1. The Best Workforce We Can Have Professor Sue Richardson National Institute of Labour Studies Flinders University

2. Three points  Widespread skill shortages are a good thing  The structure of employment is constantly changing  Skills are more than formal education 2

3. Skill shortages are good  When they mean general shortage of labour  This is full employment—cannot do better  To the firm, means hard to get and retain the combination of qualities they want  To the workers, means there are abundant jobs  Firms are not used to having buyers waiting and unable to supply 3

4. 4

5. Structure of jobs changes  There will never be a perfect match  Much adjustment occurs through learning on the (new) job  Formal education is only a part of this  Capacity of firms to teach and workers to learn is essential 5

6. Average annual change in employment by industry 2001 to 2011 6 ABS, Labour Force, Australia, Detailed, Quarterly, Feb 2011, Catalogue No. 6291.0.55.003.

7. Stock of HK inflows outflows inflows outflows New entrants New education More experience withdrawal emigration depreciation 7

8. Increase in Human Capital Stock constant 2001 dollars, billions 1981-861986-911991-961996-2001 Female231386324266 Male328473359283 Ratio of female to male0.700.820.900.94 8 ABS Research paper 1351.0.55, Measuring human capital flows for Australia, by Hui Wei, 2008

9. Components of change in Human Capital stock: 1996-2001, billion 2001 $ ComponentFemaleMale Education net Additional post school91103 Depreciation -38 53 -68 35 Experience Additional experience146274 Depreciation of experience -220 -74 -313 -39 Youth inflows410550 Ageing of base stock -271 139 -410 140 Immigrants137184 Emigrants -78 57 -157 27 9 ABS Research paper 1351.0.55, Measuring human capital flows for Australia, by Hui Wei, 2008

10. OECD estimates of human capital per capita in 2006 10 OECD Human Capital ProjectMarco Mira d’Ercole

11. OECD measures of human capital 11

12. OECD: share of human capital of men and women 12