1

Industry, Individuals and Innovation

Skilling Australia for the Future

Mr Philip Bullock

Chair, Skills Australia

3 March 2009

2

Three Pillars of Success

INNOVATION

INDIVIDUALS INDUSTRY

3

Drivers of Change

Economic

Political

Demographic

Climate Change

Technological

Social

Change

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

12

Industry, Individuals and Innovation

Skilling Australia for the Future

Mr Philip Bullock

Chair, Skills Australia

3 March 2009