Report: Lack of Vocational and Career Education in California Leads to Severe
Skilled Worker Shortage, Billions in Lost Income
More Than 2 Million Californians Will be Shut Out of Classrooms and Skilled
Jobs, Costing More Than $50 Billion in Personal Income Over the Next Decade
SACRAMENTO, Calif., March 28, 2013 (GLOBE NEWSWIRE) -- California's economy
needs far more workers with advanced vocational and career training than its
colleges and universities can provide, and this skills gap will cost
Californians billions in foregone income, a new report has found.
Over the next decade, 2.45 million Californians will be crowded out of college
programs that lead to career-oriented degrees, diplomas and professional
certificates, the report found. The resulting lack of professional skills will
deny California workers entry into many high-paying jobs and cost them more
than $50 billion in lost personal income.
The report, "Left Out, Left Behind: California's Widening Workforce Training
Gap," indicates that the state's economy is creating good jobs in fields such
as health care and education, but its higher education system cannot produce
nearly enough graduates with the skills to fill them.
Statewide, the demand for a community college education in California already
exceeds capacity by 591,000 full-time students.In half of California's 58
counties, the gap between demand and supply exceeds 40%. In seven other
counties the gap is between 25-40%, and in six more, the gap is between
"This research shows that the skills gap poses a serious threat to the
California economy and that the state needs a serious, comprehensive
response," said Steven Lindauer, National Director, Education & Workforce
Development, Corinthian Colleges, Inc."Private career colleges can help close
this gap by reaching students who would otherwise be left out and left behind
in the new economy. Corinthian plans to be part of the solution."
The report was based on research from Encina Advisors, LLC, a Sacramento-based
economic consultancy, and was released today at the annual conference of the
California Workforce Association, which is composed of the state's local
Workforce Investment Boards. The report was commissioned by Corinthian
Colleges, Inc., which is based in Santa Ana, CA and is one of the largest
higher education organizations in North America. Corinthian's three schools –
Everest, Heald, and WyoTech – enroll more than 88,000 students, including
about 25,000 in California.
According to the report, programs that lead to associate degrees,
certificates, or diplomas, and can be completed in two years or less, are in
particularly short supply.
The study notes that private career colleges, which offer vocational training
and education to non-traditional students, can help close the skills gap in
"Workforce development is a critical policy issue for California and the
nation," said John D. Baker, Interim Director of the California Workforce
Association. "Whereas other nations are choosing to make substantial
investments to skill up their workers, the U.S. appears to be timid in
committing resources, leaving our talent development infrastructure
vulnerable. This report demonstrates the need for policies that provide
opportunities for workers to develop the necessary skills needed to prosper in
a changing economy while supporting the economic competitiveness of
"Left Out, Left Behind" not only documents the magnitude of California's
workforce education skills gap, but also quantifies how much money that gap
will cost individuals, employers, and the state economy. The report found that
people who attend or graduate from college are much more likely to be employed
and earn substantially more than those who did not pursue educational
opportunities beyond high school.
According to the U.S. Department of Labor, last year's unemployment rate among
those with less than a high school diploma was about 12%; among high school
graduates was 8.8%, and among those with associate degree or some college, was
6.6%.Researchers also found that the typical 25- to 34- year-old increases
his or her annual income by $2,272 for each year of college attendance. Those
with an associate degree earn $6,432 more annually.
The "Left Out, Left Behind" report also warned that ignoring the skills gap
will cost California billions of dollars in lost income. According to the
report, "insufficient access to career education translates into foregone
income of thousands of dollars annually for each Californian denied access.
Statewide, over the next decade, the gap will result in a projected loss of
foregone personal income of $52.2 billion. Counties with the largest
demand-supply gap will face potential cumulative personal income losses
ranging from $1.4 billion to $17.1 billion."
"The statistics clearly show that postsecondary education leads to higher
employment and higher take-home pay," states study author Dr. Justin L. Adams,
President and Chief Economist of Encina Advisors, LLC. "So increasing the
opportunities to obtain career-oriented education would benefit not only the
typical Californian, but the state as a whole."
The entire report, "Left Out, Left Behind: California's Widening Workforce
Training Gap" is available at no charge at www.mycareercounts.org.
About Corinthian Colleges
Corinthian is one of the largest post-secondary education companies in North
America. Our mission is to change students' lives. We offer diploma and degree
programs that prepare students for careers in demand or for advancement in
their chosen fields. Our program areas include health care, business, criminal
justice, transportation technology and maintenance, construction trades and
information technology. We have 113 Everest, Heald and WyoTech campuses, and
also offer degrees online. For more information, go to http://www.cci.edu.
CONTACT: Kent Jenkins
Vice President, Public Affairs Communications,
Corinthian Colleges, Inc.
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