Cynthia NewhouseEVT 7066Fall 2008

To Enroll or Not to Enroll◦ Most important decision for a U.S. worker◦ Why?

Educational Attainment: Plays critical role in labor market Impacts earnings, job opportunities, & overall job

satisfaction Factors to consider

◦ Educational Trends Steady increase in number who complete some type of

college◦ Labor Market Trends

A fast-paced increase in number of jobs requiring at least some college

A “good” job◦ Satisfies 3 needs:

Extrinsic tangible rewards Intrinsic rewards Social relationships

Job satisfaction◦ Determined by type and kinds of rewards received through

work (O’Toole & Lawler,

2006)

Due to the nature of employment data, this presentation focuses mostly on the extrinsic reward of salary/wages; however, a truly “good” job with high job satisfaction provides fulfillment of all three needs

The disparity between those with the least amount of education and those with the most amount of education.◦ Continues to increase over time

In 1979, those who completed college earned 1.6 times those who dropped out of high school

In 2006, this rate rose to 2.5

1940 2006

Ages 25 or older

Only 1 out of every 20 people had earned a

college degree

Ages 25 – 64

32.6 % have earned a bachelor’s degree

28% have some college

29.6% earned high school diploma or GED

9.8% less than high school diploma

On average, Education, Income

Having a Bachelor’s degree

or higher yields almost 2 and ½ more than those

who have not earned their high school diploma

% of Labor Force ages 25 – 64 by level of educational attainment over time

Compare: Some College 1970 – 11.8 % 2005 – 28 %

Projected growth in employment between 2001 – 2014 based on educational attainment

In 1970, 38.1 % of labor force 25 – 64 did not have more than a high school diploma

87% ofHigh-Growth,

High-Wage jobs projected for 2004 – 2014

require at least some college

No! Examples:

◦ Air Traffic Controllers earn $117,240 in median annual earnings However, there are only 3 job openings expected

between 2006 – 2016◦ Management positions

Many do not require degrees, rather years of experience can qualify you for the job

Median annual earnings are $82,490 However, 55.4 % of managers have at least a Bachelor’s

degree.

One relative truth is that education does decrease the likelihood of unemployment:

Occupation Education 2006 Median Earnings

Registered Nurse Associate’s degree $57, 280 per year

Retail Sales Person On-the-job training $9.50 per hour

Customer Service Rep. On-the-job training $13.62 per hour

Food Prep. & Service Worker On-the-job training Varies

Office Clerks On-the-job training $23,710 per year

Personal & Home Care Aides On-the-job training $8.54 per hour

Home Health Aides On-the-job training $9.34 per hour

Postsecondary Teachers Doctoral degree $56,120 per year

Janitors & Cleaners On-the-job training $19,930 per year

Bookkeepers, auditors, accounting clerks

On-the-job training $30,560 per year

The answer: It depends◦ Depending on your interests, values, and skill

sets, you may be competitive and happy in the low-skill, low-wage service industry

◦ There are a few industries, however specialized (i.e. “Air Traffic Controllers”) and with relatively few job openings, where you can earn good wages, do meaningful work, and experience positive social relationships.

◦ Trends, however, illustrate the growing number and types of occupations which require at least some postsecondary education

Encourage informed decision-making◦ Explore options◦ Provide resources◦ Create opportunities for reflection

Design curriculum accordingly◦ Preparation for college-level work◦ Preparation for trades, if interested◦ Preparation for transition into work

Promote “soft” skill development Provide real-world experiences when possible

http://www.dol.gov/oasam/programs/history/herman/reports/futurework/report/chapter1/main.htm

http://www.dol.gov/oasam/programs/history/herman/reports/futurework/report/chapter2/main.htm

https://my.usf.edu/bbcswebdav/users/wblank/EVT%206661/Economic%2C%20Demographic%20%26%20Employment%20Trends/Americas%20Dynamic%20Workforce.pdf

http://data.bls.gov/oep/servlet/oep.noeted.servlet.ActionServlet

http://www.careerinfonet.org/finaidadvisor/earnings.aspx?nodeid=21

O’Toole, J. and Lawler, E. (2006). The New American Workplace.New York, NY: Palgrave Macmillan.