Link between education and economic success

Keywords Qualification, Training, Graduates, Productivity

A clear link between educational and economic success is illustrated in research commissioned by the National Advisory Council for Education and Training Targets (Nacett) and carried out by Leeds Metropolitan University. The research highlights evidence that the qualification level of a local workforce affects local economic performance. The effect is seen in terms of earnings, job generation and competitiveness. The research also shows that male graduates can earn around 50 per cent more than men with A-level or equivalent qualifications. Those with A-levels earn more than those with five higher-level GCSEs and those with no qualifications at all earn least. Women graduates earn well over double the wages of women with no qualifications. "Learning pays for individuals in terms of both job security and lifetime earnings. The rewards for educational success are substantial, while the penalties for educational failure are severe", said John Dewsbury, Nacett director.

The research also highlighted the link between business productivity and levels of education and training. At an international level, productivity gaps between the UK and, for example, Germany, are explained by the fact that qualification levels are far lower in the UK, particularly at intermediate and lower skill levels. John Dewsbury continued: "A narrow approach to purely job-specific training is not sufficient. The major gains in productivity and in profits seem to come from a mixture of policies. They include higher standards of general education, broadly-based vocational training and a management culture supportive of learning and personal development."

Copies of Learning Pays, which contains details of the Nacett research, are available by telephoning +44 114 259 7887.