SDGs Series Event: Quality Education&Long Term Economic Growth

Shanghai is one of the most prosperous and dynamic cities in China, with a GDP of 4,465.280 RMB bn in 2022. However, to maintain its economic growth and competitiveness in the future, Shanghai faces many challenges and opportunities, especially in the field of education. Education is widely recognized as a key factor for human capital development and long-term economic growth. However, Shanghai’s education system also has some problems that need to be addressed, such as labor market mismatch, inequality in education access, and transition to high technology industries, etc.

To explore these issues and propose solutions, SGU@Shanghai, a local branch of SGU, conducted an investigation by the economy department of SGU@Shanghai. The project was led by Jason Zhang, the head of the department, and involved Julian, Midas, Fecility, and Cecilia as members. The project was posted on the United N SDGs Partnership online platform, where you can find more details and data.

Problems & Difficulties: Labor Market Mismatch in Shanghai

In this section of the investigation, we identified and elaborated the problem of labor market mismatch in Shanghai, and how it affects both individuals and society. Labor market mismatch is a situation where there is a discrepancy between the skills possessed by workers or job seekers and the skills required by employers or job opportunities. This discrepancy can lead to high urban youth unemployment and underemployment, which means that many young people are either unable to find a job or are working in jobs that do not match their qualifications or expectations. This can have negative consequences for both personal income and well-being, as well as social stability and productivity.

We found that there are several factors that contribute to the problem of labor market mismatch in Shanghai:

• The rapid development of high technology industries in Shanghai has increased the demand for workers with advanced skills in science, technology, engineering, and mathematics (STEM) subjects. However, many graduates from colleges do not have these skills or do not have enough practical experience to apply them in real-world situations.

• The unequal distribution of educational resources and opportunities in Shanghai has created a gap between urban and rural areas, as well as between high-income and low-income families. People from disadvantaged backgrounds face more barriers to access quality education and upward mobility.

• The intense competition and pressure in the education system in Shanghai has led to an emphasis on rote memorization and exam scores rather than fostering creativity, critical thinking, and problem-solving skills. This can limit the potential of students to enter industries that require innovation and adaptability.

• The lack of coordination and communication between educational institutions and employers has resulted in a mismatch between the curriculum offered by schools and colleges and the skill requirements of the labor market. There is also a shortage of apprenticeship and internship programs that can provide students with hands-on experience and industry exposure.

Current Policies

We also discussed some of the existing solutions that the Shanghai government has implemented to address this problem, such as:

• Educational reforms that aim to improve the quality and relevance of education, such as introducing new subjects, updating textbooks, and diversifying assessment methods.

• Vocational training programs that provide students with practical skills and career guidance, such as establishing partnerships with industry leaders, offering scholarships and subsidies, and improving the infrastructure and facilities of vocational schools.

• Investments in STEM education that aim to prepare graduates with the skill sets required for high technology industries, such as increasing funding and resources, promoting STEM awareness and participation, and supporting innovation and R&D projects.

Proposed Solution

In this section of the investigation, we proposed a new solution to address the problem of labor market mismatch in Shanghai, which is to create an integrated skills development ecosystem that involves multiple stakeholders, such as educational institutions, businesses, government agencies, and civil society organizations. The main components of this ecosystem are:

• Strengthened curriculum alignment: Educational institutions, in collaboration with industry experts, should revisit their curriculum to ensure it aligns with the skill demands of high technology industries. Incorporating real-world projects, internships, and industry-relevant training within the educational framework will enhance graduates’ practical skills.

• Apprenticeship and internship programs: Encouraging businesses to offer apprenticeships and internships to students during their studies will provide hands-on experience and bridge the gap between theoretical learning and practical application. These programs can also facilitate industry exposure and networking.

• Industry-academia partnerships: Establishing partnerships between universities and high technology industries can lead to joint research projects, technology transfer, and faculty exchange. These collaborations can keep educational content updated with industry advancements and create a talent pipeline for businesses.

• Continuous learning and reskilling: Promoting a culture of lifelong learning among the workforce is crucial. Government-backed initiatives and subsidies for short-term courses, workshops, and online learning platforms can empower workers to upskill or reskill themselves according to changing industry needs.

• Entrepreneurial support: Encouraging entrepreneurship and innovation can diversify the economy and create job opportunities. Providing resources like startup incubators, access to funding, and mentorship will foster a culture of innovation and technological advancement.

We explained how each component of our proposed solution can contribute to these impacts using evidence from various sources, such as studies, reports, examples, and testimonials. We also discussed some of the potential challenges and risks that may arise from implementing our solution, such as:

• Resistance from some stakeholders who may have vested interests or different preferences regarding the education system or the labor market.

• Lack of coordination or cooperation among different stakeholders who may have conflicting goals or agendas regarding the skills development ecosystem.

• Insufficient resources or capacity to implement or sustain the components of the skills development ecosystem, such as funding, infrastructure, technology, or human resources.

• Unforeseen changes or uncertainties in the external environment that may affect the demand or supply of skills in the labor market, such as technological disruptions, economic fluctuations, or social movements.

We suggested some ways to overcome these challenges and risks, such as:

• Building trust and consensus among different stakeholders through dialogue, consultation, and negotiation.

• Establishing clear roles and responsibilities for each stakeholder and creating mechanisms for coordination and collaboration.

• Seeking external support or partnership from other organizations or entities that can provide resources or expertise for the skills development ecosystem.

• Monitoring and evaluating the implementation and impact of the skills development ecosystem, and making adjustments or improvements as needed.

Conclusion

In this event, we investigated how quality education can boost long-term economic growth in Shanghai. We have identified and elaborated the problem of labor market mismatch in Shanghai, and how it affects both individuals and society. We have proposed a new solution to address this problem, which is to create an integrated skills development ecosystem that involves multiple stakeholders, such as educational institutions, businesses, government agencies, and civil society organizations. We have predicted the impact of our solution on reducing the skills gap, lowering unemployment and underemployment, enhancing competitiveness, fostering economic growth, improving social welfare, and improving human.