Labor would also boost funding to universities to open up to 20,000 extra places in 2022 and 2023 if Anthony Albanese defeats Scott Morrison to win government at next year's poll.

After unveiling his long-awaited climate and energy policy in Canberra on Friday, Mr Albanese will use his first major election campaign rally on Sunday to launch a $1.2 billion vocational and higher education package.

Labor wants to invest in training, educating and upskilling Australians to help address a nationwide skills shortage, rather than rely solely on immigration as the nation rebuilds from the pandemic.

One in four businesses were struggling to find suitable staff according to an Australian Bureau of Statistics survey from earlier this year.

Claiming the Morrison government has neglected the vocational education sector, Labor will promise to fund 465,000 TAFE places - including 45,000 new positions - to support industries experiences skills shortages.

It wants to support sectors hit hardest by the pandemic, including tourism and hospitality, and train up workers in industries expected to be increasingly relied on in the future, such as aged and disability care, child care and nursing.

"This is good policy for jobs, good policy for people looking to train or retrain, and good policy for businesses, which need more skilled workers," Mr Albanese said in a joint statement with his deputy Richard Marles and education spokeswoman Tanya Plibersek ahead of Sunday's rally in Sydney.

READ MORE:

Labor would also ensure that at least 70 per cent of federal funding for vocational education was directed to public TAFE, as it effectively accused the Coalition of privatising the sector by stealth.

It would create a $50 million fund to upgrade campus IT facilities, workshops and laboratories.

Under the second plank of its so-called Future Made in Australia Skills Plan, Labor would spend $481 million to create up to 20,000 new university places over the next two years.

The funding would be targeted to universities which are able to open up places in "national priority" areas, including clean energy, advances manufacturing, health and education, as well as those facing skills shortages.

Shut out of JobKeeper and drained of revenue from international students locked out of the country, universities have been forced to shed staff en masse over the past 18 months.

The Labor trio said the prospect of the extra university places would ease pressure on schools leavers, who have endured two years of "hell".

"Our students didn't ask for this significant disruption," they said.

"Labor's commitment will help lighten the load for school leavers at a very stressful time."