Education and the Economy

No matter what the economy decides to do in the next few years, the one thing that isn’t likely to change is the importance of education.

With thousands of layoffs every month, and the employee pool growing exponentially, companies are only getting more demanding with their recruiting. This is going to continue to increase the value of an education and force prospective employees to improve their employability through education, whether it be upgrading from high school year 10 or completing a PhD.

Numbers from the Australian Bureau of Statistics show that by late 2008, employment rates were almost 20% higher for those with a post high school education, compared to those who only graduated high school. Now with the flailing economy and employers more reluctant to hire, the gap between those with higher education and those without is only going to expand.

In a 2007 pre-election policy, [now] Australian Prime Minister Kevin Rudd said, "There is now incontrovertible evidence that education should be understood as an economic investment,” and in early 2009, the Rudd government promised to spend A$14billion over 4 years to improve education throughout Australia.

As Australia looks to education as a solution to the economic downturn, it seems as though the United States are looking in the same direction. With layoffs in the USA more than doubling from February 2008 to February 2009 and the American university dropout rate sitting around 50%, President Obama has said one of his campaign goals is “to ensure that every child has access to a complete and competitive education ...”

In the same February 2009 speech to congress he also said, “In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity -- it is a prerequisite.”

Whether or not people are taking heed of this advice or not, it appears that students worldwide are seeing the value of an Australian education. Despite the sluggish economy, overall student numbers in Australia increased by over 2.5% from late 2007 to late 2008, and international student numbers went up a staggering 6.1%.

In Australia or elsewhere, there are thousands of study options for every person to turn their career dreams into reality. Simply put, education will improve career prospects, increase salaries and give students a much better chance of getting the job they desire.