Economics Losing Student Interest in Australia

Australia faces a growing concern as fewer students choose to study economics, raising alarms about the future of economic literacy and policy debate. Despite its relevance to solving pressing societal challenges, enrolment in economics degrees stagnates at just 1% of university applicants.

Australia’s declining interest in economics has deep roots. A recent study by the Reserve Bank of Australia (RBA) highlights that even students who take economics in high school often pivot to fields like commerce, finance or arts at university. This trend is tied to perceptions of better career prospects and higher employability in those alternatives.

Low conversion rates further underline the issue. Only 18% of students who list economics as a preference actually pursue it at the tertiary level. Interestingly, most students prioritise high-paying degrees in commerce and finance, which often require higher academic cut-offs, suggesting a gap in how economics appeals to their interests rather than academic ability.

This trend has far-reaching consequences. Experts warn that a lack of economic literacy hampers Australia’s ability to address challenges like climate change and an ageing population. Compounding the issue, economics degrees attract a relatively narrow demographic—predominantly boys from affluent backgrounds—hindering the inclusion of diverse perspectives essential for effective problem-solving.

Academics suggest revamping how economics is presented in schools and universities. Borrowing strategies from STEM fields, such as emphasising the discipline’s societal relevance and career versatility, may boost enrolments. Advocacy tailored to different demographics could also help, such as illustrating economics’ social impact for female students or linking it to STEM-like analytical opportunities for broader appeal.

The RBA recommends integrating economics within broader commerce courses and restructuring outreach programs to highlight its practical applications. Such efforts could play a pivotal role in reversing the downward trajectory of student interest and ensuring the discipline’s critical contributions to society endure.

Source: Australian Financial Review, Australian Bureau of Statistics (ABS)