Why a trade can beat uni any day

University study is too often pushed onto young people by parents and teachers, when trades have good pay and often better job prospects, says Matthew Pollock

FOR many, university seems to be the automatic choice after high school. This is too often pushed onto young people by parents, teachers and career councillors.

Students are told a university degree provides a better chance of success, a stable income and broader career prospects.

Many, not questioning this advice, sink tens of thousands of dollars into higher education, often encouraged by the fact that the government will debt finance their education before entering the workforce.

The average HELP/HECS debt for domestic university graduates in Australia is $21,557, with more than 200,000 students with debts over $50,000 according to the latest data for 2017-2018.

Only 39 per cent of students in Tasmania finish their degree in the initial four years, meaning more than 60 per cent of university students accrue additional costs, and take more time to enter the workforce.

About 12 per cent of students drop out in the first year, while 27 per cent of students do not complete a degree after nine years, amassing debts they may never recoup.

Meanwhile, the federal government’s recent changes to repayment thresholds means you start paying this debt back much earlier and at a much higher rate, with repayments starting once you earn more than $45,881 and up to 10 per cent once you earn over $134,000.

Higher repayments for HELP/HECS debts can work against you when applying for a home loan as it reduces your disposable income and borrowing capacity.

On average it takes a university graduate between nine and 10 years to fully repay their HELP/HECS debts.

One of the most popular myths is that university graduates are more employable following graduation.

The research tends not to support this assumption with the 2018 Graduate Outcomes Survey showing 97.7 per cent of Australians with a Certificate III in Carpentry land a job and 78.6 per cent of these work in their field.

Among university graduates, 73 per cent were employed in the four months after completing their degrees, while only just over half of university graduates who did find a job felt their qualification was important for their work.

Trades graduates tend to have a higher chance of landing in full-time employment with more than 80 per cent of the jobs in construction being full-time, one of the highest of any industry.

Research from the

University of Melbourne that followed students who completed Year 12 in 2006 and was published in January found that those with VET qualifications were 2½ times more likely than those with a master degree or PhD to have a permanent job.

Upon completion of the study the researcher said: “For many young people, using their education qualifications to find secure work is a bit like chasing rainbows.”

Another popular myth is that university graduates are higher paid.

A recent report from the Skilling Australia Fund reveals that four in five parents would prefer their children to go to university, with one in five believing that vocational graduates have lower earning potential.

Again, the research says different. The same report showed that VET graduates earn a median income of $56,000 after training, compared to $54,000 for a person with a bachelor’s degree.

Carpentry graduates tend to earn higher wages than other VET graduates according to PayScale median wage data, at $62,000 on average in the first four years following the completion of an apprenticeship.

With the Tasmanian government putting forward a strategy to “build our way out of the COVID-19 crisis”, the jobs that will be required will be overwhelmingly jobs that are educated through the vocational sector.

This will be an enormous opportunity to provide rewarding, well-paid careers for young Tasmanians entering the workforce and others who may have been displaced or disadvantaged due to COVID-19.