"You're the people who are building our infrastructure, you're the people that are transforming Victoria," he said on Tuesday while announcing an extra $11.7 million for the state's flagship free TAFE initiative.

More than 25,000 students have started free TAFE courses since the program was launched at the start of the year to address skills shortages.

"More and more parents are having discussions with their kids and they're saying 'university is not the preferred pathway'," Mr Andrews said.

"I'm not here to run down uni but the days of getting an arts degree like I did and being able to necessarily have all the options you want, they're not far from being over.

"Trades are where it's at."

Mr Andrews said trades are often "hard work" but would remain viable for the long term.

"There's no longer that class-based system that university is somehow a superior option," the premier said of a changing class system.

The latest funding injection will include $5 million to help TAFEs across the state keep up with demand, with $500,000 earmarked for teaching scholarships to address staffing vacancies.

"To say this is popular would be an absolute understatement," Mr Andrews said of the initiative.

But he conceded the influx of student had put a "bit of pressure" on the sector.

There are more than 50 free TAFE and pre-apprenticeship courses on offer including nursing, early childhood education and mental health and disability support as well as trades.

Australian Associated Press