Making education pay

By Julia Laplane, OECD. Education is a cornerstone of a functioning society. As Benjamin Franklin put it: “An investment in knowledge always pays the best interest.” But as education becomes longer and increasingly expensive, are we teaching our young people the right skills for the current market? With an outstanding student debt reaching $1 trillion last year in the US alone, and millions of graduates unable to find jobs in OECD countries, the question of return on investment has become a real economic priority.
In our technology-driven economies, knowledge is, more than ever, power. The OECD Skills Strategy is built around the notion that “Skills have become the global currency of 21^st century economies”. A recent article in the OECD Observer on the impact of knowledge on economic growth pointed out that iPod production in 2006 accounted for 14 000 jobs inside the United States and 27 000 jobs outside. Today, Information and communication technology (ICT)-intensive occupations represent more than 20% of all jobs in the OECD. In such a fast-changing economic landscape, the issue of skills shortages has become a global concern. According to a recent international survey of more than 2,700 employers by consulting firm McKinsey, some 40% of employers reported that they face difficulties when recruiting entry-level staff because the candidates have inadequate skills for the jobs available. Furthermore, almost 45% of young people said that their current jobs were not related to their studies. So we need to ask how much of our investment in education should deliver greater productivity and income for workers. Read more...