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The economic case for university reform

By Grace Ormsby · October 03 2019
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Invest

The economic case for university reform

By Grace Ormsby
October 03 2019
Reading:
egg
egg
The economic case for university reform

The economic case for university reform

author image
By Grace Ormsby · October 03 2019
Reading:
egg
egg
The economic case for university reform

An improvement in university completion rates and improved graduate outcomes for students could lead to a $3.1 billion per annum injection to the country’s GDP by 2030, new modelling has shown.

The figure comes from EY’s report, The productivity uplift from better outcomes for our university students, as produced for the federal education minister Dan Tehan.

It found that an improvement of the alignment between the skills of graduates and the skills required by the workforce represents a fundamental opportunity to boost economic growth and productivity.

EY’s managing partner for Oceania government and health sciences, Catherine Friday, said the implementation of reforms around higher education that improves graduate employment outcomes “will strengthen the labour force and deliver a lasting productivity dividend to the national economy”.

According to the report, the completion rate for domestic graduates has dropped from 75 per cent in 2009 to just 66 per cent in 2017.

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EY said an improvement to the completion rate could save $408 million in economic resources in 2030.

In addition, better employment outcomes through increased wage premiums could contribute an additional $2.7 billion per annum to the economy in 2030.

This results in the $3.1 billion per annum figure.

Ms Friday has called the figures a “blue sky” projection of economic improvement, “if the mismatch between education and jobs could be fixed”.

“Our study shows that the ability to align the skills of graduates with those needed in our workforce today and into the future will be important for the economy,” she said.

“The opportunities for the nation and graduates are immense if we can get it right.”

The economic case for university reform
The economic case for university reform
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

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