Hiring more university graduates will be the panacea to solve the unemployment problem of non-graduates. This was the important finding of a recent study commissioned by Australian Universities.
Faced with fund cuts, the report has come as a shot in the arm for the universities. According to the report prepared by Cadence Economics for Universities Australia, for every 1000 graduates entering the workforce, an additional 120 jobs will be created for people without degrees, reports Sky News.
The Canberra-based consultancy said university graduates have been responsible for 90 percent of Australia’s job growth since 2008.
Welcoming the findings in the report, Universities Australia said the fact that higher education is gracing not only the degree holders but also others underlined the need to beef up funding to the sector.
“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,” chief executive Belinda Robinson said.
Not only new job opportunities, the non-graduate workers are also helped by wage hikes, the report said. It noted that wage growth for workers without a university education was up by $655 in 2014/15 because of new graduates entering the workforce.
As more university graduates join the workforce, the industry gets a boost in productivity in terms of higher competitiveness and that creates a new demand for more workers, the report said.
Robinson noted that this ‘spillover’ effect is the main reason why the country escaped zero growth in employment of workers without degrees.
The report also tried to link economic benefits of higher education with the positive impact on tax revenue. It noted: “due to higher economic activity is driven by new university graduates entering the Australian workforce, government revenue increased by approximately $5.1 billion in 2014-15.”
It said in 2014-15, the wages for workers rose by $4.8 billion due to new graduates in the workforce, which yielded a weekly wage increase of $12.60, reports The Australian Financial Review.
The economic benefits of graduate jobs graced a range of occupations such as technicians, trade workers, machine operators, drivers, clerical and administrative workers, said the report.