Australian education: an OECD perspective
Australia fares well in terms of youth and adult skills compared to other OECD countries. Dr Sergio Arzeni says the tasks ahead are tackling disparities and ensuring that education leads on to good employment opportunities for all.
Skills are increasingly being recognised as a key driver of today’s economy. OECD research shows that a high level of skills is not only linked to improved employment outcomes, but also improved social outcomes such as trust in others, political engagement and health. Accordingly, Australia has much to celebrate in the fact that it compares favourably to other OECD countries in OECD surveys of youth and adult skills (the Programme for International Student Assessment and the Programme for International Assessment of Adult Competencies respectively).
This celebration, however, must be tempered by recognition of several ongoing challenges. Like other OECD countries, Australia has seen a significant increase in youth unemployment since the recession. Early exclusion from the labour market can have ripple effects throughout a young person’s life, affecting long-term career paths and future earnings prospects. Additionally, data suggests that not all groups of young people have similar chances for success. Disparities, particularly for Indigenous young people, can be seen both in skills, for example in mathematic literacy, and in unemployment rates.
Thus, Australia faces two tasks ahead: tackling youth unemployment, particularly by ensuring the alignment of education and training with the local labour market, and ensuring the most disadvantaged don’t get left behind. For both of these tasks, joined-up, local-level action is needed. Government, educators, businesses, and communities all have a role to play. In developing such an approach, the OECD’s recent Local Job Creation in Australia review points to the importance of national policies having sufficient flexibility at the local level.
The transition from school to work is especially critical, and vocational education and training (VET) is a key component of this pathway for many young people. By offering clear entryways into good quality employment, it can help close the gap between the most disadvantaged and other young people. This is another place where Australians can take pride, as its system receives strong support from both industry and individuals, shows considerable flexibility, and provides opportunities for people at many different points in their lives and careers.
However, there is one place in particular where Australia could benefit from the experiences of other countries: addressing low apprenticeship completion rates. The reasons for high rates of non-completion in Australia are multifaceted, and Australia has already undertaken considerable efforts to address the low completion rates. Despite this, in 2012 roughly one-half of training contracts were not completed. In comparison, Germany, whose “dual system” is highly regarded across the OECD, has completion rates of over 80%. Many aspects of the German model can offer inspiration, including the fact that initial training can be supplemented with further training that enables participants to advance to the grades of master craftsman, technician or business administrator. This ensures that apprenticeships contain real career possibilities, enhancing both attraction of apprenticeships and retention in them.
In addition to investing in skills development for young Australians, Australia also recognises that skilled immigration is an important aspect of a broader skills strategy. Talent from abroad can bring new ideas and networks, leading to new innovation and business opportunities. Amongst other categories of skilled migrants, international students, especially those developing specialised skills, can be an important part of this picture. Australia has the highest share of international students in tertiary education of any OECD country, but more countries are looking to attract foreign students, and new players are coming into the market. Competition for the most highly talented portion of this labour pool will only increase, making it important for Australia to maintain its competitive edge.
Overall, Australia’s education and training system has many features which can make its country proud, as evidenced by the high numbers of foreign students it attracts. But more attention needs to be made to tackling disparities and ensuring that education leads on to good employment opportunities for all.
Dr Sergio Arzeni is the Director of the OECD Centre for Entrepreneurship, Small and Medium-sized Enterprises (SMEs) and Local Development. The Centre oversees the work of the Local Economic and Employment Development programme (LEED), the Working Party on SMEs and Entrepreneurship, the Tourism Committee, and the OECD LEED Trento Centre for Local Development (Italy). Dr Arzeni has worked at the OECD for over 20 years. Prior to joining the OECD, Dr Arzeni served as an economist for the Italian Parliament, the Italian Trade Unions and the European Commission. As an economic journalist he has contributed to several Italian and international newspapers. He holds a First Class Honours Degree in Political Science from the University of Rome and specialised in Industrial Economics at the International University Institute of Luxembourg and in International Economic Relations at the Brookings Institution in Washington DC, USA. He speaks French, Spanish, English, German and Italian.
