policy & reform
Largely speaking, the Australian economy has kept up with the big increase in graduate numbers. Before every boom in university growth there have been gloomy predictions which don’ t eventuate.
He said the vast majority of graduates were employed in jobs which were appropriate to their skills.
Medicine, dentistry and law were the top earning disciplines overall while engineering and commerce also rate highly for male graduates.
However, there is a lot of heterogeneity in rates of return when considering level of qualification and field of study.
A recent study *** by Professor Jeff Borland from the Melbourne Institute of Applied Economic and Social Research, found returns were higher for business and administration, and engineering graduates compared with those in science or society and culture programs.
Returns were lower for postgraduate than undergraduate students.
However, the estimated rates of return were fairly robust and not affected much by factors such as retirement age, HECS repayment bands or payment methods.
Darren Buchanan, director of Hays Specialist Recruitment in Queensland, says higher qualifications can give people a competitive edge during the selection process and therefore enhance employability.“ Employers are mainly looking for the right combination of qualifications, experience and cultural fit for their organisation.”
“ If it’ s not the best time to enter the job market, then it’ s likely to be a great time to study. Taking the opportunity to do postgraduate study now is a rational and sensible approach to career planning.”
“ There are no negatives to improving your skills set or knowledge,” he said.
However, he added the financial benefits of postgraduate study were often quarantined until graduates reached managerial and executive level positions in their careers.
Buchanan said confidence appeared to be returning to the job market and an oversupply of graduates was unlikely. He said universities were at the forefront of technological development and advances in systems and processes. Graduates were most likely then to step up into newly created positions such as app developers or innovate in areas such as green energy.
“ Universities are creating graduates for industries and jobs that don’ t even exist yet. While all those businesses might be new, they will also need to use accountants and administrative support and help expand the job market.”
McAlpine said universities will have to do more to develop generic capabilities in their graduates.
In 2012, almost three quarters( 72 per cent) of university graduates had jobs classified as managerial or professional.
“ We’ re not just here to qualify people for their first job. We need to look beyond content areas to soft skills such as team work, negotiating and communication. This will need to be embedded in the curriculum at all levels as well as added in via student support services.”
“ Content heavy courses like science and engineering may find it hard to do this but we need to prepare graduates who are flexible and can adapt quickly to changes in the workforce.”
“ Ultimately we need to show that there are outcomes for our graduates and ongoing returns on their investment in higher education.” ■
*
Over-education, under-education and credentialism in the Australian labour market( 2012) ** Postgraduate Destinations 2011
***
New Estimates of the Private Rate of Return to University Education in Australia( 2013)
16 | Issue 2 2013