How does higher education help the economy

In short, workers with more skills gain more money. This is in large part due to the fact that school gives young people the essential skills they need in life, such as how to write clearly and study effectively. However, these skills not only help students learn, they also provide them with more career and work opportunities.

In addition, with improved reasoning skills , employees are far more efficient and productive. To put it differently, higher-skilled workers serve as an economic driver. They help boost GDP and improve the overall economy. Practically speaking, individuals should make sure to gain skills by setting aside time to learn and land degrees.

But more broadly, education requires investment. Especially given the pandemic, policy leaders must invest—not cut—school funding. In particular, they should invest in what works, from online tutoring to proven math programs. The new study does have a number of limitations. The McKinsey report estimated that 49 percent of time spent on work activities worldwide could be automated using existing technologies. Higher education institutions assure the relevance of their knowledge, identify skills gaps, create special programmes and build the right skills that can help countries improve economic prosperity and social cohesion, adapt workforce development to the economy and changing demand for the new skills, develop relevant skills and activate skill supply, and thus support improvement in productivity and growth.

Higher education is a technology and innovation driver. One of the missions of the modern universities is finding solutions to big challenges and conducting research within global priority areas, contributing to social outcomes such as health and social engagement. Often it is aimed at designing technologies that result in new products and supplying advanced technology for use.

Knowledge is the true basis of higher education: its production via research, its transmission via teaching, its acquisition and use by students. Hence, excellence must remain the prime objective of any institution of higher education, including universities in any country.

Countries are putting knowledge at the service of their societies to create a better world. This can be achieved through the training of first-class minds, through major advances in science and technology and by encouraging an interest in learning.

Now, to realize its full potential, higher education is to maintain a pro-active stance, strengthen its position as a bedrock upon which countries are and build a new road to growth.

It cannot be passive. Sign in Join. Colleges and universities fuel the knowledge economy. Since the Great Recession, 99 percent of jobs created have gone to employees with more than a high school diploma.

And as predictions forecast that 65 percent of U. Colleges and universities drive economic development. Colleges and universities set a higher standard. As they create a more educated labor market, colleges and universities essentially increase wages of all workers.