Realities of the Skills Shortage for International Graduates Matthew Reede Executive Director Performance English Tel:+61 2 8354 0760 Mob: +61 401 0604 19 Email: matt@performanceenglish.com.au www.performanceenglish.com.au A trip to the restaurant! Imagine your favourite wine Waiter this wine is corked! Why do people buy the wine? Why do people buy education? Australian International Education Conference 2006 - www.idp.com/aiec 1
Australia s Workforce Ageing workforce median age 37 Fertility Rate 1.8 children/women Negative population growth from 2030 900,000 Aust expatriates 10%workforce We are not attracting enough human capital from UK, Canada. Female graduates are a majority Australia s Skills Shortage The skills crisis is industry specific Finance & Accounting Engineering Information Technology Healthcare Trades Australian International Education Conference 2006 - www.idp.com/aiec 2
Industry: Accounting Industry growth! 30,000 new roles in last 5 years Australian CPAs are expatriating. Domestic student enrolments fell by up to 20% over last 5 years Limited HECS places. UAI up to 95+. International student enrolments growing and now 47% of commencements * From Skilling Australia Conference speeches Stephen Harrison, CEO ICAA and Mark Coughlin President CPA Solutions in Place Skilled migration part of a bigger solution Retraining the mature student Women Returning to workforce Think Ability! Skilled Migration International Students Australian International Education Conference 2006 - www.idp.com/aiec 3
General Skilled Migration Select for success strategy Young (>80% students 20-29 yrs old) Australian qualified English speaking, professionals With relatives or family support Skilled migration outpacing economic and family migration! Skilled Migration Points Applicants need 120 points in major cities Basic Skill Level 40-60pts (SOL) Age 15-30pts English 15-20pts Australian Qualification 5-15pts Occupation in demand 15-20pts (MODL) Specific work experience 5-10pts Relative resident in Australia 15pts Australian International Education Conference 2006 - www.idp.com/aiec 4
Skilled Migration Points cont. Masters +10points PhD +15points Other capital investment, community language, regional campus +5points Post 1999 no occupational experience Post 2002 onshore applications Education is a major pathway to PR! How many skilled migrants? 97,500 in skilled stream in 2006 76,900 in General Skilled Migration 49,200 Skilled Independent (136,880,134) 15,000 880 Subclass Visas OR students make up 20% of skills quota & growing! Priority to MODL occupations (> 9,000 approved 880s in accounting or ICT) Australian International Education Conference 2006 - www.idp.com/aiec 5
Courses Masters by Coursework (2006 39%) Degrees of 2 years duration (2006-51%) Rising proportion of international students in IT, Accounting and Engineering - MODL Why growth in these specific areas - PR! Sources Major Sources of 880 approvals China, India, Indonesia, Malaysia 97% 880s - NESB Origins map to student volumes & growth markets of China (up 10%), India (up 35%) and Korea (up 20%) Australian International Education Conference 2006 - www.idp.com/aiec 6
Indian Students 14,000 Indian students 2005 Focus toward Masters Coursework Focus on IT & Accounting Low fee cost structure courses 66% become skilled migrants *Birrell B, Centre of Population & Urban Research, Monash University Chinese Students Focus on schools with higher reputation Focus on business disciplines 38% become skilled migrants Conclusion: MODL powerful incentive to ensure successful application *Birrell B, Centre of Population & Urban Research, Monash University Australian International Education Conference 2006 - www.idp.com/aiec 7
Student Ambitions Learn English Gain Australian Qualification Secure residency Find a good job Make money, friends and enjoy life! Education is an investment in their future with a desired outcome. Are We Succeeding - English? 43% Chinese 880s received 15 pts for language Poor outcomes Vietnam, Thailand, Taiwan, South Korea Evidence that students are in system without mandated levels of English Is 6.0 in General English or EAP sufficient for professional employment? Australian International Education Conference 2006 - www.idp.com/aiec 8
Are We Succeeding - Jobs? 12% Unemployed vs 5.5% Australia Vast number in part time employment 45% do not use their qualification in their job 54% said that work was just OK or are unhappy at work 80% have bachelor degree or higher but 30% are in relatively low skill jobs Employed earnings penalty up to 30% Result: Unemployed or Underemployed Correlations Clear correlation with jobs English Clear correlation with jobs in qualified area and English skills Clear correlation with level of skilled job and English skills Australian International Education Conference 2006 - www.idp.com/aiec 9
Example Student Kenneth Chang Graduated from a university in November 2004 as a qualified accountant and gained PR. Unable to find permanent work in corporate accounting for 2 years Shift & part time work for 2 years Now Accounts Receivable clerk Example Student 2 Grace Leung Graduated from an Australian university in November 2003 in Accounting and gained PR Unable to find permanent employment in chosen field Works in retail trade Australian International Education Conference 2006 - www.idp.com/aiec 10
Own Profession Employment Do skilled migrants gain employment in their professional area? Profession Nursing Accounting Medicine IT Engineering 96-01 69% 20% 27% 16% 7% 91-95 87% 55% 60% 38% 20% *Source: Hawthorne L, Skilled Migration Australia & Canada Compared, Ottawa 2005. What s Going Wrong? Students in system with sub standard English I ve taught them! Channels create homogeneous havens (agency & ownership etc affects pipeline) Group work at Masters level fails to test individuals - I ve studied with them Education sector more tolerant and than business in search for understanding Australian International Education Conference 2006 - www.idp.com/aiec 11
What s Going Wrong? Qualifications and work experience are not enough! Professional Business English Australian Business Culture Career Management Strategy Professional Business English Fluency & idea exchange Technical Language for industry Pronunciation Persuasion Australian International Education Conference 2006 - www.idp.com/aiec 12
English Migration Entry Test IELTS Score > 5.0 in all skills (15 pts) Reading, Writing, Speaking, Listening IELTS 5.0 Modest User Has partial command of the language, coping with overall meaning in most situations, though is likely to make many mistakes. Should be able to handle basic communication in own field Translation to Professions IELTS Handbook Linguistically More Demanding Courses such as Medicine, Law identify IELTS 7.5 as Acceptable. Linguistically Less Demanding Academic Courses such as Accounting, Mathematics identify IELTS 7.0 as Acceptable. Below these scores it identifies English Study Needed. Australian International Education Conference 2006 - www.idp.com/aiec 13
Australian Business Culture Values & attitudes Business styles & etiquette Career Management Planning Presentation Self Analysis - Allow me to read you a letter Australian International Education Conference 2006 - www.idp.com/aiec 14
Solutions All Levels Government ongoing system adjust Corporate Sector training investment Education Sector build English and career skills of students Personal Level understanding & effort We can overcome these challenges together! Thank You Thank you for the opportunity to present these ideas. Matthew Reede Executive Director Performance English Tel: + 61 2 8354 0760 Email: matt@performanceenglish.com.au Questions please? Australian International Education Conference 2006 - www.idp.com/aiec 15