Government’s $18.5 million microcredential pilot aims to inject workers into sectors suffering from talent shortages

Jason Clare has announced $18.5 million for a higher education initiative to inject new skills into the workforce using small courses.

The government will fund higher-education institutions to develop microcredentials targeting national priority areas, which include teaching, engineering, health, and technology.

The Education Minister said the pilot would parachute workers with particular skills into industries that were “crying out” for talent.

“Microcredentials offer students increased flexibility to mix and match studies across the higher education sector to enable them to find a new job or get ahead in their current field,” Clare said in a statement.

“They also have the potential to expand university and industry collaboration and improve the higher education sector’s ability to respond to industry needs.”

The government has allocated $16.5 million for the delivery of microcredentials to up to 4000 students through to 2026. Fee-HELP will be extended for selected courses.

The idea of the program emerged from a 2021 review of university-industry collaboration in teaching and learning led by higher education stalwarts Professor Martin Bean and Professor Peter Dawkins.

An evaluation of the pilot will be undertaken by the department of education in 2025.

Universities Australia welcomed the announcement, with acting CEO Peter Chesworth saying microcredentials were an effective way to address the country’s “skills crisis”.

“We need more skilled workers in our economy to boost productivity and drive economic growth,” Chesworth said.

“In the lead-up to the Jobs and Skills Summit Universities Australia called for income-contingent loans to cover microcredentials.

“We welcome the government’s support for universities and the important role they play in producing the skilled graduates our economy can’t function without,” he said.

View this post on Instagram

A post shared by Melissa Coade – Canberra Auspol, APS and government journalist (@melissacoade)

Applications for the pilot’s round 1 funding opened to select universities on Wednesday. This round will award grants totalling $2 million to design microcredentials with industry.

To meet the criteria of the pilot, the courses must include a robust assessment, have arrangements to recognise credits and offer pathways to formal education. They must also be between 0.25 and 0.49 equivalent full-time student load.

The same so-called ‘Table A universities’ will also be able to apply for $2 million to deliver the courses.

“Round 2, commencing next year, will offer a share in $14.5 million, and will be open to Table A, Table B and Table C universities, along with Non-University Higher Education Providers to support the delivery of microcredentials, including those developed as part of Round 1,” Clare said.

This article was first published by The Mandarin.