$110bn education spree a graduate jobs failure

Record investment of more than $110bn a year in schools, universities and vocational training has failed to improve reading, writing and numeracy standards.

Skills and Training Minister Brendan O’Connor said the Albanese government is boosting training and education funding to tackle the labour shortage and drive productivity. Picture: Tim Hunter.

Record investment of more than $110bn a year in schools, universities and vocational training has failed to improve reading, writing and numeracy standards, with a new Productivity Commission report revealing plunging employment rates for graduates.

Ahead of Treasurer Jim Chalmers announcing major funding boosts for TAFE and vocational training in the October 25 budget, the PC report says nine out of 10 new jobs created in the next five years will require formal post-school qualifications.

The report, released under the PC’s five-year productivity inquiry, said “recent trends point to some cause for concern” and recommends an overhaul of education systems including changes to the way teachers approach classes.

“Academic results for foundational skills such as reading, writing and numeracy have been flat for over a decade, even as the spending on schools has increased,” it said. “The employment rates for both university and VET graduates have decreased over the past decade, and employer satisfaction with the quality of VET graduates has fallen.”

Productivity Commission deputy chair Alex Robson said governments and education institutions must urgently respond to “concerning declines” holding back young Australians.

“The population of post-school students is expected to increase by 20 per cent over the decade to 2030. This is our future workforce,” Dr Robson said.

“The solution isn’t just simply to provide more places; the answer is also to ensure that our education system can deliver improved and relevant skills.

“Nobody can predict what some of the specific jobs of the future will look like. That is why an agile and adaptable education system is so essential for driving future productivity gains.”

Skills and Training Minister Brendan O’Connor said the Albanese government is boosting training and education funding to tackle the labour shortage and drive productivity.

“We inherited one of the most acute skills shortages our economy has ever experienced. Providing stronger support for foundation skills, removing barriers to participation and ensuring access for all Australians is a top priority for the government,” Mr O’Connor said.

Dr Robson said with Australia emerging as a service-dominated economy, “demand for non-routine skills is at an all-time high”.

“For VET and higher education, the question is not just what to teach, but how to teach it. It could also be beneficial to explore current funding structures that distort the choices of students in favour of universities over VET, limit competition between providers, and restrict the number of available student places,” he said.

The PC report said the role of the classroom teacher “needs to evolve”.

“Students would benefit from teachers spending less time on low-value administrative tasks and more time on quality teaching. Teachers could benefit from greater support with quality, evidence-based lesson planning.

“And technology, if well deployed, can complement teacher efforts in planning, instruction, assessment and administration.”