The Economic Society of Australia recently asked me to comment on the following three questions: –
- Falling numbers of undergraduate students are majoring in economics.
- Falling numbers of school students are studying economics, which is particularly acute in the public school system.
- A lack of diversity amongst economics students.
It was not easy for me to answer authoritatively, however, it reminded me of my earlier education on Calculus, Trigonometry and Algebra, where it was not obvious to me why we were even studying these subjects until many years later, when I was studying Electrical Engineering & Mining. Suddenly the light bulb switched on and I understood the word ‘why’.
Similarly, it could be that Economics is not explained as a benefit to the students. However, to get the answers I went out to Mannkal Foundation’s current cohort of very bright Mannkal scholars and here is a compilation of their replies:
| #1 | 1. The reason there are falling numbers of undergraduate students in economics is a result of emphasis put on specialisation; economics could be interpreted as a broad degree, which does not have a direct pathway or timeline. Subsequently, students can be put off by this. 2. The falling numbers of students studying economics may be an issue of not highlighting the importance of financial literacy in our world today. In reference to the public system specifically, this may be intentional as perhaps they are not inclined to encourage innovation and new, forward-thinking ideas. 3. A lack of diversity amongst economics students may be culmination of less awareness of the importance of economics, as well as the minimal representation of diverse people in the sector. |
| #2 | The focus of economics has notably shifted (whether the shift is complete or not, I don’t know) away from economic ideas and real policy application and toward quantitative analysis. This bodes poorly for those wanting to work in economics, as there are more useful quantitative areas of study – such as finance, statistics, mathematics, and data science. If these are the skills that are valued in economics jobs, why wouldn’t students just study these subjects? In my experience, students who study in these areas can easily do quantitative economics, but not vice versa. They certainly don’t understand broad economic ideas and I would wager >80% of economics students have never read a book on economics. On the other hand, students who in the past studied economics for its broader business relevance, now have offerings such as business management or MBA that are better-regarded and more popular. When I tell people I study economics, I usually get a very underwhelming response. The perception is one of mundane graphs and equations that have limited use in the real world. Many students bash modern economics because ‘perfect competition doesn’t exist’, or ‘consumers don’t behave rationally’. There are effective counterarguments to these critiques, however I empathize with them and do wish university economics was related more directly to policy and broad understandings of welfare in the economy. I don’t think it would be too hard to do. We got a bit of this with the ‘History of Economic Ideas’ unit, but that’s not compulsory and relatively few students enroll. Props to Professor David Gilchrist. [See the bel slides from a recent UWA lecture that emphasizes the importance of studying quantitative economics] I went to a public school in Bunbury, and economics ATAR was not actually offered! I didn’t know it existed as an ATAR subject until coming to university in Perth. So, while I can’t speak to why school students may or may not want to study it, it is a serious concern of mine. I do think that economic literacy should be a much higher priority. Targeted algorithms and advertising are amazingly effective at subliminally influencing our decisions. As it becomes easier and more tempting to be a consumer, consumers should become even more aware of the consequences of their actions. Perhaps the problem in schools is in its second or third generation – I can only think of a few teachers of mine who placed any emphasis on financial or economic literacy, and it was only reading books like How to Win Friends and Influence People or Rich Dad Poor Dad that I was set on that path. Agree that it’s a bigger problem in public schools and seemingly in the regions especially. Almost every one of my high school friends regularly make silly financial decisions and have little understanding of how politics affects the economy and therefore themselves. Perhaps you Ron can reflect on how it was for you and your peers in Kalgoorlie, but my Mum who went to school in Newcastle in the 70s reckons they had a pretty good understanding of ‘home economics’. She says political-economic themes – like deregulation and the floating of the dollar – were more widely understood and considered by young adults. Perhaps it’s a societal issue and education is a large contributor, but not the only. On the other hand, poorer kids often have more interest in business and economics – if given the opportunity – and my best-off mates are blue-collar – including myself before I came to uni. I’m not so sure about the lack of diversity in economics students. My experience is that there is more diversity of race and gender in the economics cohort than, say, finance, or accounting. Statistics would be interesting. In terms of class; it’s surely a minority of us from public schools, but that’s the case across the entire university so again difficult to say, beyond my reflections above. Surely children of wealthier parents are more likely to study Commerce generally. One factor may be HECS restructuring toward STEM subjects that made economics and arts more expensive? While the overall impact is said to be minimal, it makes sense that it would have a bigger impact on poorer students, especially when they can study STEM and get those same (or better) quantitative skills for half the price. |
