Education Spending in U.S. Remained High During Recession

Education spending in the United States is higher than in any other nation, with some $15,171 spent annually per student across all education levels, according to the Organization for Economic Cooperation and Development’s (OECD) “Education at a Glance” report.

The OECD examines how American students, as well as those worldwide, participated in and benefited from education during the recession. The 440-page report collates statistics through 2011.

Education spending in the U.S. reached 7.3 percent of gross domestic product in 2010, compared to the average of 6.3 percent in other OECD countries. The only nations that put more GDP toward education are Denmark, Iceland, Israel, Korea and Norway. However, U.S. spending was not the same across all levels. It earmarked its highest proportion to primary and lower secondary education, committing 3 percent of its GDP to these sectors alone.

OECD Secretary-General Angel Gurría pointed out that education is more important today than ever for young adults. She advised countries to place a high priority on helping young people expand their education, “especially the less well-educated who are most at risk of being trapped in a low skills, low wage future.”

Lowering high school dropout rates and increasing “skills-oriented education” are key to a more fruitful career path, Gurría says. Progress is already evident, with an average of 77% of Americans completing upper secondary education in 2011 compared to 70% in 2000.

The OECD report reveals that individuals with higher education credentials enjoyed far better job prospects during the recession. Unemployment among U.S. adults without a tertiary degree increased by 6% to 16.2% between 2008 and 2011. Adults with a degree fared much better during this difficult period, with unemployment rising a comparatively low 2.5% and reaching 4.9% in 2011.

The OECD says the “earnings premium” for those with a tertiary education increased over the last decade. The continuing earnings premium indicates that the demand for educated workers remains strong.

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