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WINNING THE SKILLS RACE IN A
GLOBALLY COMPETITIVE
WORLD
TDA09 Reposition, Restructure, Retrain:
Skills for Australia’s Emergence
from the Global Financial Crisis
September 3, 2009
1
Nuclear electricity generation, 2006
Terawatt
hours net
Australia
0.0
0.0
New Zealand
0.0
0.0
United States
787.0
19.4
2,278.1
23.1
OECD Total
Source: OECD, Factbook 2008
2
As a percentage
of total electricity
generation
Global economy
• In 1981, 40% of world’s population lived on
$1/day
• In 2007, 18% of world’s population lived on
$1/day
• In 2015, 12% will live on $1/day
3
Global economy cont.
• In first 7 years of 21st century
- World’s economy grew at its fastest rate in
four decades
- Income per person across the globe rose at
3.2%, the fastest of any period in history
since we began to keep records
• Global economy grew from $23T in 1990 to
$53T in 2007; global trade increased by
133%
4
Ratio of population aged 65 and over to the
total population (Percentage)
2000
2010
2015
2020
Australia
12.4
12.9
14.3
16.4
18.3
New Zealand
11.8
12
13.1
14.9
16.7
United States
12.4
12.4
13
14.5
16.3
China
6.8
7.7
8.4
9.6
11.9
India
4.6
5
5.3
5.8
6.7
Source: OECD, Factbook 2009
5
2005
Ratio of inactive elderly population aged 65
and over to the total labour force (Percentage)
2000
2005
2010
2020
Australia
24.8
25.3
27.2
35.3
New Zealand
22.2
21.7
23.6
31.3
United States
23.5
23.5
26
35.9
China
11.7
12.8
13.9
20.8
India
12.6
13.3
13.9
16.2
Ratio of the inactive population aged 65 and over to the labour force aged 15 to 64.
Source: OECD, Factbook 2009
6
Employment rates: total
(Share of persons of working age, 15-
64 years, in employment)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Australia
67.4 67.9 68.4 69.3
69 69.4
70 70.3 71.6 72.2 72.9
New Zealand 70.6 69.6 70.1 70.7 71.8 72.4 72.5 73.5 74.6 75.2 75.4
United States 73.5 73.8 73.9 74.1 73.1 71.9 71.2 71.2 71.5
China
OECD total
Source: OECD, Factbook 2009
7
..
..
..
.. 75.6 74.9 74.5 74.2
65 65.1 65.3 65.6 65.4
72 71.8
74 73.8 73.6
65 64.8 65.2 65.5 66.2 66.7
Employment rates, men and women (Share of men/women
of working age, 15-64 years, in employment)
2002
2003
2004
2005
2006
2007
Men Women Men Women Men Women Men Women Men Women Men Women
Australia
76.8 62.1 77.1 67.9 77.6 63.1 78.5 64.7 78.8 65.5 79.6 66.1
New Zealand
79.8 65.3 79.4 65.7 80.8 66.5 81.5
United States
China
OECD total
Source: OECD, Factbook 2009
8
68 82.1 68.4 82.1
69
78 66.1 76.9 65.7 77.2 65.4 77.6 65.6 78.1 66.1 77.8 65.9
81.2 68.5 81.1 67.8 81.8 66.5 81.4 66.6 79.5 68.2 79.3
75 55.3 74.6 55.3 74.8 55.7 75.1 56.1 75.7 56.9
68
76 57.5
Employment rates by age group (Persons in employment as a
percentage of population in that age group)
2001
15- 25- 5524 54 64
yrs yrs yrs
2003
15- 25- 5524 54 64
yrs yrs yrs
2004
15- 25- 5524 54 64
yrs yrs yrs
2005
15- 25- 5524 54 64
yrs yrs yrs
2006
15- 25- 5524 54 64
yrs yrs yrs
Australia
61.2 76.3 46.7 61.1 76.7 48.7 61.8 77.2 50.5 62.4 77.4
New Zealand
55.8 79.3 60.7 56.6 79.6 63.4 56.3 79.8 64.3 56.8 80.8 67.2 56.9
United States
57.7 80.5 58.6 55.7 79.3 59.5 53.9 78.8 59.9 53.9
China
70.1 88.7 56.5 65.7 87.7 55.9 61.5 86.6 54.5 57.1 85.6 52.6 55.7 85.2 58.3 52.8
OECD total
44.8 75.8 48.4 43.7 75.4 49.4 42.8 75.3
Source: OECD, Factbook 2009
9
2002
15- 25- 5524 54 64
yrs yrs yrs
2007
15- 25- 5524 54 64
yrs yrs yrs
52 63.6 78.8 53.7 63.9 79.2 55.6 64.2
80 56.7
82 69.7 58.8 82.1 70.4 58.7 82.2
72
79 59.9 53.9 79.3 60.8 54.2 79.8 61.8 53.1 79.9 61.8
88 64.5 51.9 88.7 66.5
50 43.1 75.6 50.8 43.1 75.9 51.9 43.5 76.6 52.8 43.5 77.2 53.7
Decline in European Population
740000
735000
730000
725000
720000
715000
710000
705000
700000
695000
1985
1990
1995
2000
2005
2010
Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat,
World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2005 Revision
10
2015
2020
2025
2030
Foreign-born Population as a Percentage of the Total
Population
1995
2006 2004 2000
6.9
United States
United Kingdom
7.4 12.5
0.4
Turkey
11.5
Portugal
New Zealand
..