| #3 | Falling numbers of undergraduate students are majoring in economics: Perhaps they think AI will take over the jobs in that sector in future and want to future proof themselves. Though looking at the stats, economics is number 4 in the US. In the UK, it’s not in the top 10 and there is a medical and sports science focus there. In Aust business management is high on the list, so they’ll at least look at economics in a unit of those studies, but medicine and related sciences make up the rest of the list. Falling numbers of school students are studying economics, which is particularly acute in the public school system: Having done all my schooling at public schools, mostly in country areas, I think most kids were likely to take up a trade, unless they wanted to move away from home and go to live in the city, doing a city job, which economics would likely be. I remember Commerce was a subject at the two country high schools I attended, but I don’t think it was a class of less than 10 students by the time year 12 rolled around. A lack of diversity amongst economics students: The diversity point makes me cringe a little, sorry to say. Haha. I simply say that those who are interested, are interested. It concerns me that the diversity point is “solved” the wrong way by meddling in the admission of students to courses with quotas that shut out those who are interested, and have the ability, just because they have the wrong anatomy. A better take would be to market the benefits of the subject better to the desired group, for example through podcasts or influencers, if female students are the target. Though it may not be the desired group, there is a trend of MMA fighters talking about Mises and Austrian economics in post-bout interviews. There are even rap songs about it. Strange, I know, but I think this has led to an increase of young (mostly white) men getting into libertarian ideas. All-in-all I think it needs a good marketing strategy behind it to drive an uptake of students. The global think tanks, networks and associations need to get mentioned on big podcasts like Joe Rogan to drive interest. Javier Milei gets mentioned a bit. |
| #4 | Falling numbers of undergraduate students are majoring in economics. In my opinion, students who decide not to study economics simply do not know why they should take this subject. Many students find economics abstract. For example, at my university I often hear phrases like “in an ideal world” or “theoretically”. There are a lot of assumptions and very little practical application, since the world is far from ideal and the phrase “Ceteris paribus” which means “other things being equal” simply sounds ridiculous in today’s constantly changing economic and political environment. In short, from my observations, students simply do not know why they should study economics and where to apply it outside of the university, so they choose more commercially focused subjects such as accounting, finance or marketing instead of economics. Falling numbers of school students are studying economics, which is particularly acute in the public school system. The problem is that public school students often perform worse academically than private school students. But since university places are limited, many students try to maximize their academic results, which are based only on numerical grades. In high school, especially in Year 12, I noticed that a significant number of students dropped economics because for many years this subject is one of the most difficult to pass. The most interesting thing is that these were mainly students who were studying complex mathematics and physics at the same time, and they were concerned that they would not be able to get high marks in economics and their overall result would drop. As far as I remember, the main problem was in macroeconomic theories, which were difficult for many students to understand. So, the problem lies in the way economics is taught at schools. The subject is quite difficult and therefore is not very popular among students from public schools, who are already who are already academically disadvantaged compared to their peers from private colleges. A lack of diversity amongst economics students. By diversity I think they mean the variability of opinions and knowledge. Economics is a social subject, and the problem is that as a social subject it does not cause enough differences between students’ opinions. Teaching economics is very systematic and sometimes even resembles physics, where we must believe only in things that were written in the textbook or as said by lecturer. Also, universities do not particularly consider economics as an ideological phenomenon and do not consider the difference in different approaches, and it is clear why. If all students have different concepts and ideologies about economics, then it will be inconvenient to assess them in terms of the subjectivity of their answers. For example, if two students have two different answers to the same question, then how to mark them? Who is right and who is wrong? Therefore, for simplicity, their knowledge leads to one opinion and one knowledge for simplicity of assessments, where the answers are clearly “right or wrong”. Hence the problem of the similarity of many students. |
| #5 | 1. Falling numbers of undergraduate students are majoring in economics: I believe one of the answers to this question comes from a lack of guidance on the benefits, opportunities or careers that economics can create for a student. I strongly believe this begins in schools and far before ATAR commences in years 11 and 12. There seems to be a strong focus on the mechanics of micro and macroeconomics without addressing why economics is important for a student’s professional career and life holistically. From personal experience, I can’t think of one time when there were more than a few minutes at the start of the year to address why we were learning about economics. As the school system narrowly focuses on what career a student should begin setting themselves up for, a student can easily mistake economics as a subject that may not directly relate to their short-term career objectives and thus will not pursue further study within school or university. I also believe this lack of teaching about the importance of economics is mirrored in universities, often course lecturers cut straight to unit content without explaining the purpose economics and its utilization post education. 