From education to employability: Rethinking economic inclusion, ETEducation
By Mana Al Ansari.
Education is the essential foundation for quality employment and the most reliable path out of poverty. According to the World Bank, global trajectories indicate a 9% rise in income for every additional year of schooling. Education is essential not just as a social good, but a driver of livelihoods, resilience and inclusive economic growth.
Yet, learning is still in a crisis. UNESCO estimates that more than 420 million youth could be lifted out of poverty if they complete secondary school, reducing the total number of poor people by more than half globally and by almost two-thirds in sub-Saharan Africa and South Asia. The numbers represent a stark reality where economic empowerment is hindered by lack of access, poor quality education and the irrelevance of the learning process to labour markets.
The Gap Between Education and Economic Opportunity
In fragile contexts, education can be a key driver for economic growth. Traditional education systems often fail to translate learning into employability. It therefore becomes increasingly important to integrate higher education support, Technical and Vocational Education and Training (TVET), and programmes connecting young people directly with labor markets.
According to the ILO, only half of workers worldwide hold jobs corresponding to their level of education. The rest are either overeducated or undereducated for their roles – a direct indicator of a growing education-employment disconnect and a misalignment between young people’s trajectories and economic needs.
The mismatch between education and economic empowerment is also due to systemic barriers. Rapid shifts in industry skill needs; traditional education systems being slow to adapt; and a lack of emphasis on practical and soft skills all lead to an unprepared workforce. Educational modules that emphasise strengthened practical and soft skills as well as expanded lifelong learning and reskilling are of paramount importance.
Ensuring Inclusive Employability
In marginalised regions and communities, persons with disabilities, informal workers and refugees and displaced persons are at a clear disadvantage. Informal workers represent a substantial share of the workforce in many economies, including India, but often lack social protection, job security and access to skills development.
Refugees and displaced persons often possess valuable skills and experience but encounter legal restrictions, non-recognition of qualifications, language barriers and limited access to formal training. The barriers persist despite evidence that inclusive workforces improve productivity and innovation.
Outlooks for marginalised regions are further affected by a projected global cut in education funding, while the Official Development Assistance (ODA) for education is set to decrease by $3.2 billion in 2026. Reduced funding can constrain economic growth by reducing labor productivity, limiting innovation, and weakening the pipeline of human capital necessary for expanding industries and entrepreneurial growth.
Digital Financial Inclusion in India
Reports show that about 73% of India’s employed workforce have only basic education, while many industries report ~63 % talent shortages due to skill mismatches. Leveraging data-driven labor market insights can help policymakers and employers target skills development to sectors with the highest shortages. Providing financial incentives or micro-entrepreneurship support can empower individuals to create their own economic opportunities, collectively turning education into a driver of employment and economic growth.
Digital financial inclusion projects in particular can enable tens of thousands of young people in India to use digital solutions to expand access to finance, so youth can start, sustain, or grow income-generating activities. Programmes that offer loans and tailored financial support to help young men and women launch businesses or strengthen existing ones can also offer clear pathways to entrepreneurship and economic participation – and improve livelihoods.
Measuring Success for Economic Growth
Success can be assessed by the effectiveness that education assumes in empowering people to be productive within society. Key tools for education aimed at attaining this goal are innovation and problem-solving skills, which measure the capacity of graduates to be innovative through the use of technology in solving complex challenges that drive business growth.
Economic mobility – the ability to utilise education to enter higher-paying fields, start a business, or enter a different industry – also symbolises economic empowerment. Workforce adaptability – the number of workers whom the economy can shift or align to changing economic demands – is a direct success factor in growing economies. Finally, ROI on human capital investments includes calculating the value of economic output or growth per educated person, directly correlating learning outcomes to GDP.
Success can only be achieved if we intertwine education and policy to overcome systemic barriers. Education can be a powerful tool in determining economic growth, but only if the benefits of human capital investment translate into widespread economic participation, innovation, and sustainable productivity gains.
The author Mana Al Ansari, is the Chief Economic Empowerment Officer at Education Above All Foundation.
DISCLAIMER: The views expressed are solely of the author and ETEDUCATION does not necessarily subscribe to it. ETEDUCATION will not be responsible for any damage caused to any person or organisation directly or indirectly.
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