Australia's economy will take a $7 billion hit by 2026 if the nation fails to lift education attainment to meet the need for skilled workers, new modelling from the Universities Australia shows.
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Chair of the peak body for universities, Professor David Lloyd, will say in an address to the National Press Club today that we need to rethink higher education beyond the traditional three-year degree program to meet the future skills shortage.
"Jobs in health care, professional, scientific and technical services, and education and training - all those trusted professions you can't enter without a degree - are among the fastest growing industries," Professor Lloyd will say.
"They are all professions that will continue to drive our economy and the societal advances Australia needs."
The address comes as the sector has been called to give feedback on the Universities Accord interim report.
The agreement is seen as a major reset of the government's relationship with higher education institutions and a roadmap for reforming the sector for the future.
Professor Lloyd is expected to heavily criticise the former Coalition government's job-ready graduates package which slashed the average level of government funding for student places while shifting additional costs on to students and universities.
"I cannot be more fulsome in my criticism of [job-ready graduates].
"It has hurt and is hurting students. It has hurt and is hurting universities. It has hurt and is hurting the nation.
"Australia, not Australia's universities, urgently needs a funding model that is fairer for students, and which sustainably provides the resources needed to educate the next generation."
The Universities Australia chair will take aim at Australia's falling investment into research and development which was sitting at 1.8 per cent of gross domestic profit compared to the OECD average of 2.7 per cent in the latest data.
Professor Lloyd will call on the Labor party to retain its target of 3 per cent in its 2023 National Platform when it goes to a vote later this month.
"But even three per cent itself is a very, very long way from research and development investments being made by other nations in our region - so pragmatically, getting to three per cent would be a great start.
"Germany, the United States, and Japan all spend more than three per cent of GDP on research and development - countries that, arguably, lead the world in manufacturing and technological development.
"This is not good enough for a nation of Australia's standing."
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A decade of successive changes to policy and funding settings have left universities vulnerable and made it almost impossible for institutions to do major strategic planning as they continue to deal with the financial fallout of the COVID-19 pandemic, professor Lloyd will say.
He will say that universities will work with government and industry to help keep pace with the evolution of society.
"Digitalisation, decarbonisation, artificial intelligence, national security, a growing population and the health and wellbeing of Australians - how we navigate these issues, and so many others, will define Australia's success, safety and prosperity in the coming decades."
Meanwhile, results from the 2023 3M state of science index show that 92 per cent of Australians agree STEM professionals can help us solve the problems of tomorrow.
The survey of 1000 Australians found 93 per cent of respondents believed positive outcomes can be achieved if people stand up for science and 92 per cent believed businesses should take action to defend science.
Science and Technology Australia chief executive Misha Schubert said the results showed the public grasped the importance of science in our lives and the need for STEM professionals ahead of national science week.
"In the last few years, from the Black Summer bushfires to the northern New South Wales floods, we've seen stark reminders of the threat that climate change poses to our nation and the world," Ms Schubert said.
"This survey shows Australians back science and scientists to come up with climate solutions - including clever new ways to reduce waste, solar panels, eco-friendly building materials and more affordable electric vehicles."
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