Deputy Labor Leader Richard Marles says Australia is facing a skills crisis and to ignore it would be a "huge mistake'.
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Opposition Leader Anthony Albanese has announced a Labor government would deliver 465,000 free TAFE places and boost university funding by almost $500 million to help an extra 20,000 Australians get jobs or upskill.
TAFE would receive an extra $621 million over four years, including $50 million for a capital works fund, under the plan.
"Cutting $3 billion out of TAFE, which this government has done over the last eight years, has come at the cost of developing the skills of Australians," Mr Marles told Sky New's Sunday Agenda program.
"And now Australian businesses are struggling to find the people they need."
As well, $481.7 million would be invested to deliver up to 20,000 extra university places over 2022 and 2023, making it easier for Australians to find a spot at university and get a job.
"Universities have been on the front line, particularly the international border being closed, and so this will be be welcome news for them," Mr Marles said.
It is estimated nine out of 10 jobs of the future will require a VET qualification or a university degree.
One in four Australian businesses are experiencing critical skills shortages at the same time as there are two million people who are either looking for a job or want to work more hours.
Areas hit by the skills shortage include hospitality and tourism, aged care, disability care, nursing and community services.
There are also gaps in the fields of trades and construction, resources, digital and cyber security, new energy and advanced manufacturing.
Polls have consistently shown Labor has an edge over the Liberal-National coalition on education and training, and strategists are hoping to make the most of this in the lead-up to the federal election expected in May.
"This is good policy for jobs, good policy for people looking to train or retrain, and good policy for businesses, which need more skilled workers," Mr Albanese said.
The plan will benefit school leavers, workers wanting to retrain or upskill, and unpaid carers seeking to get back into the workforce.
A $50 million TAFE Technology Fund will improve IT facilities, workshops and laboratories.
Labor education spokeswoman Tanya Plibersek said Australia should be investing more in university.
"This year, the offer rate fell to its lowest level in years. Over 50,000 applicants missed out on the opportunity to go to uni."
Labor will prioritise the new funding for universities which are able to offer additional course areas like clean energy, advanced manufacturing, health and education, or where there are skills shortages.
Priority will also be given to universities targeting under-represented groups like those who are the first in their family to go to university, and people in regional, remote and outer-suburban areas, and Indigenous people.
But Employment Minister Stuart Robert accused Labor of offering less money for skills training than the government as well as restricting university places.
"So Australians have a right to ask why Labor is cutting funding at a time we need skills the most," Mr Robert said in a statement.
Australian Associated Press
