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Aligning Fiji’s supply of graduates with
current and future demand
Professor Nigel Healey
nigel.healey@fnu.ac.fj
9 August 2018
Two key questions for us as the
national university:
1. What programmes should we be offering to
support the nations’ economic development
today?
2. What programmes should we be offering to
support the nation’s economic development
over the next 5-10 years?
2
Which leads to two research
questions:
1. What are the graduate outcomes from our
current programmes in terms of:
Graduate employment rates?
Graduate salaries?
1. What knowledge, skills and competencies will
employers need from graduates in 5-10 years?
3
Sources of data
1. Graduate outcomes:
This is an empirical question
The data exists in Fiji Revenue & Customs Service
(FRCS), Fiji National Provident Fund (FNPF) and
the Tertiary Scholarships & Loans Board (TSLB)
1. Future graduate attributes:
This is a matter of judgement
Informed judgements could come from Ministries,
Reserve Bank of Fiji, Investment Fiji, Fiji
Development Bank, employers’ federations etc
4
Why is answering these questions
important?
Fiji has a young population: median age is 27.5
years
Fiji is developing rapidly and becoming part of
the global knowledge economy
Education is the key to continued economic
development
In 2018/19, Government budget for education
will exceed $1bn
5
Investing in tertiary education: the
implicit development model
Investment in tertiary
education…
…creates a highly-skilled
labour force…
…which drives productivity
growth and private sector
investment…
…and so economic
development
6
Tertiary education in 1970 vs 2010
7
Argentina: 2.52% Korea: 3.16%
Argentina: 2.87% Korea: 30.04%
Per capita GDP in Korea vs Argentina
8
This only works if universities produce
employable graduates
9
Reasons for graduate unemployment
Supply equals demand, but “skills mismatch”:
Universities graduates do not have the
knowledge, skills and competencies required by
employers
Vacancies for graduates coexist with graduate
unemployment
Excess supply:
Universities produce too many graduates for the
formal sector to absorb
There are few unfilled graduate vacancies, but
high graduate unemployment
10
Matching graduate supply and demand
The main policy choices:
1.Ration the supply of university places (by discipline)
to meet forecast demand – enrolment caps
2.Have a market-driven system, where potential
students have reliable information on graduate
outcomes
11
unistats.ac.uk
12
Tertiary education in Fiji
National Toppers Scheme (NTS) provides 950 grants
(tuition/subsistence) in national priority subjects:
$43.8m in 2018/19
Enrolment caps, but at sectoral not institutional level
Tertiary Education Loans Scheme (TELS) provides
tuition and subsistence* loans
$205.6m in 2018/19
Market-driven, but no public data on graduate
outcomes
13* income-contingent
The need for data on graduate
outcomes
1. It would allow potential students to make
informed choice in a market-driven system
2. It would enable universities to adapt their
academic programmes to maximise graduate
outcomes
3. It would allow Fiji Higher Education Commission
(FHEC) to introduce enrolment caps if this
becomes the policy choice
14
Data sources for current graduate
outcomes
Every Fijian resident has a unique Tax
Identification Number (TIN)
FRCS and FNPF hold data for each resident on
income and employer
FRCS use the tax system to collect TELS
repayments and return the finds to TSLB
The FRCS/FNPF/TSLB data is confidential, but it
could be anonymised and used by (for example)
the Fiji Bureau of Statistics to produce public
data on graduate outcomes
15
Data sources for future graduate
demand
Government ministries
Fiji Reserve Bank
Investment / development banks
Employer federations
16
“What are you
planning?” ”What
graduates will you need
to fulfil your plans?”
Conclusions
Education is central to Fiji’s continued economic
development
At tertiary level it is crucial to match the supply
of, and demand for, graduates
This requires:
Empirical data about today’s graduate outcomes
Informed judgements about future demand
The holders of this information are here in the
room!
17
Vinaka!
