Degrees Do Not Guarantee Jobs in Low-Income Countries: ILO

While education is widely recognized as a driver of economic development, labor productivity, and social mobility, its benefits are not equally distributed across income groups or educational levels. Recent data from the International Labour Organization (ILO) shows that, although the global workforce is increasingly better educated, advanced education does not uniformly translate into improved employment outcomes, particularly in low and lower-middle income countries.

As of 2023, only 7% of individuals aged 25 to 54 in low-income countries held a tertiary degree, compared to 16% in lower-middle income countries, 21% in upper-middle income countries, and 46% in high-income countries. The data reveals a strong correlation between educational attainment and national income levels. However, access to education does not always align with access to quality employment.

Globally, people with a tertiary degree are more likely to be employed than those with only basic education, yet they also face distinct challenges. In Mexico, only 22% of people have attained some level of tertiary degree, according to the OCDE.

In lower-income countries, tertiary-educated individuals are over-represented among the unemployed, signaling a shortage of high-quality, skilled jobs that match their qualifications. Many remain actively searching rather than exiting the labor force, suggesting a mismatch between labor market demands and the aspirations or expectations of the highly educated.

In contrast, those with lower secondary education or less are more exposed to underemployment and discouraged job-seeking. While they may not be disproportionately represented among the unemployed, they often face time-related underemployment or exit the labor force altogether, likely due to limited opportunities in formal employment.

Youth face even greater labor market challenges, especially in lower-income countries. According to ILO estimates, over 20% of the world’s youth were not in employment, education, or training (NEET) in 2023. This figure rises to 28.7% in low-income countries and disproportionately affects young women, with global NEET rates of 13.1% for men and 28.1% for women.

Young people with tertiary education in low and lower-middle income countries face particularly high unemployment rates, far exceeding the rates for youth with lower education levels or those in higher-income countries. These individuals appear to maintain higher expectations or stronger financial support systems, leading them to remain in the labor force despite prolonged periods of unemployment.

In high-income countries, the dynamics are different. Individuals with advanced education experience relatively smooth transitions into employment and are under-represented among all forms of labor underutilization. Conversely, those with basic or less education in these countries face greater obstacles, often becoming discouraged and exiting the labor force due to a lack of unskilled job opportunities.