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A policy perspective: the role of higher education in meeting the needs of business and the community. Mary-Anne Sakkara ACPET Symposium: Raising productivity, increasing prosperity – the challenge for higher education 3 February 2012. Productivity – what does it mean? - PowerPoint PPT Presentation
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A policy perspective: the role of higher education in meeting the needs of business and the communityMary-Anne Sakkara
ACPET Symposium: Raising productivity, increasing prosperity – the challenge for higher education
3 February 2012
Introduction: what this session will cover
Productivity – what does it mean? Tertiary education – what we are trying
to achieve and howOpportunities and challenges for higher
education Opportunities presented by new portfolio
Productivity
Productivity is what we produce for each hour worked
But boosting productivity does not mean making Australians work harder and longer. It means people having the skills and resources to work more effectively.
Productivity is about sensibly producing more with less. Improving productivity frees up resources to move to higher
value uses and allows people more freedom to make choices about work, family and leisure.
Ongoing productivity growth is essential to: build capacity to take advantage of current global demands provide an opportunity for all parts of the economy and regions to
grow substantially; and improve living standards and assist those in need while meeting the
fiscal challenges of an ageing society in the long run.
Productivity agenda
The Australian Government’s productivity agenda is focused on the following three areas:
Stability – maintaining macroeconomic stability, i.e. steady growth with low inflation
Flexibility – ensuring that the economy is flexible and that incentives exist to encourage our labour and capital resources to move to their highest value uses; and
Capability – well targeted investments in skills, infrastructure and innovation.
Tertiary education has the capacity to influence flexibility and capability
How is Australia’s economy faring? The Australian economy remains among the most robust of advanced economies –
Treasury is predicting 3.25 per cent growth in 2011-12 However, our growth is lower than in developing countries where the World Bank
predicts 5.4 per cent growth The resources boom is driving a high Australian dollar and our economy is transforming
as new industries emerge and older industries change
But our economy is running at different speeds depending on where you live
Productivity performance Australia’s performance in
productivity has deteriorated in recent years with both labour productivity and multi-factor productivity below the OECD average Productivity growth has
fallen from a high of 4.8 % in 2002 to just 0.4 % in the last financial year
Job growth in 2011 was its weakest since 1992
What we are trying to achieve through tertiary education The Government is committed to investing in the higher skills needs
for the jobs of the future. Challenging targets have been set to increase the qualification levels
of the Australian workforce. By 2020:
• Halving the proportion of the working age population without at least a Certificate III compared to 2009
• Doubling completions of diplomas and advanced diplomas compared to 2009
• 20 per cent of higher education enrolments will be for people from a low SES background
By 2025: • Increasing the proportion of 25 to 34 year olds with a degree to 40 per
cent
Tertiary reform contribution
KPMG research shows that if we increase these tertiary education targets there will be improvements in both Australia’s long-term labour productivity and labour force participation rate.
By 2040, the tertiary reforms are estimated to build to additional contributions of: 2.1% gain in labour productivity through increased higher education 1.5% gain in labour productivity through increased VET 0.16 percentage point gain in the participation rate through increased
higher education 1.0 percentage point gain in the participation rate through increased VET
Achieving higher education and VET targets could generate up to around an extra $50 billion output in the Australian economy every year on average for the next 30 years, or $1,850 per person. Up to around 180,000 jobs could be generated each year on average over the period.
Effect of all reform targets
0%
1%
2%
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20
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Pe
rce
nt
De
viati
on
s fr
om
Bas
eli
ne
Workplace Relations
Schools
Higher Education
Early Childhood
0.7%
0.75%
2.5%
2.9%
VET: Cert III-Adv. Diploma 1.65%
0.7%
1.2%
2.1%
1.5%
0.6%
2040 2070
Paid Parental leave
GDP is expected to be 20.1% higher than the baseline by 2070 if all the reforms are achieved.
Contribution to labour productivity increases (per cent deviation from baseline)Source: KPMG Econtech 2010
How are we trying to achieve these results? More people with higher skills which will drive
prosperity for the community More equity of skills acquisition which will better
meet needs of whole community A greater role for industry which will ensure that we
have the necessary skills for an evolving economy The National Workforce and Productivity Agency will
provide the Government advice on current and future skills needs and how well the VET and higher education sectors are meeting these needs
Australian Government Skills Connect will help link Australian enterprises with a range of skills and workforce development programs and funding, including the National Workforce Development Fund ($558 million over four years).
How are we trying to achieve these results? A demand-driven higher education system which will give
universities greater flexibility to respond to demand from students and employers
Recognition of the role of non-university and VET providers in the delivery of sub-bachelor places which will ensure the university sector does not expand at the expense of VET and private higher education providers
Improved quality through the national regulators which will underpin the reforms in VET and higher education
Improved transparency which will inform students and employer choice My University, My Skills, Study Assist websites Unique student identifier for the tertiary education sector – we
have the CHESSN for higher education and are developing a USI for VET to be part of a cross-sectoral framework linking schools, VET and higher education
How does tertiary education meet the needs of business and the community? Higher education – institution-to-institution basis
Engagement – Business and industry engage with universities and higher education providers at the faculty level to help shape the delivery of learning and teaching and the relevance of what is being taught
Accreditation – Professional associations work with higher education institutions to accredit courses to ensure they meet national and international benchmarks
Work integrated learning – Work integrated learning appears to be increasing significantly in universities
VET – a more systematic approach to business engagement Training package development – ISCs actively support the development,
implementation and improvement of training and workforce development products and services including training packages
Advice – ISCs provide industry intelligence and advice to Skills Australia, government, enterprises on workforce development and skills needs
Engagement – Industry is represented on the Skills Australia Board and in industry forums advising Tertiary Education Ministers
Opportunities and challenges
Ongoing global economic uncertainty
High growth in AsiaClean energyTechnological
change Ageing population
In response we need to: prepare graduates with
the skills and flexibility to deal with an unpredictable future
develop programs related to skills needs associated with Australia’s transition to a low carbon economy
prepare the necessary health and medical research workforce
Opportunities presented by new portfolio arrangements The new Department of Industry, Innovation, Science, Research and
Tertiary Education (DIISRTE) brings key economic levers together to drive growth, productivity and participation and help keep society and the economy strong.
The new department provides an opportunity to: Build better connections between research and tertiary education
and strengthen partnerships with industry Strengthen our tertiary education agenda to meet industry needs
through a better co-ordinated portfolio of industry programs Focus increasingly on existing workers and re-training/up-skilling
“an integrated industry, higher education and vocational training policy that underpins Australia’s economic modernisation” Minister Evans 31 January 2012
DEPARTMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION
Industry House10 Binara StreetCanberra City, ACT 2601, AustraliaTelephone +61 2 6213 6000