From Classrooms to Careers: Every Lesson Pays – Indeed Hiring Lab

Report on Educational Attainment and its Impact on Sustainable Development Goals

Introduction

This report analyzes the correlation between levels of educational attainment and socioeconomic outcomes within the current labor market. The findings are framed within the context of the United Nations Sustainable Development Goals (SDGs), highlighting how education serves as a critical enabler for achieving targets related to poverty, quality education, decent work, and reduced inequalities. Despite a stagnant labor market, data indicates that post-secondary education remains a significant determinant of economic resilience and opportunity.

Key Findings: Education’s Role in Economic and Professional Advancement

• Income Disparity: A direct, positive correlation exists between the level of education and median earnings. Less than half (45%) of bachelor’s degree holders report earning under $50,000 annually, compared to 75% of those with only a high school diploma.
• Employment Rates: Higher educational attainment is associated with lower rates of unemployment. Young workers with a college degree face a 4.3% unemployment rate, significantly lower than the 6.2% rate for those with only a high school education.
• Access to Lifelong Learning: Opportunities for employer-provided training and reskilling are inequitably distributed. 57% of workers with a high school education reported no access to such training, compared to only 33% of bachelor’s degree holders.
• Digital Skill Divide: A notable gap exists in the adoption of Artificial Intelligence (AI). 67% of bachelor’s degree holders use AI professionally, whereas 50% or fewer of those with a high school diploma or some college experience do.

Analysis in the Context of Sustainable Development Goals

SDG 4: Quality Education

The findings underscore the importance of achieving equitable and inclusive lifelong learning opportunities. While formal education provides a clear advantage, the disparity in access to workplace training illustrates a significant barrier to fulfilling the mandate of SDG 4. The data reveals that individuals with lower initial educational attainment are systematically excluded from crucial upskilling opportunities, which are essential for adapting to evolving labor market demands. This gap perpetuates a cycle where less education leads to fewer opportunities for further learning.

SDG 8: Decent Work and Economic Growth

Educational attainment is a primary driver for achieving decent work and sustained economic growth. The correlation between higher education levels, increased earnings, and lower unemployment directly supports the objectives of SDG 8. The “education premium” not only provides individuals with financial stability but also equips the workforce with the skills necessary for a productive and resilient economy. The lack of access to reskilling for less-educated workers, particularly in emerging fields like AI, threatens inclusive and sustainable economic growth by limiting the potential of a large segment of the workforce.

SDG 10: Reduced Inequalities

The report highlights significant inequalities in economic outcomes based on educational background, a central concern of SDG 10. The stark differences in income levels and access to career development opportunities create and reinforce socioeconomic stratification. The emerging “AI divide” represents a new frontier of inequality, where those without higher education are at risk of being left behind in a technologically advancing economy. Addressing these educational disparities is fundamental to reducing broader societal inequalities.

SDG 1: No Poverty

The link between education, employment, and income is critical to poverty reduction efforts under SDG 1. The data shows that individuals with only a high school diploma are disproportionately represented in the lowest income brackets, with 31% earning less than $15,000 per year. By improving access to and completion of post-secondary education and vocational training, pathways out of poverty can be established, providing individuals with the means for economic self-sufficiency and a better quality of life.

Conclusion

Educational attainment, even at levels below a four-year degree, is a powerful tool for advancing individual prosperity and achieving global Sustainable Development Goals. It directly impacts poverty reduction (SDG 1), promotes lifelong learning (SDG 4), fosters decent work (SDG 8), and mitigates inequality (SDG 10). In an increasingly complex economy, dismissing the value of education overlooks a proven mechanism for building resilience and mobility. To create an inclusive and sustainable future, policy and corporate efforts must focus on expanding access not only to formal education but also to equitable, continuous reskilling and upskilling opportunities for all members of the workforce.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 4: Quality Education

  The article’s core theme is the value of education, from high school diplomas to bachelor’s degrees and beyond. It discusses access to different levels of education (some college, associate, bachelor’s), the importance of lifelong learning opportunities like upskilling and AI training, and how these educational attainments directly impact an individual’s career and financial prospects.

• SDG 8: Decent Work and Economic Growth

  The article directly links educational levels to employment outcomes. It analyzes unemployment rates, earnings, and access to career growth opportunities, emphasizing that higher education leads to better employment rates and higher pay. The discussion on the “stagnant labor market” and its disproportionate effect on less-educated young workers is central to this goal.

• SDG 1: No Poverty

  By detailing the significant income disparities based on educational levels, the article touches upon SDG 1. It provides specific data on the percentage of individuals in low-income brackets (e.g., under $15,000/year) and shows a clear correlation between lower education and lower earnings, which is a key factor in poverty.

• SDG 10: Reduced Inequalities

  The article highlights the inequalities that exist in the labor market based on educational attainment. It shows disparities in income, access to employer-provided training, and opportunities to acquire new skills like AI. The data consistently shows that those with lower levels of education face significant disadvantages, creating a clear inequality gap in both earnings and career opportunities.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 4 (Quality Education):
  • Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university. The article discusses various levels of post-secondary education, including “some college but no degree,” “associate degree,” and “bachelor’s degree,” analyzing their respective benefits and accessibility.
  • Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The article emphasizes the importance of “upskilling” and acquiring new skills like AI to remain competitive. It notes that access to such employer-provided training increases with education level.
• Under SDG 8 (Decent Work and Economic Growth):
  • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. The article directly addresses this by comparing employment rates and earnings across different educational backgrounds, showing that higher education leads to better employment outcomes and pay.
  • Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training. The article specifically highlights the struggles of young workers, noting that “its impact is particularly severe for young workers without a college degree” and provides unemployment rates for this demographic.
• Under SDG 10 (Reduced Inequalities):
  • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The article provides data that underscores the need for such policies by illustrating the wide wage gap between different education levels. For example, it states that “less than half of bachelor’s degree holders (45%) reported earning less than $50,000/year,” compared to 75% of high school graduates.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative indicators that can be used to measure progress:

• Unemployment rate by level of educational attainment and age: The article explicitly states the unemployment rate for young educated workers (4.3%) versus those with only a high school degree (6.2%), which directly measures employment disparities (relevant to SDG 8).
• Median earnings by level of educational attainment: The article mentions that “Weekly median earnings for those with a bachelor’s degree are $322 higher than for workers overall.” It also provides data on the percentage of people earning less than $50,000 per year, broken down by education level (e.g., 75% of high school graduates vs. 45% of bachelor’s degree holders). This is a direct indicator of income inequality and the financial return on education (relevant to SDGs 1, 8, and 10).
• Proportion of employees with access to employer-provided training, by education level: The article states that “57% of workers with only a high school education reported having no access to employer-provided training,” compared to just “33% of bachelor’s degree holders.” This serves as an indicator for lifelong learning opportunities (relevant to SDG 4).
• Proportion of the population with specific skills (e.g., AI usage), by education level: The article provides percentages of individuals who use AI professionally, broken down by their education. For instance, “half, or even fewer, of both high school graduates and those with some college experience reported using AI at work,” compared to “roughly two-thirds (67%) of bachelor’s degree holders.” This measures the acquisition of relevant, modern skills (relevant to SDG 4).
• Proportion of the population in low-income brackets by education level: The data point that “31% of respondents with a high school diploma alone were making less than $15,000 a year” is a direct indicator for measuring poverty and economic vulnerability linked to education (relevant to SDG 1).

4. Table of SDGs, Targets, and Indicators

Source: hiringlab.org