A mismatch is brewing between the supply of skilled workers in New England and the increasing demand for such workers, according to a new report by the New England Public Policy Center at the Federal Reserve Bank of Boston.

The study by senior economist Alicia Sasser Modestino shows that, over the next 10 years, New England ...]]>

A mismatch is brewing between the supply of skilled workers in New England and the increasing demand for such workers, according to a new report by the New England Public Policy Center at the Federal Reserve Bank of Boston.

The study by senior economist Alicia Sasser Modestino shows that, over the next 10 years, New England will face not only a shortfall in the number of workers it needs to pull the region out of recession, but also a detrimental lack of "middle skill" workers—essentially people with an associate degree or some college less than a bachelor's.

Even in these times of high unemployment, forecasts of labor shortages are becoming more prevalent. New England has long-boasted a highly educated population relative to other parts of the country, but the retirement of baby boomers and net losses in population migration suggest that the demand for skilled workers will increasingly outpace supply. These and other looming demographic shifts threaten to hamper regional recovery efforts.

Modestino argues that the dearth of middle skill workers in New England could also contribute to protracted economic woes. While the wage increases that result from labor shortages might generally incentivize workers to migrate or to seek additional educational training, middle skill workers, more so than other groups, lack the resources necessary to take advantage of increased wage-earning opportunities. Over the next decade, the mixture of workers and skills in New England will grow increasingly disadvantageous. Coupled with worker shortages, this mismatch in the labor market could seriously impede economic growth in the region.

Universities, and especially community colleges, according to Modestino, should focus on degree-completion initiatives, increased financial assistance for students, and greater opportunity for career training and professional collaboration to fill the looming workforce gaps; such areas of focus would produce a “win-win-win” for employers, for the regional economy, and for students themselves.

Recent Posts: Too Many College-Educated Workers or Too Few? (Forum); College Labor Shortages in 2018? Part Deux (Harrington/Sum); The Real Education Crisis: Are 35% of all College Degrees in New England Unnecessary? (Carnevale et al); The Future of the Skilled Labor Force: New England’s Supply of Recent College Graduates, Sasser (pdf)

Trustees of the University of Maine System got an update this week regarding the financial and programmatic health of the state’s seven university campuses and its online and distance-learning initiative called University College.

Last year, projected budget shortfalls to the tune of $42.8 million prompted administrators to reevaluate the management and academic structures of the Maine ...]]>

Trustees of the University of Maine System got an update this week regarding the financial and programmatic health of the state’s seven university campuses and its online and distance-learning initiative called University College.

Last year, projected budget shortfalls to the tune of $42.8 million prompted administrators to reevaluate the management and academic structures of the Maine system. At its November 2009 meeting, the board of trustees endorsed a broad-based plan that sought systemwide financial sustainability by 2013. System chancellor Richard L. Pattenaude discussed the plan on the NEBHE website in June.

At this year’s meeting, trustees were presented with a “newly updated multiyear financial plan” outlining scenarios leading to a balanced budget and sustainability for the system in five years. Officials in the chancellor’s office praised the seven Maine campuses for helping in this effort; institutional leaders this year have identified cost savings totaling about $5 million.

Many of these efficiencies and reductions have cost jobs. The system, in an effort to cut spending, has reduced its total workforce by 6% over the past three years. Facing a $5.9 million shortfall, the University of Maine alone trimmed more than 52 FTE positions, though few of those reductions were outright layoffs.

The elimination of many adjunct faculty positions may have also led to spikes in faculty teaching loads and class sizes, and hampered student access to certain courses, as sections were eliminated. Proposed spring cutbacks reportedly threatened the existence of the French department (among others) at the University of Maine, and trustees this week approved the elimination of two bachelor of science degrees in secondary education at the University of Maine at Fort Kent. Academic programs at Maine campuses, according to Pattenaude, must pass the “12/5 rule”—meaning that any class with fewer than 12 students and any department with fewer than five majors must defend its continued funding.

Some UMaine System priorities are growing, however. For example, distance and online education credit hours increased this year (at annual rates of 8.5% and 27%, respectively) and community college transfers into the system are up 12% over last year.

Related Posts: Lessons from Restructuring the University of Maine System; Good Intentions: Many Mainers Plan to Go to College, but Few Do (pdf); Maine Compact for Higher Education (pdf)

In line with the priorities set forth by the Obama administration and the Lumina Foundation, the Southern Regional Education Board (SREB) released a report outlining the goals and policy initiatives needed to propel the 16 Southern states to 60% postsecondary degree and certificate attainment by the year 2025.

In the preface to No Time to Waste, ...]]>

In line with the priorities set forth by the Obama administration and the Lumina Foundation, the Southern Regional Education Board (SREB) released a report outlining the goals and policy initiatives needed to propel the 16 Southern states to 60% postsecondary degree and certificate attainment by the year 2025.

