REGINA – Every dollar invested in K-12 education generates more than four dollars in economic activity in Saskatchewan – and roughly 1 in 11 jobs in the province depends on school divisions.
These are among the findings of a new analysis on the economic impact of Saskatchewan school boards on the provincial economy by Praxis Consulting, a Saskatchewan-based research firm.
Through a review of school board spending and high school graduate post-secondary and labour market outcomes, the study demonstrated significant economic benefits to the province of a sound and well-funded Kindergarten to Grade 12 education system, according to its final report, which is now publicly available for review on the Saskatchewan School Boards Association (SSBA) website.
“As school boards, we know that education is the most important investment we can make for the future of our youth and our economy – and the results of this study clearly demonstrate that,” said Dr. Shawn Davidson, president of the SSBA, which commissioned the Praxis economic impact report.
“It’s time to talk more about education in this province and what true investment looks like,” he added.
Through operational spending and graduate productivity, school divisions generate more than $8.3 billion in gross economic activity and $5.4 billion in gross domestic product, accounting for seven per cent of the total provincial GDP, and 51,754 jobs. With a K-12 budget of just under $2 billion in 2020-21 (including capital projects), each dollar invested creates $4.20 in gross economic activity, $2.80 in gross domestic product, and $1.60 in labour income, according to the findings in the Praxis report.
On that $2 billion invested by the province, it receives a direct return back of more than $556 million in provincial revenues generated, along with all of the economic activity generated across the province.
“These numbers show that investment in education is a smart use of public dollars,” Davidson said. “We believe every student should have the resources to succeed in school and we encourage all to support true investment in our publicly funded education system – and in Saskatchewan’s youth.”
The Praxis analysis presented results based on standard methodologies for estimating economic contributions for sub-national geographies. The results are the sum of direct, indirect, and induced impacts from spending and high school graduates’ post-secondary and labour market outcomes.
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