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

Globalisation & the world of workMegan 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 pathway 24.0

• Jobs that currently and potentially have

a VET pathway 62.3

• Jobs not requiring qualifications 13.7

Current qualifications profile of the population % of 15-64 population

• University qualifications 20.0

• VET qualifications 29.9

• No qualifications 50.1

Centrality of skills……

Developing offshore production facilities

Securing export markets

Benchmarking company performance

Being lean (driving down costs)

Introducing new technology and processes

Building strong supply chains

Upskilling existing and older staff

Introducing new products and services

Building the skills base

Strengthening growth opportunities

0 10 20 30 40 50 60 70 80 90 100

Per cent of sample agreeing

93

85

80

79

78

78

78

70

40

19

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

Unemployment Rate

0

1

2

3

4

5

6

7

8

9

Pe

r c

en

t Skilled

Unskilled

Unemployment & part-time work

2

4

6

8

10

'86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08

Year

% o

f 15-

19 y

ear-

olds Pt Work

Unemp

Nilf

School Retention Rates 2006

State Male Female AverageNSW 65.3 75.9 70.5Vic 72.9 87.2 79.9Qld 73.7 83.6 78.5SA 64.6 78.8 71.5WA 66.2 77.6 71.8Tas 56.4 73.3 64.8NT 57.3 59.5 58.4ACT 89.3 88.2 88.7AUS 69.0 80.6 74.7

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 productivityexpand 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

330,000 15-24 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’

Transport 0.6%

Textiles, Clothing 0.8%

Community Serv

& Health 2.3%

Automotive 2.4%

Eng & Mining 6.8%

Build & Constr7.2%

Structured Workplace Learning

Years 2000 2001 2002 2003 2004

N. of Students

(000)

81.0 101.2 112.4 106.2 114.8

Total Hours

(000)

6.470 7.113 7.399 6.250 6.711

Average Hours / Student

79.8 70.3 65.8 59 58.4

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

Measure Comment ScorePathways & Qualifications Frameworks

AQF- structured framework

Learning in workplace SWL & 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 & guidance Fragmented – insufficient guidance

Effective institutional arrangements

Poor articulation – lack of service delivery coordination

Monitoring tools Many available

Some significant policy progress

Reviews of post-compulsory educationNew school or participation

requirementsIntroduction of alternatives like VCALIntroduction of Career Advice AustraliaRevival of technical schoolsSteps to track school leavers

Why do schools and industry need to work together?

Key social and economic factors:GlobalisationKnowledge economySkills shortagesThe 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 pathwaysGuarantee ‘second chance’ place in

TAFE/ACEReview 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