SUMMARY G LO B A L E D U C AT I O N M O N I TO R I N G R E P O R T 2 0 1 6 between 1965 and 2010. Good quality education and highly skilled workers foster productivity gains and technological change. Differences in the quality of education systems help explain the East Asian ‘miracle’ in economic growth and Latin America’s ‘lost decades’. For countries to prosper, investment in good quality secondary and tertiary education is a must. This is particularly true of sub-Saharan Africa, where the gross enrolment ratio in tertiary education was just 8% in 2014. If education is to continue to drive growth, it must keep up with the rapidly changing world of work. Technology has not only raised demand for high-skill workers but has also reduced demand for medium-skill jobs, such as clerical and sales workers and machine operators, whose tasks are more easily automated. This could affect millions in the future: In 2015, slightly less than two-thirds of total employment was in medium-skill occupations. By 2020, the world could have 40 million too few workers with tertiary education relative to demand Evidence suggests that most education systems are not keeping up with market demand. By 2020, the world could have 40 million too few workers with tertiary education relative to demand, and up to 95 million too many at lower education levels. Skills and competences promoted by general, comprehensive education – critical thinking, problem solving, team and project work, and solid literacy, communication and presentation skills – are likely to remain valued in the labour market. Acquiring a range of transferable and foundation skills is therefore extremely important for future employment. The challenge for education systems is how to impart them to students most effectively. EDUCATION CAN SUPPORT SOCIAL INCLUSION Education is essential in ensuring that economic growth is sustainable and does not leave anyone behind. Education drives growth, increases the incomes of
the poorest and, if equitably distributed, reduces inequality. If 10 recent European Union (EU) member states meet 2020 targets to cut early school leaving and increase tertiary participation, it could reduce the number of those at risk of poverty by 3.7 million. However, increases in training and skills have not always translated evenly into reduced social inequality. Alongside efforts to equitably expand education, governments need to focus on redistributive social policies to help reverse the trend of widening income inequality within countries. EDUCATION IMPROVES LABOUR MARKET OUTCOMES Unemployment rates are lower among the more educated, particularly in richer countries. In the Organisation for Economic Co-operation and Development (OECD), only 55% of adults aged 25 to 64 with less than an upper secondary education were employed in 2013, compared with 73% of those with an upper secondary or non-tertiary education and 83% with a tertiary qualification. In poorer countries, this relationship often weakens among youth, suggesting that the demand for skilled labour is comparatively lower and that education systems are not equipping students with relevant skills. Reducing education disparity can increase access to decent work among disadvantaged groups. Analysis conducted for the 2016 GEM Report suggests that if workers from advantaged and more disadvantaged social backgrounds had the same education, disparity in working poverty could reduce by 39%. Education is clearly linked with earnings – across 139 countries, the rate of return per additional year of schooling is 9.7%. Rates of return are highest in poorer countries that lack skilled workers. However, ensuring that students benefit the most from higher attainment requires that education investments are accompanied by economic policies that increase demand for skilled labour. 16