New report dispels myth that the UK is overinvesting in high level skills

“This is a ground-breaking study that policymakers throughout the UK must take very seriously. We now have a comprehensive measure of the levels of literacy, numeracy, and problem-solving skills, instead of having to use educational achievements as a proxy.

“It shows that investment in skills pays, both economically and socially, and for individuals and economies; it shows we are good at producing and extracting value from high levels skills; and that concerns that we were overinvesting in high level skills are misplaced. This success must be reinforced.

“But we face a major generational challenge. We are the only OECD economy where the average skill levels of the younger generations in work are no better than the older generations they will eventually replace. According to the OECD, we face a relative decline in the economy’s skills base. We must develop more effective policies to increase investment and promote the benefits of life-long learning, especially for lower skill groups and for younger workers, if we hope to compete internationally as a knowledge based economy.”