Overseas students 'vital' to economy

The two articles posted below are very significant. these clearly highlight that International students are the key drivers of the Australian economy in this time of International economic crisis. every dollar that an international student spends for fees/living expense contributes to job creation here.  Read below the articles from The Australian.

Overseas students 'vital' to economy

A DROP of 5 per cent in the number of overseas students at Australian colleges and universities would cause 6300 Australians to lose their jobs as the economy shed more than $600 million in export revenue, a new report warns.

The Access Economics report on the contribution of overseas students to the Australian economy, released today, confirms the export education sector's bullish growth prospects.

It estimates that while overseas students and their families spend $14.1 billion each year in Australia, this creates an extra $12.6 billion in "value added" goods, services and jobs.

The export education industry's total contribution to the Australian economy is more than $26.7 billion.

The report estimates that for every four overseas students who come to Australia to study, more than one Australian job is created.

But it also warns of the dire consequences of any contraction in overseas student numbers, and models the impact of a "shock" to the national economy of a 5 per cent fall in global demand for Australian education.

Commissioned by the Australian Council for Private Education and Training, which represents more than 1100 private colleges, the report comes a fortnight after the federal Government announced plans to cut the skilled migration intake by 14per cent next year.

There are fears that the Government's shake-up of skilled migration, which is expected to reduce the number of permanent visas by 18,500 next year, could dampen demand from overseas students for Australian education.

Access Economics found, for example, that in 2007-08 more than 21,000 overseas students were granted residency under various visa class applications.

ACPET national executive officer Andrew Smith said the report highlights the risk to Australian jobs if international student numbers are reduced as part of migration reform.

"Our sector is one of the best performing industries in the country, employs more Australians each year and has proven extremely resilient to the impact of the global financial crisis," Mr Smith said.

"In steering Australia through one of the most serious economic crises in history, it is vital that we don't put at risk industries that are performing well, such as our thriving international education industry, in order to protect others that are not."

The report finds that Australia's export education industry grew 42 per cent in the three years to last year, employs 126,000 people, and contributes 1per cent of the nation's GDP.

It confirms that the education sector is the nation's third-biggest export earner behind coal and iron ore, and performs better than travel, services (professional, business and technical), gold, crude petroleum and aluminium.

"Each international student, including their friend and family visitors, contributes an average of $28,921 in value added to the Australian economy and generates 0.29 in full-time equivalent workers," the report finds.

Last year, overseas students spent about $13.7 billion -- including $6.4 billion on education fees and $4.3 billion on food and accommodation -- while visiting friends and family spent $365.8 million.

In addition, Australian education providers earned $438 million from overseas campuses and consultancy services.

While Australia's universities are reporting continued strong international enrolments, concerns remain the market could yet take a hit if the economic downturn bites hard in Asian source countries.

There is also a risk that students will be put under pressure by part-time work opportunities drying up.

Source: The Australian

Learning boom amid the economic gloom

Learning boom amid the economic gloom

AUSTRALIA'S export education industry grew 42 per cent in the three years to 2008, employs 126,000 people and contributes 1per cent of the nation's gross domestic product, according to an Access Economics report.

The report, to be released today, is the first to synthesise all available data on the economic contribution of international students to the Australian economy.

It finds that the total impact of the export industry on the economy, once the "value-added" effect of $12.6 billion is added to direct expenditure by overseas students and their families of $14.1 billion, exceeds $26.7 million. Commissioned by the Australian Council for Private Education and Training, it confirms that the education sector is the nation's third biggest export earner behind coal and iron ore, outperforming travel, services (professional, business and technical), as well as exports of gold, crude petroleum and aluminium.

The report found that every dollar spent on education by an international student in Australia contributed an additional $1.91 to the economy.

International student activity is estimated to have contributed just more than 122,000 full-time equivalent employees to the economy in 2007-08, it says. "Of these, 33,482 were employed in the education sector and 88,649 in other related sectors."

