Education and economy are co-related because the economic performance is depended on the educational system of the country. It is to be noted that there is no casual link between economy and education. If better education is provided to the people in an economy then all the activities of the economy reflects it. In fact improved performance can be achieved in all levels of economy. The firms will get more opportunities if the workforce is well educated. In turn, the economical development can bring more wealth in the hands of common people which give them better standard of living. In this way, better education can also be given to the children in the country.
However the quality of education is also important since improper educational system can bring negative impacts on the society. The cognitive skills of the children should be improved more than the quantity of schooling. Numerous years of education cannot bring any changes unless there are improvements made in the cognitive skills. The self development of one individual can affect the quality of his life which further affects other individuals in the economy. So it is mandatory that qualitative improvement should be made in the educational system.
The education is a human capital or an investment made on man. The return of the investment is acquired through the better performance of the human resource in the economical activities. Since the automation of operations of economy has become possible after the technological development, the significance of labor force is diminished to certain extent. Nevertheless, the machines are developed and operated by the humans. The need of educated human resource is never ending. Thus the educational system should mould the children in such a way that the abilities and skills can be developed for the economical progress.