Ireland’s young adults are the most educated in Europe, with more than half of 30-to-34 year olds holding third level qualifications.
The finding comes from a new Higher Education Authority study, which is the first of its kind into the performance of our third-level sector.
The study found that Ireland is Number 1 in the world for the availability of skilled workers and three quarters of Irish employers are satisfied with graduate skills.
The HEA said funding and the rising student-staff ratio were challenges for the future, but Education Minister Ruairi Quinn said those challenges could be overcome.
"We will have the resources to meet the challenges of the future," he said. "The growth in itself is such that we are getting extraordinary productivity."