THE NEW BASICS - FYA

1 the new BASICS : big data reveals the skills young people need for the new Work Order FYA's New Work Order report series At the Foundation for young Australians (FYA), we believe young people are ambitious, creative and capable of rethinking the world and solving tomorrow's problems today. FYA is a national for-purpose organisation that is all about backing the next generation of young people who are going to rethink the world and create a better future. At FYA we connect and inspire young changemakers - the innovators, the makers, the dreamers, the thinkers, the doers and the creators.

2 Find out more at This report is part of FYA's series the new Work Order'. This report was prepared for the Foundation for young Australians by AlphaBeta. AlphaBeta is a strategy and economic advisory business serving Sydney. For further information contact Copyright and disclaimer The materials presented in this report are for information purposes only. The information is provided solely on the basis that readers will be responsible for making their own assessments of the matters discussed. Readers are advised to verify all relevant representations, statements and information and to obtain independent advice before acting on information is accurate, the Foundation for young Australians will not accept any liability for any loss or damages that may be incurred by any person acting in reliance upon the information.

3 Copyright 2016 The Foundation for young Australians the new BASICS is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives Australian license (CC BY-NC-ND AU). FOREWORD. We can no longer delay investing in the future of young Australians. For the first time, big data analysis shows us that the new Work Order is here. Over the past 18 months, the Foundation for young These new findings demand action to build the skills Australians has produced a series of reports to of the next generation. Our latest report card on How understand the economic and social conditions affecting young people are faring in the transition from school to young people today and into the future and to chart a work revealed young Australians are not prepared with course for how we best prepare young people to drive key enterprise skills; close to a third of Australian 15 year economic and social progress in decades to come.

4 Olds have low proficiency in both financial literacy and problem solving as well as a quarter demonstrating low Our New Work Order report confirmed Australia is proficiency in digital literacy. undergoing the most significant disruption in the world of work since the industrial revolution, and how we respond At FYA we are renewing our call for a national enterprise has huge implications for the next generation. The skills strategy, to ensure students across Australia are shifts in the local and global economy are creating new developing these skills inside and outside the classroom.

5 Opportunities for our industries and our way of life, but A national enterprise skills strategy would: they also present significant challenges and failure to act will see our nation left behind. Begin early in primary school and build consistently, year on year, throughout high school Amid these changes, Australia's million young people are our greatest resource. It is the next generation who Be provided in ways that young people want to learn: will inherit the outcomes of the decisions we make through experience, immersion and with peers today and will have to navigate a future we can't yet even describe.

6 As our population ages, the ability of our Provide accurate information and exposure about growing youth population to participate in, contribute to where future jobs will exist and the skills to craft and and shape our economy will be crucial in delivering (e) navigate multiple careers quality of life for all of us. Engage students, schools, industry and parents in co- the new BASICS , the next report in this series, analyses big designing opportunities in and outside the classroom. data to show for the first time that the new Work Order We need all young Australians to learn the skills to is here.

7 The changes we have been predicting are now be digitally-literate, financially-savvy, innovative and on our doorstep, affecting employers and job seekers adaptable and help them navigate complex careers of the across all industries, providing beyond doubt the growing future and thrive in every aspect of their lives. demand from employers for young workers to have what we call enterprise skills. The decisions we make today will have a true impact on the future of our nation. It truly is time to invest in These are transferable skills that allow young people to Australia's future through our young people.

8 Be enterprising so they can navigate complex careers across a range of industries and professions. They include problem solving, financial literacy, digital literacy, teamwork, and communication and are different from technical skills which are specific to a particular task, role or industry. the new BASICS has found, demand for these skills is on the rise particularly in the jobs of the future. In fact, the so-called jobs of the future demand enterprise skills 70% Jan Owen AM. more than jobs of the past. Jobs that require enterprise CEO. skills also pay more. Foundation for young Australians 3.

9 OVERVIEW. Enterprise skills are transferable skills required in many jobs. They include: Problem solving Communications Financial literacy Critical thinking Creativity Teamwork Digital literacy Presentation skills Wages are higher for The demand for young job-seekers with enterprise skills enterprising skills is on the rise Digital literacy Critical 212%. Presentation thinking Digital Problem skills literacy solving 158%. pay pay pay Creativity $7,745 $8,648 $8,853. more more more Presentation skills 65%..as compared with similar earlycareer job ads that don't request these skills.

10 25%. The trend is ..as observed in earlycareer job ads over the past 3 years here to stay JOBS OF THE FUTURE. JOBS OF THE PAST. Jobs of the future demand enterprise skills 70% more than jobs of the past 4. SETTING THE What are enterprise skills? . Enterprise skills are transferable skills that enable young people to engage with a complex world and navigate the challenges they will inherit. Enterprise skills are not just for entrepreneurs; they are skills that are required in many jobs. They have been found to be a powerful predictor of longterm job success. Skills classified as enterprise skills include: Problem solving Communication skills Digital literacy Teamwork Presentation skills Critical thinking Creativity Financial literacy The terms used to describe these skills vary across different contexts: sometimes called generic, soft, or 21st century skills.