New figures show there has been a 35 per cent growth in student numbers, with enrolments up from 2100 to 3000.

The higher education provider says the stat government's introduction of free TAFE courses is having a "tremendous impact" on the institution.

Speaking to The Standard, TAFE chief executive officer Mr Fidge said increase in students numbers was exciting.

"The results are really quite positive," he said.

"We have put a lot of emphasis over the past four to five years on working with employers and industry to see what their training needs are.

"When students come through we line them with up with careers that have jobs available.

"I keep saying to my staff its about every student has to have a positive outcome which is either a job or further education. It provides a pathway to Deakin University Warrnambool. Some courses are running at Deakin, so students get a taste of what it is like to be at university."

He said enrolment growth was strong in bookkeeping and accounting, education support, tourism, horticulture, agriculture, community services and aged care courses.

"There are great outcomes for jobs across south-west Victoria in these fields," he said.

Mr Fidge said the TAFE had coped with the additional demand by basing some courses at the Deakin campus and hiring new staff.

"To accommodate Free TAFE and our growth in general, we've employed 60-70 new staff this year," he said.

"About half of those have been involved in local industry and obtained their training and assessment qualification to become teachers, while others have moved here which has provided an economic benefit and helps to grow our region."

A 2018 student outcomes report shows 91.3 per cent of South West TAFE graduates were employed or in further study after training.

This compares to 84.2 per cent for TAFEs across Victoria and 84.4 per cent across Australia.

Mr Fidge said TAFE was proud of the results.

"It's a great outcome which we can attribute to staff engaging with our local employers and industry partners to understand their training requirements and then making sure our students are trained accordingly and prepared for employment at the end of their courses," he said.

"We aim to run courses that lead to employment outcomes and driving that ideal has led to these excellent results."

Free TAFE will continue next year and be expanded into children's services.

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