How Colleges are Beating Skilled Trades in a Highly Competitive Labor Market

How Colleges are Beating Skilled Trades in a Highly Competitive Labor Market. Some surprising numbers!

There is significant competition when it comes to attracting the next generation into skilled trades. A major competitor for young talent is the college system in America, and much of it is publicly funded. Colleges have out-maneuvered skilled trades, and if things don’t change, America is in trouble. 

In this post, SkilledTradeRescue.com (STR) explores how large a competitor colleges are, as measured in market capitalization. Interestingly, these numbers are harder to find than one would think.

We also wanted to take a look at college dropout rates vs. skilled trade workers who started in the trades only to move to other professions.

1) First, let’s look at the approximate gross revenue colleges in America take in each year, and here is what we came to:

Estimating the total gross revenue spent by students on college education in the USA for the 2020-2021 academic year would require more detailed data on the number of enrolled students and their expenses. However, based on the figures provided by the College Board, we can make some rough estimates:

• There were approximately 19.7 million students enrolled in college in the USA in the fall of 2020 (according to the National Center for Education Statistics).

• If we assume that half of these students attended public four-year institutions and half attended private nonprofit four-year institutions, we can estimate that the average cost of attendance for a student in fall 2020 was around $38,865 ($30,090 for public in-state students + $46,680 for private nonprofit students, divided by 2).

• Multiplying this estimated cost of attendance by the number of enrolled students, we get a rough estimate of the total gross revenue spent by students on college education in the USA for the 2020-2021 academic year: $38,865 * 19.7 million students = approximately $765 billion.

2) Next, let’s look at college dropout rates based on the best data STR could collect:

The college dropout rate in the USA can vary depending on factors such as the type of college, program of study, student demographics, and economic conditions. Here are some statistics on college dropout rates in the USA:

• According to data from the National Student Clearinghouse Research Center, the six-year completion rate for bachelor’s degree programs among first-time students who began college in fall 2014 was 62.7% for public institutions, 67.4% for private nonprofit institutions, and 25.8% for private for-profit institutions. This means that the college dropout rate among these students was around 37.3% for public institutions, 32.6% for private nonprofit institutions, and 74.2% for private for-profit institutions.

• A National Center for Education Statistics (NCES) report found that the overall six-year completion rate for bachelor’s degree programs among first-time, full-time undergraduate students who began college in the fall of 2013 was 60.9%.

• The NCES report also found that the overall six-year completion rate for associate’s degree programs among first-time, full-time undergraduate students who began college in the fall of 2016 was 28.1%.

• A report by the Lumina Foundation found that the six-year completion rate for bachelor’s degree programs among first-time, full-time undergraduate students who began college in the fall of 2012 was 55.5%, while the eight-year completion rate was 63.2%.

Overall, these statistics suggest that a significant percentage of college students in the USA do not complete their degree programs within the expected time frame, and many still need to complete them. However, it’s important to note that these statistics do not capture the experiences of all college students, as they focus only on first-time, full-time undergraduates and do not account for part-time students, transfer students, or nontraditional students.

The college dropout rate in the USA can occur at any point during a student’s academic journey, from their first year to their last. However, some studies have found that most college dropouts occur in the first two years. For example, according to data from the National Student Clearinghouse Research Center, approximately 34% of students who dropped out of college in 2018 did so after their first year, and another 21% dropped out after their second year. Additionally, a report by Complete College America found that only 36% of full-time students who entered college in 2010 graduated within four years, while 61% of part-time students and 24% of students who transferred to a different institution completed their degree programs within six years. These statistics suggest that many college students need help to complete their degree programs promptly and may drop out or take longer than expected to finish.

3) Lastly, how many Americans participating in Skilled Trades drop out to work in other NON-Skilled Trade sectors of the economy?:

It is difficult to provide an exact dropout rate for people who enter skilled trades, as there is no comprehensive database or registry of skilled tradespeople. However, compared to traditional four-year college programs, apprenticeship programs, and vocational training programs have a lower dropout rate. According to the U.S. Department of Labor, the completion rate for apprenticeship programs is over 90%. Additionally, vocational training programs often have high completion rates as they are often designed to provide targeted skills training and job placement.

It’s also important to note that skilled trades provide an alternative pathway to career success and often offer opportunities for high-paying jobs without the need for a traditional four-year degree. For those who enter skilled trades, completing a certification or apprenticeship program is often necessary to become licensed or certified in their field, so there is a strong incentive to complete the training. Additionally, many skilled trades have a strong demand for workers, which can provide job security and stability for those who complete the training. While dropout rates may vary depending on the specific trade and program, completion rates for skilled trades tend to be higher than for traditional four-year college programs.

Take always from this data:

1) College is a BIG BUSINESS. 

*2) Colleges are winning the battle since most teens graduating high school end up in college. In addition to colleges being WELL organized and integrated into the public school systems, data provided to parents by both public and private high schools on skilled trades waged data vs. degree wage data is largely incorrect. STR has discovered wage data provided to parents about skilled trade wages are as much as 50% LOW in many USA labor markets. See below for more information on this.

3. Many college students do not graduate within the typical time frame and never return, leaving the colleges with collected tuition revenue and parents and students with debt. Comparatively, skilled trades tend to have fewer workers leaving the market. 

*SkilledTradeRescue.com (STR) is currently attempting to reach the Bureau of Labor Statistics (BLS) officials to clarify skilled trade labor reporting. STR’s preliminary research indicates that wage data is significantly lower than reality in many major US labor markets. As of this post, STR has made several attempts to contact officials at BLS and has yet to receive a response. More data on this two come. 

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