My Blog

Tag: Education & Training

  • Briefing Paper: Restoring public sector capability

    The Australian Public Service (APS) is responsible for delivering some of the most crucial social services to all Australians. The APS workforce includes employees who deliver frontline services like in Medicare and Centrelink, those who administer the National Disability Insurance Scheme (NDIS), and those who assist service personnel and veterans via Veterans Affairs. These are just some of the functions that APS employees undertake. Behind front line service delivery staff are employees who support these staff, work to coordinate and integrate services and provide policy and regulatory advice to government.

    This briefing paper examines the make-up of the APS and considers recent efforts to improve APS service delivery. We conclude that recent investment in the employment of more APS employees has improved service delivery and that any reduction in APS employees will reduce service delivery or result in the engagement of more consultants and contractors.

    In this paper we debunk several of the myths promoted in the political debate around the size of Australia’s public service. One such myth is that Australia’s public service is “bloated” or “inefficient”. The research also found that despite claims to the contrary, most of the public service jobs created since 2022 were not based in Canberra.

    The post Briefing Paper: Restoring public sector capability through investment in public service employees appeared first on The Australia Institute's Centre for Future Work.

  • Economic Prosperity, Public Sector Restraint (SA)

    New report contrasts South Australia’s economic progress with continued public sector wage restraint

    By many measures, South Australia has enjoyed the strongest economy of any state in Australia. Its economic growth has been faster in recent years than any state – and in per capita terms, its prosperity has improved twice as fast as the national average. It enjoys a stable, diversified economic base: reflecting a virtuous combination of strong business investment, exports, household consumption, and government spending (both on current services and on capital investment). The state’s labour market has been operating at or near record-low levels of unemployment and underutilization.

    Unfortunately, this economic progress has not been reflected in improvements in state-funded public services in South Australia. The proportionate share of the economy contributed by state-funded services and infrastructure investments has been declining since before the pandemic (and is now lower as a share of the state’s economy than any other state). State public sector workers have borne the burnt of this restraint: their wages have lagged far behind inflation, resulting in a painful real wage cut for state employees.

    In a new research report, Economist Jack Thrower shows that real wages for state public servants in South Australia have declined by as much as 10% since 2019. This represents a one-tenth reduction in the real purchasing power of their salaries, imposing severe financial stress on tens of thousands of households – and undermining consumer spending and economic growth.

    The report also confirms that South Australia possesses abundant fiscal capacity to repair this damage to real compensation for public sector workers. The state government’s core revenues are growing much faster than core expenses, and the budget is projected to return to surplus this year – faster than any other state other than Western Australia. Rebuilding public servant wages to catch up to past inflation should be a vital priority for the state government.

    Please read the full report, Economic Prosperity, Public Sector Restraint: Unpacking South Australia’s Economic and Fiscal Advantages in the Shadow of Public Sector Pay Erosion, by Jack Thrower.

    The post Economic Prosperity, Public Sector Restraint appeared first on The Australia Institute's Centre for Future Work.

  • Leaving Money on the Table: SRS Underfunding

    Analysis of Schooling Resource Standard underfunding.

    Authors: Jim Stanford

    Download the full report.

  • Public sector wages fall further behind

    Analysis of public sector wage caps and their economic impact.

  • Solid Foundations, Bright Future (NSW)

    New South Wales has one of the most prosperous and productive economies in Australia, with a diverse base of economic activity and strong labour market. However, years of austerity have hollowed out its public sector, creating one of the proportionally smallest state public sectors in the country in terms of both economic activity and employment.

    Despite the instrumental role the public sector played in navigating the state through the pandemic, weak wage growth and rising inflation have compounded the impacts of austerity, leading to significant reductions in public sector real wages. While the current government’s scrapping of the wage cap and implementation of public sector wage rises has undone some of this damage, most notably the October 2023 wage rises for public school teachers, more repair is needed.

    The NSW government has a strong fiscal position with which to manage these challenges. NSW maintains nearly the highest credit rating in the country and relies on revenue bases that are both diverse and stable. Additionally, there is considerable evidence that, if needed, several options are available to increase state government revenue. As the state economy weakens in response to high interest rates and declining real incomes, the state government has the responsibility to contribute to support the economy and broader society, through expansion of public services, repair of public sector wages, and support for the most vulnerable.

    The post Solid Foundations, Bright Future appeared first on The Australia Institute's Centre for Future Work.

  • Aged care reforms fall short on quality, safety

    The Centre for Future Work warns that reforms due to come into effect from July – including screening requirements to exclude unsuitable workers and a mandatory code of conduct – do not go far enough to ensure the quality and safety or recognise workers’ skills.

