Businesses struggling to get a hold of quality staff will benefit from a new national agreement on vocational education and training (VET).

A five-year National Skills Agreement reached by National Cabinet last night reverses the erosion in VET funding over the past decade.

“Amid a skills crunch businesses are craving access to the right people who have the capabilities to expand their business and grow the broader economy,” Business NSW CEO Daniel Hunter said of the $12.6 billion funding agreement.

“This agreement to expand funding in the VET sector will help address some of the critical skills needs of our member businesses.

“Business NSW looks forward to working with NSW Government as it applies the terms of the new agreement and follows up on its own NSW VET review.

“Our members have told us time and time again that they cannot access the skilled talent they need, limiting growth and innovation.

“93 per cent of NSW businesses say they are experiencing or have recently experienced a skills shortage.

“This is a great step in addressing this gap as our nation looks towards the next decades of growth through AUKUS, the clean energy transition and supporting our care economy.

“We cannot achieve these collective goals without addressing the skills base of Australia.”