Search results

This paper examines the changing demand for skills in Australia and finds that, at the aggregate economy level, the supply of skilled relative to unskilled workers has increased in line with increasing relative demand. The authors also examine the effect of increased skill on conventionally measured productivity growth and report that, during the 1990s productivity surge, the contribution of skill to productivity growth was diminished by the contribution of other factors. Key points to emerge from the research are: (1) the demand for skilled workers in Australia has increased faster than that for unskilled workers over the last two decades; (2) factors other than increased skill have mainly contributed to Australia's productivity surge from the mid-1990s; (3) international comparisons do not support a link between growth in skills and Australia's 1990s productivity surge; and (4) despite these findings, education and skills still remain important for long-term growth and for meeting the changing pattern of demand.