Early Education and Care Workforce Capacity Study: Addressing Australia's Growing ECEC Demand

Australia's Early Childhood Education and Care (ECEC) sector is a cornerstone of society, shaping the lives of young children while supporting working families. However, the workforce that powers this critical industry is under increasing strain. The Early Education and Care Workforce Capacity Study, commissioned by the government, aims to uncover the workforce needs of the sector and provide insights for future planning. This comprehensive study highlights the key challenges of attracting, training, and retaining qualified professionals in ECEC. With the sector at a crossroads, providing high-quality VET resources and learning materials will play a pivotal role in meeting these challenges.

What the Study Set Out to Do

The study, conducted in collaboration with HumanAbility and Jobs and Skills Australia (JSA), provides crucial insights into the state of Australia's ECEC workforce. It identifies supply and demand issues across various settings, from preschools and kindergartens to outside school hours care (OSHC) and Aboriginal Community Controlled Organisations (ACCOs). The study focuses on understanding the current workforce landscape and predicting future needs, with particular emphasis on attracting and retaining skilled workers. This is crucial for creating sustainable ECEC services, especially in regional and remote areas where workforce shortages are most acute.

A critical part of the solution lies in offering accessible, high-quality training resources that meet the sector’s evolving needs. By leveraging CHC resources, targeted training materials, and comprehensive learning materials, the sector can ensure professionals are adequately prepared to meet the growing demand.

The Consultation and Research Process

The study's findings are the result of extensive consultation with over 50 stakeholders, including peak bodies, unions, and specialist groups. Feedback was gathered through roundtable discussions, written submissions, and detailed workforce modelling by Deloitte Access Economics (DAE). Importantly, this study aligns with broader national strategies like Shaping Our Future, which aims to strengthen Australia's children’s education and care workforce through coordinated policy actions.

This collaborative approach reveals the growing recognition of ECEC workers as "educators," reflecting the shift towards early education rather than simple child care. However, despite these changes, the sector still grapples with outdated job classifications that don’t fully capture the expertise and qualifications required. High-quality VET resources and CHC training materials can help educators bridge this gap, ensuring their qualifications align with the growing professionalism in the sector.

The ECEC Workforce: A Snapshot

Australia’s ECEC workforce comprises over 200,000 professionals, the majority of whom are women. Roles include early childhood educators, teachers, and service directors, supported by various care professionals such as administration assistants and cleaners. However, workforce shortages and wage disparities remain significant issues. For instance, Early Childhood Teachers (ECTs) often earn substantially less than their Primary School counterparts, even though they hold similar qualifications. This wage gap is even more pronounced for those not working in preschool settings.

Further, many educators are still on temporary study visas, and the reliance on trainees, who are "actively working towards a qualification," has become a concerning trend. While training pathways, including Certificate III and Diploma qualifications, remain essential, more flexibility is needed to support workforce development. Creating accessible, culturally appropriate training resources, including CHC resources tailored to ECEC, will help reduce workforce pressures and elevate the professionalism of the sector.

The Importance of Sustainable Learning and Development

The modelling conducted for this study reveals a shortfall of over 21,000 qualified ECEC professionals needed to meet current demand. To fully realise future policy commitments, including expanding preschool access for three- and four-year-olds, an additional 18,000 staff will be required. This highlights the urgent need for ongoing professional development and accessible, high-quality learning materials that support continuous growth in the workforce.

Stakeholders strongly support the National Quality Framework (NQF) as a means to ensure high-quality education and care services. However, gaps in training and qualifications must be addressed. For example, the Certificate III in Early Childhood Education and Care is seen as the bedrock qualification for entry into the sector, but there are concerns about the strain caused by the increasing number of traineeships. Additionally, diploma-level students often face strict enrolment arrangements, and VET students struggle with the cost of unpaid work placements.

Investing in better-designed training materials and ECEC resources will help address these issues. By providing more flexible learning pathways and offering financial support for work placements, more individuals can access and complete their qualifications, ultimately increasing the workforce’s capacity.

Building Rewarding Careers in ECEC

One of the most significant barriers to attracting and retaining workers in the ECEC sector is low pay. Diploma-qualified staff earn only slightly more than those with Certificate III qualifications, and specialised roles—such as those supporting inclusive education—often receive inadequate recognition or funding. Centre Directors also face heavy demands with limited options for training and support. Furthermore, migrant workers, who form a significant part of the ECEC workforce, often face barriers to progressing into senior roles.

Improving pay rates and career progression opportunities are crucial to building a sustainable workforce. Additionally, offering targeted training materials and professional development resources will help bridge the skills gap for First Nations workers and those working in ACCOs. These initiatives will foster a more inclusive and supportive environment, ultimately benefiting the entire sector.

