Alignment between Training and Workforce Needs

1. Alignment between Training and Workforce Needs CE Leadership Institute Doubletree Hilton Raleigh, NC March 24, 2014 Jeff Strohl Georgetown University Center on Education and the Workforce

2. College education is just not the end of the line.

3. The real picture is likely one of overlap Nationally, 2/3rds of preparation for Certifications testing occurs in the community colleges. Unknown amounts for customize training also.

4. So what is the issue • Little is known about industry recognized credentials. In fact, use of language is not even consistent. • Certificates are considered to be awards of educational mastery often awarded by colleges. • Certifications are test-based awards provided by private accrediating organizations and reflect mastery of an industry-recognized skill set. These are often needed for licensing and often need reupped. • Used interchangably but they are not the same. • Growth of competency based education might change this

5. We don’t know what we don’t know. • Traditionally, survey data has covered the normal degree hierarchy: Educational certificates being omitted. • Before 1992 data recorded attainment as ‘years of’ which forced assignment of degrees. • Some college no degree is just a mess – there is very little to guide us on whether a person with some college is a: • Drop out (no gain) • Skill builder (successful non-completer) • Certificate holder • Certification holder

6. Shining Light in the Black Box Federal statistical agencies have been conducting working groups to try to sort out credentials with labor market value. Our work demonstrates that certificates make up 1/4th of Title IV awards and something in the order of 60% have ‘market value’. Very new Census data shows 46 million people with a license or industry-recognized test-based certification. Other work demonstrates that among non-completers that those in CTE fields have a significant earnings returns without degrees. (Skills builders or ELMS)

9. Educational hierarchy needs to be rethought The growing body of evidence is that these short(er) term industry credentials are breaking the old model of ‘go-to-school, go-to-work’. In the case of certificates – large numbers of people obtain these while working. Certifications are dynamic by definition – expiration date demands recertification and keeps these current. In both cases, Degree + and multiples is very common place.

10. Industry Certifications Boost Earnings across all degree levels

11. Median earnings for high school certifications holders Certificates tend to reflect occupational segregation by gender.

12. Median earnings for certifications holders with some college Certificates tend to reflect occupational segregation by gender.

13. Median earnings for certifications holders with vocational certificates Certificates tend to reflect occupational segregation by gender.

14. Median earnings for certifications holders with AAs

15. Certificates happen at all ages

16. Certificates happen to all degrees

17. Certificates satisfy a large spectrum of labor market needs

18. Certificates boost earnings .

19. Certificates earnings reflect occupational segregation by gender Certificates tend to reflect occupational segregation by gender.

20. But a lot is about working in field

21. Certificates boost earnings Certificates tend to reflect occupational segregation by gender.

22. Alignment Education and Training

25. Why are we concerned about Alignment? The Education System is not a ‘market’ in the traditional sense. There is an important time lag between enrollment and graduation. Degrees and programs of study are shotguns where employers want laser beams. In the logic of stackable certificates where each ‘stack’ builds on the last and arrives at occupational requirements, industry-recognized credentials - especially when they are a work based strategy of workers to update skill sets – are our system of work based learning. We just are not Germany with in-system education and work alignment.

27. Benefits and Problems with Specific Education Industry recognized credentials can offer standardization that help markets clear by sending trusted signals of competencies. The dull edge of this other wise sharp sword is tracking and lack of responsiveness when markets change. Job churn is an underlying function of the US economy and add overall macro flexibility. Taking occupational transferablityinto account, or building short-term certifications into the mix help workers move with changes in work requirements. Workers benefit by obtaining credentials in terms of portability and storability. An education without a degree might be valued by a first employer but a credential carries over to the next employer.

28. Alignment, Employment ,and Consumer information Alignment is multifaceted: Matching Labor demand is difficult especially when majors are do not have a 1:1 relationship to occupations. Transitionary employment and career latch on confounds alignment Spatial – Arts major in Taos (Los Alamos) and graphics design job in Chicago Time – Student program decision is often made at entry based on current labor market information while they graduate into the labor market 6 years later (average) when employment prospects change. US education system aims to provide mix of general and specific education which provides flexibility (ability to learn on the job) but still pigeon holes a graduate. (Note: new Gallop poll suggests employers rank major low on hiring decision because of this)

29. Alignment, Employment ,and Consumer information On the ground efforts nationwide are evolving significant efforts to use massive data on students and their labor market outcomes to build consumer information that can inform students about where their degree takes them. Wyden-Rubio ‘Right-to-know Before-you-go’ bill is another effort to provide students with better information. The theory is that markets function better with better information. Currently, IMHO, consumer information is not focused enough on labor market information (such and employment projections) and too focused on current period earnings while not focusing on information literacy – how to use the onslaught of data to make better choices.