Education to 2030: what’s next for Australia?

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The education landscape is changing due to a combination of economic, social and technological trends, says the Economist Intelligence Unit. Its new report, Education to 2030, examines how these trends are affecting budgets, schooling affordability and labour markets across 25 key economies.

It stresses that education providers, including governments, institutions and the private sector, will need to work together to ensure students are building the skills needed for the future.

So, what’s to come?

  • Public expenditure on education: Australia’s public expenditure on education was 6.1 per cent of GDP in 2015, or seventh highest globally. At 9.0 per cent, Norway took out top spot. In 2030, still at 6.1 per cent, Australia is projected to move up two spots and round out of the top five behind South Africa (9.0 per cent), Brazil (6.8 per cent), Finland (6.8 per cent) and Norway (6.4 per cent).
  • Affordability of education: In 2015, a four-year degree set Australians back around 55 per cent of their income. By 2030, this is forecasted to rise to 75 per cent. In contrast, it will be low as 0.7 per cent in Norway and as high as 588 per cent in Turkey.
  • Youth unemployment: Australia’s youth unemployment rate will remain stable (13.8 per cent in 2015 to 13.4 per cent in 2030). This compares to 6.2 per cent in Japan, 7.3 per cent in India and 7.5 per cent in Germany. Of the countries profiled, some of the highest unemployment rates will hit South Africa (48.0 per cent), Saudi Arabia (42.4 per cent) and Egypt (37.5 per cent).
  • STEM graduates: New STEM graduates make up 0.6 per cent of Australia’s labour force. Russia and South Korea each sit at 0.9 per cent, with Australia joining the UK and France at 0.6. By 2030, we’ll reach second place at 1.1 per cent behind only Russia (1.4 per cent).
  • Internet access in schools: On a seven-point scale, Australia currently ranks at 5.9 for school internet access. This will increase to 6.3 over the period to 2030, behind Finland (7.0), Norway and Hong Kong (6.7), Singapore and Canada (6.5), and South Korea (6.4).

See www.eiuperspectives.economist.com for more information.