As Australia grapples with economic uncertainty, a concerning trend has emerged—fewer students are choosing to study economics.
A latest report by the Reserve Bank of Australia (RBA) titled “Where Have All the Economics Students Gone?” reveals that between 1999 and 2023, only about 10 percent of Year 12 students listed an economics course among their university preferences.
Even more striking, just 1 percent of all students actually enrolled in an economics degree.
By contrast, fields such as arts and social sciences, science and mathematics, commerce and finance, and medicine and health have remained highly popular.
Economics also has one of the lowest conversion rates from preference to enrolment. Only 18 percent of students who preferenced an economics course ended up studying it—compared to 40 percent for commerce and finance.
Why Is Economics Losing Ground?
Economist and Professor Gigi Foster from the University of New South Wales (UNSW) believes the decline in economics enrolments can be traced back to curriculum changes in the 1990s.
The introduction of business studies and legal studies attracted students who might have otherwise chosen economics.
“There seems to have been some cannibalisation that happened starting in the 90s,” she told The Epoch Times.
“At a dinner party, if you say you want to be a lawyer or a businessman, people immediately understand. But if you say you want to be an economist, it’s less clear what that means.”
A lack of qualified high school economics teachers is another major concern.
“Many teachers never studied economics themselves,” said Foster. “They are teaching a subject they don’t fully understand, which makes it difficult to engage students.”
Independent economist Saul Eslake points to a shrinking job market as another factor.
“There aren’t as many jobs for economists as there used to be. Non-financial corporations no longer hire in-house economists, preferring to rely on banks and consulting firms for economic insights,” he said.
Mergers among financial institutions have also reduced the number of roles available, and cost-cutting measures have led to many banks eliminating their economics departments altogether, Eslake added.
Eslake also speculates that the discipline’s increasing reliance on mathematics may be discouraging students.
“There’s a perception that economics has become too mathematical and detached from real-world problems. While I don’t have survey data to support this, I believe it plays a role,” he said.
Beyond the classroom, misconceptions about economics persist in Australia.
“A lot of people think economics is about profit maximisation, prioritising money over people, or being in league with big corporations,” Foster said. “That is the last thing economics is about.”
Gender Gap Enrolments
The RBA report also highlights a gender disparity. Female students who studied Year 12 economics were less likely than their male counterparts to include an economics course in their university preferences.Instead, they showed stronger interest in arts and social sciences, medicine and health, and law.
This gap, however, is less pronounced than in STEM fields such as engineering.
Despite consistently outperforming male students in ATAR scores, female students have continued to enrol in economics at lower rates.
Interestingly, those who opted out of economics often had higher ATARs than the male students who chose to study it.
Foster believes career motivations play a role.
“Boys may see economics as a pathway to becoming a successful businessman or market analyst, whereas girls often prioritise careers that align with making a social impact,” she said.
Can Economists and the Government Reverse the Decline?
Experts are actively working to promote economics education.“I’ve launched the Consortium for Inclusive Economics Education at UNSW, run the Australian and Australasian Economics Olympiads, and I’m involved in rewriting university economics curriculum” Foster said. “I also speak at public events to make economics more accessible and exciting.”
A key initiative to address the issue is the upcoming Australian Conference of Economists in Sydney this July. The event will involve economics teachers and students to demystify the subject and explore better teaching methods.
On the policy front, Foster believes the government should allow practising and academic economists to play a greater role in shaping the high school curriculum.
“I’ve been trying to get into that room for more than 10 years, but it’s a closed shop. We need to take serious, detailed input from economists to improve the way the subject is taught,” she said.
Experts also suggested that government should take an active role in promoting a clearer understanding of economics, rather than leaving it to institutions like the RBA or UNSW to use their own resources to educate the public about the discipline.
The RBA report recommends that adopting STEM-style advocacy, integrating economics more effectively into other degrees, and improving public awareness about the subject could help boost enrolments.
Signs of Recovery, But Challenges Remain
The Victorian Department of Education highlighted a positive trend in enrolment numbers.“Enrolments in VCE Economics enrolments have steadily increased each year over the last five years, from 2,629 in 2019 to 3,783 in 2024,” a spokesperson told The Epoch Times.
However, the RBA report cautions that while numbers have improved, they remain well below historical levels.
The decline in economics education over decades has left gaps in economic literacy, impacting not only future policymakers but also everyday Australians navigating financial decisions.
Experts argue that broader reforms are necessary, including better curriculum design, improved teacher training, and stronger advocacy to make economics more accessible and appealing to students.
Without sustained efforts, the subject risks continued marginalisation in an era where economic understanding is more critical than ever.
