Ireland is worst in OECD for education spending as percentage of GDP, report finds

Ireland spends less than 36 other developed countries on its education system, when spending is measured as a portion of countries’ gross domestic product (GDP), according to a new report from the OECD.

An annual report on education by the Organisation for Economic Co-operation and Development, found Ireland spends 3.2 per cent of GDP on education, lower than the OECD average of 4.9 per cent.

Economists have said the large presence of multinational companies in the country means measuring spending by GDP in Ireland is less accurate than in other countries, but education unions say the figures confirm the extent of underinvestment in schools.

OECD member states include most of Europe, the United States, Canada, Korea, Israel and Australia.

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When education spending is measured as a percentage of GDP, Ireland ranks last among the group, behind Lithuania, Japan, Luxembourg and Hungary. Norway, Chile and Israel all spent more than 6 per cent of their GDP on education, the report said.

The Education at a Glance report, published on Monday, said on average across the OECD 14 per cent of young people left secondary school without a qualification. However, in Ireland the study found only 5 per cent of people left school without completing the Leaving Certificate.

Nearly two-thirds of 18- to 24-year-olds in Ireland were in part-time or full-time education, which was “significantly higher” than the OECD average rate of 54 per cent.

Only 4 per cent of third-level students in Ireland were studying in private colleges, compared with a 17 per cent average in the OECD.

Ireland ranked among one of the top countries when it came to teachers’ salaries, the report said. Teacher salaries were only higher than Ireland in Germany, Austria, Australia, Denmark and the Netherlands.

The report also said in nearly all other countries teachers’ salaries were lower than the average university-educated worker, with Ireland being “one of the few exceptions to this rule”.

The report said average pay for teachers had increased by 6 per cent between 2015 and 2021 in the OECD. In Ireland, teachers’ salaries had not kept pace with that average, only increasing by 2 per cent in the same period.

The study also said in Ireland graduates in engineering, manufacturing and construction were the most employable.

When graduates in those fields were surveyed, some 95 per cent were employed, compared with 77 per cent of those who studied arts, humanities or social sciences, the report said.

Teachers’ Union of Ireland (TUI) President Liz Farrell said “it is students from disadvantaged backgrounds who ultimately suffer the most from inadequate education budgets”. The union identified “the hollowing out of middle-management positions in schools” as needing particular attention.

Second-level teachers union ASTI said the report highlighted the “urgent need of a significant increase in funding”. Its president Miriam Duggan added: “Smaller classes, improved buildings and IT resources, and more guidance counsellors are key areas crying out for urgent investment.”