Globalisation & the world of work Megan Lilly Associate Director – Education & Training

Overview 1.The centrality of skilling to industry 2. The current situation for youth and the state of youth transition 3.Policy directions

Globalisation “the widening, deepening and speeding up of worldwide interconnectedness” OECD

Qualifications for jobs and the qualification profile Potential qualifications pathways for jobs % of employment Jobs that currently and potentially have a university pathway24.0 Jobs that currently and potentially have a VET pathway62.3 Jobs not requiring qualifications13.7 Current qualifications profile of the population % of population University qualifications20.0 VET qualifications29.9 No qualifications50.1

Centrality of skills…… STRATEGIES FOR REMAINING COMPETITIVE OVER THE NEXT THREE YEARS

Barriers to Australian company success, 2005 Will the following be barriers to company success over the next 3 years?

Current Situation for Youth  A significant proportion not completing school or its vocational equivalent  Consistent proportion of school leavers making a poor or mixed transition from school  Large numbers without school or equivalent qualifications are not in full- time work or learning  Low levels of Indigenous participation and achievement in education

Polarised Nature of Australian Unemployment Rates ABS Source: ABS Source:

Unemployment & part-time work

School Retention Rates 2006 StateMale FemaleAverage NSW Vic Qld SA WA Tas NT ACT AUS

Economic Impact of Increasing Retention 2005 Access Economics estimated that lifting retention to completion of school or apprenticeship to 90% by 2010 would:  increase workforce by 65,000  boost economic productivity  expand the economy by $10b by 2040

Completing Year 12 matters

Snapshot of school-leavers  54 percent continue onto further study  80,000 enter full-time work & work-based training  More than a quarter are not in full-time learning or full-time work

Non-Engagement  118,000 young people without Year 12 or Certificate 111 are not in labour force, are unemployed or working part-time and not studying  330, year olds are unemployed, working part-time and wanting more hours, not in labour force but wanting work  Up to 50,000 yearly school exits not going to full- time work or learning or combination of these  Only about half the proportion of Indigenous students are completing Year 12 as non- Indigenous students

Skill shortages and school completion rates  Supply of VET qualifications remains the same as 2005 there will be a shortfall of 240,000 jobs over the next decade  To meet this shortfall net completions need to increase by 2% pa for a decade  Australia’s rates have barely shifted over the last 15 years

VET in Schools Industries MAJOR PROGRAMS Business & Clerical 25% Tourism & Hosp 22% Sales & Per Services 9% General E & T 9% SUB – TOTAL 65% ‘MINOR PROGRAMS’ Transport0.6% Textiles, Clothing0.8% Community Serv & Health2.3% Automotive2.4% Eng & Mining6.8% Build & Constr7.2%

Structured Workplace Learning Years N. of Students (000) Total Hours (000) Average Hours / Student

State of Youth Transitions Most recent OECD report of youth transitions: “There is agreement that, in order to improve youth job prospects, it is essential to combat school failure. In particular, early and sustained intervention can help prevent a vicious circle of cumulative disadvantages.” The Changing Nature of the School-to-Work Transition Process in OECD Countries, 2007

Transition Measures MeasureCommentScore Pathways & Qualifications Frameworks AQF- structured framework  Learning in workplaceSWL & SBA for minority  Broad general & vocational skills Many & varied pathways  Youth friendly labour markets Youth wage structure & some youth friendly industry  Safety nets‘At risk’ group high  Information & guidanceFragmented – insufficient guidance  Effective institutional arrangements Poor articulation – lack of service delivery coordination  Monitoring toolsMany available 

Some significant policy progress  Reviews of post-compulsory education  New school or participation requirements  Introduction of alternatives like VCAL  Introduction of Career Advice Australia  Revival of technical schools  Steps to track school leavers

Why do schools and industry need to work together? Key social and economic factors:  Globalisation  Knowledge economy  Skills shortages  The need for a ‘new workforce’

School – industry partnerships “ They (industry) exist in a global market and understand the skill sets required from our graduates, so they need to be part of the current discussion on national approaches to curriculum consistency and standards. … The reluctance of some in the education community to embrace these new relationships could seriously disadvantage many students.” Andrew Blair, President, Australian Secondary Principals Association, The Age, 18 June 2007

Policy Objectives for Youth Subject to their ability, every young person:  will attain Year 12 or over time a vocational equivalent of AQF Certificate 111  will be engaged in full-time work or learning or a combination of these  will be provided with resources and facilitated with relationships and integrated pathways to achieve these outcomes

Ten focal points for reform  The engagement field Successful transitions from primary to secondary Purposeful student learning in middle years High quality VETiS & SWL  The attainment field Training & work options to complete education Apprenticeship completion Second chance options for young adults Renewed purpose & scope for traineeships  The development field Personal support & mentoring for early leavers Teacher support for ‘hard to teach’ students Indigenous presence in education

Some Policy Targets By 2011:  85% young people leave school with Year 12 or Certificate 111 (increase to 90% by 2015)  50% of Indigenous young people complete Year 12 or Certificate 111 (55% by 2015)  90% of 15 – 19 year olds participating in full-time study, or full-time work or a work-study combination  85% of 20 – 24 year olds participating in full-time study, or full-time work or a work-study combination

Key Engagement Strategies  Lift quantity and quality of VET in Schools  Involve local industry as partners to ensure alignment  More comprehensive pre-vocational programs  Strengthen TAFE in network of ATCs and other technical trades initiatives  Build stronger links to part-time work and community service undertaken by young people

Key Attainment Strategies  Lift completion rate of upper secondary education  Recognise diverse learning pathways  Guarantee ‘second chance’ place in TAFE/ACE  Review purpose and scope of traineeships

Key Development Strategies  Personal support for potential school leavers to make successful transition  Improve teacher support and preparation for ‘hard to teach’ students  An Indigenous presence in schools and support for Indigenous students/communities