1
Industry, Individuals and Innovation
Skilling Australia for the Future
Mr Philip Bullock
Chair, Skills Australia
3 March 2009
4
Drivers of Change: Statistics
Australia is a wealthy country 1 Service sector industries dominate 2
Australia’s population is ageing 3 Earnings rise with educational attainment 4
Sectoral composition of Australia’s output, 1975 to 2007GDP per head of population
$0
$10,000
$20,000
$30,000
$40,000
$50,000
US
D
OECD Total
Usual weekly earnings of FT employees, by highest educational attainment (2005)
$790 $842 $840 $799$944
$1,055
$1,236$1,334
$1,624average earning
$0
$500
$1,000
$1,500
$2,000
Year
10 o
rbelo
w
Year
11
Year
12
Cert
I /
II
Cert
III
/ I
V
Dip
lom
a
Bachelo
r
Gra
duate
Dip
lom
a
Postg
raduate
Sources:1 OECD, Breakdown of GDP per capita in its components (Feb 2009) http://stats.oecd.org/WBOS/Index.aspx?QueryName=350&QueryType=View&Lang=en2 Terry Cutler, venturousaustralia: Building strength in innovation (2008)3 Treasury, Intergenerational Report 2007 (2007)4 ABS 6278.0, Education and Training Experience, Australia (2005)
5
Where do we stand today: Statistics
Climate change is a major impact 1 Internet usage continues to grow 2
Almost half of our adult population have low levels of literacy and numeracy 3
Adult literacy and numeracy in 2006
46 47 53
37 3631
16 18 16
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prose literacy Document literacy Numeracy
Level 4 & 5
Level 3
Level 1 & 2
Indigenous participation is improving but a significant gap still remains 4
Indigenous participation rates
20%
52%
20%16%
55%
25%
0%
10%
20%
30%
40%
50%
60%
Unemployment rate Labour force participation Achieving qualifications
2001
2006
Indicators of Australian environmental pressures
World internet usage: 2000 - 2008
1100%
469%
271%
1296%
128%
821%
170%0
100
200
300
400
500
600
700
Afric
a
Asia
Euro
pe
Mid
dle
East
Nor
th A
mer
ica
Latin
Am
eric
a/C
arib
bean
Oce
anic
/Au
stra
lia
Mill
ions
0%
200%
400%
600%
800%
1000%
1200%
1400%
2000
2008
% users grow th
Sources: 1 Treasury, Intergenerational Report 2007 (2007)2 Internet World Stats, Internet Usage Statistics: The Internet Big Picture (2009) http://www.internetworldstats.com/stats.htm3 ABS, 4228.0, Adult Literacy and Life Skills Survey, Summary Results Australia (2006)4 ABS, 4713.0, Population Characteristics, Aboriginal and Torres Straight Islander Australians (2006)
6
“Smart” Planet – Digitally Aware
Source:
Samual J Palmisano, A Smart Planet (2008)
1 billion transistors per person
30 billion RFID tags by 2010
“Petaflop” supercomputers
“Intelligent” grid lowers cost by 25%
“Smart” healthcare saves patients
Banks can identify toxic impacts
7
Impact on future skill needs
Today Tomorrow
Increased specialisation
Greater mobility
Focus on employability skills
Multiple entry and re-entry points
Life long learning
Horizontal capability
Technological emersion
Competent
Geographic
Limited pathways
Train once
Vertical skills
Technologically literate
Fit for job
National skills Global skills
8
What works well?
Mentoring and Case Management:The Clontarf Foundation
Partnerships:Cordon Bleu Cooking School
Flexible Solutions:Western Institute & Northparkes Mines
9
Moving forward: What is required of the system?
Effective Regulation
&
Quality Control
Access & Equity
Clarity of vision
Demand for and utilisation
of
skills in the workplace
Nurturingknow-how
Workforce development
Industry Leadership
10
Moving forward: The big debates
The Challenge – How do we get the right balance?
Planned approach Entitlement
Independent VET sector Integration with
higher education
Skill sets Qualifications
One regulator, one standard
Multiple regulators,
different standards
Industryleadership
Industry advice& guidance
Vocational ONLY Vocational PLUS
11
Building a Sustainable Future
INNOVATION
INDIVIDUALS INDUSTRY
PRODUCTIVITYPARTICIPATION
WORKFORCE DEVELOPMENT