Needless to repeat the statement â€œeducation is an instrument for the development of an individual, group, organization or a country at large.â€ The questions: How it becomes an instrument for all of these? In what way? What type of education? To what extent can it be? Are critical questions to be addressed to show the everlasting befits of education. In this review of the literature, the importance of education for economic growth, skills development, and employment are addressed. An education provided for individuals should be linked with the world of work demanded by organizations, and individuals. Any form of education should be a source of employment. In connection to this, the state of education in Ethiopia is presented in focus. Moreover, some highlights of policy issues, employment strategies, and challenges are briefly discussed. Finally, lessons for future improvements are indicated based on research findings in the abroad and the Ethiopian context as well.
Keywords: Key terms: Education, Employment, Skills, Skills Development