Each £1 Invested In Colleges 'Returns £6 In Benefits'
Colleges have called for continued funding amid research which suggests every £1 invested in further education returns around £6 in benefits to learners and taxpayers.
Colleges have called for continued funding amid research which suggests every £1 invested in further education returns around £6 in benefits to learners and taxpayers.
A report on the value of Scotland's colleges urges society to see further education institutions as a financial investment, as well as a seat of learning.
Taxpayers forego the services that they would have received had government not funded the colleges'', and learners defer the wages they could earn by getting an immediate job by training for potentially better jobs, it said.
Scotland's colleges contribute £14.9 billion to the Scottish economy each year, representing 8.8% of the total economic output of the nation, according to the study by Economic Modelling Specialists International (EMSI).
Taxpayers are said to receive £5.70 in benefits for every £1 spent on colleges throughout Scotland, while learners themselves will pocket £6.30 in future higher wages in return for every £1 spent on their college education.
Shona Struthers, chief executive of Colleges Scotland, said: Colleges play a huge role in creating our future workforce.
This report pinpoints the economic benefits that the sector contributes through increased earnings and employer benefits, ploughing money back into the economy and creating new businesses.
The fact that the sector's economic productivity is equivalent to 8.8% of the total economic output of Scotland highlights the scale of its importance to the nation.
In order for this to be sustained, it is vital that investment into the sector continues and that both society and businesses recognise the benefits that colleges bring.''
The colleges sector employs over 10,000 full-time equivalent staff and has a large direct and indirect impact on the Scottish and UK economy. Figures from the EMSI report show the total added income created by colleges and their learners represents approximately 600,000 average wage jobs.
Dr Kjell Christophersen, founder and senior economist at EMSI, said: Our figures show that Scotland's colleges create significant positive benefits to learners, society, taxpayers and the business community.
For every £1 invested by society in Scotland's colleges, the return in benefits for society is £6.30 - that's a 16.4% return on investment.
The total economic impact of Scotland's colleges to the business community in Scotland is £14.9 billion each year.
Through our use of both an investment analysis and an economic impact analysis, we have been able to build a picture which demonstrates that the Scottish economy is a major net gainer from the investment made in the college sector.''
Scottish Labour Opportunity spokesman Iain Gray said: Colleges Scotland has completely vindicated Scottish Labour's approach to building a better nation - we know that by investing in education we invest in our economy.
Closing the gap between the rich and the rest isn't just a moral imperative but an economic one too.
This research makes it all the more baffling why the SNP Government in Edinburgh has slashed funding for our colleges, with over 100,000 fewer colleges places and 7,000 staff gone.
That's short sighted for Scotland, our young people, and our economy.''
A Scottish Government spokesman said: This report underlines the Scottish Government's commitment to placing colleges at the heart of our economic growth.
We have also invested significantly in colleges since 2007, and are providing resource funding of £526 million to the sector in 2015-16.
Colleges are vitally important in building students' skills and record numbers are graduating with recognised qualifications, significantly enhancing their career prospects. This research reinforces what we already knew - our investment in employability is improving the contribution people make to society, the workplace and the economy.''