Despite a 4.7 percent decline in total exports over the 12 months to September, the education sector demonstrated a remarkable surge, with its value escalating by 68 percent during the same period.
Despite a 4.7 percent decline in total exports over the 12 months to September, the education sector demonstrated a remarkable surge, with its value escalating by 68 percent during the same period.
In the face of challenging conditions affecting the other major export markets of Australia, the country’s Department of Education bolstered the economy with an additional $12.1 billion in the third quarter of 2023, according to new figures from the Australian Bureau of Statistics.
Despite a 4.7 percent decline in total exports over the 12 months to September, the education sector demonstrated a remarkable surge, with its value escalating by 68 percent during the same period.
Education has outperformed major goods exports, including coal, coke, and other minerals, all of which experienced notable declines over the year.
The most recent quarterly outcome signifies that the education sector has contributed an additional $34 billion to export revenue in 2023. This trajectory positions it on track to surpass the record set in 2019 when it earned the nation $41 billion.
Universities Australia Chief Executive Catriona Jackson emphasized the importance of recognizing the substantial economic and social contribution made by international students in any changes to the flow of international students to Australia in the government’s forthcoming migration strategy. She stated that, “Education is the biggest export we don’t dig out of the ground.”
“It makes us tens of billions of dollars each year, supports tens of thousands of jobs and helps pay for the essential services all Australians rely on. Beyond that, it makes us friends, acting as a bridge between nations and supporting regional stability which is only becoming more important in a fast-changing strategic environment” she added.
Jackson pointed out that Australia has gained a significant competitive advantage in the global competition for international students through long-term strategic efforts. She emphasized the need for cautious consideration of any changes limiting the influx of these individuals to Australia, highlighting the substantial benefits they contribute both during and after their studies.
Unprecedented surge in international students
Australia is witnessing an unprecedented upswing in the enrollment of international students. Recent statistics from the Department of Home Affairs reveal a historic issuance of 664,200 student visas in September, indicating a yearly surge of 306,300.
Comparatively, the number of student visas granted in September surpassed the previous peak in September 2019 by around 110,000. Moreover, there has been a record high in graduate visas, reaching 193,300 in September, denoting an increase of about 95,000 over the course of the year.
Based on this updated information, an extraordinary statistic emerges—approximately one in every 30 individuals in Australia has possessed a student or graduate visa, underscoring the magnitude of this trend.
The surge in international students has significantly contributed to Australia’s rental crisis, leading to a record low rental vacancy rate of 0.9 percent across the combined capital cities and widespread rental price inflation.
Enhanced measures for international students
The Australian government recently announced enhanced measures for international students representing a significant commitment to improving the quality and integrity of the educational experience in the country. These measures, aiming to safeguard the interests of international students, have far-reaching implications for both students and the education sector.
Firstly, the prohibition of fees paid to education agents for student transfers between Australian providers marks a notable shift. Historically, the role of education agents has been contentious, with concerns over conflicts of interest and the quality of advice given to students. This ban seeks to reduce unethical practices, ensuring that students’ educational choices are not unduly influenced by financial incentives.
Secondly, the increased access to education agent data for providers is a strategic move. By enabling education providers to work with high-quality agents, the government aims to enhance transparency and accountability in the recruitment process. This is critical for maintaining the integrity of Australia’s education system and ensuring students receive accurate and honest guidance.
Misery machine
The ongoing housing predicament in Australia, elucidated by economist Chris Richardson, unravels a intricate nexus of economic, policy, and social quandaries intermingling with the nation’s housing policy, migration, and education sector.
Drawing from his background at the International Monetary Fund and the Australian Treasury, Richardson labels the Australian housing market a “misery machine,” signaling the shortcomings of policies spanning the last four decades. His blunt evaluation is set against the backdrop of soaring housing costs and constrained rental availability, compounding the hardships for numerous Australians.
The anticipation that ascending interest rates would regulate housing and inflation, once a viewpoint espoused by Richardson, now appears insufficient. Despite the rise in interest rates, housing prices have surged, contradicting the expected stabilizing impact.
