Nowadays, along with the world’s outstanding development, many countries have achieved certain

economic achievements (one of the important fields representing the living standards of the country).
However, in exchange for rapid economic development, the world, including both developed and
developing countries, must address the social issue of unemployment. 
Many measures and solutions have been devised to enhance the factors of physical capital, resources
capital, technological knowledge and more importantly, human capital in increasing labor productivity
and lowering labor costs. 
Human capital is defined as a worker's expertise, knowledge and skill gained through experience and
education training. Labor productivity rises when workers have more human capital (education, skill,etc.),
resulting in a more developed economy and country, as a result, a lower unemployment rate due to a
variety of factors.
With the statement “The higher the education, the lower the unemployment rate.” Our group 5 will give
discussion and argument about labor productivity, education and professional qualifications of workers
and how these factors affect the unemployment and growth rate.

First of all, people who get qualified education is always in high demand for work. As the world literacy
rate show that, the rate of people of achieve a tertiary completement is not high.

Top 10 most educated country in the world

As the given table shows, we can see that in today’s modern world, the education rate is high mainly in
developed countries with a more affordable and plenteous opportunity. In contrast, literacy rates and the
proportion of adults with a high school diploma are often lower in still-developing countries. Most
citizens in underdeveloped and least developed countries may not even have access to school; these
countries often have the lowest literacy rates and the poorest educational offerings. Here is the table of
tertiary rate in the world in lastest data available.

The chart above shows that in

developed countries such as Korea or
Canada the rate of people who get
tertiary education in 25-34 year-olds
group was at 68% and 70% and the figure
for tertiary education in South Africa and Indonessia was only 15% and 20% respectively. Hence, what
can we figure out from the chart, it means that most of the labour force is still manual work in the market.
Most of them are wage earners who work 8 hours a day in factories. These position is can be easily
replaced by machinery or new technologies. However, with high education, people do not afraid. There is
a shortage of skilled labour in thesedays. Let’s take the pandemic of Covid-19 as an example. According
to a report published in JAMA Health Forum, "Employment turnover among nearly all segments of the
health care workforce has not yet fully recovered from the COVID-19 pandemic, with turnover rates
among long-term care workers and physicians deteriorating over time." Moreover, within a dozen years,
the United States of America will have between 37,800 and 124,000 fewer doctors than it needs. Just by
considering an example in doctor’s neccesity. We can clearly see that labour force always has a path for
educated people.
Second of all, the more in education, the less competitive in their job’s position. This is simply because a
person with higher degree of their field is hard to have a replacement by someone else. Also a person with
high education is paid in a higher wages too.

The graphic uses information from the Current Population Survey of the U.S. Bureau of Labor Statistics
(BLS) to show disparities in 2020 earnings and unemployment rates by education. For instance, in 2020,
workers with a bachelor's degree earned an average of $1,305 a week, as opposed to $781 for those with
only a high school diploma. Additionally, the unemployment rate for those with a bachelor's degree was
5.5%, while it was 9.0% for those whose greatest level of education was a high school diploma. For that
reason there is less reason for a person with a high education and having a good earnings to quit their jobs
and being unemployed. Futhermore, a study of OECD shows that there will be jobs that would be
vunerable in the future by automation. That are jobs required less skilled or routines jobs in factories.
The risk for less educated jobs group such as food preparation, construction, cleaning is obviously higher
than the educated ones ( teaching, healcare, management). Taking an example in the reality, a many years
experts in business analysis is scarcely replaced by anyone. However, a staff in restaurant can easily be
fires just by making a small mistake. In others words, the higher the education is, the less the replacement
in work occurs.
Third of all, only education can meet the job’s requirements. As a study suggests that 60 percent of jobs
that will required a bachelor's degree. For that reason, an candidate was faced with the lose in that
searching position if he/she does not have any diploma in the jobs. There is a downward trend in the
relative demand for low-skilled labor. In all OECD economies, employment rates for low-educated
people are significantly lower than those for high-educated ones. Furthermore, the employment gap
between high- and low-educated people appears to be widening in almost all OECD nations. Between
1991 and 2001, the total employment rate in the OECD area climbed by roughly 0.1 percentage point
each year; however, the employment rate of people with less than an upper secondary education fell by
about 0.3 percentage point per year (OECD, 2003a). Education has been shown to have a significant
impact on productivity. According to the most reasonable estimates, raising average education by one
year would increase aggregate production by at least 5%, with a potentially larger effect in the long run
due to its enabling effect on innovation (de la Fuente and Ciccone, 2003). In turn, productivity gains can
be shared by workers (via higher wages) and firms (via a wider productivity-wage gap), increasing both
the incentive to participate in the labor market and labor demand (to the extent that wage and productivity
gains are not concentrated in population segments with already high participation and labor demand).
The fouth reason is that with education, employees can improve their jobs skills quickly than others who
do not. As employees spended their time in academia department. They had time for practicing in both
soft and hard skills, learn to commucate effectively in front of a crowd or computing skills,… these are
really important in today’s challenging market. Because they already practice these skill when they joined
in university or training cources, so when in work, it is easier and quicker for them to adapt with the jobs
requirements. Higher levels of education may lead to more accurate knowledge of the labor market and
more successful job-search strategies, which would decrease the likelihood or length of unemployment
(see e.g. OECD, 1989). Hence, high-educated people have higher potential profits from market activities,
which is equivalent to a bigger motivation for them to participate in the labor market (as opposed to
remaining on income replacement benefits and/or working from home).
It is clear that many students today opt for vocational training to develop their professional abilities and
expertise so that they may work and succeed in careers at businesses once they graduate. Today, however,
in order to work at huge corporations, one not only has to have specialist talents but also soft skills and
industry-specific knowledge since they demand a team of competent individuals. focuses on investigating
and resolving issues inside the business. If a company wants to sell a phone component, they need
employees who are skilled in production and quality assurance, but they also need experts to analyze the
market, evaluate, orient the product, and have ways to bring that product to the buyer's market. Top
employees with high education levels are essential to a company's success. If a company wants to sell a
phone component, they need employees who are skilled in production and quality assurance, but they also
need experts to analyze the market, evaluate, orient the product, and have ways to bring that product to
the buyer's market. Top employees with high education levels are essential to a company's success. As a
result, an educated individual is more in demand since, upon hiring them, the organization will receive
access to both their knowledge and their talents, as opposed to merely hiring one employee and having
only that one employee. talents, but not a college degree, to understand the issues facing a business that
has to evolve and grow. Training employees in their job-related abilities will take less time than adding
information to them because knowledge is something that requires learning and research to acquire. In
conclusion, having a high level of education increases one's likelihood of finding a job, which has the
effect of lowering unemployment.
Ref
 Acemoglu, D. (2002, March). Technical change, inequality, and the labor market. Journal of
Economic Literature, XL, 7-72.
 Baltagi, B. H. (1995). Econometric analysis of panel data. Chichester: Wiley.
 Blackburn, M. L. (1990, Fall). What can explain the increase in earnings inequality among
males? Industrial Relations, 29, 441-456.
 Bound, J. and Johnson, G. (1992, June). Changes in the structure of wages in the 1980s: An
evaluation of alternative explanations. American Economic Review, 82, 371-392.