ACPET national executive officer Andrew Smith confirmed to the HES yesterday that enrolments in private colleges were holding firm this year and in some cases rising amid the recession. "While a number of other industries are contracting, this is one that is going from strength to strength," he said. "It is important to the Australian economy that this is recognised."

Mr Smith described the export education sector, comprising public and private providers, as "a booming industry and one of our strongest defences against global recession". For every four overseas students to enter the country, a job was created.

The Access Economics report found that in 2007-08 more than 21,000 overseas students were granted residency under various visa class applications.

It predicts that a 5 per cent reduction in overseas student numbers would cause 6300 Australians to lose their jobs as the economy lost more than $600million in export revenue.

Australian education providers also earned $438 million from overseas campuses and consultancy services, bringing total income for the sector to $14.1billion. Of $13.7 billion spent by overseas students in 2007-08, more than $6.4 billion went on education fees and $4.3 billion on food and accommodation. The report found that Australia, with less than 1 per cent of the world's population, enrolled 7.5 per cent of the world's international students.

Overall, the international enrolments of private sector providers grew by 92.6 per cent from 2006 to 2007. The highest growth was experienced in Victoria, where the sector increased by almost 250 per cent.

This compares with growth of only 7.7 per cent between 2006 and 2008 in the number of overseas students in higher education, suggesting that "the sector has reached a mature growth phase compared with other sectors of the education market".

The English Language Intensive Courses for Overseas Students and vocational education and training sectors, in contrast, experienced a surge in growth during the period, with enrolments increasing by 63.7 per cent and 112.6 per cent respectively.

Mr Smith added that the importance of the export education industry could not be measured solely in economic terms.

"Education makes an enormous contribution to the students who come here to study, and to their communities when they return and take an Australian education home," he said.

IDP Education chief executive Tony Pollock said the report showed that international education was important to the students who came to Australia and the Australian economy.

"International education is a high-value, knowledge industry (that) creates jobs in Australia and, as a nation, we have proved we are very good at it," he said.

TAFE Directors Australia chief executive Martin Riordan said vocational students accounted for almost half the overseas students, and showed heftier spending on a government campaign to shore up recruitment of overseas students was justified.

Mr Riordan also warned that a critical lack of student housing needed to be addressed.

Source: The Australian

Australia Unemployment at record high

 State feels sting of job losses

Peter Martin
March 13, 2009 - 1:32PM

AUSTRALIA'S unemployment has surged to its highest level in five years, with Victoria suffering the biggest rise in the nation.

As the financial crisis began to bite, Victoria's unemployment rate jumped from 4.8 per cent to 5.6 per cent, putting it behind only NSW and South Australia.

Australia's unemployment rate rose from 4.8 to 5.2, meaning that 590,000 people are out of work, the most since mid-2003.

The speed with which the jobless rate has risen in recent months has prompted speculation that it will exceed the Federal Government's forecast of 5.5 per cent by June, and 7 per cent midway through next year.

It has also increased the chances of an interest rate cut next month.

The figures came as the World Bank predicted that the global economy was heading for its worst recession since the 1930s and amid increasing speculation that US President Barack Obama would introduce another big stimulus package.

While Australia's unemployment rate has jumped, the number of people in work appears to have remained broadly steady. But the make-up of jobs is shifting from full-time to part-time, with Victoria leading the change.

An Age analysis shows that 35,300 full-time jobs have vanished in Australia since November, replaced by an extra 38,400 part-time jobs.

The fewer hours worked means Australia in the past three months lost the equivalent of 16,100 full- time jobs, more than half in Victoria.

In the past six months, Australia has lost the net equivalent of 21,300 full-time jobs, again more than half in Victoria. Only Western Australia has lost more work than Victoria in recent months.

The jobless figures were bad news for Victorian Premier John Brumby, who also saw the state's surplus slashed yesterday. Mr Brumby told parliament Victoria was facing the toughest economic conditions since the Great Depression, but said the Government remained "totally focused" on jobs.

