A leading economist warns that functional illiteracy among university graduates is rising, signaling a systemic failure to reward knowledge and threatening long-term economic productivity
Executive summary: Santiago Ávila, university professor and author, warned in an El País interview that Spain and other societies are seeing a growing number of university graduates who are functionally illiterate — unable to apply knowledge critically or practically. Functional illiteracy among graduates undermines workforce productivity, innovation capacity, and the societal value of education, potentially leading to skill mismatches and reduced economic competitiveness.
Who is involved: Santiago Ávila (economist, professor, author), higher education institutions, policymakers, employers, and students in Spain and comparable economies.
Likely next: Increased public debate on education reform; potential policy proposals to assess and improve critical thinking in curricula; possible employer-led upskilling initiatives to bridge the gap.
Santiago Ávila, economist and author of 'Tontocracia', observes that despite increasing numbers of university graduates, many exhibit functional illiteracy — lacking critical thinking and practical application of knowledge. He attributes this to a societal shift that no longer rewards genuine understanding, instead favoring credentials over competence. This trend, if unaddressed, risks undermining innovation, workforce readiness, and institutional trust. Ávila calls for an education reform focused on cultivating discernment and real-world problem-solving skills.
Timeline
- — La Primera de Expansión sobre Santander, BBVA, Zegona y Los Angeles Lakers (Expansión)
- — Lumo Homes plc's Half-Year Financial Report 1 January-30 June 2026 (PR Newswire)
- — Sántiago Ávila, escritor: “Es la primera vez que vemos a tantos titulados superiores que son analfabetos funcionales” (El País — Economía)
Analysis — what this means
Likely next events
- Expected public response to Ávila’s comments in Spanish media by late August 2026
- Possible mention of functional literacy in OECD education reports by Q1 2027
- University accreditation bodies may review graduate outcome metrics by end of 2026
Sectors affected
- Higher education
- Professional services
- Public policy
- Corporate training and development
Regulatory implications
- EU may consider revising Bologna Process benchmarks to include functional literacy assessments by 2027
- Spain’s Ministry of Education could pilot critical thinking evaluations in degree programs by 2027
- Accreditation agencies (e.g., ANECA) may require evidence of applied learning outcomes in program reviews
Historical parallels
- Concerns over 'diploma disease' in developing economies, 1970s (UNESCO)
- Graduate underemployment surge in Southern Europe post-2008 financial crisis
- Japan’s 'freeter' and underutilized graduate phenomenon, 1990s–2000s
Sources
- Sántiago Ávila, escritor: “Es la primera vez que vemos a tantos titulados superiores que son analfabetos funcionales” — El País — Economía
- La Primera de Expansión sobre Santander, BBVA, Zegona y Los Angeles Lakers — Expansión
- Lumo Homes plc's Half-Year Financial Report 1 January-30 June 2026 — PR Newswire