Most students, families, policymakers and educators essentially look to higher education as a bridge to economic opportunity and upward mobility. However, some ask whether our education system is overpromising and underdelivering to thousands of mainly young students.
A study entitled ‘Skills Rush: Have we missed the Bus?’, co-authored by university professors Alexiei Dingli and Rose Marie Azzopardi, is a sobering wakeup call for policymakers. It highlights the need to bridge the education-jobs gap harming the economy and affecting the prospects of graduates to realise their dream of achieving success in their careers.
Higher education serves several important purposes, including strengthening communication and critical thinking skills, preparing individuals for responsible citizenship, expanding intellectual interest and helping people navigate an increasingly complex and diverse job market. Many often view tertiary education as the most reliable pathway to economic opportunity. The Skills Rush study confirms how our education system is falling short of delivering on these objectives.
The incidence of underemployment, underqualified workers and the increase in the brain drain phenomenon are the worrying symptoms of an education system failing to deliver full benefits to thousands of students. The mismatches between education and the labour market are indeed the most significant economic challenge.
The key findings of this study must be addressed with determination by policymakers, even if the results of reforms may take a generation to become evident.
Underemployment is a large and persistent problem. Despite a historically high employment level, the underemployment of tertiary education graduates remains stubbornly high. Rather than pursuing the strategy of importing skilled labour liberally to meet the demands of industry for highly qualified staff, education authorities must start a root and branch reform of the system to optimise the outcome of public investment in education. Underemployment is sticky. International labour market research confirms that most graduates who start out unemployed remain so 10 years after completing tertiary education. Research also confirms that an underemployed graduate typically earns only about 25 per cent more than someone with no education beyond the secondary level.
The stipend system was initially intended to encourage more young people to pursue higher education studies after completing the compulsory stage. This objective may have been achieved as more young people today are graduating from the university and MCAST. Still, the stipends system must be reformed to motivate student to follow the tougher courses. Graduates with degrees in humanities, law, wellness studies and general business fields (like marketing) face much higher underemployment levels.
While policymakers typically consider STEM (science, technology, engineering and mathematics) as a sure pathway to tertiary-level employment and high wages, the reality is more nuanced. Graduates in certain life sciences degrees, like biology, tend to face more underemployment risks than computer scientists and engineers.
The Skills Rush report correctly argues that 21st century education institutions believe that a more hands-on approach is required and that apprenticeships and exposure to the working environment are a must. Moreover, students must focus more on upskilling and reskilling, increasing their job mobility and flexibility.
Malta’s expenditure on education is comparable to that of the more advanced EU economies. Still, it fails to optimise the benefits as reforms that are necessary are shelved for too long.
Today’s policymakers may not see the long-term benefits of the tough reforms necessary to correct the education system’s deficiencies. However, they are still responsible for bridging the education-jobs gap to help young people realise their aspirations and satisfy the needs of today’s economy.