Australia’s tertiary education sector must keep up with the changing demands of a globalised world, a new working paper has underlined.

By Christine Giles

	Dr Chandra Shah's research found strong growth at the lowest skills end of the spectrum.

In one of former prime minister Paul Keating’s few publicised engagements since leaving office in 1996, he warned that in an increasingly globalising world, Australia would pay a high price if it neglected its education system.

He told a recent seminar in Melbourne that the nurturing of ‘human capital’ was vital in the current world economic climate, but that Australia was at risk of losing one of its most important competitive advantages.

The need for Australia’s universities, TAFE and VET sectors to keep pace with the changing demands of a globalised workforce is a concern supported in a working paper produced by the Monash University– Australian Council for Educational Research Centre for the Economics of Education and Training (CEET).

The report, which documents the effect of global reforms on national employment patterns, was based on analysis of Australian Bureau of Statistics labour force data spanning 1986 to 1996.

It found that the impact of globalisation, rapid technological change and restructuring on Australia’s employment system had been more negative than positive.

Strongest growth was recorded at the lowest skill end of the employment spectrum in occupations that did not directly add to the economy’s international competitiveness.

CEET senior research fellow Chandra Shah said this and other findings signalled a need for universities to continue to nurture creative graduates and encourage ongoing educational endeavour, even after the completion of a degree.

"We need to increase our production of highly skilled people such as scientists, engineers, designers and creative artists – people who come up with imaginative ideas and concepts that can be traded on a global market," Dr Shah said.

"In order to be a clever country, we need more people in these type of occupations because they are the drivers or engines that will pull the rest of the country forward into a globalised economy.

"There also has to be some kind of continuity in the role of universities in terms of training and keeping in contact with graduates – ensuring that once somebody does their first degree that is not the end of their learning.

"These people can then provide inspiration to up-and-coming students to help them strive and create new ideas and learn how to change those new ideas into wealth."

Dr Shah said TAFE and VET providers were also reassessing their role to meet rapidly changing labour market demands.

"They are responding quickly, and will continue to do so, to changes in technology and the economic environment, by altering the delivery, structure and content of courses they offer students."

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