Britain's position in an international graduate league table has plummeted, as spending cuts threaten to cast a further blow to higher education, a report showed Tuesday.
Between 2000 and 2008 the UK fell from third place to 15th in the list by the Organisation for Economic Co-operation and Development (OECD), based on the proportion of young people gaining degrees.
Britain now trails behind Finland, Iceland, Slovakia and Poland -- the top four players -- as well as Ireland, the Czech Republic and Portugal, with below-average graduation rates.
The report comes amid fears of swingeing cuts to higher education funding in Britain, which analysts warn could damage the economy.
Andreas Schleicher, head of the OECD's indicators and analysis division, said: "Fewer people with qualifications will mean a less successful economy.
"Cutting education is going to cut the tax returns of the future."
He said Finland, Canada and Japan were now key players in higher education.
"For many years the UK was very much at the forefront," he added. "But now you do not see that competitive advantage."
The University and College Union (UCU) said Britain had gone from being "a major player to a relegation candidate" and risked being left behind.
Sally Hunt, UCU general secretary, said: "The coalition government's refusal to fund sufficient university places this summer will come back to haunt us.
"Other countries are preparing to play a leading role in the new knowledge economy while we risk consigning a generation to the scrapheap of inactivity and being left behind."
International demand for highly qualified workers has grown significantly, according to the report, which said countries with high graduation rates were most likely to maintain a skilled labour force.
Universities Minister David Willetts said the research showed that higher education "faces some real challenges, which the government is determined to tackle".
"We have already taken action to boost student numbers by funding an extra 10,000 places and more people than ever are starting university this autumn," he said.
Copyright 2010 AFP European Edition
