Report Says University Grads less Affected By Financial Recession

According to a study by The Organisation for Economic Co-operation and Development (OECD), university grads saw far less job losses during the financial recession, versus people with less education.

Their data shows that the unemployment rate for university graduates stood at 4.4 per cent on average across OECD countries in 2009. However, unemployment for people without higher education was 11.5 per cent, up from 8.7 per cent the year before.

The OECD feels this only adds to the youth unemployment problem, as today, that number exceeds 17% in the OECD area.

“The cost to individuals and society of young people leaving school without a qualification keeps rising,” said OECD Secretary-General Angel Gurría. “We must avoid the risk of a lost generation by all means. Despite strained public budgets, governments must keep up their investment to maintain quality in education, especially for those most at risk.”

“Investment in education is not only about money, it’s also an investment in people and an investment in the future.”

The report also calls for more subsidies from governments for education, stating that, “A man with a tertiary education will pay back an average USD 91 000 in income taxes and social contributions over his working life, over and above what the government pays for his degree.”