Transcript CTE
National Association of State Directors of Career Technical Education Spring Meeting Georgetown University Center on Education and the Workforce April 9, 2009 Figure 1: The Business Cycle: We need to think about acting in a recession as setting the grounds for recovery Jan 80-Jul 80 recession Mar 01-Nov 01 recession 160.5 158.5 158.0 146.7 148.0 144.9 141.9 138.0 Jul 81Nov82 Dec 07present recession Jul 90Nov91 MA Forecast 128.0 119.6 118.0 108.0 98.0 99.4 99.2 88.0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Source: CEW’s Analysis of Macroeconomic Advisers (MA) Long-term Economic Outlook, January 2009 2010 2012 2014 2016 Carnevale, Strohl and Smith, 2009 Figure 2: Those with relatively lower levels of human capital are most negatively affected by recessions Unemployment by Education Level 20.0% Jul 81-Nov 82 Recession Nov 73-Mar75 Recession Mar 01-Nov 01 Recession Jan 80-Jul 80 Recession 16.0% Dec '07-present Recession Jul 90-Mar91 Recession Less than 4 years of High School 12.0% 10.1% 4 or more years of High School, no College 8.0% 5.8% All 4.0% 4.6% 2.9% 4.4% Some college, 1-3 years 4.2% 2.1% 2.9% BA and above 1.3% 0.0% 1970 1972 1974 1976 1978 1980 1982 1984 1986 Source: Bureau of Labor Statistics, Employment Situation (various years) 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Carnevale, Strohl and Smith, 2009 Figure 3: Most current data on unemployment by education level 14 12.6% 12 Less than a high school diploma 10 8.3% 8 7.4% 8.1% High school graduates, no college 7% All 6 4.8% Some college or associate degree 4.7% 4 4.1% 3.8% Bachelor's degree or higher 2 2.1% 0 Feb 08 Oct 08 Nov 08 Source: Bureau of Labor Statistics, Employment Situation (February 2009) Dec 08 Jan 09 Feb 09 Carnevale, Strohl and Smith, 2009 Figure 4: Education Requirements for Stimulus Package Jobs 1,364 36,163 Post doctoral training (0.04%) PhD (1%) First professional degree (1.4%) 50,658 9,633 Post master's certificate (0.3%) 168,494 Master's degree (5%) Post-bachelor's certificate (1.4%) 49,936 Bachelor's degree (19%) 691,095 336,807 Associate degree (9%) 338,514 Some college no degree (9%) Post-secondary certificate (8%) 287,303 High school graduate (34%) 1,258,637 High school dropout (12%) 445,396 3,675,000 Total Source: O*NET Education and Training by Occupation Source: Carnevale, Strohl and Smith’s analysis of O*NET Education and Training data by Occupation Carnevale, Strohl and Smith, 2009 Figure 5: Many of the non-college jobs* in the stimulus package require employer-paid classroom training which is often short and could be satisfied by job preparation and other training 677,201 29% 586,000 25% 251,661 11% 286,609 12% 243,358 10% 146,360 6% 83,433 4% None or short demo Short demo to 1 Month 1-3 months 3-6 months 6-12 months 1-2 years 2-4 years 61,228 3% More than 4 years *Non-college jobs include high school dropouts, high school graduates, post-secondary certificates and some college but no degree. Source: Carnevale, Strohl and Smith’s analysis of O*NET Education and Training data by Occupation Carnevale, Strohl and Smith, 2009 Figure 6: Distribution of Education in Jobs, (1973, 1992, 2007, 2018) Percentage of prime-age (25-54) employment Bachelor's Degree 19% Graduate Degree 7% Bachelor's Degree 9% High School Dropouts 32% High School Dropouts 10% Associate's Degree 8% Some College 12% Graduate Degree 10% Labor force in 1992: 129 million Labor force in 1973: 91 million Some College 19% High School Graduates 40% High School Graduates 34% 1973 Source: March CPS Bachelor's Degree 21% Graduate Degree 11% Source: March CPS Bachelor's Degree 27% High School Dropouts 11% 1992 Graduate Degree 12% High School Dropouts 9% Associate's Degree 10% Labor force in 2007: 154 million Labor force in 2018: 166 million Associate's Degree 12% Some College 17% High School Graduates 24% High School Graduates 30% Some College 16% Source: March CPS 2007 Source: CEW’s Analysis of March CPS data, various years Source: CEW Forecasts of Education Demand 2018 Carnevale, Strohl and Smith, 2009 Figure 7: On average, earnings follow the hierarchy of educational attainment $2004 $120,000 High school graduate Some College Vocational certificate Associate degree Bachelor's degree Master's degree Professional degree Doctoral degree $60,000 $0 TOTAL Source: Survey of Income and Program Participation, 2004 Panel Men Women Carnevale, Strohl and Smith, 2009 Figure 8: But earnings also depend on field of study 50% 42% of AAs earn less than a Licenses and Certificates 43% of Licenses and Certificates earn more than an AA 27% of License and Certificates earn more than an BA 25% 31% of AAs earn more than a BA 23% of BAs earn less than Licenses and Certificates 25% of BAs earn less than an AA degree 0% Licenses and Certificates versus AA Licenses and Certificates versus BA AA degrees versus BA Source: National Educational Longitudinal Study, 2000 AA degrees versus Licenses and Certificates BA degrees versus Licenses and Certificates BA degrees versus AAs Carnevale, Strohl and Smith, 2009 Figure 9: Sometimes Certificates are more valuable than AAs or even BAs a Certificate in Engineering earns more than an AA in the Liberal Arts, Education and Social and Natural Sciences and more than a BA in Education 120,000 Vocational Certificate* Associate degree Bachelor's degree Master's degree Earnings of Engineering Certificate 2004$ 80,000 46,596 40,000 0 TOTAL Business Computers Engineering Liberal arts Source: Survey of Income and Program Participation, 2004 Panel Social science Natural science Education Other Degree Type Carnevale, Strohl and Smith, 2009 $0 Source: March CPS data, 2007 Legal Occupations Transportation and Material Moving Occupations Production Occupations Education, Training and Library Occupations Heathcare Support Occupations Sales and Related Occupations Community and Social Services Occupations Personal Care and Service Occupations Business and Related Occupations Office and Administrative Support Occupations Healthcare Practitioners and Technical Occupations Installation, Maintenance and Repair Occupations Food Preparation and Serving Related Occupations Building and Grounds Cleaning and Maintenance Occupations Management Occupations Arts, Design, Entertainment, Sports and Media Occupations Farming, Fishing and Forestry Occupations Construction and Extraction Occupations Protective Services Occupations Computers and Mathematics Occupations Life, Physical and Social Sciences Occupations Architecture and Engineering Occupations Figure 10: Even when one receives an AA degree, there is wide variation in the earnings $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Carnevale, Strohl and Smith, 2009