New RoGS data shows strong VET outcomes but ongoing workforce pressures across education sectors

New data released in the mid-year update of the Report on Government Services (RoGS) reveals strong income and employment gains for vocational education and training (VET) graduates, alongside rising school retention and continued high participation in early childhood education and care (ECEC).

However, the update also highlights ongoing workforce challenges and declining employer satisfaction with VET outcomes, issues that remain particularly relevant for sectors experiencing persistent workforce shortages, including early childhood education and care.

Produced by the Productivity Commission on behalf of all Australian governments, the RoGS provides nationally comparable information on the equity, efficiency and effectiveness of government-funded services.

The latest update includes new insights from the VET National Data Asset, reported for the first time. Nationally, government-funded VET graduates recorded a median income increase of $16,232 following training, while employment rates increased by 18.3 per cent compared with pre-enrolment levels.

The findings reinforce the role of VET as a key pathway into employment and career progression, particularly in industries where workforce supply remains a significant challenge.

Student satisfaction with VET training remained close to 90 per cent nationally. Employer satisfaction, however, continued its long-term decline, falling to 67.2 per cent in 2025 from 71.4 per cent in 2017.

The result comes as governments and industry continue to examine how training systems can better support workforce needs across critical sectors, including education, care and community services.

Across the school education sector, the RoGS update shows an improvement in student retention. The apparent retention rate from Year 10 to Year 12 increased to 81.5 per cent in 2025, up from 79.9 per cent in 2024. While still below the 10-year high of 83.3 per cent recorded in 2017, the increase suggests more young people are completing secondary schooling before transitioning to further education, training or employment.

In early childhood education and care, the report highlights continued strong participation in preschool programs, including among Aboriginal and Torres Strait Islander children.

Enrolment rates for Aboriginal and Torres Strait Islander children in the year before full-time schooling have steadily increased since 2017. In 2025, almost all Aboriginal and Torres Strait Islander children were enrolled in preschool in their state-specific year before school.

The findings reflect ongoing government investment in universal access and targeted participation initiatives, with preschool participation continuing to be recognised as an important contributor to children's learning, development and school readiness.

For the ECEC sector, however, increased participation also reinforces the importance of workforce sustainability. Services across Australia continue to report challenges attracting and retaining qualified educators, particularly in regional and remote communities.

While the RoGS update does not include new educator workforce supply data, recent workforce studies have identified ongoing shortages of early childhood teachers and educators, while sector leaders continue to advocate for stronger recruitment, training and retention strategies outlined in the National Workforce Strategy - Shaping our Futures.

The findings also come amid broader discussions about educator qualification pathways, workforce attraction initiatives and the long-term capacity of the training system to meet future demand for qualified educators.

Beyond education, the report found the number of Indigenous community housing dwellings increased by 296 between June 2024 and June 2025, rising from 18,182 to 18,478 dwellings. Despite the increase, the proportion of overcrowded Indigenous community housing rose from 14.8 per cent to 16.2 per cent over the same period.

The Report on Government Services is updated annually, with selected indicators refreshed through a mid-year release to provide governments, service providers and stakeholders with more timely information on the performance of key public services.

For policymakers, providers and sector leaders, the latest release presents a mixed picture: strong outcomes for VET graduates, improving school retention and sustained preschool participation, alongside continuing workforce pressures in sectors responsible for delivering essential services to children, families and communities.

As governments continue to pursue reforms aimed at improving access, affordability and quality across education and care systems, the data reinforces the importance of long-term workforce planning to ensure services can meet future demand.

Readers can access the full report on Governemnt Services website for futrther information.