The Labour Market and Higher Education in Ireland

1Higher Education Authority

An tÚdarás um Ard-Oideachas

HEA

The Labour Market and Higher Education in Ireland

13 February 2007



HEA

Overview

• Context

• Contribution of higher education to economy

• Specific initiatives

• Challenges



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ContextHigher Education Indicators

• Consistent growth in demand for higher education: 20% 1980 → 55% 2004

– 2005/06 full-time enrolments: c. 135,000– HE spend:

• 2007 University recurrent grant - €7.8m

• 2007 Institute of Technology recurrent grant - €5.4m

• 2006 Capital grant - €40m



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Remarkable expansion of higher education

Entry rates to Irish higher education, 1980 to 2004

20%25%

36%

44%

55%

0%

10%

20%

30%

40%

50%

60%

1980 1986 1992 1998 2004

% o

f age c

ohort

at

typic

al age o

f entr

y



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Educational profile of the Irish population

Persons with third-level qualifications by age group, 2004

15%

11%8%

6% 6%

26%

18%

13%

11%9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

25-34 35-44 45-54 55-59 60-64

Third Level non degree Degree or above



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Structure of Higher Education in Ireland

• Universities

• Institutes of Technology

• Higher Education Authority



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Ireland’s average annual growth rate:1995 – 2005: 7.4% 2000 – 2005: 5.18%

GDP per capita:we rank 4th in the OECD (2004)

Unemployment rate:4.4%. In 1994 it was 15.7%

Concerns: rising costs → decreasing competitiveness

Economic Profile

Key Economic Statistics – Indicators of our economic development



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Contribution of Higher Education to Economic Growth

“It is accepted that the quality of our educated young people has been at the heart of the economic success of the past 15 years”. “...the single biggest contributor to our economic success has been the exceptional wealth of intellectual capital available to both indigenous and overseas visitors. Ireland has become synonymous with the quality of our graduates” (Budget 2006: Financial Statement of the Minister for Finance).

• First Destinations of Graduates Report (FDR): » 3% of 2004 graduates seeking employment in April 2005

» Over 60% of 2004 Level 6-7 graduates went on to further study



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Specific Initiatives

• Institutes of Technology (IoTs)• Expert Group on Future Skills Needs (EGFSN)

» ICT Fund

• Enterprise Strategy Group• FÁS / ESRI

» Manpower Studies

• Strategy for Science, Technology and Innovation (SSTI)

• National Development Plan



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Expert Group on Future Skills Needs

• Establisment of Expert Group for Future Skills Needs (EGFSN) by Government in 1997

• Studies the demand and supply for skills in business, industry and profession and puts forward recommendations for meeting skills needs

• Reports to both Enterprise and Employment and Education Ministries

• New places inITLife SciencesHealth Sector – Therapies, Pharmacy, Social Work and

NursingTeachers

• ICT Fund



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Enterprise Strategy Group

• Enterprise Strategy Group (ESG) established in 2003

• Membership – education, business and Government representatives

• Implementation group formed – Enterprise Advisory Group (EAG)

• Higher education recommendations: • Top decile • Upskilling of workforce• Curricular recommendations



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National Development Plan (NDP)

“As well as providing the physical infrastructure to support progress, a major focus of the plan is on investment in education, science, technology and innovation. This remains the key to Ireland’s future development. Only a society that is committed to growth based on education, innovation and a spirit of enterprise can successfully meet its social and environmental challenges” NDP 2007: introduction by Tánaiste

• Multiannual funding

• Capital and recurrent envelope

• NDP priorities:» lifelong learning » broadening access to higher education



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Future Challenges

• Increasing higher education attainment levels

• Upskilling the workforce

• New skills

• The role of higher education

Documents

The Labour Market and Higher Education in Ireland