In the preface to No Time to Waste, SREB President Dave Spence points to the looming gap in America between the need for educated workers and the lagging production rates at the U.S. institutions. “By 2018, the United States will fall far short of the number of new college degrees needed for an emerging economy that increasingly depends on workers with postsecondary education,” Spence wrote.

The report recommends that states develop a clear vision for 60% completion, augment affordability initiatives to allow for increased access to higher education and re-evaluate secondary education outcomes to ensure that high school graduates are ready for postsecondary education and training. No Time to Waste also recommends that states tie budget allocations to the meeting of completion goals. This approach, the report argues, will “hold presidents, chancellors and state higher education agencies responsible” and ultimately enable the effort to be successful.

In addition to highlighting policy priorities for states as they strive for 60% completion, No Time to Waste minces no words in entreating SREB-member states to “make college completion a top priority and create a statewide plan for improvement with detailed goals, roles and responsibilities.”

Over their lifetimes, holders of associate degrees earn almost 25% more than their peers who only completed high school. Bachelor’s degree holders earn around 66% more than those same high school-educated peers, according to Education Pays, the College Board’s compilation of data that emphasizes the personal benefits of pursuing higher education.

College graduates have a much ...]]>

Over their lifetimes, holders of associate degrees earn almost 25% more than their peers who only completed high school. Bachelor’s degree holders earn around 66% more than those same high school-educated peers, according to Education Pays, the College Board’s compilation of data that emphasizes the personal benefits of pursuing higher education.

College graduates have a much lower probability of being unemployed, even in a tough economy. In addition to financial considerations, those with postsecondary degrees are less likely to smoke, to struggle with obesity, or to have children who struggle with obesity.

The last time the College Board published a similar report, in 2007, it came under scrutiny for the assumptions its data were built upon. Education Pays at the time claimed that average college graduates each earned, over their lifetimes, $1 million more than peers who had only completed high school. Assumptions about the average costs associated with college attendance, the increasing number of graduates taking more than four years to complete a bachelor’s degree, and the inclusion of earnings data from those with professional and doctoral degrees, all contributed to inflating that “earnings premium,” critics say.

This year’s report avoids lofty dollar-figure pronouncements, but stands by the assertion that education—in fact, each successive year of education—results in financial and lifestyle benefits. The data also suggest that the earnings gap between the high school- and college-educated continues to widen.

As a matter of context, New England states have seen an increase over the past decade in the percentage of students completing high school and the percentage completing college. Data from the National Center for Education Statistics indicate that, using a three-year average, 88% of New Englanders completed high school in 2007, up from 84% in the year 2000.  Bachelor’s degree completion also rose in New England during that period by about three percentage points, from 28% to 31%.

The University of Massachusetts Amherst will offer formal, three-year bachelors degree programs in selected academic disciplines. Beginning next fall, first-year students seeking majors in Economics, Music and Sociology can elect to travel a shortened route to their diplomas; other programs (e.g. Linguistics, Dance and Spanish) could be added to this pilot program in the future.

UMass ...]]>

The University of Massachusetts Amherst will offer formal, three-year bachelors degree programs in selected academic disciplines. Beginning next fall, first-year students seeking majors in Economics, Music and Sociology can elect to travel a shortened route to their diplomas; other programs (e.g. Linguistics, Dance and Spanish) could be added to this pilot program in the future.

UMass Amherst emphasizes that in order to take advantage of the rigorous three-year option, students should have pursued Advanced Placement (AP) coursework in high school. AP credits, in addition to taking classes during at least one summer session, will make the abbreviated schedule possible.

Officials at UMass extol the financial benefits of such a program; most notably, participating students avoid the costs associated with a fourth year of college. In an era of rapidly increasing tuition and fees, they suggest, the three-year option provides an incentive for motivated students.

Three-year degree programs, however, could limit the student residential experience, study-abroad options, and—because of a requirement for summer school—opportunities to pursue not-for-credit summer internships or summer jobs. Proponents of the initiative focus on graduates’ quick entry into the workplace—a more attractive benefit, perhaps, when the economy is creating jobs.

Several other state university flagship campuses have had discussionsabout formalized three-year programs: the University of Illinois at Urbana-Champaign and the University of Colorado at Boulder, to name two.  The state legislature in Rhode Island passed a bill in 2009 requiring that three-year degree programs be made available. Liberal arts colleges like Bates and Franklin and Marshall and a handful of other institutions like Southern New Hampshire University also offer three-year options.

But not all are sold on the three-year degree phenomenon. Carol Geary Schneider, president of the Association of American Colleges and Universities, told her colleagues in June that “The Three-Year Degree Is No Silver Bullet,” noting: “For the overwhelming majority of American college students, a mere three years of college study might leave them with a piece of paper, but not with a degree that has real value; it would foreclose their opportunity for a truly empowering education.”