Ireland ranks last in spending on education ‘as a percentage of GDP’, study finds

Ireland spends less on education as a percentage of gross domestic product (GDP) than almost all developed countries, according to an international study.

However, the Organisation for Economic Co-operation and Development (OECD) report notes that GDP may be inflated in Ireland due to the large number of tech companies with legal headquarters in Ireland for “tax purposes”.

Ireland ranked last in a league table of 38 countries based on education expenditure as a percentage of GDP with 3.2 per cent in 2020. It compared to an average of almost 5 per cent for OECD countries.

By contrast, when education spending is ranked as a proportion of State expenditure, it shows Ireland allocated 12 per cent on education, above the OECD average of 10 per cent.

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The findings are contained in the OECD’s annual Education at a Glance report for 2023. OECD member states include most of Europe, the United States, Canada, Korea, Israel and Australia.

The study states that teachers’ salaries in Ireland were higher on average than across most developed countries.

On average, it said salaries in Ireland for primary ($58,149/€62,420) and secondary ($60,112) teachers were higher than the OECD average for primary ($48,023) and secondary ($53,119). The salary figures were adjusted for purchasing power.

Salaries were higher than Ireland in Germany, Austria, Australia, Denmark, the Netherlands and the United States.

It also noted that total compulsory instruction time for teachers was higher in Ireland and class sizes were also above-average.

However, it said pupil-teacher ratios have been improving on foot of measures to boost the supply of teachers and policy decisions to create smaller class sizes, especially at primary level.

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The OECD report also contains good news on outcomes for students. Ireland, it says, has one of the highest school completion rates, or students finishing second-level education.

While across the OECD an average of 14 per cent of 25-34 year olds left education without finishing school, the rate fell to 5 per cent in Ireland. Ireland is one of a small number, it notes, with “near universal” school completion.

These high education rates may also be contributing to relatively lower proportions of young people who are not in education, employment or training. While this is almost 15 per cent across the OECD, it is 9 per cent in Ireland.

Reducing these levels among young adults is a seen as an important challenge because they are at risk of worse labour-market outcomes later in life

Ireland also has one of the highest proportion of people with further or higher-education qualifications.

While an average of 33 per cent of 25-64 year olds across the OECD have a tertiary level, this climbs to 54 per cent in Ireland. It is the highest in Europe and ranks just behind Canada and Japan.

In the area of childcare, the report says Ireland is one of a handful of countries where expenditure per child on all early childhood education fell in recent years.

It said although expenditure increased by about 8 per cent on this sector in Ireland between 2015 and 2020, the number of children enrolled outstripped the increase in expenditure in Ireland, resulting in falling expenditure per child.

The study notes the very high proportion of children attending some form of early childhood or preschool. While it is about half across OECD countries, it climbs to 99 per cent in Ireland.

It also notes that child-staff ratios and group sizes are important indicators of the resources devoted to education and quality.

On average across OECD countries there are 14 children for every teacher working in pre-primary education. Ireland has one of the lowest ratios of children to teaching staff – excluding teachers’ aides – with five children or less per teacher.

The study also notes the relatively low proportion of young people in Ireland attending vocational education and training.

It found less than 12 per cent of 15- to 19-year-old upper secondary students were pursuing further education and training. The average across the OECD is 44 per cent, rising to a majority in some countries.

The report states vocational education and training is vital and that it offers an alternative to academic education, equips learners with practice-oriented and employability skills, and meets economies’ demand for skilled workers.

It noted that “vocational programmes in many countries are still seen as a last resort” and often seen as a “fallback option for students who struggle with school or lack motivation, rather than as a first choice that leads to attractive career paths”.