Mexico
Germany
11
23.0
France
Australia
Source: OECD Factbook, 2009
23.0
..
5.4
..
9.3
0.5 17.2
5.1
1.9
7.9 11.0
23.6 8.0
..
..
19.6
6.8
..
9.3 12.8
24.1 8.3
..
..
21.2
6.1
..
10.1 13.0
Poverty rates and poverty gaps(mid 2000s)
Poverty rate, ratio (left-hand scale)
0.20
40
0.15
30
0.10
20
0.05
10
0.00
0
Source: OECD, Factbook 2009
12
Poverty gap, percentage (right-hand scale)
Characteristics of the educated worker
• Well trained in ways that allow her to enter the workforce
prepared to work
• Educated sufficiently well in literacy, numeracy, critical
analytical capacity to be able to:
- Work and communicate with others
- Conceive and ask the unstructured question
- Determine a response
- Communicate either the problem or the solution to a supervisor
or co-workers as necessary
- Learn new skills frequently and quickly
13
N
ew
A
us
Ze
a
la
nd
tr
a
Po lia
la
nd
U
ni
te
G dS
er
ta
m
t
an es
Fr
y
an
ce
Po
rt
ug
al
G
re
ec
Tu e
rk
ey
M
ex
ic
o
1
Mean Reading Scores, PISA 2006
521
513
1
2003 score
Source: OECD, Factbook 2009
14
508 495.2
495
488
472
460
447
410
us
A
N
ew
Ze
al
t r an d
G alia
er
m
U any
ni
te
Fr d K
an in
ce gd
om
U
ni
te
Po d S
rt tat
ug e
s
G
a
re l
ec
Tu e
rk
ey
M
ex
ic
o
Mean Science Scores, PISA 2006
530 527 516 515 495 489 474 473 424 410
Source: OECD, Factbook 2009
15
A
N
ew
Ze
us ala
nd
tr
G alia
er
m
Fr any
an
ce
U
ni
te
U dK
ni
te ing
Po d S dom
rt tat
ug e
s
G
a
re l
ec
Tu e
rk
ey
M
ex
ic
o
Mean Mathematics Scores, PISA 2006
522 520 504 496 495 474 466 459 424 406
Source: OECD, Factbook 2009
16
Life expectancy at birth: total (Number of years)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Australia
78.2 78.5 78.7
79 79.3 79.7
80 80.3 80.6 80.9 81.1
New Zealand
77.1 77.4 77.8
78 78.4 78.7
79 79.2 79.6 79.9 80.2
United States
76.1 76.5 76.7 76.7 76.8 77.1 77.2 77.5 77.8 77.8
..
China
70.8
India
61.4 61.7 61.9 62.2 62.5 62.7
OECD average
76.3 76.6 76.8
Source: OECD, Factbook 2009
17
..
..
.. 71.4
..
..
..
..
73
..
63 63.2
..
..
..
