For individuals, formal education is their chief means of preparing for adult society and competing in the job market. For society, the level of knowledge and technical skills in the labor force, gained though the education system, is a major determinant of what kinds of industries and investment are possible in the economy. Since the industrial revolution, most nations either provide or highly subsidize basic, and in many cases, higher education. In the U.S., most formal education through high school is publicly provided. However, private educational institutions play an important role in filling niches not addressed by broad-based public education.
Education has a number of roles related to the economy.
How well it succeeds in these roles is one way of assessing the effectiveness of the education system. Basic Education and Training Probably the most important function of the education system is to provide individuals with the basic skills, advanced knowledge and specific job training that are essential to the economy and essential for successful participation in the labor force. Today virtually all members of the labor force need to read, write, perform computations and understand how to function effectively in a social context. This is primarily the task of the elementary and secondary levels of education. In addition, the economy also needs highly educated managers, professionals and technicians to keep the economy running smoothly and better over time.