COLLEGE graduates contribute billions to the Scottish economy over the long-term, a new study shows.
Research by Strathclyde University’s Fraser of Allander Institute found college leavers between 2008 and 2016 would provide benefits worth over £20 billion in their lifetimes.
The figure corresponds to an additional £55,000 boost to productivity for the Scottish economy per graduate every year for an estimated 40-year working life.
Over the years studied, the total costs to the public sector of investing in these learners was approximately £2.4 billion – just 35 per cent of the cumulative tax revenues generated over the long-term.
The report highlights the positive contribution of the college sector to Scotland at a time when concerns are mounting over the levels of funding it receives.
An annual review of colleges by public services watchdog Audit Scotland found financial health in the sector remained ”relatively stable” but had deteriorated since 2014/15.
The Fraser of Allander report also highlights the benefits to graduates including better employment prospects, increased earning potential, a lower likelihood of unemployment and opportunities for retraining.
There is also evidence education can have a positive effect on health, life expectancy, social mobility and crime.
Shona Struthers, chief executive of Colleges Scotland, which commissioned the report, said: “This research reinforces the key role colleges play in delivering faster sustainable economic growth.
“The college sector underpins economic activity in Scotland not only through increasing the employability of learners and their earning potential, but also through helping to supply employers with a skilled workforce to increase productivity.
“Everywhere from the Outer Hebrides to the Scottish Borders the impact of colleges on the economy, both as individual institutions and as a sector, is far-reaching.”
Graeme Roy, director of the Fraser of Allander Institute, said the report showed colleges made a vital contribution to Scotland’s sustainable economic growth rate.
He said: “Scotland’s colleges are significant economic institutions in their own right and their activities help support and sustain employment across the communities they serve.
“However, the key contribution that colleges make extends well beyond simply how much they spend or invest in the local economy.
“By developing a more productive workforce and boosting participation, colleges help deliver long-term sustainable and inclusive economic growth.”
Deputy First Minister and Education Secretary John Swinney welcomed the findings.
He said: “This is a positive report which confirms that college graduates make a huge contribution to the economy.
“It shows colleges are of great benefit to graduates and that they are delivering the long-term sustainable and inclusive economic growth vital to Scotland’s success.”
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