“For the first time, the work done by Cadence Economics – using the same type of model used by Australian governments and the Productivity Commission to assess the economic impact of policies – shows the spillover benefits to workers without a degree from having more graduates in the economy,” said Belinda Robinson, Chief Executive of peak group Universities Australia.
For every 1000 university graduates who enter the Australian workforce, 120 new jobs are created for people without university degrees, the modelling has found.
The analysis also finds that the wages of people without a degree are boosted by $655 a year – or $12.60 a week – when more graduates join the national workforce.
Having more graduates in the economy boosts the wages of workers without a degree through workplace productivity gains that make Australia’s industries more competitive, as well as higher spending that flows into the economy.
The findings highlight the role of university education in lifting wages and living standards across the broader Australian economy – not just for those who hold a degree. The modelling finds:
- In 2014-15, the economic boost from new graduates entering Australia’s workforce created 25,000 new jobs for Australians without university degrees.
- For every 1000 new graduates entering the workforce, 120 new jobs are created for people without a degree.
- The impact of new graduates joining Australia’s workforce lifted wages for workers without a university degree by $12.60 a week or $655 a year.
- Without the entry of new university graduates into the Australian economy, the growth rate in jobs for people without a university degree would have been zero over the last eight years.
- In particular, the ‘spillover benefits’ of new graduates entering the workforce in 2014-15 created 8064 new jobs for technicians and tradespeople.
Universities Australia Chief Executive Belinda Robinson said the report’s findings are further proof that keeping our university sector strong will be indispensable to new jobs, higher wages, and economic growth for Australia.
“If we want to create more jobs and better-paying jobs for all Australians, we can’t afford to cut investment in the engine room of economic transition: our universities,” she said.
“Ahead of the Budget, this confirms the positive effects of new university graduates – not only in the creation of new jobs for those without university degrees but also in their wages, as well as the overall employment and economic growth of the nation.
“Over the coming decades, it will be the skills and smarts of our people – our human capital – that will be central to strengthening the Australian economy and building economic resilience. What this report tells us is that higher education does not just benefit those with the qualification. A highly skilled, highly educated workforce is essential for jobs growth, workforce productivity and the overall competitiveness of Australian industry,” Ms Robinson said.
The full Cadence Economics report is at: www.universitiesaustralia.edu.au