Do you want to learn English? The ESL market has shifted. Teachers need teachers. Buyer beware.

I’m not going to spend much time talking about any specific online English as a second language (ESL) company, but the industry has changed drastically. Seemingly, leading companies have drastically fallen in quality, while the measurement of quality is often flawed.

The market has been heavily impacted by several factors. Companies are often hyping their materials and methods, but remember, it’s company hype. There have even been reports by some students that are tricked into reviewing the companies while thinking they were making reviews of their teachers. Some students have been incentivized to leave reviews.

It’s a nasty world out there where trust is constantly being degraded. Here are some factors affecting the ESL industry (online in particular).

Financial factors

Reduced disposable income for students and families

• Individuals and parents in many countries are tightening their budgets, often cutting non-essential spending like private English lessons.
• Demand for premium ESL services has shrunk, especially in developing economies or regions hit hard by inflation and currency devaluation.

Food for thought:

• 251 million children still out of school worldwide, UNESCO reports
• Emerging and Developing Economies in the 21st Century
• Women have on average 31% less disposable income than men globally
• 2025 Fact Sheet: Educating Children and Youth Experiencing Homelessness

Budget cuts in schools and institutions

• Public education systems facing budget constraints may reduce or eliminate ESL programs, particularly in immigrant-heavy regions.
• Private language schools may be forced to lower prices, cut hours, or rely more on cheaper, less qualified instructors to stay afloat.
• As companies’ budgets have dried up, they have stopped offering their employees free ESL classes online.

Increased demand for free or low-cost alternatives

• Students are turning to free apps (Duolingo, YouTube), AI tutors, or peer language exchanges, reducing the perceived need for paid instruction.
• Many online platforms have lowered teacher pay or increased commissions to stay profitable in tighter markets. Companies like Education First have resorted to heavy hiring in lower-wage countries, which has several adverse consequences.

Currency fluctuations

• In some countries, a weaker local currency makes paying for lessons in USD or EUR unsustainable, leading to falling enrollments in Western-run programs.
• Teachers in higher-cost countries may find it harder to justify low-paying ESL work when converted back to their home currencies.

Shift toward AI and automation

• As economic pressures mount, companies are investing more in AI-powered language learning tools to reduce labor costs.
• While these tools can be effective for basic skills, they may erode demand for live instruction, especially at the beginner level.

Other general factors

Government crackdowns or policy shifts

• The most notable drop came from China’s 2021 crackdown on for-profit tutoring and wiped out a large portion of the online ESL market overnight, forcing companies to pivot or cut corners. Wages sank greatly after that, which made it harder for ESL teachers in North America and the UK to find jobs with liveable wages.

Market oversaturation

• The industry has expanded rapidly, especially with the growth of online teaching platforms. This has led to a glut of teachers—many of whom may not have formal training in ESL methodology—competing for limited opportunities. Many of the teachers have thick and hard-to-understand accents.
• Oversaturation often leads to a race to the bottom in terms of pay, which discourages highly qualified educators from staying in the industry.

Low pay and poor working conditions

• Many ESL jobs (especially online) pay poorly, offer no benefits, and lack job security. This makes it difficult to retain experienced or motivated teachers.
• Institutions may prioritize cost-cutting over educational quality, hiring less-qualified teachers, or using automated tools to replace human interaction.

Platform-based gig economy

• Companies like VIPKid, Cambly, Education First, and iTalki have commodified ESL teaching. Teachers are often rated like Uber drivers, incentivizing friendliness over pedagogical effectiveness.
• These platforms often provide little pedagogical support or standardized curriculum, leading to inconsistent teaching quality.

Reduced entry standards

• With few barriers to entry, virtually anyone with a degree and a TEFL certificate (sometimes even less) can become an ESL teacher.
• The lack of regulation and professionalization contributes to variable quality and undermines the credibility of the industry as a whole.

Focus on test prep or “Edutainment”

• In many contexts (especially East Asia), ESL has become more about passing tests or entertaining children than developing deep language skills.
• Parents and clients may prioritize flashy apps, gamification, or short-term results, rather than pedagogically sound instruction.

Cultural and educational misalignment

• ESL materials and teaching methods often may not align with students’ local cultures or learning styles, reducing effectiveness. Many teachers are unaware of language or cultural barriers that affect learning.
• Poorly localized content and culturally insensitive approaches can harm engagement and outcomes.

In the end, many companies have adopted policies that lead to lower quality teachers, technology, and content. They’ve cut teacher pay and hours. It is becoming harder and harder for students to find neutral accent teachers or teachers with adequate teaching experience.

On one such platform, students have told me things such as, “ChatGPT does a better job than most teachers here.” As the economy remains stagnant and companies get greedier, expect it to only get worse and drive the demand for AI.

So, for both teachers and students alike, don’t put all your eggs in one basket. Students, be careful and think hard before buying packages that are for a year or more.

If you’re going to choose an online company, look at reviews from both students and teachers. Remember, reviews can be biased. Often, students don’t know what they don’t know, such as what good, quality instruction looks like.

Read forum posts, such as on Reddit. Do a deep dive on search engines. You’ll learn a lot. Check out websites like the Better Business Bureau. While some complaints are just misdirected agitation, pay attention to reports of shady practices. Put it all together to make a more informed decision about using a company for employment or instruction. In addition, it may be much cost-effective to work with a teacher directly.