Research shows university education surest path to prosperity

An excerpt from this op-ed submission was printed as a letter in the April 1, 2011 edition of the Globe and Mail.

By Paul Davidson
President and CEO
Association of Universities and Colleges of Canada

Canada’s universities are pleased to see postsecondary education emerge as a hot topic in the early days of this federal election campaign. The Liberal announcement of their proposed “Learning Passport” sparked a widespread discussion this week about the best way to open the doors of higher education to more students. Improving accessibility and quality are complex issues that warrant a robust national debate.

Globe columnist Margaret Wente offered a particularly cynical and misguided view of the value of university education in her column of March 31. While she shared with us the happy news that there’s lots of work for her hair colourist, her argument that we should have fewer, not more young people getting a university education flies in the face of current labour market research.

Let’s take a look at what happened during the recession. Between 2008 and 2010 there were 125,000 jobs lost in trades occupations in Canada compared to 300,000 new jobs created for university graduates. If we take a longer view, we see that since 2004 there were 110,000 more jobs in trades occupations, compared to 995,000 more for university graduates. It is no wonder that students are responding to labour market signals by enrolling in universities in greater numbers right across Canada.

Despite such arguments to the contrary, the value of a bachelor’s degree is not falling; it has in fact been rising over the last 25 years. The income advantage for a bachelor’s graduate over a registered tradesperson working full-time is 40 percent ($1 million) and bachelor’s graduates have a 75 percent income advantage ($1.4 million) over those with other types of trades certificates and diplomas. Although there are some misperceptions to the contrary, social science graduates enjoy the same relative income premiums as other bachelor’s graduates.

We also wonder whether Ms. Wente has heard about the looming demographic shift. In the next two decades, the number of Canadians over the age of 65 will double while the number entering the workforce will grow by only eight percent. It will be a buyer’s market for job-seekers. And the more than six million baby boomers retiring – most likely Ms. Wente among them – during this time will create greater demand for legal, health and social services throughout the economy. Expanding access and improving quality in university education will help solve Canada’s mid- and longer-term demographic, labour, economic and social challenges.

Perhaps less known than the personal benefits of getting a university degree are the public benefits. University graduates build communities. They volunteer more, engage more frequently in social and political activities, rely less on government benefits and place less strain on health care. In fact, university graduates generate 44 percent of revenues collected through income tax and only receive 16 percent of all transfers. It is this surplus that enables the provision of public services for those with less education.

Ms. Wente took a predictable shot at those studying in disciplines that may not be widely recognized as having good employment prospects. What she overlooks is that employers are increasingly looking for strong communication skills, analytical abilities, a capacity for leadership and problem-solving skills. Let’s remember that 10 years from now many of the students entering university today will be in jobs that don’t currently exist. Universities produce the flexible, adaptable, productive and knowledgeable employees that our changing labour market requires.

In attacking efforts to increase accessibility to universities, Ms. Wente writes that “Canada already has one of the highest postsecondary rates in the world.” In fact, Canada is no where near the top in university participation rates around the world. We rank 21st. However, Canada is one of the leading nations in the world in college and trade participation rates. She also incorrectly states a large portion of university students will not graduate. Research shows that five years after starting a university program 90% had either completed a degree or were still enrolled.

The facts show that a university education remains the surest path to prosperity and economic security for Canada’s families. It not only improves the lives of individuals and families, but it builds communities and secures a high quality of life for all Canadians. Investing in universities is one of the wisest investments a government can make.

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For more information , contact:
Helen Murphy
Communications Manager
Association of Universities and Colleges of Canada
Email: hmurphy@aucc.ca
Tel.: 613-563-3961, ext. 238