Boosting the proportion of young people completing school or an apprenticeship to 90 per cent by the end of the decade would increase workforce numbers by 65,000, boost economic productivity, and expand the economy by nearly $10 billion (in today’s money) by 2040, according to new research released today by the Business Council of Australia and Dusseldorp Skills Forum.

Measures to increase school retention rates would also result in additional annual taxation receipts of $2.3 billion (in today’s money) by 2040, reducing Budget deficits and helping to defray the cost impact of the ageing population.

With the number of new entrants to Australia’s labour force expected to slump to 24,000 a year by 2040 – compared to 190,000 in 2002–03 – BCA Chief Executive, Ms Katie Lahey, said lifting retention rates could potentially play a major role in offsetting some of the damaging impacts of population ageing and a stagnating workforce.

The news release can be read here and the report, The Economic Benefit of Increased Participation in Education and Training, and accompanying BCA policy paper titled ‘Increasing Participation in Education and Training: Key Policy Steps’, can be downloaded here.