Economic Impact of Students Graduating with Data Literacy

Data literacy is a critical skill that every student must possess, given the ever-increasing use of data in decision-making processes across multiple sectors. Graduating with data literacy not only improves career prospects but also has a significant economic impact on both individual employees and organizations at large.

In this article, we will explore the return on investment (ROI) in advancing students’ data literacy, backed by some compelling statistics. 

Students who are data-literate will earn 20% more than their peers. 

The first reason why data literacy matters is that it translates into increased earnings for employees. In a survey conducted by Qlik, data-literate employees earn an average of 20% more than their peers who lack data proficiency. This significant pay discrepancy is based on the value that a data-literate employee brings to an organization. 

Data-literate employees are better equipped to analyze complex data sets, recognize patterns, and provide insights that drive operational efficiencies or contribute to revenue growth. These skills are highly sought-after in the job market, leading to higher earnings for those who possess them. 

Educators who offer data literacy education drive up district value and attract high value residents. 

Education providers such as superintendents, principals, and teachers play a crucial role in driving up district value and attracting high-value residents through data literacy education. By offering students skills to gather, interpret, and use multiple data sources effectively, these educators are preparing them to think critically and make informed decisions in their future careers. 

As a result, districts with strong data literacy education programs are positioned as areas with high-quality education that produce successful graduates well-equipped for the workforce. Not only does this reputation attract high-value residents who value education but also increases property values and stimulates economic growth in the surrounding community. 

According to a study by the National Bureau of Economic Research, and reported by New York Times, a 5% increase in standardized test scores leads to a 2.5% increase in housing prices. This means that districts with strong data literacy education programs can have a significant impact on the local economy, making it an essential investment for educators and school districts. 

Give your students the gift of data literacy today!

89% of C-Suite team members expect team members to be data-driven decision makers. 

The third reason why data literacy matters is that it is fast becoming a default requirement for leadership positions. According to research by Qlik, 89% of C-Suite team members expect their team members to be able to explain how data has informed their decisions. 

This expectation is due to key business decisions shifting from intuition or experience-based strategy to data-driven decision-making. 

For students, graduating with data literacy opens doors to management and leadership positions, where they can effectively communicate and leverage data to drive business results. 

Memory retention is better from ages 11-17 than 18+ 

Another reason why data literacy in K-12 matters is that it is easier to teach and retain data literacy skills at a younger age. According to research by Harvard, it takes longer to absorb, process, and remember new information as we age. This can be contributed to a prefrontal cortex that is still developing, making it more flexible for learning quickly and making rapid neural connections. 

Middle and high school students have a better shot at retaining data literacy teachings than college students and postgraduate adults. Incorporating data literacy training into middle and high school curriculums will equip students with a critical skill set early on in their education that will support their success throughout their careers. 

Data-literate employees have a lower risk of unemployment. 

In a world where only 11% of employees are fully confident in their data literacy skills, graduating with these skills are a hedge against unemployment. Automation and artificial intelligence are replacing lower level jobs, so proficiency in data analysis is a highly valued skill set that will always be in demand.  

Data-literate employees can: 

  • Identify new sources of revenue 
  • Optimize existing business processes 
  • Forecast future trends 

These skills are essential for organizational growth, making data-literate employees essential contributors to the workforce. 

Data literacy enhances innovation and creativity. 

With detailed data, the team at Spotify was able to discover that creating auto-updating music recommendations would increase user retention and engagement. Recommended music accounts for 30% of total music listened to. Therefore, data-literate employees are better positioned to innovate and drive creativity in their organizations because they’re: 

  • Leveraging data insights 
  • Identifying new opportunities for business growth
  • Introducing fresh perspectives
  • Generating creative solutions to complex problems 

This makes them valuable assets to organizations seeking to differentiate themselves in competitive markets. 

Data literacy empowers employees to take ownership of their roles. 

Data literacy equips employees with the skills they need to take ownership of their roles and responsibilities. By using data to track their performance, set benchmarks, and analyze results, employees can assess their progress and make informed decisions to improve their outputs. This leads to more engaged employees who are invested in their organizations’ success, resulting in improved productivity and better morale. 

Equipping students with these skills is essential for organizational needs and will fulfill their needs for a good salary when they hit their mid-20s. 

Data literacy fosters analytical thinking. 

Finally, graduating with data literacy skills fosters critical thinking and analytical skills, crucial for success in any industry. By analyzing complex datasets from multiple sources, students learn to identify patterns, make connections between different variables, and develop logical conclusions. These skills are transferable across multiple industries, enhancing students’ career prospects.

Consider QuantHub, a Smart Adjusting K-12 Data Literacy Tool 

Graduating high school with data literacy skills has a significant return on investment, both for individuals and organizations. The economic impact of data literacy in terms of earning potential, employability, innovation, and digital transformation cannot be overstated. 

Furthermore, teaching data literacy skills at a younger age: 

  • Ensures students retain this critical skill set 
  • Fosters a culture of critical thinking, innovation, and better decision-making 
  • Drives up local property value
  • Positions actionable educators as leaders and assists in carer acceleration 

With QuantHub, your students will learn essential & exploration data science skills such as: 

  • Data Awareness 
  • Data Application 
  • Numerical Reasoning 
  • Visual Literacy 
  • Exploratory Data Analysis 
  • Profiling Data Structures
  • Machine Learning Fundamentals 
  • Deep Learning Fundamentals 
  • And so much more! 

Begin your journey with QuantHub today. 

Related Tags: