Why ‘earn and learn’ programs are critical for the future workforce

Higher education prides itself on one clear promise: the opportunity of a better job. For many young people, especially in emerging markets, this is not the reality.

In Africa, an estimated two-thirds of the population is below 24 years, and many—including university graduates—lack decent jobs. In South Asia, more than half of young people graduate without the skills required to secure a job by 2030. Yet, as the youth population surges worldwide, the big questions remain: How do we remodel higher education to better deliver on its promise? In what ways can alternative pathways enhance the talent of the future?

Globally, the prospects of a conventional university degree are evolving. While higher education enrollment has more than doubled over the last two decades, many graduates still face a difficult transition from the classroom to the workplace.  To address this challenge, we must rethink education and embrace innovations that help young people thrive. Embedding alternative learning models—such as “earn and learn” programs—can help to adjust education to better address the challenges organizations face today.

“Earn and learn” models help students and employers

Essentially, earn and learn programs support learners to gain relevant skills while earning an income. Often run as a partnership between an employer and a learning institution, these programs provide the flexibility learners need to balance study and work. Compared to on-the-job training, which focuses on employees’ development in the workplace, “earn and learn” programs allow students to gain work experience and skills with the full complement of an income.

This matters on two important levels.

One, alternative learning programs can attract and keep more low-income students in school. Growing evidence suggests that students from low-income backgrounds stand a higher risk of drop-out. In Latin America, despite growth in gross enrollment rates in higher education, access is still predominantly higher among wealthier income brackets. The same is true in Africa, where—in spite of a 15% annual growth rate of higher education demand—only nine percent of young people aged 18 to 23 are enrolled in a tertiary institution. More than half of adults in the region are worried about paying their school fees. 

Two, earn and learn programs strengthen talent pipelines—a building block of growth and efficiency in organizations. By partnering with universities, industry can target existing and expected skills gaps, cut their own training costs, and inspire innovation. The emerging global workforce makes this even more urgent. Nearly one-third of jobs worldwide will be altered by technological advancements by 2030. About 50 percent of talent managers recognize this crisis, according to a report by LinkedIn. It is not surprising perhaps that 77% of business leaders believe organizations need to support their workers to upskill. By embracing the earn and learn model, organizations can foster a more robust talent ecosystem, raise upskilling and power economic productivity. This model could be a gamechanger—making workforce transition easier for many young people.

Consider Maharishi Invincibility Institute (MII), for instance—which champions free tertiary education programs in Brazil, South Africa, Mexico, Zimbabwe and Zambia. Its “earn and learn” program ensures students earn a monthly stipend that keeps them in the classroom while gaining valuable work experience. Its “pay-it-forward” initiative allows beneficiaries to fund other students undergoing the program. And the results are striking—Maharishi’s graduates are expected to earn about $3 billion in combined employment incomes over their working careers, overcoming the circle of poverty. In South Africa alone, its Nelson Mandela Extranet program, a hands-on, peer-to-peer certificate initiative, has reached over 600,000 youths and is on course to reach a further 2 million people over the next five years.  

Partnerships can multiply impact

We can multiply these impacts through strategic collaboration. First, we need more robust partnerships between universities and employers. To do this, we must get both higher education institutions and organizations to see the urgency of new learning models.  Already, forward looking universities are embracing IFC’s Digital for Tertiary Education Program (D4TEP) to improve learning experience, enhance student success and remain competitive. IFC’s D4TEP has been implemented in 25 tertiary institutions and has reached over 950,000 students in Asia, Africa and Latin America and the Caribbean.

This urgency cuts across regions. One year after graduation, over half of recent four-year college graduates in the United States are underemployed. In Africa, over 40 percent of firms in eight countries see a lack of relevant skills as a major hurdle to their operations. By 2030, over 85 million jobs could be left vacant due to the shortage of skilled people to take the roles. This represents the biggest obstacle to business transformation, according to the 2025 Future of Jobs Report by the World Economic Forum. 

There is a clear role for government. Education policies could be adapted to catalyze the adoption of “earn and learn” schemes. Tax credits could encourage more employers to embrace “earn and learn” programs, and grant schemes could help participants cover their education costs while working and gaining critical experience in the process. Governments can also champion curriculum reforms and offer skills recognition pathways that meet industry standards.

We need the private sector at the table. Private sector organizations need to work with governments and the academia to co-create solutions that make alternative learning a reality for many young people.

We need bold innovations that ensure no one is left behind. 

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