    Key findings:

    • The report, Professionalising the Aged Care Workforce, calls for the mandated, sector-wide professional registration and minimum aged care worker qualifications that require all workers to have at least a Certificate III
    • Costs would be minimal because two out of three personal care workers already have a Certificate III or higher qualification
    • Mandating minimum training requirements would lead to higher quality and safer care as well as better career paths for workers to help meet the growing and complex needs of an ageing Australia
    • Two of every three personal care workers already hold a Certificate III or higher qualification
    • Minimum aged care worker qualifications to Certificate III level and access to ongoing professional development were key recommendations of the 2021 Aged Care Royal Commission

    “This is about long-term sustainability for the aged care workforce,” said Dr Fiona Macdonald, Policy Director, The Centre for Future Work at the Australia Institute.

    “Setting a minimum education standard for all aged care workers would lead to higher quality care. It would also allow for the recognition of the skills required to care for society’s most vulnerable.

    “Four out of five aged care workers are women and care work has long been undervalued and low paid. Fixing this is vital for people receiving care, workers and our communities.

    “Workers are facing new demands to comply with screening and obligations to meet standards under a new code of conduct. Yet, there is still no formal recognition of workers’ skills or system-wide requirements for accredited training.

    “While the government is moving to screen out unsuitable aged care workers, it is failing to give those working in or considering aged care meaningful professional development or options for career progression.

    “Mandatory and coordinated accreditation would allow workers to have their skills recognised, boost job satisfaction and make the industry more attractive as a long-term career.

    “The Aged Care Royal Commission has been crystal clear about the need for these reforms. It’s beyond time to deliver them.”

    The post Aged care reforms fall short on quality, safety appeared first on The Australia Institute's Centre for Future Work.

  • Report Reveals True Potential of Fully Funded Public Schools

    “The Case for Investing in Public Schools: The Economic and Social Benefits of Public Schooling in Australia” has found that the current inadequate funding for public schools is preventing students from reaching their full potential and is depriving the nation of the significant benefits of high levels of school completion.

    The report simulates the short-run and long-run economic benefits arising from the 15% increase in public school funding that would be required to meet the minimum resource benchmarks established through the Schooling Resource Standard (SRS).

    Key findings:

    • Inadequate funding is linked to falling school completion rates and declining relative performance in international achievement. Students from relatively disadvantaged socio-economic, regional, and Indigenous backgrounds are most likely to be affected.
    • Additional funding of $6.6 billion per year is needed for public schools to meet the SRS commitments adopted by federal and state governments a decade ago, a 15% increase in total public school funding.
    • With additional resources, the decline in high school completion rates that has occurred since 2017 could be repaired under a modest estimate, and further gains in completion (in line with historical trends) attained under an optimistic estimate.
    • The enhanced funding and resulting improvements in school completion could lead to employment, economic activity, productivity gains and social savings equal to $17.8 billion and $24.7 billion annually (in 2022 terms) after two decades.
    • These economic benefits are two to four times greater than the additional yearly cost required to fully meet the SRS for public schools.
    • Fiscal improvements resulting from these economic gains, such as increased tax revenues and reduced social expenditures, would eventually offset the incremental resources needed for full SRS funding.

    “Australia’s economic success relies heavily on the potential of our young minds,” said Dr Jim Stanford, Director of the Centre for Future Work, and co-author of the report (with Eliza Littleton and Fiona Macdonald).

    “Public schools play a critical role in ensuring that students have access to an education that provides them with choice and opportunity throughout their lives – regardless of their postcode or economic and family circumstances.

    “With stronger school completion and academic achievement, our communities thrive and our nation benefits from increased economic activity, productivity and earnings.

    “The total economic benefits arising from adequate public-school resourcing would be two to four times larger than the cost of meeting SRS funding standards. The fiscal gains associated with those economic benefits would ultimately offset the cost to government of improved public school funding.

    “Every dollar invested in public education translates into a stronger, more cohesive, and prosperous society. Let’s not rob our students, and our nation, of this opportunity,” Dr Stanford concluded.

    The post Report Reveals True Potential of Fully Funded Public Schools appeared first on The Australia Institute's Centre for Future Work.

  • The Case for Investing in Public Schools

    Public schools play a critical role in ensuring access to educational opportunity for Australians from all economic and geographical communities.

    Public schools are accessible to everyone. They provide a vital ‘public good’ service in ensuring universal access to the education that is essential for a healthy economy and society.