Prime Minister Kevin Rudd said the spike in unemployment was the result of global pressures, and would have been worse if not for Canberra's stimulus measures.

But Opposition Leader Malcolm Turnbull said the Prime Minister should take responsibility for the "Rudd recession". He said it was such a big jump in one month that it cast doubt on the Government's forecasts.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said the data was "a clear warning" that the jobless rate would rise faster than the 7 per cent forecast.

ANZ economist Riki Polygenis said the drift away from full-time work did not bode well for economic growth. He said it appeared companies were cutting staff working hours and this would put pressure on household spending.

Joshua Williamson of TD Securities said employers were still in the first stage of lowering working hours to cut costs as business shrank. "The leading indicators strongly suggest they will shed labour outright over the course of 2009," he said.

Women are holding onto full-time jobs much better than men, with trend figures showing no loss of female full-time jobs in the past three months, the period in which the Federal Government's stimulus package has shored up the fortunes of retailers, traditionally big employers of women.

World Bank president Robert Zoellick revealed in a British newspaper interview yesterday that he expected the global economy to shrink 1 to 2 per cent this year. In the interview, Mr Zoellick said: "These are serious and dangerous times. We haven't seen numbers like this since World War II."

The bank's updated forecast will be used to guide finance ministers and treasurers from the Group of 20 leading economies meeting in London on Saturday.

In comments that will not be welcomed by Treasurer Wayne Swan, who left for the meeting yesterday, Mr Zoellick played down the importance of more stimulus measures, saying it was more important to fix the financial system and help ailing developing nations. "Stimulus plans will be like a sugar high unless you fix the banking system," he said.

Source: The Age

opinion: Australia is now feeling the impact of the Global Economic Crisis. This is inevitable. however, there is some hope that the stimulus package will offer some protection. the truth is that there has been a freeze in full time and part time recruitment which is impacting thousands of students. however, this could only be a passing phase and things can hopefully be turned around.

Skilled Migration Numbers Slashed

Skilled migrants cutback

Michelle Grattan and Peter Martin
March 16, 2009 - 12:00AM

AUSTRALIA'S intake of skilled migrants will be slashed by 18,500 over the next three months — 14 per cent of the annual intake — in a dramatic move to protect local jobs.

Less than a year after increasing the skilled migrant intake to record levels, the Rudd Government has responded to the deepening economic crisis by removing building and manufacturing trades from the list of workers Australia is seeking from overseas.

Bricklayers, plumbers, welders, carpenters and metal fitters will no longer get entry. The list of critical skills is now confined mainly to the health and medical, engineering and IT professions.

The cut reduces the skilled migrant intake for the 2008-09 financial year from 133,500 to 115,000.

The Government had already foreshadowed a reduction in skilled migrants — who form the bulk of the immigration intake — next financial year, with details to be announced in the May budget.

The decision to cut the number of skilled migrants now shows the Government's growing concern about ballooning unemployment, which in February rose from 4.8 per cent to 5.2 per cent.

The official forecast of a 7 per cent unemployment rate by mid next year is certain to be revised up in the budget.

The deep cut in skilled migrant numbers follows December changes that meant only migrants sponsored by an employer or in an occupation on the critical skills list could get a permanent visa. Almost half the visas granted in this category are to people already working in Australia.

Immigration Minister Chris Evans promised further paring back of the critical skills list if warranted. "The Government will remove occupations from the list if demand for those skills can be satisfied by local labour."

Senator Evans said the overwhelming message from business and industry "is that Australia still needs to maintain a skilled migration program but one that is more targeted so that migrant workers are meeting skills shortages and not competing with locals for jobs".

There were still shortages in sectors such as health care. The measures will enable industry to continue to get the skilled professionals needed "while protecting local jobs and the wages and conditions of Australian workers", Senator Evans said.

He added that the Government remained committed to a strong migration program. "Skilled migration plays a crucial role in stimulating the economy."

The cuts came as Mr Swan signed an international communique agreeing to "fight all forms of protectionism and maintain open trade and investment".