A Path Forward for the ECEC Workforce

The findings of the Early Education and Care Workforce Capacity Study reveal a sector in need of targeted intervention to address its workforce challenges. Meeting the shortfall in qualified professionals will require substantial investment in recruitment, training, and retention strategies. The provision of high-quality VET resources, learning materials, and tailored ECEC resources can play a pivotal role in ensuring that educators are well-equipped to meet future demand.

As Australia continues to expand access to early education, ensuring that ECEC professionals have the skills, qualifications, and support they need will be crucial. By offering robust, ongoing professional development opportunities and addressing wage disparities, the sector can build a workforce that not only meets current needs but is also prepared for the challenges ahead.

The ECEC sector is vital to Australia’s social and economic fabric, and supporting its workforce with the right training and learning resources is essential to its success. The challenges identified in this study can be addressed through targeted investments in training, more equitable pay structures, and ongoing professional development—paving the way for a strong, sustainable early childhood education workforce.

Report findings

The following section succinctly summarises the study's 28 key findings.

• Finding 1: Current workforce levels are unsustainable due to overtime, insufficient professional development, reliance on trainees, and the burden of recruitment and compliance.
• Finding 2: Data gaps and inconsistencies hinder effective workforce planning, particularly around unmet demand and First Nations workforce participation.
• Finding 3: To meet population growth and increased female workforce participation, the ECEC workforce needs to grow by 1.5% per year by 2034.
• Finding 4: The ECEC workforce must grow by 8% to meet current demand and another 8% to address unmet demand for qualified workers.
• Finding 5: The ECEC workforce needs an average annual growth rate of 1.9%, with Early Childhood Teachers needing to grow by 3.2% per year to meet government policy commitments.
• Finding 6: Universal access to preschool for 3- and 4-year-olds would require the ECEC workforce to grow by 3% per year, with Early Childhood Teachers needing a 5.4% growth rate.
• Finding 7: Growth in Early Childhood Educators and Teachers is expected to come from vocational education completions and occupation changes, with an aggregate supply increase of 2% annually.
• Finding 8: Workforce shortages exist across urban, regional, and remote areas and are expected to persist over the next decade.
• Finding 9: High-quality qualifications and professional development are essential for improving workforce practices and child safety.
• Finding 10: The Certificate III in Early Childhood Education and Care is too complex and broad, making success in the sector challenging for certain groups.
• Finding 11: Traineeships are essential for workforce development, but the recent surge in traineeships creates bottlenecks in senior staffing and regulatory compliance.
• Finding 12: Declining enrolments in Diploma courses are attributed to the minimal pay increase and the prerequisite of a Certificate III, discouraging further study.
• Finding 13: Many students work in ECEC, but placement poverty and financial strain affect their ability to complete required qualifications.
• Finding 14: Combined Early Childhood and Primary School degree courses create a pipeline leak, with graduates opting for better-paying roles in primary schools.
• Finding 15: International students, particularly in early childhood teaching, require adequate support to thrive in their courses and workplaces.
• Finding 16: First Nations leadership in education and training significantly improves outcomes for Indigenous students, but few providers deliver ECEC qualifications for them.
• Finding 17: The current curriculum for First Nations learners in ECEC, including cultural safety, is insufficient and needs expansion.
• Finding 18: Many new ECEC educators work toward qualifications while holding senior positions, sometimes without adequate preparation.
• Finding 19: Recognition of prior learning (RPL) and credit transfer systems are underused, hindering qualification uptake and completion.
• Finding 20: Low ECEC remuneration compared to other occupations discourages entry into the sector and contributes to high attrition rates.
• Finding 21: The minimal wage difference between Certificate III and Diploma qualifications deters staff from advancing into middle leadership roles.
• Finding 22: Workforce entry and retention are challenged by the distance between ECEC workplaces and workers' homes, especially in areas with affordable housing shortages.
• Finding 23: ECEC career structures offer limited opportunities for specialisation, limiting career progression and creating gaps in service provision.
• Finding 24: A lack of leadership capacity and administrative overload leads to burnout and job dissatisfaction in ECEC staff.
• Finding 25: Migrant ECEC staff face barriers to career development, including funding challenges, despite accessible entry-level qualifications.
• Finding 26: There is growing demand for ECEC services that meet the needs of diverse families, including CALD and neurodiverse children, and those in regional areas.
• Finding 27: First Nations staff are crucial to ECEC, but culturally safe opportunities for them in non-Aboriginal settings are limited and need expansion.
• Finding 28: Defining scopes of practice for the ECEC workforce is critical for improving service delivery and addressing community needs.

Recommendations

The following section the summarises each of the study's 41 recommendations.

