URGENT UPDATE: New reports reveal a growing crisis in Australia’s higher education sector as university graduates face a bleak job market. According to a 2020 Productivity Commission report, young graduates are increasingly finding themselves in inferior roles, raising questions about the effectiveness of current educational policies.
As of February 2025, the head of Universities Australia, Luke Sheehy, has been vocal about the transformative power of education. “I’ve seen first-hand the power of education,” he stated, adding that it lifts individuals out of adversity. However, these optimistic views clash with stark realities facing many graduates today.
Statistics show that nearly half of Australians aged 25-34 hold a Bachelor’s degree or higher, a significant increase compared to just over a quarter of those aged 55-64. Yet, the job market for these graduates has deteriorated. The same report highlighted that under-35 graduates were more likely to hold inferior jobs in 2018 than they were in 2001.
The oversaturation of degree holders has led to a generation of young Australians feeling overqualified and underpaid. “They graduated believing they were owed a decent job, only to find minimal opportunities in the knowledge economy,” an education analyst noted.
Despite the challenging job prospects for graduates, universities continue to thrive financially. The University of Sydney reported a staggering 37 percent increase in revenue, while the University of Melbourne followed closely with a 28 percent rise. Critics argue that this growth has come at the expense of educational quality and job placement for graduates.
This financial success is partially attributed to universities capitalizing on international students, who pay premium tuition fees. However, many of these students are taking job opportunities that could otherwise go to Australians.
Moreover, there’s a concerning trend where corporations are outsourcing their training costs to universities, pushing financial burdens onto taxpayers. In fact, only 2.3 percent of total university revenue in 2022-23 came from local students.
The implications of these trends are profound. Experts like Peter Turchin, a leading theorist in social dynamics, have warned about the dangers of an “overproduction of elites.” Historically, this phenomenon has led to social upheaval, with highly educated individuals feeling disillusioned when elite positions are scarce.
Data from the 2022 Australian Election Study reveals that those with a Bachelor’s degree or higher express more extreme political views, further polarizing the electorate. This shift could destabilize political and social unity in Australia.
As the government continues to support policies funneling more young Australians into universities, concerns grow about the long-term effects on civic engagement and social stability. The trajectory suggests that unless significant changes are made to address these issues, a generation of educated yet disillusioned citizens may pose risks to societal cohesion.
The conversation around these pressing issues is shifting from politics to policy, as Sheehy suggested, but the underlying tensions remain unaddressed. As education becomes increasingly intertwined with financial interests, the public must critically evaluate the long-term impacts on both graduates and society as a whole.
Stay tuned for updates as this situation develops, affecting the futures of countless young Australians.