    However, inadequate funding for public schools – measured by persistent failure to meet minimum resource standards established through the Schooling Resource Standard (SRS) – is preventing students in public schools from fulfilling their potential. Growing evidence (including the latest NAPLAN testing results) attests to declining student completion and achievement in Australia, with major and lasting consequences for students, their families and communities, and the economy.

    In this new report, Centre for Future Work researchers Eliza Littleton, Fiona Macdonald, and Jim Stanford document the large economic and social benefits of stronger funding for public schools. The report measures three broad channels of benefits:

    1. The immediate economic footprint of public schools, including direct and indirect jobs in schools, the education supply chain, and downstream consumer industries.
    2. The labour market and productivity gains resulting from a more educated workforce.
    3. Social and fiscal benefits arising from the fact that school graduates tend to be healthier, require less support from public income programs, and are less likely to be engaged with the criminal justice system.

    Citing international and Australian evidence regarding the scale of these three channels of benefit, the report estimates that funding public schools consistent with the SRS would ultimately generate ongoing economic and fiscal benefits two to four times larger than the incremental cost of additional funding. For governments, the fiscal payback from those benefits (via both enhanced revenues and fiscal savings on health, welfare, and criminal justice expenses) would exceed the upfront investments required in meeting the SRS.

    Please see the full report, The Case for Investing in Public Schools: The Economic and Social Benefits of Public Schooling in Australia, by Eliza Littleton, Fiona Macdonald, and Jim Stanford.

    The post The Case for Investing in Public Schools appeared first on The Australia Institute's Centre for Future Work.

  • Public Attitudes on Issues in Higher Education

    This report, by Senior Economist Eliza Littleton, combines data from the Department of Education, the OECD, and original survey data from a national poll conducted by the Centre for Future Work to draw attention to key challenges facing public universities today. The Federal Government’s new ‘Universities Accord’ creates an important opportunity to address these challenges and put higher education back on a better path.

    The post Public Attitudes on Issues in Higher Education appeared first on The Australia Institute's Centre for Future Work.

  • Public Services in the Hunter (NSW)

    State-funded programs account for the lion’s share of public service jobs in the Hunter region: over 80% in total (in health care, education, state government, transport, first responders, social services, and more). That means a strong and stable commitment by state government to funding these services will be essential for the Hunter to continue reaping these economic and social benefits.

    Major findings of the report include:

    • Four sectors in which public provision is especially important (including health care, education, public administration and safety, and transportation) account for 35% of total Hunter region employment, and 85% of net job growth, in the last 5 years.
    • State-funded services alone account for almost 30,000 direct full-time equivalent (FTE) positions in the Hunter region, making this sector the largest single employer in the region. Those services add over $3 billion per year to regional GDP.
    • Combined wages and salaries for state public sector workers in the Hunter total $2.65 billion per year – constituting an enormous injection of household income and spending power into the regional economy.
    • State-funded service providers in the Hunter (including hospitals and schools) purchase some $1.3 billion worth of “upstream” inputs, materials, supplies, and services from private businesses in the public sector supply chain.
    • Consumer spending by state public service workers in the Hunter (and those in the supply chain) adds $1.75 billion to the sales of consumer goods and services businesses, most of them located right in this region.
    • For every 10 direct jobs in state-funded public services, there are another 5 indirect jobs in upstream supply chain and downstream consumer industries. In total, 45,000 regional jobs (public and private) depend on continued provision of high-quality state public services.
    • Public sector jobs are an especially important source of work and income for women. Women account for 64% of jobs in major Hunter public sector industries. The gender wage gap in public services is much smaller (12% for full-time ordinary earnings) than in the private sector.
    • Public services are especially important in regional areas, due to dispersed and older populations; greater distances between communities; and limited alternative employment opportunities. State service jobs (FTEs) make up 11.4% of all employment in the Hunter, 2 percentage points more than in Sydney.

    There is an unfortunate tendency in politics to view public services as merely a cost item on a government budget. But in fact they are a vital driver of economic growth and job-creation.

    State-funded public services also support tens of thousands of private sector jobs in the Hunter, both upstream in the supply chain and downstream through consumer goods and service sectors. It is vital to the prosperity of the whole region that these services are supported and well-funded.

    International evidence indicates that quality of life considerations (including community safety, housing, transportation, and culture and recreation) are increasingly vital in attracting new business investment to a region. This requires continued public fiscal support for top-quality public services.

    Please see the full set of fact sheets, Public Services in the Hunter: An Engine of Economics and Social Prosperity, prepared by Jim Stanford below. The fact sheets were commissioned by Hunter Workers.

    The post Public Services in the Hunter appeared first on The Australia Institute's Centre for Future Work.