2. Falling numbers of school students are studying economics, which is particularly acute in the public school system. I feel the first part of this question is addressed in the answer above. I will further add that the lack of guidance on why economics is important begins before it is able to be chosen as an elective, therefore there is no motivation to pursue further study if there is uncertainty around its utilization. As for the public school system, I think this could correlate to parents failing to pursue the study of economics in their education, therefore preventing encouragement or advice to their children on its potential usefulness. 3. A lack of diversity amongst economics students. This question may be the most difficult to answer without further information as discussed on Tuesday. I think students from diverse backgrounds may have different perspectives on careers, financial management and the economy, based upon the opinions of the people raising them. It might be the case that a certain demographic continues to teach the foundations of economics far before the education system, sparking initial interest that schools fail to create. This pattern could continue for a few generations, therefore the same demographics continue to pursue the study of economics. |
| #6 | (QUESTION 1, 2 & 3) Overall, about the concerns of falling numbers & diversity among students studying economics at all levels, constant & persistent engagement is required with everyone about the big ‘E’ word, ‘economics’. It’s like a garden with a variety of flora, continued tending, it is extremely helpful. (QUESTION 2) During high school, amongst friends, we saw economics, as this big, serious, adult, thing. Quick reference to an engagement event by the ESRC Centre for Advantage in the Global Economy (CAGE) at the University of Warwick & Discover Economics, had student feedback that made me envious of such an opportunity to get a different perspective of Economics. To summarize: .. Engagement with everyone across the board .. Understand existing perceptions |
| #7 | Falling numbers of undergraduate students are majoring in economics. I believe there are two main reasons for the decline in interest in pursuing an economics major: the stigma surrounding low job prospects and the lack of financial subsidization compared to STEM majors. Many of my friends and I were initially hesitant to choose an economics major because we were uncertain about the potential job opportunities it might offer. Additionally, having transferred from an engineering degree where every class was subsidized, the high cost of economics classes, sometimes two to four times more, was financially discouraging. Lastly, I think a lack of understanding regarding the content and potential outcomes of an economics major also contributes to the decreasing number of students in this field. For instance, I was unsure about the career paths available after graduation and did not have a clear expectation of the course material. Falling numbers of school students are studying economics, which is particularly acute in the public school system. I would like to preface this by saying that I did not attend the public schooling system here, and economics was not taught as a subject in my schools. It wasn’t taught mainly because we did not have any economics teachers, and the subject was not mandatory in our curriculum. Another reason that is strongly believed and shared by my generation and I, for why it wasn’t taught in our schools, was the notion that the government did not want students to be better equipped with the knowledge to critically analyze their economic policies. However, remaining within the scope of Australia, I believe the falling numbers can partly be attributed to the fact it is not a mandatory class here, and that there might be a lack of supply of economics teachers. Students might be opting for alternative classes they perceive might be easier. A lack of diversity amongst economics students. I believe students who are born into and grew up in a disciplined environment, where education was highly emphasized, and failure was not an option, might choose a degree which could lead them to a profession where success can be measured by prestige, social standing, and wage (i.e., law, medicine, engineering). This is only truer if the student has the responsibility/burden of having to independently support themselves (and their family). As such, students would learn more towards degrees they perceive to have a high job prospect with, not economics. Another demographic contributing to a lack of diversity in economics majors is what I believe to be the individuals who already have financial security and are comfortable with where they are in life. They do not have a sense of urgency to graduate, work, and make their own living. They would be more inclined to study a major they’re passionate about, with job prospects not being their top priority nor concern. |
| #8 | 1. Falling numbers of undergraduate students are majoring in economics There is a significant failure in our society today: many people hold narrow, singular-focused perspectives without questioning the interconnected workings of the world. This lack of curiosity often stems from the overwhelming amount of information readily available, thanks to artificial intelligence providing instant answers. Instead of fostering natural curiosity, this flood of information can hinder individuals from exploring the broader mechanisms that drive our society. Commerce and finance, while important, are just pieces in the larger puzzle of the economy, whether on a local, regional, national, or international scale. Unfortunately, many students are not encouraged to see this broader perspective. They are often influenced by peers and societal norms that emphasise the allure of commerce and finance due to their perceived job opportunities and financial rewards (Livermore and Major, 2020). An additional point I think worth making: “The visibility of role models is important. There are not enough students seeing what a job in an economics career looks like, and therefore they cannot visualise themselves in that type of role,” Ms Murphy said in AFR 2025. 