78 78.5 78.7
79
77 77.4 77.7 77.9
Percentage of Population which has Attained
Tertiary Education, by age group (2006)
OECD average
United States
United Kingdom
Turkey
22 26.7 18.6 43.6
Portugal
New Zealand
Mexico
26.3
Greece
55-64
yrs
old
Germany
38.8 41.4
Source: OECD, Factbook 2009
18
France
Australia
25-34
yrs
old
20 12.8 36.7 39.2 33.2
16 22.7 12.7 8.3 30.3 7.3 7.7 24.1 37.7 19.5
Youths aged between 15 and 19 who are not ineducat
ion nor in employment (As percentage of persons in that age
group)
Males
Females
2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
Australia
New Zealand
United States
India
OECD average
Source: OECD, Factbook 2009
19
7.9 6.9 6.4 7.6 7.1 6.7 7.2 7.2 7.2 7.4 7.7 7.4
..
..
6.9 6.4
..
..
..
.. 8.4 9.9
..
..
..
.. 8.6 12.7
.. 6.5 5.9
6
8 7.5
.. 7.3 6.3 6.7
..
..
..
..
7
..
..
35
..
..
7.9 7.5 7.7 7.4 7.4 6.7 10.3 8.8 9.2 8.8 8.4 6.7
World Unemployment Rates (2009)
COUNTRY
United States
Euro Area
Japan
Germany
China
United Kingdom
France
Australia
New Zealand
Source: Trading Economics
20
PERCENTAGE
9.40
9.20
5.00
8.20
4.30
6.77
8.90
5.70
5.00
Gross domestic expenditure on R&D
(as a percentage of GDP)
2001 2002 2003 2004 2005 2006 2007
Australia
..
1.69
..
1.78
..
2.01
..
New Zealand
1.14
..
1.19
..
1.16
..
..
United States
2.76
2.66
2.66
2.59
2.62
2.66
2.68
China
0.95
1.07
1.13
1.23
1.33
1.42
1.49
India
0.76
0.75
0.74
0.71
..
..
..
OECD total
2.25
2.22
2.22
2.19
2.23
2.26
..
Source: OECD, Factbook 2009
21
What kind of education will be most effective in
creating the new worker?
• Flexible structure
• Geographically accessible
• Affordable
• Personalized
• Relevant
• Collaborative at faculty level
• High, demanding standards
• Respond quickly to demands of business cycle
22
Expenditure per student in tertiary education, 2005
Expenditure per student in
tertiary education:
2000 constant prices
(US dollars)
Australia
$14,579
New Zealand
$10,262
United States
$24,370
OECD average
$11,512
Source: OECD, Factbook 2009
23
Contribution of labour productivity and labour
utilization to GDP per capita (Percentage change 2001-2006,
annual rate)
Growth in GDP per capita
Growth in GDP per
hour worked
=
+
Growth in labour
utilisation
=
Portugal
Portugal
France
France
Germany
Germany
United States
United States
OECD total
OECD total
Mexico
Mexico
New Zealand
New Zealand
Australia
Australia
United Kingdom
United Kingdom
Greece
Greece
Turkey
Turkey
-2
0
Source: OECD, Factbook 2009
24
2
4
6
-2
0
2
4
6
-2
0
2
4
6
Contribution of labour productivity and labour
utilization to GDP per capita (Percentage change 2001-2007,
annual rate)
GDP per capita
GDP per hour worked
Labour utilisation
2001-2007
2001-2007
2001-2007
Portugal
0.4
1.3
-0.9
France
1.2
1.7
-0.5
Germany
1.2
1.3
-0.1
United States
1.6
2.0
-0.4
OECD total
1.7
1.7
0.0
Mexico
1.9
0.8
1.1
New Zealand
2.0
1.2
0.8
Australia
2.1
1.3
0.8
United Kingdom
2.1
2.1
0.0
Greece
3.8
2.3
1.5
Turkey
5.4
Source: OECD, Factbook 2009
25
College Readiness System
I. Establish a curriculum based on college
readiness standards
• Standards for College Success
• SpringBoard
• Advanced Placement Program
26
College Readiness System cont.
II. Ensure participation in rigorous academic
courses
• AP Potential
• SAT Readiness Program
• Teacher professional development
27
College Readiness System cont.
III. Monitor student progress
• PSAT/NMQST
• SAT
• SAT Subject Tests
28
College Readiness System cont.
IV. Facilitate college, career, and financial
planning
• College Awareness and Planning Tools
• CollegeEd
• My College QuickStart and MyRoad
• Financial Aid EasyPlanner Tools
29
Ronald A. Williams
Vice President
The College Board
1233 20th St., NW, Suite 600
Washington, DC 20036-2375
202-741-4702 phone
202-741-4743 fax
[email protected]
[email protected]
30