Summary
For people new to higher education and higher education policy, the field can seem bewildering. Basic facts are surprisingly difficult to find and interpret. Funding entitlements reflect the sector’s history more than consistent policy principles. Free markets exist alongside tight government regulation.
Mapping Australian higher education puts in one place key facts and their context.
Australia has 39 full universities, and over 130 other higher education providers. Their revenues exceed $24 billion per year, almost 2 per cent of Australia’s GDP. For such a large sector of the Australian economy, it does not always attract the policy focus and public interest that might be expected.
Student numbers, both domestic and international, have more than doubled over the last 20 years. Higher proportions are international, studying off-campus, and female, now 58 per cent of the cohort. Yet enrolments shares between broad fields of study are often surprisingly stable.
Despite the rise in student numbers, the proportion of graduates getting high-skills jobs is down only slightly over time. Male graduates earn 50 per cent more over their careers than men who finished school at Year 12, after taking out the costs of education and tax. Female graduates have a 60 per cent net earnings premium. The rate of return on higher education investment increased between 2006 and 2011.
Higher education generally meets labour market demands, although shortages of health and engineering professionals have persisted over the last decade.
Higher education research is growing rapidly. Increasing numbers of research-only staff helped university research publications more than double in a decade. Australia now has ways of measuring research quality, but policymakers are still working on measuring the social and economic impact of university research.
Australia does not have a crisis in higher education. However, some policy concerns are evident.
Student satisfaction with teaching is improving, but engagement between academics and students remains below levels achieved in other countries. This may result in Australian students learning less than students elsewhere.
The relationship between teaching and research in universities is under strain. A decreasing proportion of academics with on-going positions teach and research, with universities relying heavily on casual staff for teaching.
Per student public funding of higher education is stable, but growth in student numbers is pushing up the costs to government, which exceeded $12 billion in 2011-12. Student debt not expected to be repaid has increased significantly, and now stands at $6.2 billion.
Grattan Institute higher education reports will continue to examine these policy issues, with the goal of providing practical solutions.