Australia’s tech sector is expanding rapidly and facing a critical skills shortage, yet less than 1% of all apprenticeship and traineeship commencements are in IT.
Traditional approaches to education alone cannot meet demand. Alternate pathways, including earn while you learn models, are increasingly vital — offering practical, workplace experience alongside formal training to support learners and employers.
This report outlines a ‘roadmap’ to strengthen these models, including traineeships, degree apprenticeships and non-accredited programs, to close the skills gap and boost workforce participation.
Five challenge areas to improve the scalability and sustainability of earn while you learn models
Increase awareness and engagement
Many employers lack understanding of VET and traineeship pathways, often viewing them as less valuable than university qualifications. This results in low employer participation.
Strengthen funding mechanisms
Fluctuating funding and the reduction of key subsidies have made it harder to promote traineeships and attract employer involvement.
Make qualifications more attractive
Current qualifications often do not match employer needs, leading to a preference for non-accredited or higher education solutions.
Simplify the system
The complexity of the traineeship system makes it difficult for employers to navigate, discouraging their participation.
Develop and trial new earn while you learn models
Even among leading ICT employers, few earn while you learn programs have achieved significant scale or long-term sustainability – a new approach is required.
Taking steps to drive meaningful change
To achieve real progress in building Australia’s tech workforce through workplace training, action is needed at several levels:
Employers must value and actively engage with earn while you learn programs, including committing to employ graduates.
Governments must simplify the system to make it easier for employers and learners to access and navigate. This includes incentivising employer participation.
Education and training providers must develop and deliver relevant earn while you learn programs which are aligned with employer needs.
At Future Skills Organisation, we are committed to maintaining relevant learning pathways and promoting alternative routes to skills development. This includes supporting initiatives such as the NSW Digital Skills and Workforce Compact and the 20% Alternative Pathways Pledge.
In collaboration with industry partners, we are defining clear entry-level pathways into technology careers and updating the ICT Training Package to address existing skills gaps. These efforts will help to ensure qualifications and skill sets remain aligned with the evolving needs of learners and employers.
We welcome your feedback at [email protected]
Department of Employment and Workplace Relations, Digital and Tech Skills Compact and Working Group Final Report, May 2024.
Future Skills Organisation, Towards Effective ICT Training: A Needs and Gaps Analysis of the ICT Training Package, May 2025.
Future Skills Organisation, Workforce Plan 2025: Pathways to Impact, June 2025.
This report is the culmination of a multi-stage project. For a copy of the full report, which comprises the Review Report and Interim (Mapping) Report, please contact [email protected]