Jobs and Skills Australia demands ‘blended’ degrees to get graduates fit for work

Universities are failing to produce ‘work-ready’ graduates with the academic knowledge and hands-on skills employers need, the workforce tsar has warned.

Despite skills shortages, employers are rejecting most applicants as ‘unsuitable’.

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Universities are failing to produce “work-ready’’ graduates with the academic knowledge and hands-on skills employers need, the federal government’s workforce tsar has warned.

Jobs and Skills Australia Commissioner Barney Glover said up to 90 per cent of qualified applicants for jobs in engineering and information technology (IT) were not considered “suitable” by employers – despite the crippling shortage of skilled workers.

“There is a gap between the skills of graduates and the requirements of employers,’’ Professor Glover told The Australian.

“JSA research has found that too many engineering and IT graduates are not being hired for jobs they are technically qualified for, because they lack the employability skills that are required.’’

Jobs and Skills Australia Commissioner Barney Glover says universities, employers and vocational training providers must co-operate to get graduates ‘work-ready’. Picture: Jonathan Ng

Professor Glover said employer concerns included graduates’ lack of hands-on experience, as well as a failure to communicate clearly or work in a team.

“This may relate to the extent and quality of work-integrated learning and placements they have undertaken, or to the lack of what are sometimes described as ‘soft’ skills or cognitive skills around communication, problem solving and teamwork,’’ he said.

Australian Chamber of Commerce and Industry director of skills, employment and small business, Jodie Trembath, said employers were concerned that some university graduates had failed to master school-level English or the STEM subjects of science, technology, engineering and maths.

“It’s worth noting that our members have reported a drop-off in the kinds of skills these graduates should have picked up while they were at primary and secondary school,’’ she said.

“It is critical for employers that graduates are able to enter the workforce with relevant skills.

“ACCI supports the greater provision of work-integrated learning while students are still studying.’’

Professor Glover said turf wars between universities and vocational education and training (VET), including TAFE colleges, were “causing problems in the labour market’’.

“More needs to be done to link employers and universities together with TAFE to ensure that what is taught is both theoretically and practically relevant,’’ he said.

Professor Glover called on universities to offer more “blended’’ degrees, combining theory with vocational training to get graduates “work-ready’’.

He called on employers to become more involved in reforming the university curriculum.

“We also see new programs like degree apprenticeships and vocational degrees as innovations that may bring industry, TAFE and universities closer together to see truly industry-focused course materials developed in a dual-sector context, alongside more extensive work placements generating work-ready graduates,’’ he said.

Professor Glover, a former vice-chancellor of the University of Western Sydney, said unpublished JSA data from its employer surveys shows that between 10 and 30 technically-qualified applicants are applying for every job vacancy in engineering or IT.

Employers told JSA that 70 per cent to 90 per cent of applicants were “not suitable’’ for the jobs.

Engineers Australia chief engineer Katherine Richards said Australia would need 20 per cent more engineering professionals by 2034 – yet 70,000 were set to retire.

She said migrants made up nearly two-thirds of Australia’s engineering workforce, and employers’ reluctance to hire engineers “is not an oversupply issue, but one of suitability and employability’’.

“Many engineering graduates, including migrants and international students, hold the right technical qualifications, but often face barriers such as lack of local experience, limited professional networks, or difficulty demonstrating communication and leadership skills,’’ she said.

“These ‘suitability gaps’ mean employers may overlook qualified candidates.

“Employers also tend to favour experienced engineers, but most are already employed, making it harder for early-career professionals to get a start.

“We continue to advocate for stronger university-industry collaboration to ensure graduates are equipped with both technical and professional skills.’’

Migrants make up almost two-thirds of Australia’s engineering workforce.

Ms Richards said Australia would not meet its future infrastructure, energy and defence needs without “better connecting education and employment’’.

Across all industries nationally, employers failed to fill 30 per cent of advertised jobs in the three months to March this year, based on the latest JSA data.

Despite receiving 29 applications per vacancy, only nine applicants had the right qualifications – and four were considered suitable.

Employers had the most trouble finding technicians and trade workers, with nearly half the jobs left unfilled.

Even though 23 workers applied for each vacancy, only seven had the right qualifications and three were deemed suitable.

Clerical and administrative workers were the easiest to find, and employers filled more than 80 per cent of vacancies.

But with 46 applicants per vacancy, fewer than 10 were qualified for the job and only seven were considered suitable.

Recent JSA research also shows that among young workers, employers are most likely to hire applicants with “the right attitude’’.

The main reason young job seekers missed out on work was a lack of experience or qualifications and skills, as well as poor availability.

A lack of communication skills, including speaking English, and poor presentation at the interview were other reasons employers rejected young jobseekers.

“Generally, employers are looking for someone with the whole package – education, relevant experience and employability skills,’’ the JSA report concludes.

“Having employability skills such as having the right attitude, good communications skills and ability to work in a team will ensure that the young job seeker is job ready.

“These are the values that employers will not compromise on.’’

The JSA report found that young people could get a “foot in the door’’ through a part-time or casual job, volunteering, or apprenticeships.

The federal Education Department’s latest Graduate Outcomes Survey shows that 79 per cent of university graduates in 2023 were in full-time work four to six months after graduation.

The employment rate was 89 per cent for engineering graduates, 84 per cent for law graduates, 74 per cent for IT graduates, 70 per cent for maths and science graduates, and just 54 per cent for graduates with a creative arts degree.