And when it comes to funding, it would be great to see individual-level funding options that empower students to have more say. Institution-based initiatives are helpful, but they don’t always create the same opportunities, particularly for regional or remote students, where options are likely to be more limited.
Like many industries it services, VET itself is facing a shortage of trainers, so we must also promote the industry to attract more educators. After all, sourcing more trainers is a prerequisite to delivering more qualified workers.
Simultaneously, we must address the ever-growing misconception that VET is the second choice to university. I’ve long talked about these misconceptions; unfortunately, not much has changed. In my opinion, a concerted national effort to reposition the industry is long overdue.
Last but certainly not least, we must review how to increase the speed of course design and evolution. VET would benefit from cutting red tape to keep it contemporary in a world that is moving at a lightning pace. For me, this is about working even more closely with industry and regulators to build courses with a keen eye on the future to avoid stifling innovation.
In the face of an aging population, Australia’s long-term growth and prosperity rely on a highly skilled, capable and adaptable workforce. In this climate, strengthening our VET system is critical because it’s not just about closing skill gaps today; it’s about building resilience for tomorrow. And time is of the essence.
