The economics of learning English

In today’s globalized world, the ability to communicate in English is more than just a valuable skill; it’s an economic asset. As the language of international business, science, technology, and diplomacy, English proficiency can open doors to numerous economic opportunities. This article explores the economic benefits of learning English from an international perspective, with emphasis on the role that high-proficiency English-speaking immigrants play in the UK economy. ?

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Better employment opportunities?

One of the most direct economic benefits of learning English is the enhancement of employment opportunities. In many countries, English proficiency is a key requirement for high-paying jobs, and a recent survey of over 5,000 EAL speakers across 5 countries reported that?respondents felt strong English skills would fetch up to 80% higher salaries (Pearson, 2024). This wage premium is due to the demand for English-speaking employees in sectors such as finance, technology, and tourism.?

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Boosting national economies?

On a macroeconomic level, there is a strong correlation between a country’s English proficiency and its economic performance. The 2023 EP English Proficiency Index report shows that English skills on a national level correlate positively with Productive Capacities Index, Global Talent Competitiveness Index, and Global Innovation Index scores (EF EPI, 2023). Many countries recognize that English is crucial for participating in the global economy, attracting foreign investment, and fostering innovation.?

In the UK, migrants contribute an estimated ￡83 billion annually and are 7% more likely to start a business than their UK-born counterparts (Morris, 2024). Migrants who speak English fluently are much less likely to work in low-skilled jobs and are more likely to work in jobs below their training or skill level because their communication skills are not strong enough (Migration Observatory, 2024). This indicates there is room for improvement and that investment in the English skills of British migrants is likely to yield positive financial benefits for the country as a whole - up to ￡48bn or 3.5% of GDP, according to one government report?(Pawle, 2013). ?

Improved quality of life?

Beyond purely financial metrics, English proficiency is linked to improvements in quality of life.?Countries with moderate to high English proficiency levels by and large?have better educational outcomes, higher life expectancy, and improved living standards, as measured via the Human Development Index (EF EPI, 2023). This is likely because English opens up access to global knowledge, educational resources, and healthcare information. ?

Still more to do?

The economic benefits of learning English are clear and far-reaching. From enhancing individual employment prospects to boosting national economies and improving quality of life, English proficiency is a powerful tool for economic development. As globalization continues, the importance of English as a key economic asset will only grow, making it an essential skill for individuals and nations alike.?

Unfortunately, English levels are not rising equally across the world. Although the overall trend is upwards globally, individual countries’ English skills are declining while others are advancing. Of particular concern is the decline in English proficiency among women noted by EF in their 2023 report, which showed a 19pt (2.9%) drop in scores since 2014 (EF EPI, 2023). ?

The cost of language education is one of the key barriers to study, and over 50% of learners in the Pearson survey said that the teaching they did have wasn’t focused enough on real-world language interactions that take place outside of the classroom (Pearson, 2024). We at Versa want to help break down these barriers and believe that technology-assisted learning has a role to play. Language schools can contact us to find out how more about how Versa supports learners in their journey towards fluent communication.?

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EF (2023), ‘EF English Proficiency Index’. EF. https://www.ef.co.uk/epi/ ?

Migration Observatory (2024), ‘English language use and proficiency of migrants in the UK’, The Migration Observatory, 12 Mar 2024, https://migrationobservatory.ox.ac.uk/resources/briefings/english-language-use-and-proficiency-of-migrants-in-the-uk/ ?

Morris, A. (2024), ‘Immigration & Societal Contributions’, DavidsonMorris, 15 Apr 2024, https://www.davidsonmorris.com/immigration-societal-contributions/ ?

Pawle, L. (2013), ‘Language skills deficit costs the UK ￡48bn a year’, Guardian, 10 Dec 2013, https://www.theguardian.com/education/2013/dec/10/language-skills-deficit-costs-uk-economy ?

Pearson (2024), ‘English skills have life-changing impact, are seen as the key to unlocking higher pay, wider job opportunities, and better friendships’, Pearson. https://plc.pearson.com/en-GB/news-and-insights/news/english-skills-have-life-changing-impact-are-seen-key-unlocking-higher-pay ?