• Recommendation 1: Identify and share high-quality ECEC practices through professional networks or government recognition tools.
• Recommendation 2: Simplify the content of the Certificate III in Early Childhood Education and Care without compromising quality.
• Recommendation 3: Develop more accessible pathways into Early Childhood Educator roles by supporting pre-employment programs, SkillSets, and high-quality simulated training.
• Recommendation 4: Support school-based apprenticeships and traineeships for ECEC qualifications to improve access and sustainability.
• Recommendation 5: Recognize the role of senior staff in mentoring trainees through classification and role descriptions.
• Recommendation 6: Remove time limitations on funding access for ECEC Diploma enrolments to boost enrolments from current Certificate III holders.
• Recommendation 7: Review training packages to support educators returning to the sector and those transitioning from adjacent industries.
• Recommendation 8: Provide financial support, like paid study leave, to help educators attain higher qualifications.
• Recommendation 9: Ensure VET and higher education providers have strategies to support parents and carers in ECEC courses.
• Recommendation 10: Improve ECEC qualification completions through paid placements, career changer programs, and equitable funding across institutions.
• Recommendation 11: Explore accreditation of exit awards and concurrent study options to support progress and flexibility in ECEC qualifications.
• Recommendation 12: Align teacher registration across jurisdictions and improve overseas ECT course recognition.
• Recommendation 13: Review the definition of “suitably qualified person” to address workforce shortages by temporarily including non-teaching degrees.
• Recommendation 14: Protect international students by ensuring they understand their employment rights and obligations in ECEC settings.
• Recommendation 15: Higher education institutions should consider using Professional IELTS instead of Academic IELTS for early childhood education courses.
• Recommendation 16: Ensure robust assessment protocols for international students and continue offering eLearning induction materials.
• Recommendation 17: Review funding for ACCO-led training providers to improve Aboriginal and Torres Strait Islander participation in ECEC.
• Recommendation 18: Implement strategies to ensure culturally safe, appropriate, and responsive curriculum and delivery in ECEC qualifications.
• Recommendation 19: Develop units in the ECEC training package that extend cultural knowledge and Indigenous knowledges.
• Recommendation 20: Prioritize cultural knowledge inclusion in enterprise agreements to strengthen the ECEC workforce.
• Recommendation 21: Provide guidance to education providers to support progress assessment of ECEC staff working towards qualifications.
• Recommendation 22: Encourage ongoing professional development for ECEC staff, including funded closure days or paid backfill.
• Recommendation 23: Clarify and incentivize RPL protocols to make them more accessible for the ECEC workforce.
• Recommendation 24: Wage rates in ECEC should be competitive with primary school teachers and other care sector occupations.
• Recommendation 25: Governments should contribute to long-term wage growth in the ECEC sector.
• Recommendation 26: Launch a campaign to ensure ECEC staff are aware of their pay and employment entitlements.
• Recommendation 27: Consider higher pay for Diploma-qualified educators and specialized roles to encourage career progression.
• Recommendation 28: Improve ECEC workforce attractiveness with employee incentives, particularly for regional services and high-cost areas.
• Recommendation 29: Encourage flexible staffing arrangements, such as four-day work weeks or nine-day fortnights, to improve work-life balance.
• Recommendation 30: Governments should provide funding for trauma-informed resources, supervision sessions, and NDIS-related training for early educators.
• Recommendation 31: Consider specialisation pathways in ECEC qualifications to address the diverse needs of service types like OSHC, FDC, and IHC.
• Recommendation 32: Review the need for ECEC leadership skillsets and consider developing leadership-focused micro-credentials or elective units.
• Recommendation 33: Improve employer guidance on WHS obligations and ensure ECEC staff have access to high-quality Employee Assistance Programs.
• Recommendation 34: Review course fee rates for international students working in ECEC while studying.
• Recommendation 35: Include Early Childhood Educator and Teacher roles in skilled visa programs to address workforce shortages.
• Recommendation 36: Provide guidance and resources for early years educators to identify children's developmental needs and create inclusive care settings.
• Recommendation 37: Support innovative staffing solutions and programs that provide financial and mentoring support to communities with specific needs entering the ECEC workforce.
• Recommendation 38: Prioritise Aboriginal and Torres Strait Islander workforce development in ACCOs and mainstream services with sustainable funding.
• Recommendation 39: Formalise processes to ensure First Nations representatives provide guidance on supporting and employing First Nations people in ECEC.
• Recommendation 40: Develop a national information resource to promote ECEC career pathways and attract diverse entrants, with a focus on First Nations recruitment.
• Recommendation 41: Review the role of supernumerary staff for administrative support, and consider creating specialised administrative roles in the ECEC sector.