2. Falling numbers of school students are studying economics, which is particularly acute in the public school system. Student demand for subjects incentivises governments to invest in offering subjects to students; high student demand will make their investment worthwhile. As Jacqui Dwyer stated in 2024, economics was offered in every school in New South Wales – government, non-government, religious, secular, country, city. There has since been a steady fall in the offering of the subject and this has been most pronounced among government schools, of which only 30 per cent these days offer economics”, substantiating that governments are being less incentivised to invest in the offering of economic topics, as student demand is falling. 3. A lack of diversity amongst economics students. The RBA analysis also found the diversity of the economics student body had declined and previous research has found just one in three people who study economics is female.” (AFR, 2025). I believe this can be partially attributed to the lack of diversity in the management of economic bodies. For example, there has only ever been 1 RBA governor out of the ten which have served. This lack of diversity in the leading economic bodies of our society inhibits a broad range of role models for students choosing their study and career paths. It limits the inheritance of economic knowledge and education of economic value to certain demographics (e.g. wealthy families who are influential in politics and economic policies) |
| #9 | About the falling number of undergraduates studying economics, I believe this is due to insufficient exposure and from this limited understanding towards the subject, students are not seeing the relevance and applicability of economics to real-world issues as they do not understand enough about it. There is also limited Career visibility, students may not have any idea as to what kind of career they can do with an economics degree. Falling numbers of school students are studying economics. Once again, I believe it’s due to a lack of understanding of the subject, schools do not prioritize economics in the curriculum rather than favour the STEM subjects. Lack of diversity may be attributed to the dearth of representation from diverse backgrounds in academia and professions relating to economics. This lack of representation means there aren’t enough role models for people to relate and be inspired by. |
| #10 | Falling numbers of undergraduate students are majoring in economics Decreasing trend of undergraduate students majoring in economics could be due to its limited exposure in high school. Economics can also be perceived as a challenging subject and deters students who see It as lacking a direct career outcome. Many students are drawn to degrees in business or technology, and this may be because they are unaware that economics provides foundational skills for thriving in emerging sectors. Falling numbers of school students are studying economics, which is particularly acute in the public school system. A possible explanation would be that students in public schools, often from lower socioeconomic backgrounds, may lack the support or encouragement to pursue subjects like economics that are perceived as elite or abstract. There also are apparently (according to a paper) fewer quality educators that are equipped to teach economics, and many students do not select the subject because they do not understand what it is and how it might be relevant to them. A lack of diversity amongst economics students. Lack of Diversity can mean many things… (Gender, race, socioeconomic status) In terms of Gender, it may be a male dominated field due to the lack of female role models and stereotypes surrounding maths-based subjects. The underrepresentation of women in economics means fewer female voices shaping rapidly evolving sectors which influences the younger generations ambitions to pursue the subject. |
| #11 | (1) Falling numbers of undergraduate students are majoring in economics Likely due to the increasing emphasis that has been placed on STEM fields and careers, leading to these fields being seen as antithetical to, and completely unrelated to, humanities fields such as economics. Many students in high school are not taught the importance of economics, and only view it as a subject requiring memory-work—definitions, diagrams, and theories. Students often view their degrees as direct pathways to careers, yet many are unaware of the diverse fields where economics is applicable; others are advised to pursue finance or accounting for their perceived career advantages. Suggestions Place more emphasis on: Teaching the “why” behind economic concepts to foster genuine interest. Highlighting interdisciplinary links, especially with STEM, to show that economics is not isolated from technical fields. Promoting career pathways and real-world applications where economics plays a central role. (2) Falling numbers of school students are studying economics, particularly in the public school system Based on personal experience tutoring students in Western Australia: There is a lack of enthusiastic, well-informed teachers who can convey the relevance and appeal of economics Some public schools do not offer economics as a subject at all, restricting student access and awareness (3) A lack of diversity amongst economics students Economics, being a social science associated with mathematics, tends to attract more males than females, reinforcing gender imbalance Economics is often perceived as difficult, leading many students—particularly from underrepresented backgrounds—to choose business or other perceived “easier” majors instead |
| #12 | I think this decline could be due to the influence of social media and it allowing them to do things like start their own businesses without studying. I can imagine this is prevalent amongst high school students who would probably find it easier and faster to learn about economics through apps like tiktok. Typically, I feel like it is generally not diverse in economics. The system is built for a certain demographic and is heavily dominated. I also think that there are different values, beliefs and views in our changing society that align with different fields. |
How fortunate am I to be able to reach out for very current, intimately involved, advice like this?
