GDP may grow 2.3% if Brazil triples technical education – 07/11/2023 – Education

The Brazilian GDP (Gross Domestic Product) may increase by up to 2.32% if the country manages to triple the number of young people enrolled in technical education. The projected growth results from increased employability and higher salaries for those with this professional qualification.

The projection is one of the conclusions of the study “Potential macroeconomic effects with the expansion of the public offer of technical secondary education in Brazil”, carried out by researchers from Insper with the support of Itaú Educação e Trabalho, released this Tuesday (11).

They evaluated the macroeconomic impacts if Brazil invested in a public policy to expand this modality. According to the study, only 8% of young people who complete high school attended vocational education — the average among OECD (Organization for Economic Cooperation and Development) member countries is 32% of graduates.

According to the study, public investment to significantly increase the number of vacancies in this modality would bring positive economic impacts for society as a whole, and not just individuals, as is currently the case with the low coverage of this modality.

The working population in Brazil is predominantly made up of people whose highest level of education is complete or incomplete high school. They represent nearly 80% of workers aged 24 to 65.

Data show that the highest wage gains and employability are among those with higher education. As the expansion of the offer of vacancies in universities is more costly, time consuming and difficult in some places, the researchers point out that technical education can bring faster and more effective results for the country.

The study calculates that professionals with technical secondary education earn, on average, 32% more than those with traditional secondary education. In addition, they have a greater chance of employability, since the unemployment rate in this group is 7.2%, while among those with only secondary education, it is 10.2%.

“Technical education is more expensive than regular education, which is why the study set out to assess whether investment in this modality can bring benefits to society as a whole”, says economist Sérgio Firpo, one of those responsible for the research. “The data indicate yes.”

“With more technical education graduates, we will have more individuals with better chances of employability, higher wages and, consequently, greater purchasing power. This is positively reflected in the GDP”, concludes the researcher, who is also Secretary of Monitoring and Evaluation of Public Policy and Economic Affairs, at the Ministry of Planning and Budget.

The study points out that the greater investment needed to expand the number of vacancies in technical education is offset by the increase in production in the country, with a higher proportion of workers with technical secondary education or higher.

“Only 20% of young people aged between 18 and 24 are in higher education or have already completed graduation, that is, we have the majority of young people without qualifications and without a public policy that gives them the prospect of having better working conditions and wages. Quality technical education can provide better possibilities”, says Ana Inoue, superintendent of Itaú Educação e Trabalho.

For her, technical education should not be thought of as the end of the line for professional training for young people, but a starting point for the job market.

“Offering more vacancies in technical education is not synonymous with separating young people from higher education, but ensuring that they have a starting point in their professionalization”, he says.

Despite the positive economic effects found by the study, the researchers warn that the calculations do not explicitly consider, for example, how changes in the demand for work and in the structure of the offer of professional training could enhance or reduce the desirable effects of expanding access to technical high school.

The expansion of the modality without the expected quality has been the target of criticism from students and teachers in some state networks in the country.

As the new secondary education law created the possibility of one of the deepening itineraries being vocational education, they complain that the offer was precarious.

In Paraná, for example, disciplines of this modality took place in classes broadcast on television. In São Paulo, the Tarcísio de Freitas administration (Republicans) is considering offering technical education in regular schools without foreseeing an increase in investments.

“The benefits of technical education depend on expanding the supply and quality of education. One of these factors cannot be dispensed with, they go hand in hand”, says Inoue.