State of the Environment

2006

Indicator: HS-16 Measures of knowledge and skills

Data

The following four datasets are identified to populate this indicator.

Human Capital Stock - Population based measures ($billion in 2001 dollars) - 1981-2001

Human Capital Stock - Population based measures ($billion in 2001 dollars) - 1981-2001

Source: Wei, H. 2004, Measuring the Stock of Human Capital for Australia, Australian Bureau of Statistics, viewed 25 Nov 2005, http://www.mdbc.gov.au/about/annual_reportage, p. 26

Population based Measures of Human Capital Stock
Australia – 1981-2001
1981 1986 1991 1996 2001
Male
Higher degree 40.61 52.95 85.45 121.80 160.27
Bachelor degree 208.26 296.63 378.92 512.23 659.28
Skilled labour 672.05 815.20 835.27 917.99 1 104.18
Unqualified 1 015.47 1 172.99 1 186.61 1 257.98 1 351.96
Total 1 936.39 2 337.75 2 486.25 2 810.00 3 275.69
Female
Higher degree 8.94 13.64 27.43 50.37 88.70
Bachelor degree 84.21 142.18 242.08 375.12 570.21
Skilled labour 268.68 350.49 336.29 379.87 463.99
Unqualified 887.34 968.68 979.61 1 105.62 1 177.07
Total 1 249.17 1 474.98 1 585.41 1 910.98 2 299.97
Persons 3 185.57 3 812.73 4 071.65 4 720.98 5 575.66

Source: Wei, H. 2004, Measuring the Stock of Human Capital for Australia, Australian Bureau of Statistics, viewed 25 Nov 2005, http://www.mdbc.gov.au/about/annual_reportage, p. 26

Comparison between human and physical capital ($b current dollars) Australia
Year Human capital Physical capital Ratio of human (population) to physical capital
(Labour Force) (Population)
1981 925 1187 421 2.8
1986 1673 2125 751 2.8
1991 2581 3242 1164 2.8
1996 3428 4291 1373 3.1
2001 4485 5576 1808 3.1

Source: Wei, H. 2004, Measuring the Stock of Human Capital for Australia, Australian Bureau of Statistics, viewed 25 Nov 2005, http://www.mdbc.gov.au/about/annual_reportage, p31

Education Levels
Australia – 1988-2004
1988(a) 1998(a) 2001(b) 2004(c)
Year 12 Retention rates1
Male 53.9 65.9 68.1 70.4
Female 61.8 77.7 79.1 81.2
Proportion of persons aged 15-64 years who did not complete the highest level of secondary school2 43.7 34.1 39.9 51.7
Proportion of persons aged 15-24 years in education3 43.5 54.1 60.0 56.9
Proportion of persons aged 15-64 years with a bachelor degree or higher 7.6 14.3 17.0 18.9

1 Number of school students in Year 12 expressed as a % of their respective cohort at the commencement of secondary schooling.
2 Data for 1988 are for 15-69 years and hence are not strictly comparable with later data
3 enrolled in a course of study at an educational institution

(a) Source: Australian Bureau of Statistics 2000, Australian Social Trends 2000, 1988 and 1998 data are derived from Australian Bureau of Statistics 2000, p. 82.

(b) Source: Australian Bureau of Statistics 2002, Education and Training Indicators Australia 2002, Australian Bureau of Statistics, Canberra, Data for 2001 derived from Australian Bureau of Statistics, p43.

(c) Data from Australian Bureau of Statistics 2005

Number of students ('000) in post-secondary education and training Australia – 1996 & 2001
1996 2001
Vocational Education and Training Students1 1374.4 1756.8
Apprenticeships and Traineeships2 163.3 329.6
Higher Education Students (a)3 614.1
Bachelor degree 472.0
Postgraduate degree 76.5
(a) includes Graduate diploma & Graduate certificate; Adv. diploma & diploma; Certificate; and Other.

1 Source: Australian VET Statistics 2001, National Centre for Vocational Education Research Australian VET Statistics 1996.

2 Source: NCVER 2001, Australian Apprentice and Trainee Statistics 1996 and 2001.

3 Source: Department of Education Science and Training 2002, Department of Education Science and Training, Australian Bureau of Statistics, pp. 53, 55, 57.

