The country has slumped to the bottom of international education tables according to a study by the University and College Union (UCU).
The UK is struggling to keep up as other nations see rising numbers of young people enter education.
Portugal, the Slovak Republic and Hungary all had more 15-19-year-olds in education in 2007 than the UK, the research shows.
The union warned that immediate action is needed for the UK to “avoid the indignity of becoming a country with first-world aspirations but third-world levels of participation in education”.
The study analysed the percentage of young people in education across 30 countries according to data from the Organisation for Economic Co-operation and Development (OECD).
It found that in 1995, the UK was mid-table, but by 2007 had slipped to the “relegation zone” taking 26th place, with 71% of 15-19-year-olds in education.
Only Mexico and Turkey were placed lower in the 2007 table - figures for Japan and Canada were not available.
Among 20-29-year-olds, 18% of that group from the UK was in education in 1995.
But by 2007 this figure had dropped to 17% and the UK had fallen to 25th place as other nations sent increasing numbers into education.
The study also raised concerns that other, second tier “partner” countries of the OECD are performing better than the UK. Brazil, Chile, Estonia and Slovenia all had higher percentages of 15-19-year-olds in education in 2007.
The research was published as the UCU launched a cross-party group, the Make Education Count Westminster network, to put UK education back on the map.
UCU general secretary, Sally Hunt said: “This shocking analysis brings home just how much the UK has to do if it wants to remain a key player in the new global knowledge economy.
“We cannot rely on our proud history when it comes to educational achievement or innovation. We have to face up to the fact that we cannot remain a first-world country with third-world levels of participation in education. Other developed countries are pulling away from us and the developing nations are catching up and looking like they will over take us.
“The figures should worry us all. Sticking plaster policies from parties looking for votes just will not do. We need a genuine cross-party consensus on the issue.
“We are delighted to be launching our Make Education Count Westminster network this evening and look forward to thrashing out the best way forward for the UK with politicians from all parties who have a genuine passion for education.”
A Government spokeswoman said: “Further and Higher education in England remains of crucial importance to this Government as demonstrated by our recent Skills Strategy and Higher Education framework.
“We now have the highest ever rate of 16 to 18-year-olds participating in education or training (79.7%), more people than ever in our history are now attending university (1.92 million) and the number of adults participating in further education stands at over 3.7 million in 2008/09.
“We are proud of this record, but far from complacent. We remain committed to a world-class skills base by 2020 and have challenging targets in place to achieve that.
“Government is investing £4.9 billion in adult skills this year to continue to up-skill the nation so we can compete in an increasingly competitive globalised marketplace, as well as spending £15 billion this year in cash terms on the higher education system, and over £6.8 billion this year and next in post-16 education and training.
“Our ambition is that three-quarters of the population go to university or get an advanced technical qualification by the age of 30.”
71% of British 15 to 19-year-olds are in education
We have to face up to the fact that we cannot remain a first-world country with third-world levels of participation in education
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