Are Australians really overeducated? It depends what education is for
According to a new survey, almost 50% of Australian workers say they are overeducated. But there are more reasons to study than getting a job.
The Australian government is aiming for 80% of adults to hold a vocational or university qualification by 2050, a goal that has been questioned by a recent survey. According to the Household, Income and Labour Dynamics in Australia (HILDA) Survey, 49.5% of workers aged 18 to 64 are "overeducated," meaning they have a higher educational level than they believe is necessary for their job.
Additionally, 25.7% of workers are "overskilled," indicating they do not use many of their skills in their jobs. While it might be tempting to criticize this trend, it is essential to consider the reasons behind the global increase in tertiary graduates over the past generation. HILDA surveys around 17,000 Australians annually, asking them about their highest educational qualification and the minimum level required for their job.
Comparing these figures allows researchers to determine the rate of overeducation. Occupations with the highest levels of overeducation include labourers, sales, machine operators, and personal and community care workers. Historically, wealthy countries have seen a growing proportion of adults completing higher education, driven by the belief that it will stimulate economic growth.
Australia is no exception, with the proportion of people aged 15 to 74 holding a bachelor's degree or above increasing from 26% in 2016 to almost 34% in 2025. While people may feel there is a mismatch between employment and their job today, especially in a poor economic climate, this may not be the case at other points in their working lives.
A bachelor's degree can support a career over a lifetime, not just a single job. Economic theories about the purpose of education differ. Economist Gary Becker focused on "human capital," emphasizing the necessary skills and experiences for a specific job. However, other research suggests that a qualification can serve different functions, such as signaling to employers that a candidate is a "good fit," capable of meeting deadlines, working long-term, and performing under pressure.
These HILDA figures suggest that many Australians see a mismatch between their study and their job, which may prompt the government to consider a post-secondary education system with various options. This could include shorter higher education degrees, more micro-credential opportunities, and different combinations of vocational degrees and certificates, such as short courses.
The evolving needs of labor markets may necessitate some skill mismatches, but policymakers must consider all the reasons people choose to study when deciding on the education system they want to offer.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
