Roles and Functions of Education » Functions of Education - Economic Needs

What you'll learn this session

Study time: 30 minutes

The economic functions of education in society
How education prepares students for the workforce
The relationship between education and economic development
Different sociological perspectives on education's economic role
Real-world examples of education meeting economic needs

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Education and Economic Needs

One of the most important roles of education in modern society is to prepare young people for the world of work. Schools, colleges and universities don't just teach us facts and figures – they're also preparing us for future jobs and helping the economy function properly.

Key Definitions:

Human Capital: The skills, knowledge and experience possessed by individuals that make them economically valuable.
Vocational Education: Education that prepares people for specific trades, crafts and careers.
Meritocracy: A system where advancement is based on individual ability and achievement rather than wealth or social background.
Social Mobility: The movement of individuals or groups from one social position to another.

💼 Preparing for Work

Schools teach both specific job skills (like IT or science) and general skills (like punctuality and teamwork) that employers want. This helps students get ready for future careers and makes them more employable.

📈 Economic Growth

Countries with better education systems tend to have stronger economies. By creating skilled workers, education helps businesses grow and new industries develop, which leads to more jobs and wealth.

How Education Serves Economic Needs

Skills Development

Education equips students with both technical and soft skills needed in the workplace:

💻 Technical Skills

Subject-specific knowledge like maths, science, computing and languages that are directly applicable to jobs.

💬 Soft Skills

Communication, teamwork, problem-solving and time management – all essential for workplace success.

📝 Literacy & Numeracy

Basic reading, writing and maths skills that are fundamental requirements for almost all jobs.

Qualification and Certification

Education provides qualifications that signal to employers what skills and knowledge a person has. GCSEs, A-Levels, BTECs, degrees and other qualifications help employers sort through job applicants and find people with the right abilities.

This system helps the job market work more efficiently by:

Showing employers what candidates can do without having to test everyone
Motivating students to work hard to get better qualifications
Creating a way to match people to jobs that suit their abilities

Case Study Focus: Apprenticeships

Apprenticeships are a great example of education directly meeting economic needs. In the UK, apprentices learn on the job while also studying for qualifications. Companies like British Telecom, Rolls-Royce and the NHS offer apprenticeships that combine practical work experience with classroom learning.

For example, engineering apprentices at Rolls-Royce learn specific technical skills needed by the company while earning a wage. This helps the company fill skill gaps and gives young people a direct path into employment. In 2019/20, there were over 700,000 people participating in apprenticeships in England alone.

Sorting and Selecting

Education helps sort people into different types of jobs based on their abilities, qualifications and interests. This is sometimes called the 'allocation function' of education.

Through exams, coursework and other assessments, the education system identifies who might be suited to different roles in the economy. For example:

Students who excel in science subjects might be encouraged toward medicine or engineering
Those with strong creative skills might be directed toward design or media
People with good people skills might be guided toward careers in teaching or social care

Sociological Perspectives on Education's Economic Function

🚀 Functionalist View

Functionalists see education as essential for society's smooth operation. They believe schools prepare students for their future economic roles by teaching relevant skills and values. Talcott Parsons argued that schools act as a 'bridge' between family and wider society, helping children transition from their protected home environment to the competitive workplace.

According to functionalists, education creates social solidarity (shared values) and helps maintain meritocracy by rewarding hard work and talent.

⚖ Marxist View

Marxists take a more critical view, arguing that education mainly serves the interests of capitalism. They suggest schools prepare students to be obedient workers who won't question authority. Louis Althusser described education as an 'ideological state apparatus' that teaches students to accept inequality as normal.

For Marxists, education reproduces class inequality by giving working-class children a different type of education than middle-class children, limiting social mobility.

Education and Social Inequality

While education can help people improve their economic position (social mobility), sociologists debate how effectively it does this:

The Meritocracy Argument: Some argue that education allows talented individuals from any background to succeed based on their abilities and hard work.
The Social Reproduction Argument: Others point out that children from wealthier families tend to get better qualifications and jobs, suggesting education actually reinforces existing inequalities.

Research shows that in the UK, a student's socioeconomic background still strongly influences their educational outcomes and future earning potential, despite efforts to create a more level playing field.

Case Study Focus: Education and the Digital Economy

The rise of digital technology has transformed the job market, creating new demands on education. In response, the UK curriculum has evolved to include more computing and digital skills.

In 2014, the UK became the first major economy to make coding a mandatory part of the school curriculum for children aged 5-16. This change was directly linked to economic needs, as the tech sector reported skills shortages.

Companies like Google and Microsoft have also partnered with schools to provide resources and training, showing how education and business can work together to meet economic needs. The COVID-19 pandemic accelerated this trend, highlighting the importance of digital skills in the modern economy.

Education and Global Economic Competition

Countries around the world are competing economically and many governments see education as key to staying competitive. This has led to:

International comparisons of education systems (like the PISA tests)
Greater focus on STEM subjects (Science, Technology, Engineering and Maths)
Reforms aimed at raising standards and improving skills

The UK government regularly refers to the need for a 'high-skill economy' to compete globally, putting pressure on schools to produce graduates with the right skills for emerging industries.

Critical Evaluation: Does Education Successfully Meet Economic Needs?

While education clearly plays an important role in preparing people for work, there are some criticisms of how well it fulfils this function:

Skills Mismatch: Employers often complain that school leavers and graduates lack the practical skills needed for work.
Changing Economy: The job market changes faster than education systems can adapt, meaning students might be prepared for yesterday's jobs rather than tomorrow's.
Narrow Focus: Too much emphasis on economic functions might neglect other important aspects of education, like personal development and citizenship.
Inequality: Not everyone has equal access to the types of education that lead to the best jobs.

Conclusion

Education's economic function is vital for both individuals and society. It provides people with skills and qualifications for employment while helping to maintain a productive economy. However, how well education serves these economic needs – and who benefits most from the system – remains a subject of debate among sociologists.

As you continue studying sociology, consider how your own education is preparing you for future work and whether the economic function of education is being balanced with other important roles like personal development and creating good citizens.

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