The AMWU has welcomed the enhanced focus on skills and workforce development in the first Labor budget in 13 years.

AMWU National President Julius Roe welcomed the investment announced in the budget but warned that it needed to be strategically targeted to ensure it delivered results that the Australian community needs.

"Australia's skills and workforce development systems are not in good shape. Strategically important industries such as manufacturing, in all its forms, are not getting the attention they deserve." Mr Roe said.

Mr Roe called for more attention to be paid to the skills needs of Australia's manufacturing and engineering industries to ensure that productivity can be rebuilt on a foundation of high skills and high wages.

"More money going into training places is one thing, but the real test is in getting more people completing trade and higher level qualifications and putting their skills to work in skills shortage areas of the economy like manufacturing so we can build a foundation for productivity and prosperity after the mining boom," he said.

He said that the government should cooperate with workers, unions and industry to rebuild Australia's vocational skills base.

"We welcome the budget initiatives but there is much more to do to ensure that the additional investment being made produces a real and sustainable impact in the interests of working families.”