7 May 2009 - Calls for the Government to do more to create a highly-skilled workforce are supported by the New Zealand Vice-Chancellors' Committee, representing the country's eight universities.

A NZ Institute of Economic Research public discussion paper - The Unemployment Challenge - published this week points to an emphasis on training being more effective public policy than introducing job subsidies, in the context of rising unemployment.

"The economic imperative should be to ensure New Zealand has the right human capital to prosper when the economy picks up," the paper says.

NZVCC chair Professor Roger Field says this statement mirrors comments made by the Committee last week when it issued a plea to Government not to overlook universities' vital role in economic recovery and growth. As New Zealand climbed out of the recession, there would be a need for a skilled workforce, particularly the skilled professionals that universities educate.

The paper found that in order to address the unemployment challenge, New Zealand needed to supplement existing job search assistance with investment in training and business capital to push long term productivity growth.

Professor Field says universities have repeatedly signalled their desire to work with the Government on a plan based on the premise that investment in universities is investment in infrastructure that will stimulate economic prosperity.

"One consequence of rising unemployment is greater numbers of student enrolling at universities. University education is a far better outome than the unemployment benefit, for the individual and the public at large. Government can contribute to the goal of a more highly-skilled workforce by ensuring universities are funded at a level which allows them to cope with growing enrolment pressures."