Academic qualifications enhance high wages and productivity according to new reports

The Department for Employment and Learning has published two new research papers, which investigate the link between qualifications and their impact on wages and productivity.

The papers are part of the Department’s Research Agenda 2004-07, and examine differences at a local, regional and national level. They are entitled: The Impact of Educational Attainment and Literacy Scores on Economic Growth and Productivity (Oxford Economics). The Influence of Graduate Qualifications on Average Wages and Productivity across the UK (Oxford Economics).

The first paper is a literature review to examine the impact of educational attainment and literacy scores on economic growth and productivity. The research concludes that literacy has a persistent and significant link with positive labour market outcomes. Individuals with greater literacy skills are more likely to be in employment and are likely to be higher earners.

Based on the literature reviewed, the report suggests that improvements in average literacy scores could potentially raise the average productivity of the Northern Ireland economy. Previous research from the International Adult Literacy Survey has shown that average literacy scores in Northern Ireland were 1.2% below the UK average. If the Northern Ireland average literacy scores were raised to UK levels, this latest report for the department estimates that it would lead to a 2.5% gain in the level of GDP per employee.

The Department’s Essential Skills for Living strategy, which has allowed some 60,000 enrolments to achieve in excess of 39,000 nationally recognised qualifications, has already had a significant impact. Further work to address the skills needs within the workforce is underway with the support of the Sector Skills Councils and trade unions.

The second paper concentrates on defining the influence of graduate qualifications on average wages and productivity across the UK. It concludes that Northern Ireland should also aim to increase its share of private sector graduates. That will help close the wage and productivity gap with the rest of the UK.

Notes to Editors:

1. The reports are available to download from the Department’s website on 12 February 2009 at www.delni.gov.uk/highwagesandproductivity.
2. Media queries to the Department for Employment and Learning Press Office on 028 9025 7872. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.