Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what analysis, if any, they have conducted into whether there is any relationship between increases in the number of university students in the UK and levels of productivity over the last 20 years; and what were the results of any such analysis.

The Office of National Statistics estimates that around a fifth of the rise in productivity between 1994 and 2019 can be attributed to improvements in the quality of the workforce. This is largely as a result of an increase in the share of overall hours worked by people with higher education qualifications. That is to say: more graduates in the labour market has led to an increase in productivity. This is consistent with other studies

Productivity is the main driver of long-run economic growth, and a key determinant of standards of living; in the long-run, the UK’s ability to improve living standards is almost entirely dependent on its ability to raise productivity. The Government’s Industrial Strategy sets out a long-term plan to boost productivity by backing businesses to create good jobs and increase the earning power of people throughout the UK with investment in skills, industries and infrastructure. The Government recently published the Business Productivity Review in response to the Industrial Strategy’s core priority of addressing the UK’s productivity issue.

The Government is investing £406 million in STEM and technical education and an additional £400 million in further education; the Government is also considering the recommendations of the Post 18 education funding review panel chaired by Sir Phillip Augar. This looked at how the post 18 education system can help deliver the skills the economy needs and improve UK productivity.