Global cost of school dropout and educational gaps reaches 10 trillion USD annually

A report published this week by the United Nations Educational, Scientific and Cultural Organization (UNESCO) analyzed the economic cost and the social consequences of educational Deficiencies for the first time, urging the member states of the organization to act against the “vicious circle” of the school dropouts as soon as possible.  

The number of out-of-school minors remains significant with 128 million boys and 122 million girls not having access to education.

In the report, called “The price of inaction: the global private, fiscal and social costs of children and youth not learning”, it is clear that this is an urgent issue since the annual global estimated cost of skills deficit is around 10 trillion US$.

However, it is estimated in the publication that reducing only 10 % of the number of young people dropping out of school or not having basic educational skills could increase annual GDP growth by 1 to 2 percentage points. 

If governments would make efforts so that most children had equal access to education the world GDP would rise by more than US$6.5 trillion annually, not to mention eliminating the social costs of failure.

Apart from the financial consequences of this problem the report also highlights that gaps in acquiring basic skills are globally associated with an increase in early pregnancies among young girls. Moreover, each additional year of secondary education significantly lowers the risk of girls marrying and having a child before the age of 18.

To achieve the Goal of Quality Education for All, UNESCO makes ten recommendations in its report, including ensuring free, publicly funded education for every girl and boy for a minimum of 12 years.

The learning environment must also be both safe and inclusive. UNESCO emphasizes the importance of ensuring short distances between children’s homes and their schools, especially in disadvantaged areas. Furthermore, all schools should be equipped with access to water and sanitation facilities.

“The message is clear: not only is education for all a powerful lever for economic development, but it is also a strategic investment—one of the best investments there is for individuals, economies and society as a whole. By taking action in this way the international community can uphold the commitment it made more than 75 years ago: to elevate education from a privilege to a prerogative for every human being across the globe,” says Audrey Azoulay, the Director-General of UNESCO.