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Operating environment and key challenges

Within our operating environment, there are drivers and challenges that require the department to adjust its planning, implementation and delivery of services and system reform.

Within our operating environment, there are drivers and challenges that require the department to adjust its planning, implementation and delivery of services and system reform.

The economy

While the Victorian economy has strong foundations, there are challenging economic conditions to be navigated with persisting high inflation and interest rates, as well as weakening national and global growth.

The department will actively manage the impacts of the rising costs of services, products and labour as it continues to deliver its infrastructure programs and provide high-quality services.

Climate change

Our experience with responding to natural disasters has improved our resilience and readiness to ensure continuity of learning, so that the impacts of future events can be reduced. This is being achieved through our emergency management preparedness and response to support swift resumption of services.

The department, all schools and early childhood education settings have a role to play in delivering on the Victorian target of net zero emissions by 2045; for example, through improving energy efficiency, reducing energy consumption and drawing energy from renewable sources. The department will embed renewable energy career pathways into the government’s core offering of vocational education and training (VET) in schools.

Self-determination

With the Victorian Government’s commitment to deliver all elements of the Uluru Statement from the Heart — Voice, Treaty and Truth — the coming years offer the opportunity for significant positive change, including accelerating our actions to improve learning and social and emotional wellbeing outcomes of First Peoples children and young people.

On average, First Peoples students achieve lower NAPLAN results, report lower connectedness with school, and attend school less regularly than their non-First Peoples peers. Cultural safety and access to targeted supports are critical to ensure First Peoples learners achieve their potential, succeed in life, and feel strong in their cultural identity.

Victoria’s commitment to self-determination in education and improving outcomes for First Peoples learners has been significantly elevated through the creation of a new First Nations Strategy, Policy and Programs group in July 2024. The new group will work with First Nations people and communities, building on our successes to realise the ambition of Marrung: Aboriginal Education Plan 2016–2026 and the objectives of Dhelk Wukang 2022–2026: Aboriginal Inclusion Plan.

Digital disruption and transformation

The society-wide take-up of generative artificial intelligence (AI) applications, such as ChatGPT, has sparked concern and debate about AI’s productive potential and associated risks. Understanding how educators can best use AI in the classroom, with appropriate instruction, supervision and critical assessment of AI-generated outputs will be important in the future. The department has released a clear Generative Artificial Intelligence policy for schools that sets out the requirements and advice around using AI tools in a safe and responsible way, which complements the Australian Framework for Generative Artificial Intelligence in Schools.

How technology can be used within the classroom and at home is evolving quickly. Children and young people have greater access to internet-connected devices and social media. These are parts of contemporary life and present significant learning and teaching opportunities. However, they also carry potential negative consequences, such as online bullying, which can impact mental health. Appropriate protections, instruction and monitoring will help to keep children safe online.

Population change

Our state is growing quickly, with Victoria’s population expected to reach 10.3 million by 2051. Following the COVID-19 pandemic there has been a return to high net overseas migration to Victoria. Over the long term, net overseas migration is expected to add more than 80,000 people to the population each year. Most of this projected growth is concentrated in the inner and outer growth areas of metropolitan Melbourne. In regional Victoria, the strongest growth is expected in Greater Geelong and Ballarat.

Such rapid growth creates a need for additional schools, new kindergartens and early learning centres, additional staff and the expansion of existing education facilities to cater for more children and young people. Identifying shifting growth patterns quickly and planning effectively for future needs will be critical to keep pace with increasing demand.

Workforce availability and capability

Victoria needs to attract, recruit and retain more teachers, educators and staff to address the significant demand within our schools and kindergarten settings. There is significant growth projected in early childhood and school education enrolments for Victoria. By 2028, Victoria is projected to require 117,363 teachers across the early childhood education, primary school and secondary school settings[2]. Supporting this growth will require more highly skilled teachers to deliver quality education to children and students.

There is an additional challenge to attracting and retaining educators in rural and regional areas, in specialist schools and in Melbourne’s urban growth corridors. There are also specific subject areas such as digital technology and science, technology, engineering and mathematics (STEM) subjects where demand is very high.

Addressing workforce supply challenges requires departmental efforts on multiple fronts and key initiatives are already underway. We have invested in comprehensive supports to address key areas of staff concern, including workload management, and improving career development and progression. Victorian Government investments, including teaching scholarships, paid placements, improved support for school staff mental health and wellbeing, and free courses, are already making a difference and having a positive impact on workforce supply, with further improvements expected in coming years.

Information security and privacy

Information security and privacy vulnerabilities are affecting all areas of society with significant implications for organisations large and small. High-profile data breaches are occurring more frequently, and this presents critical challenges for the school and early childhood education sectors, which deal with sensitive private information.

The department must be able to effectively prevent, detect and respond to inappropriate access to and use of information and technology, as must other employers in our sectors. This requires robust security protocols and protections being in place across the organisation, including in schools, early learning centres and with third parties holding departmental data. It also relies on capability and understanding of the responsibilities for appropriate handling of personal information and accurate and timely notifications of issues and breaches to and from affected services and suppliers.

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