According to a study by Georgetown University, the US needs to produce 20 million additional skilled workers by 2025, which seems far in the future, but is only a dozen years from now, so it will pass in the blink of an eye, and in most cases those workers will take 4-5+ years in college before they enter the workforce, so the timeframe is actually compressed quite a bit.
We are currently on track to produce only 8 million, so according to the study we need to add an additional 12 million to the pipeline – a 150% increase, which when looked at that way seems almost preposterous, but we need to at least try, and maybe we can only get 1/2 or 1/3 of the way there, but that will be better than nothing.
When it comes to educating for the future, American is falling behind in a significant way, and things have been getting progressively worse for the past 30+ years.
When you really inspect the data in a study released by Georgetown University, it is quite a scary prospect for the future.
The report found that the US has been underproducing College educated workers since 1980 and demand has been significantly outpacing supply. If we as a nation don’t take a serious look at what has been going on and make some significant improvements and invest in the future of our country, we will continue the downward spiral.
Adding those workers is absolutely critical to the future prosperity of the US and our economy.
… adding these workers will boost GDP by $500 billion, add over $100 billion in additional tax revenues, and stop and begin to reverse the growth of income inequality. Many of these additional graduates could come from the half a million students per year who graduate in the top half of their high school class but do not go on to college.
The problem is not just economic. According to co-author Stephen J. Rose, a senior economist at the Center, “As a result of our failure to keep up with the demand for college-educated workers, we have lost our number one global position in college graduates and become the number one industrialized nation in income inequality.”
Should we do nothing, the report finds, income inequality will only get worse. The disparity between the wages of college-educated workers and high school-educated workers will jump from 74% to 96% if we do nothing. If we add 20 million postsecondary-educated workers, wages for all groups will rise—wages for those with a high school diploma will rise 24%, wages for those with an Associate’s degree will rise by 15%, and wages for Bachelor’s educated workers will rise by 6%.
Adding 20 million college-educated workers would mean that we would reach the President’s goal of being number one in the world in terms of degree attainment among the workforce. By 2025, 60% of American youth would have an Associate’s or a Bachelor’s degree, making the United States first in terms of degree attainment world-wide.
If you thought that America had outsourced a lot of jobs in the past couple of decades, that could have been the tip of the iceberg.
Those jobs were frequently, lower wage jobs that were outsourced because of cheaper labor abroad, but the new crop of jobs that could be lost and outsourced are high skill jobs and their loss will be due to a serious lack in our education system.
Educated workers are more productive, earn more, and pay more taxes.
If you are asking yourself how that will cause the income gap to increase, that involves the simple economics of supply and demand.
If qualified workers are in short supply relative to employer demand for them, the rational response on the part of employers is to bid up wages for the workers they want—in this case, college educated workers.
One of the things that we need to be careful about it making sure that we are producing the right kind of educated workers.
We need to be careful that the education matches up with the demand for jobs. Too many degrees in liberal arts and history and not enough in business and technology won’t fix the problem, and may actually exacerbated it giving the illusion that we are fixing it, because the number of graduates in inching up toward the 20 million mark, but yet there will still be a supply and demand issue, because the supply of educated workers isn’t matching up with the skills demand.
You can access the full report by Georgetown University as well as an executive summary and brief video here.
Do you agree we need to make some changes? Are we doomed, or can we dig out?
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Have A Prosperous Day!