Educational attainment is now higher than ever, with almost half of young adults across OECD countries completing tertiary education, compared to 27% in 2000. According to the OECD’s Education at a Glance 2025 report, graduates typically earn more, enjoy stable jobs, and achieve better health outcomes.
However, persistent inequalities, low completion rates, and teacher shortages threaten to undermine these gains and limit opportunities for future generations.
Tertiary Education Attainment Is Expanding Worldwide
Across OECD nations, 48% of young adults now hold a tertiary qualification, reflecting two decades of steady progress in higher education access.
Countries have invested heavily in universities and colleges, aiming to equip learners with skills to meet the demands of rapidly changing labour markets. Yet, despite this progress, not everyone benefits equally from rising participation rates.
Family Background Still Shapes Educational Opportunity
The report highlights stark inequalities. Only 26% of young adults from less-educated families attained tertiary qualifications in 2023, compared with 70% from highly educated households. Family background remains a strong predictor of higher education access.
Financial constraints, limited academic preparation, and reduced social support often prevent disadvantaged students from completing their studies. This perpetuates cycles of inequality across generations.
Financial and Social Barriers Restrict Equity
Even as systems expand access, many students face persistent financial obstacles. Rising tuition costs, living expenses, and limited scholarships place higher education out of reach. Social barriers, such as lack of role models or support networks, also influence whether students pursue and finish degrees.
Addressing these inequalities requires targeted policies to reduce financial pressures and expand academic support for underrepresented groups.
Low Completion Rates Undermine Public Investment
Despite strong enrollment, many students struggle to finish tertiary education on time. Across 32 OECD and partner countries, only 43% of bachelor’s students graduate within the expected timeframe. While 70% eventually graduate within three additional years, completion rates vary significantly by gender.
Women are more likely to graduate, with 75% completing programs compared to 63% of men. Low completion rates undermine public investment in higher education and deepen skill shortages.
The Impact of Low Completion on Labour Markets
Failure to complete tertiary education reduces individuals’ earnings potential and limits national returns on investment in education systems. Skills shortages worsen as industries struggle to fill roles requiring specialized expertise.
According to OECD Secretary-General Mathias Cormann, aligning tertiary education with labour market needs is crucial to ensure graduates can thrive in evolving economies shaped by digitalization, artificial intelligence, and the green transition.
Why Many Students Fail to Finish Their Studies
The OECD identifies several reasons for low completion rates. Students often face a mismatch between expectations and program content, inadequate academic preparation, and weak support systems.
These challenges frequently lead to dropouts or prolonged study timelines. Improving secondary school preparation, strengthening career guidance, and designing programs with clear course sequences could help students remain engaged and on track toward graduation.
Importance of Rigorous Standards and Tailored Support
Expanding access to tertiary education requires a balance between inclusivity and quality. The OECD warns that maintaining rigorous academic standards is essential while offering tailored support to diverse student populations.
Programs should accommodate varying levels of prior education, career expectations, and life circumstances. Effective student support systems, including mentoring and tutoring, can help reduce dropout rates without compromising academic quality.
Teacher Shortages Threaten Education Quality Globally
The report also emphasizes the critical role of highly qualified teachers in building strong education systems. However, many countries face growing difficulties in recruiting and retaining educators.
Teacher shortages have become a widespread challenge, making it harder to provide high-quality instruction consistently across schools and universities. High turnover further complicates recruitment, straining already stretched education systems.
Teacher Turnover Varies Across Countries
Rates of teacher resignation differ significantly across OECD nations. In Denmark, Estonia, and England, nearly 10% of teachers resign annually, forcing schools into continuous recruitment cycles.
By contrast, fewer than 1% of teachers resign each year in France, Greece, and Ireland, providing stability but limiting workforce renewal. Annual retirement rates generally hover between 1% and 3%, adding further pressure to replace experienced educators.
Attracting Second-Career Teachers Offers Solutions
One strategy for alleviating shortages involves recruiting second-career teachers, who bring diverse skills from previous professional experiences. Sixteen of 28 countries with available data now offer alternative entry pathways for professionals transitioning into teaching.
These programs expand the talent pool and infuse fresh expertise into classrooms. However, alternative recruitment must be complemented with improvements in working conditions and opportunities for career advancement.
Improving Teacher Recruitment and Retention
Policymakers must address the factors driving high teacher turnover. Competitive salaries, manageable workloads, and professional growth opportunities are essential to attract and retain skilled educators. Investments in training, mentoring, and continuous professional development also strengthen the teaching workforce. Without robust strategies, shortages will continue to hinder education quality and outcomes across OECD nations.
Global Education Systems Face Common Challenges
The OECD report examines education in its 38 member countries, as well as Argentina, Brazil, Bulgaria, China, Croatia, India, Indonesia, Peru, Romania, Saudi Arabia, and South Africa.
Despite regional differences, nations share common challenges: expanding tertiary education, improving completion rates, ensuring equity, and addressing teacher shortages. Collaboration and policy exchange among countries may offer pathways to tackle these persistent issues.
Education Must Adapt to Changing Labour Markets
The rapid pace of technological and demographic change demands constant adaptation. Ageing populations, artificial intelligence, digitalisation, and the green transition will reshape labour markets significantly.
Education systems must evolve to prepare learners with relevant skills and flexible mindsets. Aligning curricula with labour market needs can reduce skills mismatches, protect wages, and strengthen overall economic productivity.
Opportunities and Challenges Ahead
The OECD’s Education at a Glance 2025 reveals encouraging progress in tertiary attainment but underscores major challenges in equity, completion, and teaching capacity.
Policymakers must expand access without sacrificing quality, ensure disadvantaged students receive adequate support, and address systemic teacher shortages. By adapting education to meet labour market demands and demographic changes, societies can secure both economic growth and individual well-being.