America’s Investment in Education Is Lagging — and the Workforce Pays the Price

Brown: America once led the world, but the global economy is evolving and other nations are surging ahead. We must recommit to innovation & training.

By Courtney Brown

This story first appeared at The 74, a nonprofit news site covering education. Sign up for free newsletters from The 74 to get more like this in your inbox.

For much of the 20th century, the United States set the global standard for higher education, driving economic expansion, technological innovation and middle-class stability. A college degree was a reliable pathway to prosperity. Today, that reality is slipping away.

The U.S. now ranks 20^th globally in post-high school attainment among 25- to 34-year-olds, according to OECD’s Education at a Glance 2024 report, the latest look at educational achievement around the world. That means proportionally fewer Americans in this age group earn associate degrees, bachelor’s degrees, or other credentials than their international peers. Meanwhile, countries such as South Korea (69.3% attainment), Canada (66.9%) and Japan (65.5%) have surged ahead by prioritizing education and workforce development through sustained public investment, affordability initiatives and alignment with labor market needs.

In contrast, with an attainment rate of just under 55%, the U.S. has seen investment in higher education stagnate, leading to rising tuition costs and declining confidence in the value of a degree. Recent layoffs at the Department of Education, cuts to state university budgets and even some college closures have only deepened the crisis, leaving fewer resources for student services, academic programs and the educators who deliver them. Instead of strengthening the system that once made America an economic powerhouse, the country is retreating, and the consequences are dire.

Other nations understand that a highly educated workforce is critical to economic success. For decades, they have expanded public investment, updated education systems to match evolving industries and strengthened workforce training programs. By prioritizing lifelong learning and ensuring education leads to economic mobility, these nations have steadily closed the gap and, in some cases, surpassed the U.S. in educational attainment and workforce readiness.  

Norway and Sweden provide tuition-free higher education, funded by public investment, that ensures equitable access to learning opportunities. Germany’s dual apprenticeship system integrates classroom learning with paid, on-the-job training, producing well-prepared graduates for industry demands. Switzerland has a vocational education system that allows students to split their time between school and work in fields like health care, information technology and advanced manufacturing. Singapore’s SkillsFuture program gives adults financial credits they can use to pursue short courses and certificates at any stage of their careers. In Finland, adults can attend publicly funded retraining programs to gain new skills when industries shift or disappear.

Other nations are also making strategic investments. Australia has reformed its higher education funding to increase accessibility, particularly for low-income students, by subsidizing tuition and offering income-contingent loan repayment programs. The United Kingdom has introduced apprenticeship levy requires large employers to help fund job training programs, strengthening the link between schools and workplaces.

The U.S. must take note. In the modern era, America has always led the world in higher education, which has fueled its workforce, industry, research and virtually all sectors that drive its economy. Without a renewed commitment to education beyond high school and workforce alignment, the country risks falling further behind in global competitiveness.

Public skepticism about higher education is rising because too many Americans pay more for degrees without clear economic returns. Yet, Americans still believe in the power of education to unlock opportunity. The challenge is ensuring that their investments lead to stable employment, career growth and financial security. The issue is not education itself; it is the failure to make it affordable, relevant and aligned with workforce needs.

Restoring faith in higher education means making college affordable through increased public funding, expanded need-based aid and lower tuition. Denmark, for example, provides students with financial support through grants, making higher education accessible without overwhelming debt. Credentials must have clear economic value: Ireland has developed strong partnerships between universities and industries, ensuring graduates have the skills necessary for emerging job markets, particularly in technology and health care. America must invest in workforce-aligned programs that prepare students for high-demand, high-wage industries in the same way South Korea’s investment in STEM education has fueled its technology and manufacturing sectors, making it a global leader in innovation.

When more individuals hold high-value credentials, workforce participation increases, financial security becomes attainable for more families and economic growth accelerates. But these benefits won’t materialize without action. Federal and state governments must prioritize education funding, align learning with workforce needs and reaffirm education as a public good.

The global economy is evolving, and the U.S. must evolve with it. Other nations invest boldly in education to fuel their economies, while the U.S. risks falling further behind and ceding its global leadership. Higher education drives innovation, opportunity and national strength. Countries worldwide are demonstrating what’s possible when governments commit to education as a pillar of economic strategy. The U.S. must follow suit before it’s too late.