SCOTTSDALE, Ariz., Sept. 6, 2016 /PRNewswire/ -- Earn a
university or college diploma and a good job will follow, right?
Not so fast.
A new analysis of federal data finds that students who choose an
industry-aligned, quality postsecondary technical education may
actually go on to earn more, on average, after 10 years than their
peers at some of the nation's liberal arts colleges and two-year
community colleges. Some vocational students are also better
insulated from job losses driven by workforce automation – a
growing factor impacting the labor market.
These are among the key findings gleaned from analysis of U.S.
labor market trends and the U.S. Department of Education's
College Scorecard conducted by consulting firm Wilcap, LLC.
"Preparing our Students for Career Success – What
Parents Should Know[i]," examines U.S. labor market
trends and the College Scorecard to provide insights to
parents and prospective students about how to choose educational
paths that will lead to well-paying jobs.
According to the analysis, a surplus of college-educated workers
has resulted in a mismatch between the skills the education system
is teaching and the needs of employers. It recommends that parents
and students adopt an "occupation-driven" approach to education to
improve post-graduation outcomes.
The study uses earnings of auto-diesel students who went to
Universal Technical Institute as an
example of outcomes for an upskilled occupation in comparison to
earnings for liberal arts students.
Key findings include:
- Students who attended UTI, with programs averaging just over
one year, had 10-year median earnings[ii] that were substantially
greater than the average of students who attended two-year public
community colleges. Earnings of UTI students also were slightly
higher than those who attended the nation's four-year liberal arts
colleges, and were only $6,000 behind
the average of students who attended four-year research
universities;
- A glut of job seekers with college degrees – and an
accompanying shortage of jobs truly requiring a college degree –
has caused stagnation or even downward pressure on incomes for
four-year graduates;
- Complexity and customization of certain products and
manufacturing processes are causing employers to "upskill" certain
vocational jobs, causing a skills shortage for these positions and
making them less vulnerable to automation;
- Labor force automation has eliminated many routine,
task-intensive jobs. But certain middle-education, middle-wage jobs
in the skilled trades – including medical paraprofessionals,
automobile/truck technicians, electricians and plumbers – are safer
from automation;
- Many jobs in the skilled trades that deliver good earnings are
also experiencing the greatest shortage of talent, the so-called
"skills gap" bemoaned by employers.
"Many people still believe that a four-year degree is the only
path to the American Dream but it is no longer true," said
G. Douglas Young, Managing Director
of Wilcap, LLC., and author of Preparing our Students for Career
Success – What Parents Should Know. "By showing recent labor
market trends, this report helps explain why so many college
students—including dropouts— experience tuition debt they cannot
repay, underemployment, and disillusionment. The findings highlight
the importance for parents to consider all alternatives to find
which would be most appropriate for their students."
The key, according to this report, is an "occupation-driven"
approach to education in order to increase students' chances of a
successful career outcome.
"The right postsecondary education is still a necessary
investment for a satisfying career and middle-class income for
students. But, in the new economy, it is no longer sufficient for a
student to simply get a four-year degree and assume a job will
follow. Today, parents have to help their students become
'occupation-driven,'" says Young.
According to the study, adopting an occupation-driven approach
entails:
- Finding the range of occupations that might best fit a
particular student;
- Comparing projected earnings for chosen career paths, costs of
education and graduation rates to determine if the investment in
education will generate a positive return over the long term;
- Understanding the realities of the current and future job
market and careers that are best positioned to survive automation,
offshoring and other emerging threats;
- Getting work experience that can make students aware of the
soft skills required for employment and help to narrow the range of
possible occupations, and;
- Choosing an educational program that equips graduates with
skills that meet the needs of employers.
View the white paper here uti.edu/scorecard.
Download infographics here:
http://uti.mediaroom.com/imagelibrary
About Universal Technical
Institute, Inc.: Headquartered in Scottsdale, Arizona, Universal Technical Institute, Inc. (NYSE: UTI) is
the leading provider of postsecondary education for students
seeking careers as professional automotive, diesel, collision
repair, motorcycle and marine technicians. With more than 200,000
graduates in its 51-year history, UTI offers undergraduate degree
and diploma programs at 12 campus locations across the United States, as well as
manufacturer-specific training programs at dedicated training
centers. Through its campus-based school system, UTI provides
specialized post-secondary education programs under the banner of
several well-known brands, including Universal
Technical Institute (UTI), Motorcycle Mechanics Institute
and Marine Mechanics Institute (MMI) and NASCAR Technical Institute
(NASCAR Tech).
For more information, visit www.uti.edu. Like UTI on
www.facebook.com/UTI or follow UTI on Twitter @UTITweet, @MMITweet
and @NASCARTechUTI.
For information about our graduation rates, the median debt of
students who completed the program and other important information,
visit our website at www.uti.edu/disclosure.
[i] G. Douglas
Young, Wilcap, LLC, Preparing our Students for
Success – What Parents Should Know, August
2016, Phoenix,
Ariz.
[ii] Ten-year median earnings are calculated by
determining the median earnings of former students, who received
federal financial aid and regardless of whether they graduated, at
10 years after entering the school. Earnings are defined in the
College Scorecard as the sum of wages and deferred compensation
from all W-2 forms received for each individual plus
self-employment earnings. The earnings data shown in the College
Scorecard under the Office for Postsecondary Education
Identification (OPEID) number for UTI of Arizona includes UTI campuses in Avondale, Ariz., Rancho, Cucamonga, Calif., and Glendale
Heights, Ill. The OPEID number is assigned by the U.S.
Department of Education to identify schools eligible to participate
in federal student financial assistance programs under Title IV
regulations.
Contact:
|
Carlos
DellaMaddalena
|
|
Universal Technical
Institute, Inc.
|
|
623-445-0943
|
|
cdella@uti.edu
|
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SOURCE Universal Technical
Institute, Inc.