Australia's education system has undergone a profound shift over the past half-century, prioritising university education at the expense of vocational pathways. This obsession with higher education, as highlighted by Leith van Onselen, has led to a significant deskilling of the workforce, with far-reaching consequences for the nation's economy and society. By examining the closure of secondary technical schools, the redirection of funding from vocational education and training (VET) to universities, and the decline in apprenticeship commencements, I will argue that Australia's university-centric policies have undermined its skills base, contributing to labour shortages and economic challenges, while exploring the structural and cultural factors driving this trend.
Between the 1970s and 1990s, Australia saw the gradual closure of secondary technical schools, driven by a misguided belief that university education was the superior path for young people. These schools once provided practical, trade-focused training, equipping students with skills for industries like construction, manufacturing, and engineering. Their closure reflected a cultural shift that devalued manual trades in favour of academic credentials. This policy failure, as van Onselen notes, set the stage for a broader deskilling crisis, as the education system began prioritising theoretical knowledge over practical expertise. The assumption that university degrees guaranteed better economic outcomes ignored the critical role of trades in sustaining a balanced economy.
The deskilling trend was exacerbated by government funding decisions that favoured universities over VET. Resources were diverted from Technical and Further Education (TAFE) institutions to universities, while remaining VET funding was often siphoned off to private providers, many of which were criticised for exploitative practices. A Deloitte Access Economics report highlights the consequences: apprenticeship commencements, which averaged over 250,000 annually before 2012, plummeted to 151,000 by 2019. Although a temporary surge occurred post-COVID due to wage subsidies like the Boosting Apprenticeship Commencements scheme (61% increase in 2020–21), commencements have since reverted to a downward trajectory. This decline reflects a systemic neglect of vocational training, leaving industries like construction and manufacturing critically short of skilled workers.
The overemphasis on university education has created a graduate glut, with many degree-holders entering a job market oversaturated with qualifications but undersupplied with practical skills. A Deloitte study notes that two-thirds of new hires globally are underprepared for their roles, lacking practical skills or critical thinking. In Australia, this has led to skill shortages in critical sectors, with 33% of occupations facing national shortages. Meanwhile, the cultural narrative that equates university degrees with success has stigmatised trades, discouraging young people from pursuing apprenticeships. Completion rates for apprenticeships hover around 55%, with inadequate mentoring and workplace support contributing to high attrition.
Reversing Australia's deskilling requires a multifaceted approach. First, governments must restore funding to TAFEs and prioritise VET as a core component of education policy. Second, reinstating incentives for apprenticeships, such as the $15,000 subsidies proposed by the Victorian Chamber of Commerce, could boost commencements, particularly for small businesses. Third, integrating vocational training into secondary school curricula, as suggested by Master Builders Australia, could normalise trades as viable career paths. Finally, a cultural shift is needed to revalue skilled trades, challenging the perception that university is the only route to success.
Australia's obsession with university education, at the expense of vocational training, has led to a deskilling crisis that threatens economic resilience. The closure of technical schools, misdirected funding, and declining apprenticeship commencements have created a workforce ill-equipped for industry demands. While temporary measures like wage subsidies have shown promise, structural reforms and a cultural revaluation of trades are essential to rebuild Australia's skills pipeline. Without action, the nation risks further entrenching its reliance on imported Asian labour and undermining its long-term prosperity.
https://www.macrobusiness.com.au/2025/08/university-obsession-de-skills-australia/