Technology People and Productivity - Educational Attainment: Key Factor In Productivity

In 2000, more than 84% of some 175 million people aged 25 years or older, had an educational attainment of high school level or higher. Sixty years before, in 1940, when this population was just shy of 75 million, that same attainment was around 24%. Since World War II, we've certainly become a good deal better educated if not necessarily wiser.

The educational level of the population is undoubtedly a major factor in the nation's productivity. Knowledge and the ability to manipulate information have become more important than manual dexterity. One in four people 25 years or older (25.6%) have 4 years of college or a higher degree; they are the fastest-growing group. They are included in the 84% of those with high school and higher attainment but also shown separately on the graphic. Just shy of 16% of the 25-and-over group still has less than a high school diploma — nearly 28 million adults.

Educational attainment now may be at a record high level — and may flatten out or even decline due to demographic factors in the early 21st century. This subject is explored in a later panel. And, at present, there are at least some signs that the economy is taking a skilled workforce for granted. Technological and structural changes — more than increases in educational attainment — may now be driving gains in productivity.

Source: U.S. Census Bureau, U.S. Department of Commerce, Current Population Survey, March 2000.