Finance ministers and treasurers from the Group of 20 large industrial and developing nations met in Horsham, south-west of London, to thrash out an agreement that committed them to "take whatever action is necessary until growth is restored" with the proviso that they kept their borders open.

"We will try to ensure that there is no intended or unintended trade protectionism," said the meeting's chair, UK Chancellor of the Exchequer Alistair Darling, speaking to reporters after the meeting.

Mr Swan told the ABC there had been little disagreement: "You didn't see that in the meeting today. It was a very encouraging outcome. I've been coming to a number of these meetings over the last six months or so and today I saw a resolve we haven't seen before."

Ministers agreed to boost their contributions to the International Monetary Fund to let it help countries that can no longer get credit.

The leaders of the G-20 nations including Prime Minister Kevin Rudd will continue the negotiations in London on April 2. The global financial crisis will dominate Mr Rudd's first face-to-face meeting with US President Barack Obama next week.
Mr Obama yesterday singled out Australia as a country taking appropriate action in the face of the global economic crisis. "Kevin Rudd has taken similar steps (to stimulate the economy) in Australia," he said.

This news article is from The Age.

opinion: This change in policy could deeply impact those that are filing off shore permanenet visas. however, this might not affect to the same extent, those who are on student visas that intend to migrate subsequently.

student enrolment at record high

This post is inspired by an article in The Australian on 26th of feb 2009.
The year 2008 has seen a record number of International students enrolled at Australian Universities. more than significant percentage of student enrollment has been from India and China. It is predicted that student intake may not be affected significantly due to the world wide economic crisis, and that student numbers will continue at this rate for the next couple of years. here is the article...

Overseas student enrolments in Australia at record high

Enrolments by overseas students in Australian educational institutions rose a record 20.7 per cent to 543,898 in 2008 - the largest increase since 2002 - according to the latest Australian Education International figures.

``This is the first time international enrolments have exceeded 500,000 in a calendar year,'' federal Education Minister Ms Gillard said.

The rise in student enrolments from Asia - up 21.5 per cent - was recognition of Australia's ongoing relationship with its Asian neighbours and the strong awareness of Australia as a quality education destination, she said.

International education contributed $14.2 billion to the economy in 2007-08, making it Australia's third-largest export behind coal and iron ore.

The 20.7 per cent increase was underpinned by 46 per cent growth in vocational education, an 11.8 per cent increase in commencements in universities and a 22.8 per cent increase in crucial English language programs which feed into universities.

The latest AEI figures are in line with 15 to 20 per cent growth figures that have been produced by Australia's export education boom over the medium term, and led to the federal Government's AEI announcing last October that overseas student enrolments exceeded 500,000 for the first time.

The latest figures appear to provide further evidence for a belief that higher education is recession resilient, or at least recession-proof.

However they will be treated with caution by universities since they are from last December and do not take into account the crucial February/March enrolment time.

Ms Gillard acknowledged the impact of the global financial crisis on international student enrolments in 2009 ``will become clearer in the coming weeks".

``It is encouraging to hear a number of Australian education institutions reporting continuing strong interest from international students wishing to study in Australia,'' the Deputy Prime Minister said.

The Rudd Government was working closely with Australia's international education industry to ensure overseas student demand was maintained in 2010 and beyond, she said.

The fall in the value of the Australian dollar made an Australian education more affordable, senior export education observers said.

Universities Australia chief executive Glenn Withers told The Australian recently that universities were confident they could maintain their overseas student numbers ahead of competitor countries over the next few years, even in times of international economic difficulty.

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more students flowing into the 30 or so universities (located in 4 major cities)in australia..what does this mean for you? 

with time it gets harder to get apartments/shared accomodation

getting a part time job becomes very competitive

getting a full time job after graduation is only for the cream (Top %)of the students

so does this mean you should not come here? NO ...there is always a way out ! in the forthcoming articles, we will bring you more updates on these lines.