Economic Returns & Career Transitions for Students

1. Economic Returns & Career Transitions for Students Tom Schenk Jr. Consultant - Institutional Effectiveness & Accountability IACTE Conference June 28th, 2011

2. The Great Recession led to record high unemployment …so far peaking at 10.1% Bachelor recipients fared better than the population. …so far peaking at 5.1% …compared to 15.7% of high school dropouts

3. National Unemployment Less than high school H.S. graduate Some college Bachelors’ or higher

4. National Income Bachelor’s recipients earn $1,038 per week compared to $646 for those only with a high school degree. Nationally, the average earnings per week was $782 in 2010. There is a clear relationship between education and earnings.

5. Iowa’s Domestic Product only fell 0.2% …but unemployment grew 2%. Iowa’s 6.1% unemployment is relatively low …but some counties have been hit harder …education is still a key difference.

6. Iowa Employment Ratio

7. Iowa Employment Ratio Sometimes workers can become frustrated and “exit the labor market” by stopping their job search. The “employment rate” accounts for this by calculating the percentage of people who are employed, regardless of their labor market status.

8. Local Unemployment

9. Regional Education

10. Regional Education

11. Regional Education

12. Regional Education

13. Median Wages Leavers at first make earn more money as completers finish school. However, upon graduation, completers begin to earn more by 2004—two years after graduation. By 2008, completers’ median wages were $29,592.

14. Associate of Applied Science AAS Recipients earned higher wages than any other group. By 2003, median earnings were $12,433. By 2008, earnings were $37,121—$9,446 higher than wages for leavers. It begins to reflect the career-oriented mission of career and technical education.

15. Wages are a indication of worker productivity. Wages for community college graduates arehigher than wages for leavers. Measuring average wages does not account for the additional cost of education.

16. Net Present Value Net present value calculates the value of completing a community college degree as a single dollar value. It accounts for various types of costs: Tuition costs Opportunity costs Time costs Goal #1

17. RETURNS TO DEGREE $1,994 6 YEARS ALL STUDENTS = $100

18. $41,962 RETURNS TO DEGREE 6 YEARS AAS RECIPIENT ALL STUDENTS = $100

19. $53,578 RETURNS TO DEGREE 6 YEARS STEM AAS RECIPIENT = $100

20. $35,364 RETURNS TO DEGREE 6 YEARS MANUFACTURING STEM = $100

21. $21,860 RETURNS TO DEGREE 6 YEARS HEALTH SCIENCES MANUFACTURING = $100

22. RETURNS TO DEGREE $-13,315 6 YEARS GOVERNMENT HEALTH SCIENCES = $100

23. RETURNS TO DEGREE $-13,315 $-20,702 6 YEARS ARTS & COMMUNICATION GOVERNMENT = $100

24. RETURNS TO DEGREE $-23,407 $-20,702 6 YEARS BUSINESS & ADMINISTRATION ARTS & COMMUNICATION = $100

25. Earnings & Employment

26. There is firm alignment between some majors and industry. Wages are higher for graduates compared to leavers. The net present value for completers is high for some program areas, but negative in other areas.

27. Technical limitations prohibit measuring salaries of out-of-state workers. Some programs are in place due to statutory needs. Wage information is inherently dated.

28. Thank You!

29. Presenter Tom Schenk Jr. Iowa Department of Education (515) 281-3753 tom.schenk@iowa.gov Community Colleges bureau of adult, career, & community college education More information Sources www.educateiowa.gov www.bls.gov/emp/ep_chart_001.htm www.economagic.com The Annual Condition of Iowa’s Community Colleges 2009, Iowa Department of Education Economic Returns & Career Transitions for Iowa Community College Students, Iowa Department of Education and Iowa Workforce Development U.S Census Bureau, 2007-2009 American Community Survey Bureau of Labor Statistics, Current Population Survey