Measures of a Knowledge-Based Economy and Society: Australia
Stock of Skilled People
% Period % Period
Proportion of all persons aged 15-64 with a non-school qualification
Bachelor degree or above		 10.1 1993 18.1 2003
Knowledge workers as a proportion of employed persons 35.5 1997 39.2 2004
Person years Period Person years Period
Researchers devoted to Research and Development (R&D) 43 174 1990-91 71 613 2002-03
Flow of Skilled People
% Period % Period
Participation of persons aged 15-19 in secondary and tertiary education 73.4 1993 77.5 2003
% Employed Period % Employed Period
Graduate employment outcomes by qualification
All university graduates		 62.0 1991 67.0 2001
Lifelong Learning and Access to Education and Training
% Period % Period
Participation of population aged 15-19 in secondary and tertiary education 73.4 1993 77.5 2003
Proportion of population aged 15-64 in formal education 18.6 2003
Visits to public library facilities, per capita 4.8 1996-97 5.2 1999-00
Household and Individual Use of Information and Communication Technology
% Period % Period
Proportion of households with access to a computer 61 2002 66 2003
Proportion of households with access to a mobile phone 44 1998 72 2002
Proportion of households with access to the Internet 46 2002 53 2003
Proportion of individuals (adults) accessing the Internet 41 1999 58 2002
Proportion of individuals (adults) using the Internet for particular activities
Work of business related purposes 36 2001 41 2002
Educational or study purposes 32 2001 36 2002
Accessing government services (from any location) 16 2001 21 2002
Purchasing or ordering goods or services (from any location) 5 1999 15 2002

Source: Australian Bureau of Statistics 2003, Measures of a knowledge-based economy and society, Australia, Australian Bureau of Statistics, Canberra, viewed 25 Nov 2005, http://abs.gov.au/ausstats/abs@.nsf/Lookup/0DE85F3715568F21CA256D980005928A.

Proportion of households (%) with computer or internet access
Capital cities vs balance of state – 1998-2003
1998 1999 2000 2001 2002 2003
Household with access to a home computer
Capital city 48 51 55 62 65 69
Balance of state 38 40 48 52 54 61
Total 44 47 53 58 61 66
Households with home internet access
Capital city 19 52 36 47 50 56
Balance of state 10 15 26 34 39 47
Total 16 22 32 42 46 53

Source: Australian Bureau of Statistics 2004, Household use of Information Technology 2002 and 2003, Australian Bureau of Statistics, pp.7-8.

Levels of Internet use across Australia, 2001

Levels of Internet use across Australia, 2001

Source: Australian Bureau of Statistics 2004, 'Use of information technology by Aboriginal and Torres Strait Islander peoples', in Year Book Australia 2004, cat. no. 1301.0, Australian Bureau of Statistics, Canberra

What the data mean

The measure of Australia's human capital stock has increased by 75% (in 2001 dollar terms) in the two decades from 1981-2001 primarily due to the impact of a more educated and skilled workforce (Figure 1 and Table 1).

The ratio of human (population based) capital to physical capital has increased from 2.8 to 3.1 between 1981 and 2001, indicating a transition to an information and knowledge based economy, although at a slower rate than most OECD countries. (Table 2)

Year 12 retention rates have increased significantly (around 15% for males and 20% for females) between 1988 and 2004. The proportion of persons continuing post secondary education has also increased despite the increase in the proportion of persons who did not complete the highest level of secondary school. (Table 3)

The number of persons enrolled as students in vocational education and training courses and the numbers enrolled as apprentices and trainees have increased between 1996 and 2001. (Table 4)

The stock and flow of skilled people in Australia have increased between the early 1990s and early 2000s. Life-long learning and access to education and training measures have also shown greater participation of the Australian population in formal and informal education and access. Access and use of Information and Communication Technology by households and individuals have also increased in recent years. (Table 5) There has been no change in the nearly 10% difference in access to a computer and the internet at home between capital cities and the non-metro areas. (Table 6)

Issues for which this is an indicator and why

Human Settlements — Liveability of human settlements - Economic aspects of human settlements 

Levels of knowledge and skills available in a human settlement are important factors which determine the standard of living of its residents. These together with Economic well being of a settlement will contribute to the liveability of the human settlement. Collectively the four datasets comprising this indicator provide insights into the educational capital of the population.

Other indicators for this issue:

Further Information

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