Professor Nigel Healey
nigel.healey@fnu.ac.fj
Cell: 999-6622
18

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Aligning Fiji’s supply of graduates with current and future demand

  • 1. Aligning Fiji’s supply of graduates with current and future demand Professor Nigel Healey nigel.healey@fnu.ac.fj 9 August 2018
  • 2. Two key questions for us as the national university: 1. What programmes should we be offering to support the nations’ economic development today? 2. What programmes should we be offering to support the nation’s economic development over the next 5-10 years? 2
  • 3. Which leads to two research questions: 1. What are the graduate outcomes from our current programmes in terms of: Graduate employment rates? Graduate salaries? 1. What knowledge, skills and competencies will employers need from graduates in 5-10 years? 3
  • 4. Sources of data 1. Graduate outcomes: This is an empirical question The data exists in Fiji Revenue & Customs Service (FRCS), Fiji National Provident Fund (FNPF) and the Tertiary Scholarships & Loans Board (TSLB) 1. Future graduate attributes: This is a matter of judgement Informed judgements could come from Ministries, Reserve Bank of Fiji, Investment Fiji, Fiji Development Bank, employers’ federations etc 4
  • 5. Why is answering these questions important? Fiji has a young population: median age is 27.5 years Fiji is developing rapidly and becoming part of the global knowledge economy Education is the key to continued economic development In 2018/19, Government budget for education will exceed $1bn 5
  • 6. Investing in tertiary education: the implicit development model Investment in tertiary education… …creates a highly-skilled labour force… …which drives productivity growth and private sector investment… …and so economic development 6
  • 7. Tertiary education in 1970 vs 2010 7 Argentina: 2.52% Korea: 3.16% Argentina: 2.87% Korea: 30.04%
  • 8. Per capita GDP in Korea vs Argentina 8
  • 9. This only works if universities produce employable graduates 9
  • 10. Reasons for graduate unemployment Supply equals demand, but “skills mismatch”: Universities graduates do not have the knowledge, skills and competencies required by employers Vacancies for graduates coexist with graduate unemployment Excess supply: Universities produce too many graduates for the formal sector to absorb There are few unfilled graduate vacancies, but high graduate unemployment 10
  • 11. Matching graduate supply and demand The main policy choices: 1.Ration the supply of university places (by discipline) to meet forecast demand – enrolment caps 2.Have a market-driven system, where potential students have reliable information on graduate outcomes 11
  • 13. Tertiary education in Fiji National Toppers Scheme (NTS) provides 950 grants (tuition/subsistence) in national priority subjects: $43.8m in 2018/19 Enrolment caps, but at sectoral not institutional level Tertiary Education Loans Scheme (TELS) provides tuition and subsistence* loans $205.6m in 2018/19 Market-driven, but no public data on graduate outcomes 13* income-contingent
  • 14. The need for data on graduate outcomes 1. It would allow potential students to make informed choice in a market-driven system 2. It would enable universities to adapt their academic programmes to maximise graduate outcomes 3. It would allow Fiji Higher Education Commission (FHEC) to introduce enrolment caps if this becomes the policy choice 14
  • 15. Data sources for current graduate outcomes Every Fijian resident has a unique Tax Identification Number (TIN) FRCS and FNPF hold data for each resident on income and employer FRCS use the tax system to collect TELS repayments and return the finds to TSLB The FRCS/FNPF/TSLB data is confidential, but it could be anonymised and used by (for example) the Fiji Bureau of Statistics to produce public data on graduate outcomes 15
  • 16. Data sources for future graduate demand Government ministries Fiji Reserve Bank Investment / development banks Employer federations 16 “What are you planning?” ”What graduates will you need to fulfil your plans?”
  • 17. Conclusions Education is central to Fiji’s continued economic development At tertiary level it is crucial to match the supply of, and demand for, graduates This requires: Empirical data about today’s graduate outcomes Informed judgements about future demand The holders of this information are here in the room! 17