With sincere thanks to the contributors to this study:
Ivan Berdychevskyi
Declan Blaine
Kaymus Brierly
Hollie Heywood
Kimira Naidoo
Elliot Norris
Atila Ozer
Matthew Paul
Rachel Tan
Mitch Teo
Jack Ward
Olivia Zhukov
Thank you for reading.
Regards,
Ron Manners AO
June 2025
1 Comment
Hi Ron,
In regards to the Economics questions:
Falling numbers of undergraduate students are majoring in economics
-This is likely a symptom of a falling number of students studying ATAR courses generally, with rising interest in VET pathways and alternative entry pathways into universities. There are also fewer students taking on high ATAR loads, especially those studying 6 ATAR subjects. In my experience (both as a teacher and a high school Economics student), Economics was the humanities subject which was picked up by those more science and maths inclined. Students appear to be more likely to study 4 or 5 ATAR subjects now, with their 5th or 6th subject more likely to be a fun one they can coast through more easily.
Falling numbers of school students are studying economics, which is particularly acute in the public school system.
-This could be linked to factors mentioned above. It’s also likely that fewer schools offer Economics. With fewer students picking ATAR courses, it’s hard to sustain course offerings where enrolments in classes are fewer than 8 students. Hedland will run ATAR classes with only 3 students due to the BHP ATAR Program. However, with the teacher shortage and growing enrolments, there’s always the risk this would become unsustainable and need to be scaled back. When I was in Geraldton, I taught Economics in one of the public schools. The class had 8 students. Over time, only 2-3 of them proved to be high achieving students and the others potentially would have been better suited to a VET or General pathway. Economics is now no longer offered there.
-Economics is likely a harder to staff course. It’s quite a specialised subject, where having a tertiary qualification is going to help a lot. Some Humanities teachers would be a bit “scared” to take it on due to the amount of subject specific terminology and theory. It’s potentially a lot easier for an out of specialisation teacher to teach a course like History or Geography compared to Economics.
-I’m not sure when this was brought in, but when I was at school (a while ago now!), English wasn’t counted as what’s now known as a List A subject. You had to pick at least one other List A subject (i.e. arts/humanities subjects). English now counts as a List A subject, so those who are more Maths and Science inclined are likely to do English, and then fill up their timetable with Maths and Science courses only.
-It’s not a particularly “hands on” course. There’s lots of theory, graphs, models and mathematics. It’s one of the more challenging subjects to bring to life, so it doesn’t have the pull factor of many other course offerings. Students move through school now with iPads and other technology. They expect to be engaged (even entertained) and teaching from literally the same textbook I used in high school in the early 2000s unfortunately doesn’t achieve that. But with ATAR courses being standardised, high stakes commitments for students and schools, deviating from proven teaching resources and methods is potentially not a risk Economics teachers and coordinators would be willing to take.
-There’s likely a belief among students that it’s a hard course, or that it’s boring. It really doesn’t have to be boring, but there are some aspects of the course I found to be quite difficult to engage students with, and make relatable to their lives (e.g. the balance of payments).
-I noticed that students struggled a lot with the style of writing Economics assessments require. They had trouble code switching between what’s required for English essays and would use everyday language to explain concepts rather than the subject specific terminology, and would not use the models practised in class. Receiving low marks would drive the belief that it’s a hard course, which potentially has flow on impacts to future enrolment numbers.
A lack of diversity amongst economics students.
-This is an interesting observation. I have only taught Economics in one school. The gender mix was fairly equal. Culturally, it would have been mostly Australian students originally from European backgrounds and there was one student from a Malaysian background. Socio-economically, there certainly wouldn’t have been any students who were significantly disadvantaged in the class, and I suspect this may be a common observation across most ATAR student enrolments.
I hope this helps. Please let me know if you’d like any other information.
Thanks for your ongoing support in advocating for better school infrastructure.