Tim Reed, head of the Business Council, on the impact of falling educational standards on Australian businesses

An industry leader claims that unacceptable literacy and numeracy levels mean companies across Australia are under constant pressure to bring children up to speed once they leave school.

Business Council of Australia President Tim Reed said at a conference that college students pose a challenge for business owners entering the job market because their literacy and math skills are poor.

Data from the 2019 National Assessment Program – Literacy and Numeracy (NAPLAN) showed that ninth grade students — students who would enter the job market now — did better in reading and numeracy than those assessed in 2022.

“It’s a real challenge for business that a growing proportion of the population lack basic numeracy and digital skills,” said Mr Reed at the Universities Australia conference in Canberra.

A worrying trend has emerged of Australian students entering the job market with unacceptable literacy and math skills (stock image)

“The role of business is to try not to shut people out of careers because of this fact,” he continued.

“This will be very challenging for individual companies. But it is a reality for the community and so industry needs to be involved in finding and driving solutions.’

The declining level of education also plays a role in sectors outside of tertiary or commercial occupations.

“From what we expected 20 years ago, some of them are experiencing significant literacy, numeracy and digital skills challenges [trade apprenticeship] Courses that are so critical to our economy,” said Jenny Todd, Managing Director of TAFE Directors Australia at the conference.

“A good example is Certificate III in electrical engineering. That turns out our electricians. The people who are coming in now don’t necessarily have the math skills that you need to be successful.’

Business Council of Australia President Tim Reed (pictured) claims the trend of falling educational standards is putting pressure on Australian companies who have had to teach new employees on the go

NAPLAN results show an increase in students failing the national minimum standard on reading and math tests after Covid lockdowns forced students to learn online.

The percentage of students who are below the minimum reading standard increased from 8.2 percent in 2019 to 10.3 percent in 2021 and is now at 10.4 percent, meaning more than one in ten students is functionally illiterate is.

While the number of students who were below the minimum writing standard was high at 15.9 percent in 2022, it has not been affected by the Covid pandemic and has instead steadily declined from 20.5 percent in 2018.

“Businesses are having to address issues such as numeracy, digital skills shortages and social exclusion,” Mr Reed told the Australian Financial Review.

“Those excluded from the learning system may then be excluded from the workforce.

“It takes longer just to train people on the basics because they don’t have those basic skills.”