Education & Training Requirements of Jobs in the U.S. Linda Morris-Henry Foundations of Career and Workforce Education EVT 7066 October 20, 2008

Question # 7 What are the current and projected future education/training requirements of jobs in the U.S. economy and what are some of the public's and policymakers' perceptions (and misconceptions) of the link between education/training and employment? (high school vs. technical vs. certificate vs. associate vs. four-year degree, required for high growth, required for high wage, etc.)?

Education/Training Requirements  Strong public opinion supports enhancing the skills of America’s worker’s especially through more and high quality education and training.  Focusing on the kinds of skills, education, and training that are most appropriate, in light of changes in the U.S. economy.  Several occupations that usually require postsecondary vocational training—education beyond high school, but less than a four-year bachelor's degree—will have significant employment growth between 2004 and 2014.

BLS Demand Projections: By Education & Training Required on Jobs, Employment Net Change Job Openings (000,000s) (000,000s) Number % A. Education & Training Categories* On-the-Job Training: Short-Term Moderate-Term Long-Term Related Work Experience Postsecondary Vocational Award Associate Degree Bachelor's Degree Bachelor's or Higher Plus Work Experience Master's Degree Doctoral Degree First Professional Degree Total B. Educational Cluster** High School or Less Some College BA or Higher Total Source: U.S. Bureau of Labor Statistics 2006

Actual & Projected Supply of Workers Ages 25+ by Educational Attainment Labor ForceChange in Labor Force (in millions) (in millions) Less than High School Diploma High School Diploma Some College BA or Higher Total Percent of Workers Change in Percent Less than High School Diploma 21.6% 10.1% 8.6% -11.5% -1.5% High School Diploma Some College BA or Higher Total 100.0% 100.0% 100.0% 0.0% 0.0% Source: U.S. Bureau of Labor Statistics 2006

Graph of Actual & Projected Supply of Workers Ages 25+ by Educational Attainment

Graph: Actual & Projected Supply of Workers Ages 25+ by Educational Attainment

Future Supply of Skills

Current Education/Training Requirements The more years of education, the more likely a person will be part of the labor force and the less likely that he or she will be unemployed. College graduates had the highest labor force participation (77.9%) and the lowest unemployment rate (2.3%), as reported in Employment and Earnings. On the other hand, those with less than a high school diploma had a labor force participation rate of 45.5% and an unemployment rate of 7.6%. Better-educated workers of any gender or racial group are also more likely to be in the labor force and employed. College-educated African-Americans were the most likely to be counted among the civilian labor force (82%), while college-educated white workers were the least likely to be unemployed (2.1%). Although jobs are available at all levels of education and training, most jobs do not require postsecondary education or training Much of the growth will be in occupations requiring less education than a bachelor's degree Higher education leads to a higher wage and a better standard of living

Link between Education and Employment Associate Degree Program vs Certificate Programs A study was conducted to determine if different benefits would accrue to Colorado graduates of Associate of Applied Science Degrees and vocational certificate programs if the programs were of equal length, occupational curriculum content, and quality of instruction. As a part of the study, an instrument for statewide use in assessing employer attitudes was developed. One hundred thirty-eight individuals representing a variety of employing agencies were surveyed. Survey results indicated that, when given two hypothetical job applicants with similar qualifications except that one applicant had an AAS degree and one had a two-year vocational certificate 51 percent of respondents selected the AAS degree 37 percent selected the certificate 12 percent had no preference for hiring.

Link between Education & Employment Cont’d Many studies verify that education beyond high school results in higher earnings. Highest earnings benefits are dependent upon certification or degree achievement Hartog (1999) reports a 5 – 15% rate of return in additional earnings per year of post secondary schooling Study of California Community College graduates reported: Greatest gains realized by certificate completers (15% gain) Associate degree completers (11%) (Sanchez & Laanan 1977) Median earnings for all college graduates 2343 $40,753 in % more than the $23,317 median for all high school graduates (Cosca 1998, p.2) Professional and Vocational certificate holders showed a wide range of salary difference i.e. MDs earn more than RNs. It is estimated that today perhaps 30% of the work force is employed in a job that by law or custom requires at least a bachelor's degree (McMenamin 1998).

Public Perception Most labor market analysts see clear economic benefits for the U.S. in raising the number of college graduates. Improving access to higher education for young people in low-to-middle-income families is critical for their upward mobility prospect especially in light of the huge pay gaps between college graduates and those with no more than a high school diploma.

Public Misconception Believe that all students must receive a college degree rather than certificates or associate degrees in order to secure a well paying job.

Policymakers Perception Policymakers and business leaders have focused on the importance of increasing the number of Americans with degrees in science, technology, engineering and math. Some analysts (e.g., Freeman, 2007; Kenney, 2007) and commissions (e.g., NCEE, 2007), the U.S. requires a much larger scientific workforce to remain a center of technological innovation, especially in the face of growing numbers of scientists and engineers in China and India and the potential “off shoring” of work by high-tech U.S. companies

Policymakers Misconceptions The need to expand education and training in the middle of the labor market Specifically for jobs requiring more than a high school diploma but less than a bachelor’s degree Reason for oversight is the perception of declining demand in the middle of the labor market Underestimating middle skill job prospects in the labor market

References America’s Forgotten Middle-Skill Jobs – Education and Training Requirements in the Next Decade and Beyond Holzer, Harry and Lerman, Robert November 2007 Careers and Occupations: Looking to the Future retrieved October 18, Comparison of the Relative Benefits of Associate Degrees Versus Certificates in Vocational Education. Final Technical Report. CExtSearch_SearchValue_0=ED187953&ERICExtSearch_SearchType_0=no&accno=ED Cosca, T. "Earnings of College Graduates in 1996." Occupational Outlook Quarterly 42, no. 3 (Fall 1998): From Policy to Pupil – How Governments Encourage ICT Education retrieved October 19, Hartog, J. "Behind the Veil of Human Capital." Organization for Economic Cooperation and Development. The OECD Observer 215 (January 1999): 215. McMenamin, B. "The Tyranny of the Diploma." Forbes 162, no. 14 (December 28, 1998): Setting the Record Straight, Responses to Misconceptions About Publication in the US, U.S. Department of Education - Employment and workplace Relations U.S. Department of Labor, retrieved retrievedhttp:// retrieved GROWTH.html retrieved 10/20/2008http://jobs.stateuniversity.com/pages/46/Workforce-Tomorrow-EDUCATION-PROJECTED-JOB- GROWTH.html