Australia’s university sector has been under increased pressure in recent months to boost the number of “job ready” graduates.
In August, the Federal Government announced it will implement performance-based funding based on the recommendations of an independent report headed by Professor Paul Wellings, Vice-Chancellor of the University of Wollongong.
“This report shows that while we have a world-class higher education system, it needs to be stronger, more sustainable and fit for purpose,” Minister Tehan, said.
Now a new report by Ernst & Young (EY) found that Australia’s economy stands to reap billions of dollars from improving the employability of university graduates.
On Monday, Federal Education Minister, Dan Tehan, met with business leaders from the resources, manufacturing, agriculture, finance and defence industry to discuss how universities could better produce job ready graduates to meet the needs of Australian business.
“Our Government is working with universities and business to ensure Australian graduates have the skills required to succeed in the modern economy,” Minister Tehan said.
“The productivity gains from improving graduate employment outcomes and lifting completion rates are worth an estimated $3.1 billion a year by 2030.”
Minister Tehan said that further improving the job readiness of university graduates will help the government achieve its goal of creating another 1.25 million jobs over the next five years, including 250,000 new jobs for young Australians.
“Today’s meeting with government, vice chancellors and business leaders demonstrated our shared commitment to three interconnected objectives: further improving the employment outcomes for Australians, growing our economy and meeting the needs of business,” Minister Tehan said.
Tehan said it was agreed at the meeting that more work was required on harmonising vocational training, higher education and employment.
“This means smoothing the pathways between the three sectors, looking at micro-credentials, work integrated learning and better workforce planning,” he said.
Professor Paul Wellings is vice-chancellor of the University of Wollongong and chair of Minister Tehan's vice-chancellor advisory group. He said that while Australian universities had an “outstanding” track record in graduate employability, the economy was evolving.
“The rate of change in technology and the range of skills required in the modern workplace mean the businesses and universities need to be more closely aligned and collaborative,” he said.
"This will help drive the economy."